"PNG academic pleads for Porgera money not to be wasted", 20 July 2023

A Papua New Guinea academic wants structures to be put in place to ensure returns from the soon to reopen Porgera goldmine in PNG are not wasted.

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Andrew Anton Mako, who grew up in Porgera in the early years of the mine and won a mine-funded scholarship to study at the University of PNG, said much of the earlier income went on consumption.

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Mako hopes that the new leases, agreed back in April, and which are much more beneficial for the landowners, will be used smartly and not wasted on consumption spending.

"In the past it was only 2.5 percent of the mine equity stake," he said.

"Now the landowners have been given ten percent, free carry, by the government. So, it will be a lot of money. It is estimated around 25 million kina. That's a lot of money for the next 20 years.

"So even though the proceeds will increase, the main issue is in the governance, the use of that money, whether it will be used productively to improve the lives of the people or whether it will be used mostly on consumption," he said.

Mako said there must also be thought given to what happens when the mine stops producing.

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