Madang govt outlines plan for royalties, shares

Momase, Normal

The National, Thursday 9th May 2013


THE Madang provincial government has outlined a 20-point plan “after a long consultation with many experts”.

Governor Jim Kas said the ideas came up after a review of the original 2000 memorandum of agreement.

It includes: 

l External independent parties to conduct and complete the MoA review process as is currently done by Tanorama Consultants;

l To include Gama LLG as party to the MoA;

l A 3% share of the 20% royalty paid to the provincial government to be redirected to landowners of easements via various landowning groups;

l Provincial government to pursue its 2.5% equity as recently stipulated by law;

l A submission to the national government and the developer Ramu Nico MCC Ltd, to restore the 2% rate applied for royalties from the current 1.25%;

l Calculation of special support grants to be lifted to 1% from the current 0.25%;

l In the event that equity is not given in the project the MPG will seek an increase of rate calculating royalties and SSG’s to 5%;

l The establishment of the Ramu Nickel Foundation as a vehicle for maximum benefit to landowners located at the provincial headquarters;

l A provincial environments policy; 

l Committees such as business development, environment, training and localisation to be properly constituted and established;

l Call for the special lands titles commission to be expedited with a declaration made soon;

l Special economic development projects committed by the provincial government have been endorsed with funding from internal and external donors forthcoming; and

l All tax benefits from the provincial government to be collected.

The provincial government delegation agreed on the need for a mine closure and decommissioning plan to be formulated immediately.