via Post Courier online

A new NRI report based on a case study on the Porgera Gold Mine has highlighted the need for a probe into the current payment system.

The report by Peter Johnson recommends the need for EITI (Extractive Industries Transparency Initiative) to look at the flaws in the current payment system and pave way for transparency.

Mr Johnson also believes that there is a need for the education of landowners and women especially in finacial literacy so they may be able to positively care for their families.

The report looks at Relations between the Memorandum of Agreement, financial benefit from the mine, institutional structures and development outcomes which could answer the question of why Papua New Guinea is resource rich yet its citizens are poor.

The report is titled 'Lode Shedding: A Case Study of the Economic Benefits to the Landowners, Provincial Government and the State from the Pogera Gold Mine.’

The report also suggests a model on how to approach landowners and development issues in future resource ventures such as the LNG Project.

It also looks at the original Pogera mine agreements and over a period of twenty years of commercial activities; how well these agreements were implemented.

NRI Director, Thomas Webster also highlighted the need for a probe, illustrating some of the issues in Pogera and other mining townships. He brought to light the mentality of the people and their carelessness towards handling huge amounts of money without investing them for the future despite receiving regular handouts from mining companies.

The report emphasises that PNG has the expertise and resources to develop strong policies to ensure transparency and accountability. 

Dr Ila Temu, President of the Chamber of Mines and Petroleum thanked NRI for pointing out these issues and then going on to conduct a case study that will be able to improve them.

Temu ended with a challenge saying, ‘now that we know what is going wrong, what are we going to do about it?’