Prime Minister Hon. James Marape has commended K92 Mining Limited for its latest tax instalment payment of K230.9 million to the Internal Revenue Commission (IRC), describing the company’s Kainantu Gold Mine in Eastern Highlands Province as an outstanding example of efficient, responsible and transparent mining operations in Papua New Guinea.
Prime Minister Marape said the payment demonstrated the significant contribution that a well-managed, mid-sized mining operation could make to national revenue, economic development and the welfare of Papua New Guineans.
He particularly welcomed the company’s indication that its total tax contributions to the State were expected to surpass K1 billion by the end of 2026.
“K92 Mining has emerged as a low-cost, efficient, mid-sized mining operation that is delivering significant tax returns to the State,” Prime Minister Marape said.
“The company has indicated that, by the end of this year, its total tax contributions to the State will have surpassed K1 billion. This is a remarkable achievement for a mid-sized mining operation and demonstrates the tremendous value that responsible investors can bring to Papua New Guinea.
“The company’s work culture, ethics, management attitude and commitment to meeting its obligations are in the right place.
“This is the kind of responsible investment we want to encourage in Papua New Guinea – companies that are transparent about their production, declare dividends to shareholders, pay their taxes on time and contribute meaningfully to our national development.”
Prime Minister Marape said K92 Mining was demonstrating that the size of a mining operation did not necessarily determine its contribution to the country.
“Kainantu may be a mid-sized mine, but it is leading the way in returning taxes and dividends to the State in a timely and transparent manner.
“I commend the investors, management and workforce for their professionalism, efficiency and commitment to doing business responsibly in Papua New Guinea.”
The Prime Minister also welcomed indications from the company of its openness to discussions on potential State and landowner equity participation in the project.
He said the Government would continue working with the Mining Department and relevant stakeholders to ensure that benefits from the Kainantu operation flowed directly to customary landowners, the host province, surrounding districts and the wider country.
“We are looking forward to completing our work with the Mining Department to ensure appropriate benefits are passed on to landowners, the province and host districts,” Prime Minister Marape said.
“This includes opportunities through government infrastructure funding, infrastructure tax credit arrangements and potential equity participation by the State and landowners.
“We want to ensure that the people living within the immediate project footprint see and experience the benefits of having a successful mining operation in their area.”
Prime Minister Marape specifically highlighted the importance of ensuring that communities in Kainantu, the surrounding valleys, Eastern Highlands and neighbouring Morobe Province benefited from the mine’s operations.
“Our responsibility is to ensure that the people of Kainantu and surrounding communities, including those in the project impact areas, Eastern Highlands, Morobe and the country as a whole, feel the value of these investments.
“The communities hosting these operations must see improvements in infrastructure, essential services and economic opportunities.”
The Prime Minister said the substantial tax contribution was particularly welcome at a time when Papua New Guinea was confronting economic pressures arising from the El Niño phenomenon, rising fuel prices and increased living costs.
“At a time when our people are facing hardship from El Niño and high fuel prices, revenue contributions of this magnitude are extremely important,” he said.
“These are resources that Government can utilise to ease the burdens facing our people and support essential services, infrastructure and development programmes throughout the country.”
Prime Minister Marape said K92 Mining’s performance demonstrated what could be achieved when investors, government, landowners and other stakeholders worked together in a spirit of partnership, transparency and mutual respect.
“This is a reflection of what can be achieved when the mining industry and all stakeholders work together.
“Mining companies must operate efficiently, declare their production transparently, meet their tax obligations and ensure that benefits are shared fairly.
“Government, in turn, has a responsibility to translate these revenues into tangible improvements in the lives of our people.
“I have nothing but the best wishes for K92 Mining and other responsible investors who demonstrate this level of commitment to Papua New Guinea.
“I congratulate K92 Mining on this significant contribution and look forward to continuing our partnership to ensure the Kainantu Gold Mine delivers lasting benefits to its landowners, Eastern Highlands Province, neighbouring communities and our nation.”