OVER K2.9 million from the Ramu NiCo project royalty payment for the year 2018-2019 has been shared equally amongst 14 local level governments in Madang province.
From the amount, each have received over K200,000 which had been deposited into their respective LLG bank accounts last week.
This was announced by the developer, Ramu NiCo Management (MCC) Limited, Community Affairs Department recently.
The Company’s Community Affairs Department General Manager, Martin Paining said the payment of royalties to the LLGs outside of the project area is unique and such is not seen in other mining projects in the country.
He said as per Ramu Project Memorandum of Agreement (MoA), seven per cent of the total for every royalty payment is allocated to 14 other LLGs of Madang province to be shared equally.
These LLGs are not directly linked to the project impact area and these include; Almami, Iabu and Yawar LLGs in Bogia district, Ambenob , Madang Urban and Transgogol in Madang district; Arabaka, Josephstal, Kovon and Simbai in Middle Ramu district, Nahu-Rawa and Nayudo in Rai Coast district and Karkar and Sumgilbar in Sumkar district.
The Company clarified that the royalty payment was for the years 2018-2019 and the component was for other LLG and the total amount paid recently was K2,982,534.10, where each LLG received equal share distribution of K213, 038.15 directly into their LLG bank account.
Ramu NiCo anticipates that when paying out royalties the company is willing to work in full consultation with the State, Madang provincial government, LLGs and landowner associations to ensure a smooth and efficient operation of the project and that would maintain the constant flow of such benefits.
President of Usino LLG, Peiwa Aimai, when acknowledging payments to other LLGs challenged the 14 LLGs outside of the Ramu project area to utilize the royalties they receive wisely to establish impact projects for the benefit of the people.
Mr Aimai said they should also make it known to the people in their respective LLGs that they are receiving royalties from Ramu NiCo project and the people must be aware of that fact.
He said the project is located in Usino-Bundi and Rai Coast districts of the province; however, it was in the best interest and wisdom of the stakeholders during the MoA to include other LLGs in the province as beneficiaries of the royalty payment so they must be grateful and supportive of the Ramu project.