PNG missing out, says MP

THE country is missing out on potential revenue from the recent spike in global gold price because of the closure of the Porgera mine, says Opposition leader Belden Namah.
Gold recently traded at US$1,893 (K6,474) per troy ounce and market analysts predict it may go up further and maintained because of the impact of the Covid-19 pandemic.
Namah blamed the Government for “this loss of revenue” because of its refusal to extend the special mining lease for the operator Barrick Niugini Ltd after it expired last year.
The company is challenging the Government’s decision in court.
“In addition to the loss in potential revenue for the mine from the surge in gold price, the nation is missing out on hundreds of millions of kina in taxation,” Namah said.
“The Enga provincial government is (also) losing tens of millions of kina in contribution from the mine.”
He said the Porgera mine community was also missing out on business activities and amenities such as electricity, transport and health services.
“Around 2,650 employees may be laid off work at the end of July if the mine does not reopen quickly and scores of contractors who depend on the mine are now without business,” he said.