Mining Minister Rainbo Paita has directed the Mineral Resources Authority (MRA) to expedite action on several unresolved matters affecting landowners of the Kainantu gold project, including the release of K80 million (US$21.6 million) in accrued royalties and the approval of a revised development agreement.
The directive followed a high-level meeting convened at APEC Haus on the sidelines of the PNG CANCONEX Conference. The meeting brought together Minister Paita, MRA Managing Director Jerry Garry, representatives of the Bilimoia Landowners Association (BLA) and Bilimoia Development Company (BILDEVCO), as well as executives from K92 Mining Ltd, including Chief Executive Officer John Lewins and Vice President for Community Affairs and External Relations Stanley Komunt, who opened the session.
Long-standing LTC case hampers royalty release
BLA Chairman Busa Sio raised concerns over the prolonged delay in resolving a Land Title Commission (LTC) appeal, which has stalled the distribution of royalties to rightful landowners for years.
He highlighted the social cost of the delay, noting: “Many entitled individuals have passed away without receiving any benefits.”
In response, Minister Paita directed the MRA to work closely with the Office of the State Solicitor to fast-track the resolution of the appeal and facilitate the release of the K80 million (US$21.6 million) held in trust.
Garry clarified that while the LTC matter is under the jurisdiction of the Department of Justice, the MRA remains committed to supporting the process, including through the provision of funding, to bring it to a close.
Revised MOA awaits Cabinet action
Sio also raised the matter of the Memorandum of Agreement (MOA) originally signed in 2003 between Highlands Kainantu Ltd and BLA, noting that a formal review had been completed in 2020 and signed by the parties. However, the revised MOA has not yet been approved by the National Executive Council (NEC), meaning the outdated 2003 version remains in effect despite major changes in operations.
Minister Paita acknowledged the need for an updated agreement and pledged to work with the NEC to ensure its swift approval, adding that he aims for the revised 2020 MOA to be signed before Independence Day on 16 September 2025.
For his part, K92 CEO Lewins and Vice President Komunt reaffirmed the company’s support.
Landowners propose 10% royalty tithe
The BLA chairman also requested the release of 10 percent of landowner royalties as a “tithe to God,” consistent with the community’s Seventh-day Adventist faith and longstanding cultural practices.
Minister Paita praised the initiative, calling it “a unique example of faith-led leadership in the extractive sector.”
Garry confirmed that the MRA has no objection to the proposal, subject to compliance requirements and consensus among stakeholders. He added that the MRA would convene a development forum within two weeks to facilitate next steps.
Key resolutions
The meeting concluded with agreement on the following action items:
- Fast-track the resolution of the LTC appeal to enable the release of K80 million (US$21.6 million) in outstanding royalties;
- Accelerate the approval of the revised 2020 MOA, with the goal of finalising and signing it before 16 September 2025;
- Facilitate necessary clearances for the release of 10 percent of landowner royalties to the church, as resolved by the community.
Minister Paita said these actions reflect the government’s commitment to fair and timely benefit-sharing in the mining sector.
