CHROMITE minerals are part of the Nickel and Cobalt mineral that are mine from the pit as other minerals at the Ramu Nickel Cobalt Mine in Madang, Mining Minister Sir Ano Pala says.
The minister said this when responding to questions by Governor for Madang on the illegal mining of Chromite by Ramu Project company.
“Mining of Chromite exporting and selling is provided for under the mining act 1992 and mining development contract, it is therefore not illegal,” he explained.
“The mining act gives exclusive rights to Ramu Project company to mine minerals within the special mining lease. The minerals are Nickel, Cobalt and Chromite and other minerals that can be found within the special mining lease.
“The Mine Development Contract (MDC) considered Chromite as a mine product which is generally defined as ores, or concentrates or other minerals produced from the area of the special mining lease and all refinery products including products made from the imported mineral products.
“It should be noted that MDC is a commercial agreement between the State and developer and entails key fiscal terms and mining contracts. MOA is the benefit sharing agreement between the state, Provincial government and LLG and landowners.”
He also responded to the Governors question on Development levy saying that Development levy is not applicable in the mining sector.
“Development levy is not applicable in mining sector. Hence Ramu Nickel Cobalt Project does not pay development levy.
“The project pays all stakeholders to the project their benefit as stipulated by in the MOA. These benefits include royalties, annual payments of 2%, development grants to the provincial government, business spin-offs to the landowner companies among others. Ramu project continue to pay royalties to the 19 LLGs and the MPG. The records of the royalty payments are hereby attached the details.”
