Subsidiaries set up for projects
Kumul Minerals Holdings Ltd (KMHL) has set up several subsidiaries for the different mineral projects that the State has and will have interests in, according to KMHL.
Chairman and acting managing director Peter Graham told The National in a recent interview that this would avoid issues including cross borrowing against the different resource projects.
“We’ve already set up a number of subsidiary companies,” Graham said.
“We have Kumul Minerals Ok Tedi Ltd. The shareholding in Ok Tedi will go into that subsidiary.
“For Porgera, we have Kumul Minerals Porgera Ltd, so the shareholding, or whatever ends up being all the State’s share in Porgera will go into that subsidiary.
“We are setting up a Kumul Minerals Exploration Ltd, so the exploration activities will go into that. Same with Wafi-Golpu.
“If we end up with an equity position on Wafi-Golpu, we will create a new subsidiary so we don’t end up with cross ownerships or cross borrowings in one against the other.
“There will be a subsidiary for each one of those major investments and that’s all being done. That’s all set up now.”
Commenting on the organisational structure for KMHL, Graham said there would be a transition in due course.
“Under the governing legislation, the (managing director’s) position should be filled by a Papua New Guinean,” he said.
“Part of my job will be to select that person and have an active hand over to that person.
“Same with the chairman, the chair should be a Papua New Guinean.
“It’s going to depend a lot on what happens in the next short period of time at Porgera.
“If we are able to get discussions moving, and get the mine restarted then things can move quickly.
“If we can’t, then it’s more difficult to hand over to somebody. But it will be sooner rather than later.”
KMHL is solely responsible for holding the State’s interests in the mining sector – whether held directly or through other entities or agencies.
KMHL also has the right but not the obligation to exercise the State’s rights of participation in all future mining projects in PNG.
KMHL’s core asset is ownership of 67 per cent of Ok Tedi Mining Ltd, while the 17.4 per cent ownership interest held by it in Bougainville Copper Ltd that has been pledged to Panguna landowners and the people of Bougainville.
KMHL was also recently granted the special mining lease for Porgera gold mine in Enga.