New Porgera Limited (NPL) delivered K2.1 billion to Papua New Guinea’s economy in the first half of 2026 through dividends, taxes and royalties, as the Enga Provincial Government moves to become a direct shareholder in the Porgera Mine.
The contribution comprises K1.2 billion in declared dividends, K759 million in taxes remitted to the Internal Revenue Commission (IRC) and K121 million in accrued royalties.
NPL Country Manager Karo Maha in a statement said yesterday the results demonstrated the significant and growing value the Porgera Mine was generating for Papua New Guinea.
“These results demonstrate the significant and growing value that the Porgera Mine is generating for Papua New Guinea,” Maha said.
“Through dividends, taxes and royalties, the mine is delivering real economic benefits to the national economy, the people of Enga Province and our landholder partners.”
In 2025, NPL declared K1.7 billion in dividends. In the first half of 2026, it declared a further K1.2 billion, bringing cumulative dividends declared since January 1, 2025, to K2.9 billion.
Consistent with the project’s ownership structure, distributions equivalent to the five per cent Mineral Resources Enga Ltd (MRE) share and the 10 per cent Enga Provincial Government (EPG) and landholder share held in escrow through Mineral Resources Development Company Ltd (MRDC) have been paid.
To date, MRE has received K114 million in cash dividend payments, part of which was used to repay certain care-and-maintenance costs.
MRDC has received K290 million, held in escrow for the benefit of the Enga Provincial Government and project landholders.
NPL also remitted K759 million in taxes to the IRC, comprising K662 million in advance payment tax, K74 million in salaries and wages tax, and K23 million in goods and services tax and withholding tax.
The company accrued K121 million in royalties during the first half of 2026, bringing total accrued royalties since the mine restarted on December 23, 2023, to K331 million.
The royalties are being held in reserve pending the conclusion of Community Development Agreement (CDA) negotiations, which will determine the final recipients and distribution arrangements.
The State and NPL have agreed in principle that royalties payable to eligible landholders will be paid directly into individual household bank accounts to ensure benefits reach households efficiently and without unnecessary intermediaries.
The Enga Provincial Government is also moving closer to becoming a direct shareholder of NPL.
NPL’s board of directors has approved the steps necessary to transfer 2.5 per cent of the company’s shares from escrow to the Enga Provincial Government’s nominee entity, Enga Minerals Resources Management Company Limited.
The transfer follows confirmation by the State Solicitor that the State Allocation Offer under the Porgera Project Commencement Agreement (PPCA) has become binding.
The agreement provides for the 10 per cent shareholding currently held in escrow to be allocated as follows: five per cent to SML landholders, 2.5 per cent to non-SML affected landholders and 2.5 per cent to the Enga Provincial Government.
Once the remaining procedural steps are completed, the transfer will make the Enga Provincial Government a direct shareholder of NPL for the first time.
This will give the provincial government a total effective interest of five per cent when combined with its indirect interest through MRE.
As a direct shareholder, the EPG will be entitled to receive its proportionate share of future dividend distributions, providing it with a direct and sustainable revenue stream to invest in infrastructure, public services and economic development in the Porgera Valley and across Enga Province.
The transfer of the remaining escrow shares to SML landholder and non-SML affected landholder beneficiaries remains subject to the CDA process, which is being led by the State through the Mineral Resources Authority.
Meanwhile, Porgera’s operations have been affected by severe drought conditions, forcing a temporary suspension of processing operations.
Mining activities will continue, while the company is using the period to bring forward maintenance and infrastructure improvement works.
NPL said no workforce reductions have been made.
Processing operations are being restarted intermittently as water levels permit, with full production rates expected to resume once sustained rainfall restores normal water supply.
NPL General Manager James McTiernan said the disruption was temporary and caused by weather conditions rather than a change in the mine’s long-term outlook.
“This is a temporary interruption caused by weather conditions, not a change in the long-term outlook for our operation,” McTiernan said.
“We have been through this before, we know how to manage it, and we will come through it again.”
NPL said it remained committed to operating responsibly for the benefit of all stakeholders through transparent stakeholder engagement, employment, government revenue and sustainable development initiatives.