The Porgera project’s community development agreement (CDA) is progressing, with four of the six parties initialling the draft after six months of negotiations.
A CDA is a legal agreement or commitment entered into by the company and affected mine community or communities and approved pursuant to these regulations.
Special mining lease (SML) landowners were the four parties who initialled the draft, representing their individual clans, the Porgera Urban Local Level Government, the Porgera Rural Local Level Government and PNG.
PNG will continue to work with the two remaining parties, New Porgera Limited and the Enga Provincial Government (EPG), on obtaining their initials.
The initialing ceremony was held at the Hilton Hotel in Port Moresby, with the documents now set to go through a government vetting process.
Once legal clearance is given, the CDA will be sent to the National Executive Council for deliberation and endoresement.
There are a number of major clauses in the draft, including the equity and royalty breakdowns between SML landowners, non-SML landowners and the EPG.
The current equity breakdown is five per cent for SML landowners, 2.5 per cent for the EPG, 2.5 per cent for non-SML landowners, and five per cent for Mineral Resources Enga.
This adds up to 15 per cent equity out of the total 51 per cent owned by PNG parties.
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