Following the release of its fourth quarter report for the year, Newcrest Mining Limited has paid in total K69, 877, 823 million.
The royalty has been divided according to the 1996 Memorandum of Agreement (MOA) between the National Government, to the New Ireland Provincial Government (NIPG), the Nimamar local level government (NLLG) and the Special Mining Lease (SML) landowners who are represented through the Lihir Mining Area Landowner Association (LMALA).
From the K69.8 mill Royalty payment, the NIPG has received K34, 938, 912 million; the NLLG- K20, 963, 347 million has received: and the Lihir SML Landowners- K13, 975, 565 million.
According to the MOA royalties have been distributed in the following manner;
- 20% of total Royalties be paid in cash directly to the SML landowners
- 30% of total Royalties be paid to NLLG
- 50% of total Royalties be paid to NIPG
An arrangement was made between the SML Block Executives and LMALA for LGL to deduct 20% of this portion and pay it directly to LMALA to put in a financial savings scheme for the landowners. The remaining 80% of the portion is to be paid the SML Block Executives to distribute to the SML landowners.
The 30% portion of NLLG is divided to community development projects and programs (20%) and long term growth-driven investments (10%) for the benefit of the present and future generations. This 10% is invested and managed by the investment arm of NLLG.
The NIPG portion is divided to Namatanai District (20%), Kavieng District (20%) and general administration (10%). General administration also includes administration of the MOA obligations.
These potions of royalties given to Namatanai and Kavieng are for infrastructure projects and programs pursuant to their district and provincial development plans.
Under the 1996 MOA The National Government had relinquished its entitlements to the Lihir project’s Royalties and have it paid direct to NIPG, NLLG and the landowners.
Since 1997 a total of K585 million (K585, 049, 429) in royalty has been paid to NIPG, NLLG and Lihir SML.