Porgera landowners supports call for new mining lease

Business

ENGA Governor Sir Peter Ipatas says the 24 Special Mining Lease (SML) landowners of the Porgera mine are supporting the provincial government’s call for a new mining lease under a new mining development contract.
The mines SML lease expires in August.
“The provincial government held meetings and consultations with the leaders of the different SML groups to seek their views and concerns in light of the impending end of the 30-year lease for the mine,” he said.
“(We) agreed that the end of the SML means that the ownership rights of the land and the minerals revert back to the landowners and State.
“And as such, it provides a great opportunity for us to take greater ownership in the development and exploitation of our natural resources.”
One of the issues raised was that the mine operating in Porgera for the past 30 years was not the mine approved under the MDC (Mining Development Contract) and Special Mining Lease approved and issued in 1989.
“The original mine plans approved in 1987 and based on which the MDC, Special Mining Lease and memorandum of agreements were signed in 1989 was for an average mine that would process around 8,000 tonnes of ore a day for a mine that would last less than 20 years,” Sir Peter said.
“All environmental, social and economic models and plans for the mine were structured around the assumption of this mine development plan.
“However major amendments to the plan were done in 1994 when the mine plan was expanded from the original 8,000 tonnes of ore a day to a new mine that processed 17,000 tonnes of ore a day that has lasted 30 years with potentially another 20 to 50 years of mining remaining.”