New Porgera is a Better Deal: PM

Prime Minister Hon James Marape said Papua New Guinea will benefit from a total economic value chain of 53 % from the new Porgera mine, in the first 10 years of the total of 20 years of the mine’s operations.

He said this when addressing parties to the Porgera project Community Development Agreement (CDA), who are negotiating benefits sharing arrangements in Wabag.

The PM said the balance of 47% will go to Barrick and its partners.

He said the 53% include all benefit streams such as royalties, equity, compensation and local content amongst others. In terms of equity ownership of the project, PNG parties own 51 %, where 36% is owned by the National Government through Kumul Minerals Holdings Limited (KMHL), 10 % (currently owned by SML landowners and is a subject of further discussions) and 5 % by EPG. PM Marape said that this makes the new agreement for the project, a far better deal than the past agreement. 

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