Landowners assured of benefits

LANDOWNERS of the Simberi gold mine in New Ireland should not worry about missing out on any benefits, according to Mineral Resources Authority (MRA).
Managing director Jerry Garry, when responding to concerns raised by the Simberi Mining Area Association (SMMA) about mining lease extension and related grievances, said through the memorandum of agreement (MoA) process, if there were any increase on gold production, the proportion allocated to them would also go up.
“They should not worry about missing out on any benefits because (through) the MoA process, if there’s more gold produced or if the gold price goes up, the revenue stream through what we call the royalty payment will be the same,” he said.
“The ratio or the proportion allocated to them is there, and any production increase will mean they will get more royalties.
“All these benefits are already locked in, they are not going to miss out on anything.”
While commenting on the mining lease extension, Garry said the plan was to convert from oxide ore to sulphide ore treatment without significant material change in the metal output.
Meanwhile, SMMA president Melchie Penge said that they had rejected a warden’s hearing in 2013 as they wanted to review the draft MoA first. Garry, however, said the warden hearing was heard and discussions on the revised MoA had been ongoing.
“If they have disputes amongst the landowners, or in any way they prolong the process, the mine would continue to operate,” he said.
“They have to leave the in-house political infighting for the landowner executives aside, get the MoA signed so the money can flow to them.
“It will be very difficult to negotiate new rates and new benefit streams for them.
“When the provincial governments also step in and delay the process, it just add to the disadvantages and list of hindrance to the process.
“While we respect the landowners from the smaller mines, we have to also prioritise the major projects that are going to bring bigger revenues to the country.”