The New Ireland Provincial Government (NIPG) is leading a united front to demand greater returns, including a K300 million benefit deal from the lucrative Lihir and Simberi gold mining operations.
In a formal submission to Prime Minister James Marape and Mining Minister Solen Loifa, NIPG alongside Namatanai and Central New Ireland LLGs, outlined three key priorities aimed at securing a fairer share of resource wealth for the province.
Related news: https://www.postcourier.com.pg/nipg-tables-formal-k300-million-submission-to-national-government-over-mining-wealth/
Central to the proposal is a Memorandum of Agreement that includes the delivery of K300 million to the province, the transfer of a 10% equity stake in Simberi Gold Mine, and legislation to increase royalties from 2% to 3% for both Lihir and Simberi operations, bringing them in line with other major projects in the country.
The province is seeking to acquire half of the 20% shareholding currently held by Kumul Minerals Holdings Limited (KMHL), with the remaining 10% retained by KMHL on behalf of the State.
Governor Chan said the people of New Ireland have, for decades, shown patience, partnership, and hospitality to the resource sector, but the time has come for equitable benefit sharing.
“It is now time for the State to reciprocate with fairness, transparency, and the equitable sharing of benefits that rightfully belong to the province,” he said.
NIPG is also calling for a clear legal framework that outlines the mechanism, timeline, and structure for equity transfer and direct dividend participation, noting that current arrangements do not adequately reflect the scale of mining operations or their long-term impact on host communities.
The proposed increase in royalties, payable directly to the province, is expected to fund key sectors, including health, education, law and order, infrastructure, and economic empowerment initiatives.
Governor Chan emphasized that Lihir and Simberi are world-class mining assets that contribute significantly to the national economy, and the benefits flowing back to the province must reflect that reality.
“Our position is clear… royalties must increase to 3%, just like Porgera. We want equal treatment for Lihir and Simberi,” he stated.
He added that the Provincial Government has requested a high-level tripartite meeting involving the National Government, local-level governments, and landowners to formalize discussions and move the proposal forward.
“We approach the National Government in a spirit of partnership and look forward to a constructive response,” Governor Chan said.
The move signals a strong and coordinated effort by New Ireland leaders to secure long-term economic benefits for the province and its people.