The Mineral Resources Authority (MRA) has taken the lead putting together an eight point resolution to address outstanding issues raised by landowners of the Kainantu Gold Mine in Eastern Highlands Provinces.
This follows the closure of operations at the Mine following an arson attack by landowners resulting in millions of kina in damages to the mine property.
In a media conference today, MRA Managing Director, Phillip Samar, said the resolution is yet to be agreed to by all parties which he will meet later this week.
Samar said the unsuspecting attack on the mine was a result of outstanding landowner issues which Bilimoia Interim Landowner Association (BLA) claim have not been met.
He said of the eight outstanding issues which they raised, the primary issue was the awarding of three major contracts for Camping and catering; security services; and Transportation.
Other issues include:
- Employment and training;
- BLA office to be opened at the mine;
- Support funds for the BLA;
- Water Coloration Payment;
- Outstanding Compensation Payments;
- Contact Engagement Right Fees
- Memorandum of Agreement (MOA) Review
Samar said K92 Mining Inc, developers of the Kainantu Mine, have agreed to as per signed agreements, to award the three major contracts to locals through a 50-50 joint venture with the recognised landowner group, Bilimoia Interim Landonwer Association..
However, such contracts must be agreed to in proper commercial arrangements and not in a ‘gun to the head’ fashion, as being propagated by some landowners.
On record, Samar said the company has paid K2 million to landowner’s since taking over the mine in 2015, with over K700, 000 paid to local contractors.
A second meeting will be held this week, where BLA leaders will decide whether to agree to the resolutions or not.
Meanwhile, operations at the Kananti Gold Mine is expected to stop for at least a month, with damages from the arson attack estimated to be worth around K13 million.
Around 200 or more workers and contractors will also be laid off as a result of the stop production.
Police have been deployed to the mine site to maintain security.