Papua New Guinea DEPUTY Opposition Leader Douglas Tomuriesa has called “reckless” the Government’s decision to close the Porgera gold mine in April 2020, saying many had suffered losses because of it.
“(Prime Minister) James Marape’s decision to cancel the Porgera joint venture mining lease has resulted in 3,527 direct employees being laid off, the closure of hundreds of PNG-owned small-to-medium businesses and lost income to our budget of around K4 billion so far,” he said in a statement.
Kiriwina-Goodenough MP Tomuriesa added: “It was a reckless decision made by a leader too interested in the glorification of his ego rather than putting the interests of our country first.”
He said a Institute of National Affairs report on the impact of the closure of Porgera stated that an average of K1.08 billion was lost from the PNG economy each year that Porgera had been closed.
“That is K4 billion has been lost since April 2020,” Tomuriesa said.
“With our Government doubling debts in just four years, our borrowings are now nearing K60 billion.
“We badly needed Porgera to help pay our way out of this mess created by the prime minister and his treasurer.”
He added that the statement of clarification issued last week by the state negotiating team chairman “makes it clear that the shot-term pain for long-term gain promised by (Marape) has instead morphed into long-term pain for very little gain”.
“The mine is still not opened. But if by some chance it is operating in 2024, four years after closing, and if the reopening costs do not blow out and if gold prices hold high, then revenues will start to be earned by our country in 2034 – 14 years after James Marape suddenly ripped the carpet out from underneath the economy by closing Porgera.
“We will again see revenues start to be earned. That is not guaranteed as there are a great number of “what ifs” that could derail the opening and the profitability of the venture.”
The National / Pacific Mining Watch
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