Three of the four parties to the Ok Tedi Mining Project Community Development Agreement (CDA) have signed the final agreement, marking a milestone after five years of negotiations, while the Fly River Provincial Government withheld its signature pending further discussions.
The signing ceremony, held at the Stanley Hotel in Port Moresby and attended by about 300 stakeholders, brought together representatives of the State, the Star Mountains Local Level Government (LLG) and the Mt Fubilan Resources Association, which represents landowners.
The Fly River Provincial Government did not sign, citing concerns with aspects of the agreement, but indicated its willingness to engage further with the State team.
Mining Minister Solen Loifa signed on behalf of the State, while Mt Fubilan Resources Association chairman Simon Umiakim and Star Mountains LLG president Samuel Mereng signed on behalf of landowners and local government respectively. Landowner leaders signed as witnesses.
Loifa said the agreement reflects the government’s policy direction that resource owners should receive greater benefits from the country’s natural resources. He noted that the National Executive Council had approved an additional seven per cent equity in the Ok Tedi mine for the Fly River Provincial Government, increasing its total stake to 40 per cent from 33 per cent.
He said the agreement was significant for communities in the Star Mountains who had long awaited tangible benefits from resource extraction.
Acting managing director of the Mineral Resources Authority, Harry Kore, described the signing as a defining moment for landowners and affected communities, who are expecting improved services and outcomes from the agreement.
Kore said the agreement carries expectations and obligations for all parties, noting that communities were focused on outcomes rather than the process itself.
He said the CDA process had been rigorous and, at times, difficult, with stakeholders navigating differences and challenges over the course of negotiations. However, he said sustained engagement and commitment had enabled parties to reach agreement.
Kore also acknowledged the contributions of stakeholders involved in the process, saying their efforts had made the milestone possible.
Members of Parliament from Western Province, including North Fly MP James Donald, Middle Fly MP Mai Maso Hewabi and Delta Fly MP Agena Gamai, attended the ceremony, along with other national and provincial leaders
