The New Ireland Province in Papua New Guinea is pushing for increased equity participation, higher royalties and expanded development funding as negotiations continue over future benefits arrangements for the Simberi and Lihir mining projects.
New Ireland Governor Byron Chan said on 22 May that the province is seeking stronger long-term economic returns from the two major mining operations to ensure greater benefits flow back to local communities and the provincial economy.
Negotiations are currently underway between the New Ireland Provincial Government, representatives of Lihir Gold Limited and St Barbara Limited, and the Mineral Resources Authority regarding the renewal and future benefits agreements for the Simberi and Lihir mines.
Governor Chan said the provincial government is pursuing greater participation in the projects and a fairer share of mining-generated revenue for the people of New Ireland.
As part of discussions relating to the Simberi Mine agreement, the provincial government is seeking 10% of the existing 20% state equity currently allocated to Kumul Mineral Holdings Limited under the Simberi Gold Project arrangements.
“For too long, our people have watched resources leave our province without seeing sufficient long-term returns. We are now negotiating for a fairer level of participation that reflects the aspirations and interests of the people of New Ireland,” Governor Chan stated.
Meanwhile, discussions concerning the Lihir Mine agreement are focused on increasing mining royalty benefits to 3%, while also pursuing what the governor described as an equitable level of equity participation for the people and government of New Ireland Province.
Beyond equity and royalty negotiations, the provincial government is also seeking increases in Special Support Grants and Infrastructure Development Grants as part of broader efforts to strengthen economic and social development outcomes linked to the mining sector.
Governor Chan said the province wants to ensure mining companies continue to meet their social responsibilities by contributing to infrastructure development, healthcare, education, economic opportunities and essential services throughout New Ireland.
“These projects operate within our province and on our people’s land. It is only fair that the benefits flowing back to our communities are strengthened to support infrastructure, health, education, economic opportunities and essential services,” he said.
The negotiations come amid ongoing national discussions surrounding resource ownership, provincial participation and the distribution of benefits from Papua New Guinea’s extractive industries.
Governor Chan has also called on ward members, presidents of the Nimamar and Sentral Niu Ailan local-level governments, landowners and community leaders to unite in support of the proposed agreements.
“This is a defining moment for New Ireland. Unity and cooperation among leaders and landowners will be critical in ensuring we secure agreements that benefit not only the present generation, but future generations of our province as well,” Governor Chan added.
Negotiations remain ongoing, with further updates expected as discussions progress.
