Prime Minister Hon. James Marape, MP, today reaffirmed his government’s commitment to the people of Western Province, assuring them that the newly reviewed Community Mine Continuation Agreement (CMCA) for the Ok Tedi Mine will be a “transformational” step toward sustainable development.
Rescheduling his appointments to attend the final CMCA review workshop in Port Moresby, Prime Minister Marape acknowledged the decades of sacrifice by the people in the mine impact areas for granting the necessary social license to operate
“I want to extend my deepest thanks to the people of the CMCA areas, the entire Western Province, and all landowners for your consistent support to the country,” he stated in his closing keynote remarks.
Focus on Legal Dialogue, Not Conflict
The Prime Minister lauded the people for seeking dialogue to resolve grievances, emphasizing the importance of adherence to the rule of law.
“The settling of our concerns is found not at the ‘bottom of a gun’ or in ‘tribal conflict,’ but through due processes of law,” he said.
He added that the government is pushing for increased arbitration and mediation to strengthen legal avenues, protect the nation, and safeguard the future of the children.
Intergenerational Wealth and Trust Funds
Addressing the mine’s legacy, Prime Minister Marape expressed his pride in the people of Western Province but acknowledged the poor human development indicators despite the mine’s operations.
He challenged stakeholders to assess the sustainability of wealth transfer since the 2001 social license was granted.
He revealed that as Finance Minister in 2012, he had refused attempts to change the trust structure for CMCA funds, which then stood at almost K700 million.
“The government is committed to saving for the next generation,” the Prime Minister stressed, citing an example where the National Government is currently holding or transferring over K300 million to partners for projects designed to create “intergenerational wealth that stays forever.”
New Benefits Package Confirmed
The Prime Minister confirmed a significant increase in the benefits package, which he urged Ok Tedi Mining Limited (OTML) and Kumul Minerals Holdings Limited (KMHL) to formalise
Key details of the forthcoming agreement include:
● Increased Equity Rates: The MoA to be taken to Cabinet next week will include “increased equity rates” for the CMCA people.
● Tax Credit Scheme Boost: The current 2% rate going to the Infrastructure Tax Credit Scheme (TCS) will be increased to 3%.
Prime Minister Marape insisted that the 12th CMCA must be a “transformational” agreement, not just a contractual one.
He noted that with an estimated population of only 300,000 people, the proper planning of this single mine’s proceeds could lead to the complete betterment of Western Province.
He concluded by assuring the people that the final agreement will be one that “respects the people, improves lives, and aligns with national policy to ensure Western Province is developed better for all.”