Ramu NiCo application pending

By CLARISSA MOI
RAMU NiCo Management (MCC) has applied for variation for an approved work programme at Ramu nickel mine, Mineral Resource Authority managing director Jerry Garry says.
He said that application was because the mine wanted to double its production this year.
Garry said the application was now with the MRA but there were so many defects, so the company was asked for more information.
He said that process would be completed when the company submitted its 10-year tax assessment.
“As part of that process, it will also trigger the negotiations for the mining development contract,” he said.
“Assessments already began last year.
“The ball is in their court.
“As soon as we get the information from them, we will then complete the process.”
Garry said MCC still had five years before the tax holiday expired.
However, principal attorney for Madang provincial government Ben Lomai, said yesterday that
the tax holiday or concession should only be given based on production and not on the number of years.
Lomai said with the tax concession on Ramu, they would look at reviewing that agreement with new terms and conditions based on the 10-year tax concession.
Meanwhile, Bank of PNG Governor Loi Bakani, in its monetary policy statement released this week, said tax concessions granted to developers of major projects in the country had resulted in lower forex and tax revenue to the Government.
Bakani said the current policies in relation to the extractive industries gave a lot of tax concessions to project partners for the development of major projects.
He said Bank of PNG supported the Government’s medium-term revenue strategy from 2018-2022 to review tax concessions.