Landowners of the Tolukuma Mine in Goilala District, Central Province, have issued an ultimatum to the Government to withdraw the mining lease from operators, Asidokona, or they will shut down the mine.
Chairman of the Yulai Landowner Group, George Gusi, announced on his Facebook profile yesterday that a seven-day ultimatum was given, which lapses on Monday, November 20.
Gusi stated that the current operator was not capable of operating the mine and called for its withdrawal and for another operator to invest in the mine.
“I have given 7 days’ ultimatum for the government to withdraw the mining licence from Asidokona Mining Resources Ltd.
“The rationale behind this? Asidokona has no capacity to operate a mine.”
He alleges the operator lacks financial capacity as well as expertise.
“I am taking this bold action to rescue my suffering landowners to make way for a potential investor to come in and invest on our land,” said Gusi.
“MRA and other concerned authorities must come out clear and provide clear explanation on this issue.
“I have already woken up from my long sleep now so I will continue to pursue until I achieve what I want.
“My appeal to all those relevant authorities to be patriotic to our country, our people and take our people’s issues/concerns at heart in ensuring that any decisions made are there to serve the best interest of our people,” he added.
When contacted by Loop PNG, Gusi claims formal notices have been issued to the Mineral Resources Authority (MRA), Mining Minister Johnston Tuke and other stakeholders.
He said if a favourable response is not received by the due date, they will shut down the mine.
In June this year Gusi snubbed the signing of the Tolukuma Mine memorandum of agreement (MOA), citing unmet outstanding issues.
Despite Asidokona being granted the mining licence, return to production has been problematic.
Last month the MRA stated that tenement, regulatory and funding issues have stalled production.