K2bil set for landowners

A TOTAL of K2 billion in compensation and relocation benefits is projected to be paid directly to the landowners of the Lihir Gold mine by Newcrest Lihir Gold Mining Ltd (LGL) over the next 20 years.
This projection was announced by the independent chairman of compensation and relocation agreement (CRA) negotiations, Sir Paul Songo last week on Lihir, during the final week of the negotiations.
The CRA negotiations had been happening since 2017 between LGL, the eight tenements landowner groups, five relocated villages, Nimamar local level government and Lihir Catholic and United churches.
Sir Paul said the K2 billion projection was based on base figures agreed to in principle between the miner and 15 parties except the Nimamar LLG which was yet to agree on certain terms of the offer from LGL.
He said the amount comprised appropriations for immediate and long-term benefit flows including cash, development and investment funds.
These benefits would be paid as compensation for the use of resources such as water, land and relocation of villages amongst others.
The draft agreements would be delivered to the chief mining warden of the Mineral Resources Authority (MRA) for verification against the Mining Act 1992.
Upon successful verification, the LGL and the 15 parties would officially sign the agreements, followed by the payments of the benefits.
The CRA was formerly known as the “integrated benefits package” (IBP) which was initially negotiated in 1995, and reviewed over the years.
The landowners raised issues about the IBP arrangements saying benefits were not trickling down to them through their landowner association– the Lihir Mine Area Landowners Association (LMALA).
This resulted in the landowners calling for compensation and relocation benefits to be paid directly to them by the company instead of the payments being made through the LMALA.