Enga Provincial Government lost K70 million due to Porgera Mine closure

By: PNG Business News May 22, 2022

Photo credit: Barrick Gold

Governor Sir Peter Ipatas claims that the Enga provincial administration has lost over K70 million since the closure of the Porgera gold mine two years ago.

Sir Peter stated that during the mine's closure, all parties suffered losses, but that everyone must wait for the final agreement for the mine's reopening to be inked.

He added that landowners and companies had been impacted, but that they will recover once the situation was resolved.

Sir Peter explained that the reopening was taking longer because they needed to execute a deal that would benefit both the country and the landowners and residents of Enga.

According to Sir Peter, the developer collected 95% of the advantages over the last 30 years, while only 5% 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 stated that such agreements would necessitate additional time and patience in order to adequately handle all mine-related issues.

“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 stated that the mine's prior 2% royalty payment to the provincial government was utilised to pay for school fees for the previous 15 years.

He noted that despite the provincial government losing K70 million because the mine remained closed, he urged landowners, Enga residents, and the rest of the country to be patient as they neared the end of the reopening process.

He praised the government for striking a deal that will benefit the country more.

“This Government has been working hard for our good,” he said.


Reference: Pacific Mining Watch (17 May 2022). “PNG's Enga Provincial Government lost K70 million due to Porgera Mine closure”.

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