K374mil royalty paid

 LIHIR Gold Ltd has paid K374 million in royalty payments between 2006 and 2015.

A statement released by the mine’s operator, Newcrest, said all royalty payments went to the New Ireland provincial government (NIPG), Nimamar local level government (NLLG) and special mining lease (SML) block as stated in a memorandum of agreement signed in 1995 by appropriate parties including the National Government.

“Since 1996, in the case of Lihir Gold operations, the National Government has agreed under a memorandum of agreement signed with the New Ireland provincial government, the NLLG and the SML landowners that this two per cent royalty should be paid directly to the NIPG, NLLG and the SML landowners,” the statement said.

It stated that the royalties were distributed with NIPG receiving 50 per cent, NILLG 30 per cent and the SML block executive 20 per cent. 

Meanwhile, since 2006, the total gross value of 30 per cent royalty paid to NLLG was more than K112 million, where 30 per cent portion paid to NLLG should be split into two smaller portions, as follows:

• 20 paid to NLLG for social projects and programmes, which to date was nearly K75 million; and
• 10 per cent paid to NLLG for longer terms investments, which to date was more than K37 million