NGG angry for not attending meeting

By BOSORINA ROBBY
NEW Guinea Gold, operator of the Sinivit Gold mine in East New Britain is disappointed that it was  not present during last weekend’s meeting between Mining Minister Byron Chan, the Mineral Resources Authority and the landowners.
Acting chief executive officer Greg Heaney said landowners did not have shares in NGG and clarified that they would only be paying dividends to all shareholders.
He said the landowners held their interest through Gold Mines of New Guinea Holdings Ltd (GMNGH), which was a different company.
It is not part of NGG.
“GMNGH has a carried interest in the mine, and so it actually owes NGG a significant amount of money which would be repaid from profits if and when the mine generates sufficient positive cash flows,” Heaney said.
“Once that loan is repaid, GMNGH would then be entitled to receive its share of profits from the mine but it would be up to that company to pay dividends to its shareholders.
“I reiterate that no dividends have ever been paid to any investors in NGG.
“We are not holding any moneys owed to landowners.”
Heaney said reductions in royalty payments should be expected by landowners, resulting from operational disruptions earlier this year when they shut the mine down.
He said this had resulted in the company falling behind schedule.
Heaney said all royalties had been paid in full to the MRA, which was responsible for distribution.
“It is my understanding that MRA has already paid all royalties owing to the landowners, as well as providing them with fully audited reconciliations of the amounts paid and owing,” he said.
“On the issue of environment, the mine has already been subjected to two full independent environmental audits (conducted in 2009/2011) by the MRA and the Environment and Conservation Department and there were no adverse findings reported.
“But we welcome any further investigations.
“As to our community assistance, the mine is not required to contribute, nor is the project of a size to support major infrastructure projects.
“We have been talking with the provincial government to discuss ways we can help and so far, through our own initiative, we have constructed and operated the Rieit village aid post, with a nurse working twice-a-week.
“We have also donated a walkabout sawmill to the Uramot Company for commercial use, given water tanks to the community school, assisted in agricultural extension projects such as eggs, pigs and vegetables farming.
“The company also hires heavy equipment from landowner businesses.”
Heaney said although NGG had been assured of a renewal of its licence, it was still waiting for Chan to sign it.