Prime Minister James Marape has commended K92 Mining Limited for its latest tax instalment payment of K230.9 million to the Internal Revenue Commission, describing the company’s Kainantu Gold Mine in Eastern Highlands Province as an example of responsible and transparent mining operations.
Marape said the payment demonstrated the contribution a well-managed, mid-sized mining operation could make to government revenue, economic development and the welfare of Papua New Guineans.
He welcomed the company’s indication that its total tax contributions to the State were expected to exceed K1 billion by the end of 2026.
“K92 Mining has emerged as a low-cost, efficient, mid-sized mining operation that is delivering significant tax returns to the State,” Marape said.
He said the company’s management, work culture and commitment to meeting its obligations demonstrated the kind of responsible investment the Government wanted to encourage.
Marape also welcomed the company’s openness to discussions on potential State and landowner equity participation in the project.
He said the Government would continue working with the Mining Department and relevant stakeholders to ensure that benefits from the Kainantu operation reached customary landowners, the host province, surrounding districts and the wider country.
This could include government infrastructure funding, infrastructure tax credit arrangements and potential equity participation by the State and landowners, he said.
Marape stressed the importance of ensuring that communities in Kainantu, the surrounding valleys, Eastern Highlands and neighbouring Morobe Province benefited from the mine’s operations through improved infrastructure, essential services and economic opportunities.
The Prime Minister said the tax payment was particularly significant as Papua New Guinea faced economic pressures arising from the El Niño phenomenon, rising fuel prices and increased living costs.
“At a time when our people are facing hardship from El Niño and high fuel prices, revenue contributions of this magnitude are extremely important,” he said.
He added that the revenue could support essential services, infrastructure and development programmes throughout the country.
Marape said K92 Mining’s performance demonstrated the benefits of cooperation among investors, government, landowners and other stakeholders.
He said mining companies must operate efficiently, report production transparently, meet their tax obligations and ensure that benefits were shared fairly, while the Government had a responsibility to translate revenue into tangible improvements in people’s lives.
Marape congratulated K92 Mining on its contribution and said he looked forward to continuing the partnership to ensure the Kainantu Gold Mine delivered lasting benefits to landowners, Eastern Highlands Province, neighbouring communities and Papua New Guinea.
