Wabag, Papua New Guinea, July 8, 2024 – Prime Minister Hon. James Marape was in Wabag today, meeting with the Mining Department and Mineral Resources Authority to conclude the Porgera benefit distribution for landowners and provincial governments.
“As of last month, Porgera has achieved almost100 percent production. I appeal to our people to support the completion of the community benefit-sharing process so we can distribute benefits to all entitled to various benefit streams,” Prime Minister Marape said.
“It is not easy to include over 50,000 people and four provinces, including the host province Enga.
“Enga Provincial Government, led by Sir Peter Ipatas, fought hard for better Pogera benefits that now enables 51 per cent equity (36 per cent at cost and 15 per cent free), 3 per cent royalty, 30 per cent Company Tax, and 2 per cent fiscal stability tax.
“This is far from the 5 per cent equity we had in the Old SML 1 Porgera. Apart from hiccups that continue to affect the mine, it is a project that has potential to benefit us more, so all State agencies will continue to support Sir Peter and Enga Provincial Government to ensure the New Porgera is settled properly so over the next 20 years Porgera can contribute to the economy.
“We constructed the New Porgera modeling 53 per cent return to PNG economy with the price of gold modeled at $1536 per ounce. From my study, gold price will be above $2000 going into the future so we expect a quick repayment time on the cost of restarting the mine.”
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