PJV: K4.3bil spent in many benefits since 1990

Business, Normal

The National, Thursday 10th November 2011

PORGERA Joint Venture paid out a total of K4.277 billion in various benefits to the national and local economy since its first gold pour in 1990 and helped keep the economy afloat soon after Bougainville mine was forced to shut down in 1989 by rebels.
PJV’s gold and silver production also accounted for 12.7% of PNG’s total exports over the life of the mine.
It was expected to cease operations in 2020.
The national government had been the biggest beneficiary with a total of K2.13 billion in taxes and duties out of the K4.27 billion paid into the economy to date.
Other benefits from PJV to December last year had seen K315 million paid in royalties and K185 million in compensation to the locals.
Under the tax credit scheme, PJV implemented a total of 549 projects at the cost of K182 million and a further K26 million for the Highlands Highway.
The tax credit scheme was tax deducted from the company’s annual profit.
Infrastructure development projects in the community totalled K4 million, while K849 million was spent on business development contracts broken down as follows: Porgera ­- K456 million; Enga – K367 million; and PNG – K612 million.
Porgera Mine also had a social responsibility towards its people by financing major social programmes.
These include adult literacy where 50 schools served 5,000 participants and combating HIV/AIDS.