New Ireland Provincial Government Refuses To Sign Mining MOA Approved By PNG

Province wants national government to live up to previous promises before commiting to new projects

By Sharon Lowa

PORT MORESBY, Papua New Guinea (PNG Post-Courier, May 22, 2017) – The New Ireland provincial government has refused to sign the Simberi Gold Mine memorandum of agreement recently approved by the National Executive Council (NEC) in April.

Deputy governor and chairman for natural resources in the provincial executive council Ambrose Silul said they are sick and tired of being misled by the state team negotiating the new MoA for both Simberi and Lihir Gold Mines.

Mr Silul insists that the state keep its word, and until it does, the New Ireland government will not sign any new MoA.

The New Ireland team had been renegotiating the Simberi MoA for over four years and a provisional MoA had been agreed in 2013, but that it was conditional on approval by the PEC.

“Our team wrote to the state team and Mineral Resources Authority (MRA) on October 6, 2013 that the draft MoA must include the provisions approved by the New Ireland PEC on May 21, 2013.

“That includes increasing the rate of royalties from two percent (FOB) annual revenues to 10 percent, as well as similar increases in the special support grant and tax credit scheme,” Mr Silul said.

Mr Silul further stated that the state solicitor’s office agreed that the changes the New Ireland government wanted made to the MoA would be included in the draft to go to the NEC.

He said that in a meeting in April 2015 in Kavieng, the state solicitor agreed they would include New Ireland’s provisions in both the Lihir and Simberi MoAs and allow the NEC to make a final decision.

“All we are asking is that NEC – and not the state bureaucrats – decide on the merits of our suggestions. Instead, we have a bunch of bureaucrats making decisions that should be made by NEC.”

“We will not accept this dishonesty on the part of the state team,” Mr Silul said.

Mr Silul is calling on the mining minister to conduct an immediate investigation into this affair.

The MRA mining coordinators and the state solicitor’s office deliberately and willfully misled the NEC by submitting an MoA that did not include the provisions they promised would be included.

PNG Post-Courier
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