More than K7.2 billion has been spent on capital investment in PNG since Newcrest’s acquisition of Lihir in 2010.
The Lihir Gold Mine in New Ireland Province, which is one of the largest known gold deposits in the world, contributes to the PNG economy in multiple ways, including through taxes and royalties, employment, investment in infrastructure and services, and purchasing goods and services from local suppliers.
When releasing the Newcrest’s Full Year Result for 2019, the company announced its full year results with a statutory profit and an underlying profit of $561 million, 178 percent and 22 percent higher than the prior period respectively, from gold production of 2.49 million ounces.
Newcrest’s Cadia mine in Australia contributed $965m, or over 64 percent, of the Group’s cashflow from operating activities, with Papua New Guinea’s (PNG) Lihir mine contributing around 20 percent.
Newcrest contributions to the PNG economy in FY2019 include;
- Approximately K810 million paid to PNG suppliers for operating costs including equipment, labour, maintenance, consumables, food and fuel;
- K228 million in salaries and wages to employees;
- K128 million in salary and wages tax to the PNG Government; and
- K143 million total tax contribution to the PNG Government (including salary and wages)
Newcrest’s investment to the Lihir/local communities continued in FY2019 with K82 million paid to landowners and New Ireland Provincial Government through the current agreements.
Additional financial and in-kind support is provided through a number of local community programs, including K21 million per annum to manage the Lihir Medical Centre, which has approximately 50,000 consultations a year.
Newcrest’s vision to be the Miner of Choice for PNG’s people, shareholders, host communities, partners and suppliers has continued to grow in the last financial year.
The firm says it is proud of its operations on Lihir and looks forward to continuing to invest in the future of PNG in partnership with the Government and its people.