Contribution of Lihir to the Economy Increases

By: PNG Business News August 23, 2021

Photo Credit: Newcrest 

Newcrest Mining Limited has announced its annual results for Financial Year 2021, a year marked by substantial challenges across all of its operational jurisdictions as a result of COVID-19.

Despite the challenging operating climate, Newcrest is happy to announce that its contribution to the PNG economy has remained considerable. In the previous fiscal year, the overall contribution to the government's revenue increased (year ending 30 June).

Newcrest paid K80 million in corporation taxes and K203 million in other taxes, including pay and wages tax, production levy, and customs and excise duties. Lihir paid K99.6 million in royalties for the fiscal year ended 30 June 2021.

Fortunately, there were no significant COVID-19 operational disruptions at Lihir throughout the reporting period, which was only achievable because of the hard work and devotion of the Lihir team.

Craig Jones, Newcrest's Chief Operating Officer in PNG, reaffirmed this during his presentation of the company's annual statistics. “Our workforce has demonstrated great resilience, some of whom were away from home for many months.

“Overcoming these challenges would not have been possible without the assistance of the Lihir community and Nimamar Local Level Government, with whom we have worked alongside throughout this period.”

While Newcrest was able to continue operations, the steps required to mitigate the pandemic's impact on Newcrest's employees and host communities, as well as to provide a safe working environment, resulted in additional expenditures of K185 million for the previous financial year.

This has had an influence on Lihir's All-in Sustaining Costs, which were US$1,370 per ounce.

Total gold output at Lihir was 737,082 ounces in FY2021, which was in line with expectations.

Lihir is well-positioned for the future, with annual gold production targets of more than 1 million ounces.

With a workforce of about 5000 people, including 2200 permanent PNG national workers and 2800 contractors, Newcrest has added economic benefit to PNG in various ways.

Lihir wants to purchase locally wherever feasible, and given the size and scope of the company, this translates into a large investment in the PNG economy, with K1.05 billion spent on PNG suppliers in the previous financial year.

Infrastructure, equipment, maintenance, and consumables were all covered in this budget.



Loop (21 August 2021). “Lihir’s Input To Economy Rise”.

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