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2014 Successful year for Morobe Mining Joint Venture

Staff Reporter | 2:43 PM | |
MOROBE Mining Joint Venture (MMJV) has invested over K600 million of economic benefits to the country at the close of 2014’s financial year. A report from MMJ revealed this and other significant statistics in what the company considers as being one of the most successful periods since the mine commenced operation in 2008.

MMJV chief executive officer Greg Jackson said the period had also been a difficult time for the gold mining industry and this has challenged the firm to cooperate as a team to make significant changes to the business. "We have continued to engage with all of our stakeholders and completing a number of key activities including the Hidden Valley MOA review.

"And we also accomplish some major community projects in the areas of sanitation, health, education, agriculture and community capacity building through adult literacy and numeracy programs," Mr Jackson said. According to the report, over K19 million (3%) out of the total K680 million was paid as royalties to all stakeholders.

The company also purchased over K200 million (59%) worth of goods and services produced in PNG and an additional payment of over K300 million (44%) was made in purchasing goods in services in Morobe Province alone.

A further payment of over K60 million (9%) in taxes and levy fees were made to the National Government. The report also revealed that at the close of the financial year, a total of over K6 million (1 per cent) was used in rehabilitation and community development programs in the mine’s operational areas.

This included maintenance work carried out on the Lae to Bulolo Highway, and other infrastructures to assist local subsistence farmers in the area. Mr Jackson also added that human resource plays an integral part in the success of the business, and as such, the company spent over K85 million (12%) in employing and training their staff, most of whom are nationals.

Despite these successful reports, the firm confirmed a few challenges they had faced during the last financial year. "We are still seeing further decline in the gold price (and) this, along with operational setbacks of injuries and major equipment failures, will require us to redouble our efforts to find ways to make our business more efficient over the New Year.

"This is going to challenge us to face even more change to remain a viable business," Mr Jackson added. Meanwhile, the company is pleased to announce that Golpu Project’s optimised prefeasibility study has been accepted and the project is now moving to the feasibility study stage which will advance this exciting project to the next level.