In a significant development regarding the Porgera Mining Project, the State Team overseeing the Community Development Agreement (CDA) negotiations has provided an indefinite time-off to the concerned parties for them to review and offer feedback on the draft CDA document before the negotiations recommence.
The document contains various benefits for landowners and stakeholders stemming from the anticipated new Porgera Mine. It is a pivotal agreement as it is a process by which landowners and stakeholder can negotiate and distribute benefits.
The expected benefits from the State and New Porgera Limited (NPL) include royalties, equity, Infrastructure Development Grants (IDG), Special Support Grants (SSG) and business spin-off opportunities, among others.
The process follows the Mining Act of 1992 and various other laws that govern the CDA negotiations, and stakeholders must be mindful of the relevant laws when negotiating benefits.
A CDA is a legal agreement entered into by the company and affected mine communities and approved pursuant to these regulations. The state has previously met with the special mining lease landowners, Lease for Mining Purposes Minerals for Life landowners, the Enga Provincial Government and the Porgera Rural Local Level Government.
Key stakeholders in this negotiation process include the Special Mining Lease (SML) landowners, New Porgera Limited (NPL), Enga Provincial Government, the State, and the Porgera Rural Local Level Government.
Acknowledging the broader impact, non-SML landowners, including those holding Lease for Mining Purposes (LMP), Mining Easements (ME), Hides-Porgera Power Line landowners, and the Riverine impact communities, received the opportunity to scrutinize the draft document. Despite not being direct parties to the CDA, these non-SML landowners stand to benefit from the mining operations.
To ensure inclusivity and equitable distribution of benefits, Jerry Garry, the Managing Director of the Mineral Resources Authority (MRA), echoed the sentiments expressed by the Governor for Enga Province, Sir Peter Ipatas, urging SML landowners to consider the interests of non-SML landowners in the equity-sharing arrangements.
Mr. Garry emphasized that certain aspects of the draft document might warrant immediate decisions based on existing policies and laws, while others might necessitate deliberation at the National Executive Council (NEC) level.
Mr. Garry acclaimed it as the most advantageous arrangement in the nation's 49-year mining history. He lauded the leadership of Prime Minister Hon. James Marape MP and Governor Sir Ipatas for their pivotal roles in securing the deal, which endows the country with a 51% equity stake in the project.
In distributing the draft document to the parties, Mr Garry told them there would be certain things which the parties may want as part of their review, which that the state team can make decisions on immediately based on policy and law. However, other things may require the National Executive Council’s (NEC) decision.
The dissemination of the draft CDA document signifies a crucial juncture in the ongoing negotiations, underscoring the commitment towards fostering transparency, inclusivity, and equitable distribution of benefits among all stakeholders involved in the Porgera Mining Project.
Enga Province Governor Urges Swift Action on Porgera Mining Project CDA
Enga Province Governor, Hon Sir Peter Ipatas, convened the crucial CDA meeting on May 22 at the Enga Teachers’ College in Wabag, welcoming key stakeholders.
Governor Ipatas emphasized the importance of fairness, understanding, and consensus building among the parties to expedite the process of reaching mutual benefits.
He underscored the necessity for all stakeholders to agree and sign the CDA, which serves as the framework for negotiating and distributing benefits arising from the Porgera Mine operations.
Highlighting the urgency of the situation, Sir Ipatas warned that delays in finalizing the CDA could result in missed opportunities for landowners, including lucrative contracts and business spin-offs.
With the Porgera mine already operational, swift action is imperative to ensure that communities can begin to reap the benefits outlined in the agreement.
The Governor called upon the National Government to consider the interests of Lease for Mining Purposes (LMP) landowners and impact communities, stressing the importance of their inclusion in the negotiation process.
Hon. Ipatas urged all parties to prioritize the collective interest and refrain from prolonging the negotiation process.
The meeting concluded with a commitment from all stakeholders to work diligently towards a swift resolution, with the understanding that timely action is essential to realizing the socio-economic potential of the Porgera Mining Project for the benefit of all involved parties.
As negotiations continue, the Enga Province remains poised for progress, guided by the vision of equitable development and sustainable growth, the governor said.
State Explains PPCA
The State Team engaged in the Porgera Mining Project CDA in Wabag, Enga Province explained to the Porgera Landowners Association (PLOA) that by law, only parties to the Porgera Project Commencement Agreement (PPCA) and associated agreements could have copies of the agreements.
According to a press release provided by the Mineral Resources Authority in May 22, the Deputy State Solicitor Bonny Gelu said the law protected the agreements and that there were legal and financial implications surrounding access to these agreements.
“If you signed the agreement, you can have copies. If you didn’t the sign the agreements, you cannot have copies,” explained Mr Gelu. He asked the PLOA to inform the State if they had signed any of the agreements and if so, they should identify the particular agreements they had signed so that the State could locate and make copies available.
In addition, the State pointed out that the PLOA and the EPG are shareholders of Mineral Resources Enga, which means they own MRE. Since the MRE, is a party to the PPCA and associated agreements, the PLOA and EPG can easily get copies from their own entity that represents them as shareholders and owners.
Mr Gelu said New Porgera Limited (NPL) had circulated to all stakeholders of the CDA a summary of the benefits contained in the PPCA and associated agreements, which could be incorporated into the CDA template.
The PLOA also asked the State to identify who the parties to the CDA were. In response the State through Mr Gelu, explained that according to section 98 and 99 of the Organic Law on Provincial Government & Local Level Government, the parties are the Special Mining Lease (SML) landowners, the Porgera Rural Local Level Government and the Enga Provincial Government (EPG).
However, Mr Gelu explained that this did not mean that non-SML landowners like the Lease for Mining Purposes (LMP), Mining Easement (ME) and Riverine communities could not benefit. He said non SML landowners would still benefit from the project except that they could not become parties to the CDA.
Chairman of the CDA negotiations Winterford Eko, explained to all parties that section 5 of the Mining Act 1992, states that all minerals in the country is owned by the National Government.
He said this meant that the National Government as the owner of all minerals has the legal authority to negotiate deals with investors at the highest level. He said the PPCA was therefore negotiated at the National Government level, adding that that the CDA parties could only negotiate based on what had already been agreed at the State level.
The parties agreed to postpone the meeting to May 23, so that the State Team could have internal consultations to find ways forward to address the PLOA’s wish to have copies of the PPCA and other agreements.
