Landowners query NGG over dividends

LANDOWNERS of Sinivit mine in East New Britain have been told to seek answers from New Guinea Gold (NGG) as to why they had not been receiving dividends despite owning 25% of the mine.
Philip Samar, newly-appointed managing director of Mineral Resources Authority, told landowners last Saturday that the shareholding arrangement was signed between them and Gold Mines of New Guinea (GMN), which is a junior partner with NGG operating the Sinivit mine.
The landowners, through their investment vehicle Uramot Company Ltd, had entered into an agreement with GMN some years back with respect to a 25% free carried equity in the Sinivit project.
The landowners have since received no direct income from their 25% equity under the agreement.
GMN is currently the junior partner in the joint venture developing Sinivit mine.
“You, landowners own 25% of a company called Gold Mines of New Guinea and you need to talk to your company and seek answers from your company as to why you have not been receiving dividends as per your agreement,” Samar said.
“The government can only assist to facilitate between you and your company but cannot be involved directly given that we are not shareholders.”
Mining Minister Byron Chan said he would direct Gold Mines of New Guinea and its partner NGG to meet with the landowners and resolve the issue.
Chan and MRA officials were in Kokopo on Saturday to meet with the landowners to discuss issues affecting them.
He also told landowners the government was preparing documentation to set up a trust deed for future generations of the landowners.
Chan said the draft of the document was circulated to other relevant government agencies for comments.
He said once relevant agencies had commented, landowners would be given copies for their input, and when everybody was happy, the trust deed would be used to facilitate the transfer of the 50% royalty payment into the trust account.
Chan said under the Sinivit mine memorandum of agreement (MoA), 50% of royalties would be paid out as cash while the other 50% would be parked in a trust account for future generations.
He confirmed operator New Guinea Gold (NGG) had released a total of K1.4 million, of which 50% (K700,000) was paid in cash to landowners recently.
The other K700,000 is currently held by the MRA, and would be transferred to the Uramot Royalty Investment Trust Fund once it is fully established.
Chan was responding to landowners who wanted information regarding royalty payments from their resources.