Papua New Guinea's Enga provincial government has made a loss of almost K70 million since the closing of the Porgera gold mine two years ago, Governor Sir Peter Ipatas says.
Sir Peter said since the mine’s closure, all stakeholders had made losses but people had to be patient so that the final agreement could be signed for the reopening.
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| PNG's Enga Provincial Government lost K70 million due to Porgera Mine closure |
He said landowners and even businesses had been affected but they would recover once everything was finalised.
Sir Peter said that the reopening was taking a longer process because they had to sign a deal that would benefit the country as well as the landowners and the people of Enga.
Sir Peter said for the last 30 years the developer received 95 per cent of the benefits while only five per cent remained in the country.
“We have changed this around and now we will be receiving 51 per cent and the developer is to get 49 per cent. From that 51 per cent Enga will be receiving 15 per cent of the benefits,” he said.
Sir Peter said the signing of such deals would need more time and patience so every issue concerning the mine could be properly addressed.
“Business houses have a reason to complain because of a loss of business but we have to access the process properly before taking further steps in allowing the mine to operate,” he said.
“Currently, all of us are making a loss, including the provincial government.”
Sir Peter said the mine’s previous two per cent royalty paid to the provincial government was used in paying for school fees over the last 15 years.
He said even though the provincial government had missed out on earning K70 million while the mine remained closed he urged the landowners, the people of Enga and the nation to be patient while they were coming to the final stage of the re-opening process.
He thanked the Government for negotiating the deal which would give more benefits to the country.
“This Government has been working hard for our good,” he said.
The National / Pacific Mining Watch
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