The initial MoA was signed in 2000 and expired in March 2018. It is now due for a review, however the Prime Minister announced last Friday that there will be no agreement until government is sure there is a fair benefit for the people and the State.
“The mine agreement has expired and we will renegotiate so that our people benefit most. Bai yumi stap na lukluk tasol ah? Nogat! Nogat! Em blong yumi. Yumi mas gat sampla share stap insait. Bai yumi stretim, Governor bai yumi stretim, mark my words. Yumi mas lukautim ol pipol blong yumi pastaim,” Mr O’Neill said.
He told Mr Yama they had a big task ahead to negotiate the terms and conditions of the new agreement.
Mr Yama said the Ramu Nico mine was the worst state-negotiated mine, with no benefits to the locals in Kurumbukari and Basamuk. Concerns have also been raised that minerals, apart from nickel and cobalt, have been extracted and exported.
“The people of Basamuk must have spin-off businesses. They must have good roads, good housing, health centers, schools, water supply and electricity. Right now, Rai Coast and Usino-Bundi are the least developed districts in the country despite being hosts of the Ramu Nico mine and the Ramu Agro Industry,” he said.
National planning minister Richard Maru visited Basamuk on Thursday last week and met with the mine operator, MCC, and encouraged all stakeholders to now focus on a way forward that will benefit the firm, province, landowners and the state.
At the moment, the state is not an equity partner in the mine project.
There has not been any corporate tax and no goods and services tax paid by the firm since production started in 2012.
Furthermore, there is no benefit sharing agreement for the landowners in the project.
Mr Maru said in the future, MoAs must have benefit-sharing agreements where landowners, the host province and the state must have shares in the project.
This will be the case for Wafi-Golpu mine, the Frieda Copper mine and any other new mines.
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