Minister for Mining and Member for Finschhafen Rainbo Paita has pledged the National Government’s full commitment to finalising the Community Development Agreement (CDA) for the K92 Mining Project, following his official visit to the company’s operations in Kainantu on 8 August.
Joined by Kainantu MP William Hagahuno, Mineral Resources Authority (MRA) Managing Director Jerry Garry, the Secretary for the Department of Mineral Policy and Geohazard Management, and senior officials, Minister Paita’s tour marked the start of a nationwide engagement programme with mine operators and impacted communities.
During the visit, the delegation received a detailed briefing on K92’s K1.5 billion (US$390 million / A$585 million) Stage 3 Expansion Project. The development features a new 1.2-million-tonne-per-annum process plant now in commissioning and a paste fill plant designed to return 70 per cent of tailings underground, reducing environmental impact and surface disturbance.
Once fully operational, the expansion is expected to position K92 as a Tier 1 mid-tier gold and copper producer, delivering over 300,000 ounces gold equivalent annually.
The tour included inspections of the new process plant and underground mining operations, followed by a meeting with Bilimoia landowner representatives to address outstanding issues, including delays in signing the 2020 Revised Project Memorandum of Agreement and unresolved disputes before the Land Titles Commission (LTC).
Minister Paita assured landowners and stakeholders that the State was committed to concluding the CDA so benefits could start flowing immediately. MRA’s Garry confirmed that the agreement had received legal clearance from the Office of the State Solicitor, and that a National Executive Council (NEC) submission was being prepared.
However, he noted that landowners had raised new development priorities for inclusion, and would be given one week to submit a revised position paper before the CDA is presented to the NEC.
A total of K80 million (US$20.8 million / A$31.2 million) in royalties remains in trust pending resolution of landownership disputes. Minister Paita urged Bilimoia Landowners Association (BLA) Chairman Busa Sio and his members to resolve internal boundary disagreements, saying: “You have the key to your benefits.”
MP Hagahuno welcomed the Government’s commitment but appealed for the State to consider acquiring a 5 per cent equity stake in the project for the BLA. Minister Paita said the proposal could be discussed during the CDA forum.
Meanwhile, Garry reminded Chairman Sio to provide the association’s bank details so that the 10 per cent tithe and administration funds could be released. The BLA and its members have agreed to donate the tithe from royalties to the Eastern Highlands/Chimbu Seventh-day Adventist Mission.
Minister Paita concluded the visit by reaffirming the importance of “open dialogue, mutual respect, and collaboration to ensure lasting benefits for all stakeholders.”
K92 Presents New Vehicle to Bilimoia Landowners
As part of the day’s engagements, K92 Mining Limited presented a new Toyota Land Cruiser 10-seater troop carrier to the Bilimoia Landowners Association (BLA). The vehicle, purchased through an advance of the association’s royalty funds, will support logistical movements and community engagement..
K92 CEO John Lewins formally handed over the keys to BLA Chairman Busa Sio, reaffirming the company’s “commitment to constructive engagement with all stakeholders.” He acknowledged that, while challenges remain, “meaningful progress continues to be made.”
Minister Paita praised the gesture, urging landowners to maintain their partnership with both K92 and the government.
Chairman Sio thanked the minister and the company for their support, noting the vehicle would “enable the Bilimoia Landowners Association to improve its coordination, mobility, and service delivery across its areas of responsibility.”
