Governor Chan seeks delivery of K300m equity, royalty payments

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New Ireland Provincial Governor James Byron Chan together with Namatanai and Central New Ireland local level government. Pic by SEPKOLIN WALNE.

By SEPKOLIN WALNE

New Ireland Governor James Byron Chan together with the Namatanai and Central New Ireland local level governments have presented a statement of position to Prime Minister James Marape and Mining Minister Solen Loifa setting out three priority matters concerning the Lihir Gold and Simberi Gold mining operations.

The New Ireland Provincial Government presented a statement requesting the National Government to deliver K300 million under a memorandum of agreement. The MOA entails the transfer of 10% equity from Simberi gold mine to NIPG and to legislate a 3% royalty rate for Lihir and Simberi.

Governor Chan said: “For decades, the people of New Ireland have shown patience, partnership, and hospitality to the resource sector.

“It is now time for the state to reciprocate with fairness, transparency, and the equitable sharing of benefits that rightfully belong to this province.”

The NIPG is seeking the transfer of half of the 20% shareholding currently held by Kumul Minerals Holdings Limited (KMHL) with the remaining 10% retained by KMHL on behalf of the state.

The province requires a formal written framework setting out the legal mechanism, timing, and direct dividend participation. The current regime does not reflect the scale of production or the long-term impact on host communities.

The increased royalty, payable directly to the province, will fund health, education, law and order, district infrastructure, and economic empowerment for New Irelanders.

“Our stance on the increase of royalties from current 2% to 3%, exactly the same a Porgera and we want the same for Lihir and Simberi,” Governor Chan said.

“Lihir and Simberi are world-class assets that contribute substantially to the national economy.

“The benefits flowing back to the province must be equal with the scale and impact of those operations.

“We approach the national government in a spirit of partnership and look forward to a constructive response.” He added that NIPC had requested a high-level tripartite meeting with the National Government and the relevant LLGs and landowners to formalise the matter.

4 COMMENTS

  1. Great going forward but do we have a response both from the PM and Mining Minister?
    Atleast there must be a feedback from both to keep our people in the loop.

  2. We need such a transparency and honest leader who truly can fight for the rights of people both great and small 🙏

  3. Yes, please Chan, have to push this and claim the benefits of New Ireland people. Other provinces are developing while New Ireland are dragging behind.
    Yet, New Ireland have two Gold mines but no development to services like health services, educational services and road services.

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