No Merger Unless National Interest Test Requirements are Met: Minister Maru

By: PNG Business News July 06, 2023

Minister for International Trade and Investment, Hon. Richard Maru says there will be no merger between the Newcrest Mining Limited and the Newmont Corporation unless the National Interest Test requirements are met. Minister Maru said this recently in his meeting with the high-level Executives of Newcrest Mining and Newmont Corporation including the President and the CEO of the Newmont Corporation, Mr. Tom Palmer.

“We are excited for Newmont Corporation to come but according to Section 277 (6) of the Capital Market Act 2015 we cannot approve the merger unless the requirements of the National Interest Test are met,” said Minister Maru.

“As far as we are concerned, these requirements include building a township at Nadzab (no fly in and fly out), maintaining the listing in our Papua New Guinea National Stock Exchange (PNGX), provide Papua New Guinea investors an opportunity to invest in the Wafi-Golpu Mine or in Newmont to raise over a billion Kina under Initial Public Offering (IPO) only for our citizens and PNG institutions like the Nasfund. Another requirement is that company must be domiciled in Papua New Guinea with their Country Headquarters and PNG Management located in Port Moresby or anywhere in Papua New Guinea and not outside the country,” said Minister Maru.

Minister Maru offered them to use the land available within the Paga Hill Special Economic Zone to build their Country Headquarters and also to build accommodation for their staff.

Minister Maru said: “The Lihir Mine and the Wafi-Golpu Mine are our God-given resources and we as citizens and our country must maximize our benefits from our resources. Papua New Guinea is looking at how we can benefit under a win-win partnership because the gold belongs to Papua New Guinea and we must maximize our take so the whole country gets more value as part of our wealth creation drive under our Take Back PNG mantra, not just the landowners, the Provincial Governments, and the State, but for all our citizens.”

“What we are asking for is reasonable and sensible; they have been done before by the BCL, which is still one of the best mining companies that ever came into our country. This is something that the Marape-Rosso Government wants to bring back,” said Minister Maru.

“I am excited about this merger, and I am looking forward to the closing of the deal with Newmont Corporation. The world’s leading gold company that has been in the industry for over 100 years coming to PNG would promote our country and its image as an attractive investment destination,” said Minister Maru.

“I will be one of their greatest supporters if we can accommodate both their needs as an investor and our needs as the resource owners under a win-win long-term partnership,” added Minister Maru.

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