PNG's New Ireland Seeks Greater Control in Mining Benefit from Simberi and Lihir gold mines

Governor Byron Chan

Fresh negotiations are underway in New Ireland as provincial leaders push for increased benefits from the Simberi and Lihir gold mines, including higher royalty payments, equity participation and stronger development funding for local communities.

Governor Byron Chan confirmed that the New Ireland Provincial Government is negotiating directly with the Mineral Resources Authority, Lihir Gold Limited and St Barbara Limited over future benefit-sharing arrangements connected to the two mining operations.

 

The province is seeking 10 percent from the State’s current 20 percent equity in the Simberi Gold Project held by Kumul Mineral Holdings Limited, while separate discussions are also taking place to lift royalty payments from the Lihir operation to three percent.

Governor Chan said the discussions were aimed at giving the people of New Ireland a greater stake in projects operating within the province.

He said communities had long expected to see better economic outcomes from the mines and that the provincial government was now taking a stronger position during negotiations.

The Governor said the province also wants increases in Special Support Grants and Infrastructure Development Grants so more projects can be delivered in rural communities and mining impact areas.

He said funding generated from the mines should contribute directly towards better roads, schools, hospitals, business opportunities and other services needed by local people.

Governor Chan stressed that cooperation among leaders and landowners would be important as negotiations continue.

He called on ward councillors, presidents of Nimamar and Sentral Niu Ailan local level governments, as well as landowner groups, to support the process moving forward.

According to Governor Chan, the province’s aim is to secure agreements that will create long-term value for future generations while ensuring mining companies continue meeting their obligations to local communities.

“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 said.