MRA opens account for Sinivit locals

THE Mineral Resources Authority is in the process of setting up a trust vehicle for landowners of the Sinivit mine, East New Britain province, to hold their royalty payments.
Phillip Samar of MRA said last week that under the existing memorandum of agreement between the state, Canadian miner, New Guinea Gold, ENB provincial government and MRA, 50% of royalties were held in trust, while the other half was distributed to landowner groups.
He said they were seeking approval from the Finance Department and expected to have it completed this month.
Samar said three years of royalty payments totalling K1.4 million that had been released to MRA late last year by NGG, had been paid to landowners.
“Of this amount, K700,000 was distributed to landowners, while the remaining is to be held in a trust account, which we have successfully advanced progress into setting up,” he said.
The authority held back royalty payments late last year because landowner factions were under a court order to organise themselves. That has now been done.
However as one of the landowners’ demands to NGG, they wanted justification of why K1.4 million was paid out when they were told in the first quarterly review in 2011 that they would be receiving about K3 million.
Samar said the MoA would be reviewed in August.
A team from MRA is expected to be in the province over the weekend to talk to locals, NGG and the provincial administration.