Newcrest eyes proper way to solve conflict with landowners

The National Business

OPERATOR of Lihir gold mine, Newcrest says its approach to resolving legitimate landowner concerns is through respectful dialogue, not by responding to threats.
Newcrest, in a statement, said following threats from Kunaye Airport landowners of shutting down the airport on Lihir island, New Ireland, against Newcrest’s response to their call for compensation under the Mining Act (1995).
The landowners, in a notice to Newcrest management, threatened to shut down the airport this week.
“We want Newcrest to review the integrated benefits package (IBP) agreement, forming the basis of all compensation to resource owners,” Kunaye Airport Landowners’ chairman Joseph Kuroh said.
Kuroh said the IBP was the original compensation agreement entered into with the developer when mining began on the island in 1995.
It was reviewed in 2007 and fell through in 2012 following disagreements with the then developer Lihir Gold Ltd.
Kuroh said no compensation package was framed for Kunaye Airport landowners since 1995 although they were directly affected by the mine’s operations.
“For more than 20 years, we have remained calm but cannot be mere spectators any longer.”
In their letter, the landowners also disputed the compensation relocation agreement (CRA) process currently under way and, instead, called for IBP 2007 to be reviewed.
They also demanded that outgoing Newcrest Lihir executive general manager Craig Jetson be removed from Lihir and not to be involved in the compensation agreements review process.
The resource owners’ other demands included:

  • Newcrest restarting a review of the IBP 2007 (citing a Mining Minister’s directive of July 7, 2019); and,
  • The release of 2016, 2017, 2018 and 2019 Kunaye Airport funds within seven working days.

Newcrest told The National said they had acquired the Lihir operation in August 2010, and since that time had worked closely with community stakeholders to build stronger and more collaborative relationships.
“Newcrest is currently engaging with various individuals and groups as part of the Lihir Agreements Review,” the miner said.
“The communications from this particular group appear to be motivated in this context.
“Since 2010, Newcrest has paid royalties totaling over K500 million, and in financial year 2019 over K82 million to the landowners and the New Ireland government through current agreements.”
The miner said in addition, it funded the Lihir medical centre which had over 50,000 consultations a year and cost an estimated K21 million to run annually; it has invested K7.2 billion on capital investment since the acquisition of the mine in 2010.
The statement also stated Newcrest’s contributions to the national economy in 2019 which included K810 million paid to Papua New Guinean suppliers for operating costs, K228 million in salaries and wages for employees and K143 million in total tax contribution to the State.