Prime Minister James Marape has reaffirmed his government’s commitment to the people of Western Province, describing the newly reviewed Community Mine Continuation Agreement (CMCA) for the Ok Tedi Mine as a “transformational” step toward sustainable development.
Mr Marape rescheduled his official engagements to attend the final CMCA review workshop in Port Moresby, where he paid tribute to the decades of sacrifice made by communities in the mine impact areas for granting the social license that has enabled the mine’s continued operation.
“I want to extend my deepest thanks to the people of the CMCA areas, the entire Western Province, and all landowners for your consistent support to the country,” he stated in his closing keynote remarks.
He commended the people for choosing dialogue over violence in addressing grievances and emphasized the importance of respecting the rule of law.
“The settling of our concerns is found not at the ‘bottom of a gun’ or in ‘tribal conflict,’ but through due processes of law,” Mr Marape said.
He added that the Government was promoting greater use of arbitration and mediation to strengthen legal pathways, safeguard national interests, and protect the country’s future generations.
Reflecting on the mine’s long history, the Prime Minister acknowledged the resilience of the people of Western Province while recognizing that human development outcomes in the area have not matched the economic output of the Ok Tedi Mine.
He urged all stakeholders to evaluate how wealth generated since the granting of the 2001 social license has been transferred and sustained.
He revealed that during his tenure as Finance Minister in 2012, he had blocked proposals to alter the trust structure for CMCA funds, which at the time stood at nearly K700 million.
“The Government is committed to saving for the next generation,” the Prime Minister stressed, citing an example where the National Government is currently holding or transferring over K300 million to partners for projects designed to create “intergenerational wealth that stays forever.”
PM Marape confirmed a major increase in the benefits package under the forthcoming CMCA, which he urged Ok Tedi Mining Limited and Kumul Minerals Holdings Limited to formalize.
Key features of the new agreement include:
• Increased Equity Rates: The Memorandum of Agreement (MoA) to be presented to Cabinet next week will include “increased equity rates” for the CMCA people.
• Tax Credit Scheme Boost: The current 2% allocation to the Infrastructure Tax Credit Scheme (TCS) will be raised to 3%.
He said the 12th CMCA must go beyond being a contractual arrangement and serve as a “transformational” agreement that redefines the future of Western Province. He emphasized that with an estimated population of only 300,000, the proper and transparent management of the mine’s proceeds could completely uplift the province.
The Prime Minister concluded by assuring the people that the final agreement will be one that “respects the people, improves lives, and aligns with national policy to ensure Western Province is developed better for all”.