SMEs lost K142mil: Chamber

Business

SMALL businesses in Porgera, Enga, have lost about K142 million since the Porgera Mine closed last April, the Porgera chamber of commerce and industry Inc says.
Chamber president Nickson Pakea said an economic impact survey was conducted by the chamber in Porgera, Laiagam and Enga to measure the impact of the mine’s closure on the local economy.
The survey covered 488 small-to-medium enterprises (SMEs) which started in May last year to Aprail this year.
“The findings revealed that in the 14 months, local SMEs lost K142 million,” Pakea said.
“There is a huge economic fluctuation in the valley – no cash flow, businesses struggling, social issues increasing and people facing economic crisis.
“The micro, small and medium enterprises (MSME) owners in the valley have been denied capital from the banks, some are unable to service their business debts, loan and tax payments.
“The employees have been laid off by the contractors, sales performance is poor for store operators and their customer service is decreasing.”
He said prior to the shutting of the mine, there had never been any plan and emergency relief stimulus package from the Government.
“The local contractors and MSME owners are pleading for the Government to provide some special credit facilities through the financial institutions in Porgera for them to access.”
Barrick Niugini Ltd (BNL) expects to resume mine operation before end of the year.
The new Porgera framework agreement was signed with BNL in April.
Prime Minister James Marape was in Porgera Valley this month to hand over the mine’s framework agreement to BNL.
It (framework) provided a path to reopening the Porgera mine which would cost more than K1 billion.
Under the agreement, Papua New Guinea stakeholders will own 51 per cent and BNL 49 per cent.
BNL remains the operator of the mine.