Ramu NiCo: All royalties paid

Royalties owed to the Madang government and other stakeholders in the Ramu Nickel project have been paid in full, the Ramu NiCo management says.
The company said there were no outstanding payments as claimed by Governor Peter Yama.
“The first royalty, cumulative from Dec 2013 to June 2017 was K25,537,210.13,” the mine’s management said following Yama’s claim that no royalties had been paid and the company would be sued.
“Madang provincial government received eight per cent of this amount which is K2,042,978.81.
“The Madang government received K666,680 in the second royalty payment for the period from July-Dec 2017.
“A total of K2,709,659.69 has been paid to the Madang government into its BSP operating account (No: 1000 1006 49).”
Ramu Nico documents show that K1,309,966.96 for the Madang government from the third royalty payment for the year 2018 was with the company.
This followed an agreement with the parties in 2011, where Ramu NiCo would assist Madang in maintaining and managing the operation of public utilities at the mine relocation village and later deduct the cost from MPG royalty entitlements.
“A letter was sent to the Madang government on July 26 regarding this subject with follow up attempts but we have received no response from the Madang government yet,” the company said.
“Once they respond then we are actually paying a total of K4, 019,626.65 in total as part of the 8 per cent component of entitlements to date to the Madang provincial government.”
The company said all LLGs in Madang had received their royalty entitlements (23 per cent) including a first payment of K5,873,558.33 followed by a second payment of K1,916,707.54, and a third payment for 2018 of K3,766,155.02.
“Except for Bundi LLG, Usino LLG, Gama LLG, Astrolabe Bay LLG and Saidor LLG, who received their royalty entitlement directly, other LLGs have their royalty paid to the Madang provincial government’s operating account as outlined in the revised project MOA.
“If they have not received their royalty component then they must ask the provincial government,” the company said.
Ramu Nico said its stakeholders entitled to royalty components under the project MOA had received all their entitlements, including the landowners and no one had been left out.
“From the three royalty payments so far, we have paid K50,245,308.24 to the project landowners to date.”
The company now has funds in its account to be paid into the Future Generation Trust Fund for Kurumbukari Landowners, Basamuk Landowners, Inland Pipeline Landowners and Basamuk Landowners.
“We have the money. We have written several times to Mineral Resources Authority (MRA) to liaise with the Treasury department by law and procedure to create the trust fund account and give us the account details so we can deposit the money.
“MRA and Treasury are the responsible statutory bodies.
“We have followed up but no response has been given.
“Madang provincial government can assist us and follow up to sort out the Trust Fund issue,” the company said.
The company said royalties were only paid after the sale of the nickel and cobalt.
“The project started its first commercial shipment on November 2013.
“Because of the low nickel-cobalt grade including lower commodity prices, Ramu Nico was unable to pay royalty on a monthly basis as per the Mining Act.
“Hence it was agreed through the Ramu Nickel Project Royalty Policy approved by the state that the project’s royalty can be paid on an annual basis.”