CORPORATE mining giants in the extractive industry who continue to declare loss in their financial reports and don’t pay tax to the Internal Revenue Commission should pack up and leave the country, says Finance and Rural Development Minister Sir John Pundari.
Sir John who is also the Member for Kompiam-Ambum made this call in Porgera after accompanying Prime Minister James Marape, Enga Governor Grand Chief Sir Peter Ipatas, Barrick Niugini Limited (BNL) Chief Executive Officer Mark Bristow, several State Ministers, State and Barrick Negotiating Teams for the official presentation of the new Porgera Framework Agreement to the landowners in Paiam station, Enga province.
“If you continue to declare a loss, I ask why do you continue to exist in this country. You might as well close your business, pack up and leave the country.
“Your investment is unattractive that does not return a good yield. So why do you continue to remain in my country, in my people’s country.
“It is indeed a shame for big corporate companies in this country that continue to declare a loss year-in year-out and yet continue to remain in this country.
“It is time IRC wakes and does a forensic audit on these corporate bodies investing in Papua New Guinea, smiling away happily, flying jets – flying in, flying out. The stakeholders and shareholders of these investments are so very happy that they can exist in our nation declaring losses.
“It is high time for forensic audits are done. You’re shame in this nation, you continue to declare losses yet you think that this is a rightful place for you to continue to exist.
“I’m a small businessman myself. My little family, we got small SMEs. How could we exist if we continue to declare losses in our small businesses? It just doesn’t work. I cannot believe the fact that big corporate giants investing in millions and spent years in Papua New Guinea already continue to declare losses.
“Why are you still in my country, why are you still in Papua New Guinea? Why wouldn’t you close up and leave? It’s time you do something right and start paying some taxes,” Sir John said.
He commended Barrick CEO Mark Bristow for taking up the challenge to renegotiate the Porgera Mine’s new Framework Agreement with the PNG Government at the height of Covid-19.
“Barrick and the team have rocked the boat in what I believe is a momentous achievement for the people of Papua New Guinea.
“When I say that Barrick rocked the boat, I mean that other investors in the extractive industry will have to now think and come on board and do the right thing as good corporate citizens not only in Papua New Guinea but of the global community. If Barrick can do it, you can do it also.
“As the new Minister for Finance and for Barrick to come on board to do the right thing as a global citizen in the world of the mining industry, they have made a big statement. For this, I want to thank them.
“I also challenge other industry players to come forward and do the right thing.”
Sir John commended Prime Minister James Marape for the leadership in so far as resource investment in the country is concern.
“A Prime Minister who grew up in this land, (Porgera valley) who saw the plight of his people decided that through Porgera, we can make a statement. A statement in doing the right thing so far as resources we are bountifully blessed by God.”
Prime Minister Marape who formally handed the Framework Agreement to Enga Governor Peter Ipatas at the packed Paiam station for the reopening of the mine said his visit was to talk to the landowners.
“My visit to the Porgera Mine in the Lagaip-Porgera District today is to talk to the affected landowners, the mine management and other mine-affected communities.
“One of the main reasons why I wanted to travel to Porgera was to formally handover the Framework Agreement to the landowners.
“Since taking Office on May 30th, 2019, I have advocated for greater share of the benefits from our resources to affected landowners – and that stands.”
He also announced the allocation of K1 million for small businesses in Porgera and K2 million for Porgera District Hospital.
Marape further thanked Governor Ipatas for standing with him and the many sound advices he has offered in the negotiation process.
In receiving the Framework agreement from Prime Minister Marape, charismatic Enga Governor Sir Peter shook the more than 1,000 crowd when he announced that of the 15% Enga Provincial Government (EPG) equity, 10% free equity paid for by Barrick will go to landowners of the Special Mining Lease area – Porgera valley while the provincial government retains remaining 5%.
Barrick president and CEO Mark Bristow said the new Framework Agreement is for the parties work together.
“The Framework Agreement sets a new paradigm for arrangements between Papua New Guinea (PNG) and the world’s leading resource companies, based on a fair and equitable sharing of benefits and responsibilities. Whether it be the State, the provincial government, the landowners or Barrick Niugini Limited (BNL), we are all stakeholders in the new Porgera and are therefore invested in its success and its ability to deliver benefits to the country and local communities through responsible mining.”
The Framework Agreement provides, among other things, for:PNG stakeholders and BNL to share the economic benefits generated over the life of mine on a 53/47% basis;
BNL to finance the capital required to restart the mine; an increase in the equity allocated to a broad group of landowners who are the customary owners of the land where Porgera is located; and the state to retain the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years.
The landowners of Porgera Mine and other stakeholders in the valley in Enga province were happy to welcome Prime Minister Marape, Barrick CEO Bristow and the State and Barrick Niugini negotiating teams on Friday, June 4 under very tight security.
Also the Porgera people demand immediate reopening of the Porgera Mine as they have been denied spin of business opportunities and decent income from the mine.
Meanwhile according to Prime Minister Marape, Porgera Mine workers that have been laid off will be called back to work under the new agreement.
The mine is on track to resume operations later this year (mid-September), with BNL to finance the restart.
Pogera Mine is the major mining in PNG and it will fueling up the economy recession in our country.
The benefits and shares, sme and more other spin off for the good of Landowners, the Enga Government and the operation company and IRC of state.
We congratulated to the Landonwer chairman, The Laiagam-Pogera People and their MP, the special one to Action Governor, chief and sir Peter Ipadtas, and the for most to the Prime Minister of Papua New Guinea . Hon.James Marape and not the least but forever die heart Pogera Mine , Hon John Pundari.
Through your sweart, hardship and committing time, effort and resource to make this event come alive and bring pride and smile to the face of Laiagam-Pogera People is really appreciated and salute you all for this massive Paramount archivement as team work archivement to all you.
Team Jiwaka and I the President of Papua New Guinea Rural Development Incorporated association put my remarks for your on behalf.
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