Mining Minister, Byron Chan, has assured affected landowners of the Ramu Nickel Project in Madang Province that they will be paid royalties and an outstanding K10 million commitment.
Chan made the assurance in Parliament on Friday when asked by Usino-Bundi MP, Anton Yagama.
Yagama said since the project began, tons in mineral exports have left their shores at Basamuk, however, to this date there has been no royalty.
He also queried when the outstanding K10 million would be paid to the landowners.
Chan said the Mineral Resources Authority (MRA) and project developers, Metallurgical Company of China (MCC), had recently agreed to pay landowners royalties.
“I’d like to assure the member they have agreed to pay royalty, what percentage of royalty how much, is being calculated right now.
“Secondly, the commitment of K10 million by Prime Minister. A submission is now with the Prime Minister and NEC to deliberate. It is not part of the MoA, there is no government and binding commitment in this project. (The) commitment was made by the former Prime Minister and we will be able to fulfill those commitments,” said Chan.
He said the problems of royalty stem from the existing MoA signed prior to the project beginning operations.
Under the agreement, the MCC was given a certain time period to recover its costs and after that be able to pay royalties.
However, this became problematic following several disruptions to the project, which almost resulted in the closure of the mine.
“It is very sad, deputy speaker that after several years of operations, ol lain lo ples ol ino kisim wanpla toia lo graun blo ol. (It is very sad, deputy speaker that after several years of operations, the landowners have not received a toea.)
“And it’s not their mistake because of frustrations because of the MOA at that time. And the leaders saw fit to bring in these investment but in the process, i compromaisim liklik interest bilong ol lain blo yumi lo ples,” he said. (And it’s not their mistake because of frustrations of the MOA at that time. And the leaders saw fit to bring in these investment but in the process, they compromised the interest of the landowners.)
Since the project began in 2006, operations of the mine have been weathered with numerous landowner issues surrounding royalty payments and Government commitments.
In 2006, former Prime Minister, Grand Chief Sir Michael Somare, made a commitment of K20 million as business development grant funds. Taking over as Prime Minister in 2011, Peter O’Neill paid half of the amount.
In October last year, landowners demanded the remaining K10 million and threatened to shut down the mine if the Government did not adhere to their ultimatum. They withdrew their threat a month later.
Picture: ramumine.wordpress