Lihirians urged to invest

Business, Normal

The National, Tuesday June 18th, 2013


WITH a K40 million lending facility, Lihirians should invest in small business activities, Lihir Mining Area Landowners Association (LMALA) chairman Peter Suar says.

He said this in Port Moresby last week after the LMALA and the Kina Group of Companies signed a loan and investment deal to spur business activities in the region.

Suar said: “The decision to sign the loan and investment agreement with Kina lwould enable landowners to participate in any business activities on the island (Lihir). 

“At the moment … there is no project or business activity that the millions of kina sitting at the BSP branch could fund.

“The decision to invest is drawn from the LMALA plan — to mobilise landowner funds in the form of royalties, compensation and others.”

Suar said the 5,000 landowners under LMALA have each contributed 20% from royalties they received towards the LMALA mobilisation funds.

“From landowner contributions, K40 million from this mobilisation fund would be invested so Lihirians could benefit from their money … there is no maximum limit to the amount they may borrow.

“However, they would need to undergo training to get equipped with entrepreneurial skills

Kina chief executive officer Syd Yates said: “The partnership between LMALA and Kina is a good model for achieving future financial goals.

“At Kina, we have K4 billion in funds under management … the relationship between LMALA and Kina is a K40 million lending facility, which landowners could avail of.

Yates said the Kina Finance Ltd would facilitate loans to the Lihirians while Kina Funds Management (KFM) would invest LMALA’s funds to grow the wealth of all Lihirians. 

It is hoped that the leverage system would enable Lihirians to take advantage of both mine-related and non-mine related business opportunities. 

The target funds under management are expected to be subscribed by the end of 2013.