Porgera Mine Deal Promises 51% Equity for PNG Beneficiaries, Says PM Marape
PNG Prime Minister James Marape has assured Enga Governor Hon. Sir Peter Ipatas that the government remains committed to finalizing the Community Development Agreement (CDA) process for the Porgera Mine and addressing the concerns of landowners in the affected areas.
In response to questions raised by Governor Ipatas during today’s Parliament session, Prime Minister Marape acknowledged the continued leadership of the Enga Governor, praising his resilience amid challenges such as lawlessness and tribal conflicts while maintaining a strong focus on the province's development.
“I want to confirm my travel to Enga Province on 31st March for the opening of the Enga Provincial Hospital, which has been designated as a regional hospital with specialist facilities. During this visit, we will also discuss the progress of the CDA process,” said Prime Minister Marape.
He emphasized that the new Porgera Mine agreement is designed to deliver higher returns to Papua New Guinea’s beneficiaries. The agreement includes a 51% equity stake for PNG beneficiaries, a refined royalty rate of 3%, and increased employment opportunities prioritized as follows: Enga first, the rest of PNG second, and international employees third. This structure aims to ensure that over 90% of employment opportunities are reserved for Papua New Guineans.
Furthermore, the Prime Minister highlighted that all businesses intending to operate at the Porgera Mine must establish resident offices in Enga Province, ensuring that economic benefits are more directly captured by the local economy.
He also noted that the CDA process would consider submissions from riverine areas spanning West Sepik, Hela, and Western Provinces, as these areas fall within the environmental impact zone. The government is committed to ensuring inclusivity and fairness in the distribution of benefits from the mine.
“If the CDA process is concluded before 31st March, we will announce it during the hospital opening in Wabag. If not, a special occasion in April will be arranged at Porgera to announce the conclusion of the CDA,” Prime Minister Marape stated.
He reassured the people of Porgera that resettlement remains a top priority, acknowledging that since the mine started in 1990, no effective resettlement has been undertaken. The new Porgera Agreement includes a comprehensive resettlement plan to provide a decent future for the affected communities.
The Prime Minister thanked Governor Ipatas for his leadership and patience, assuring him that the government is committed to achieving positive outcomes for the people of Enga Province.
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