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MRA: Landowners will not miss out

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Landowners are urged to understand and respect regulation processes by the regulator Mineral Resources Authority.
MRA managing director Jerry Garry said this is only one part of the process and the regulator together with relevant state agencies has not gone into the memorandum of agreements (MOAs).
While the development forums especially for Ramu NiCo has not commenced yet.
Mr Garry said people and stakeholders who thought they missed out on any benefit sharing arrangements for Ramu must know that the process has not commenced yet.
“We also want to assure our stakeholders up at Porgera that the process of the MOA has not really started yet. When that is initiated we will inform every stakeholder when that the process will commence,”he said.
Mr Garry said there are usually three common stages of agreements in all the mining projects which includes the mining development contract (MDC), a high level contract that is negotiated between a developer and the state.
He said it has nothing to do with the stakeholders and under the agreement, during the negotiation process, the various fiscal regimes, state equity participation and others are discussed at that level. He added that it is very high level and does not involve any other parties.
“The second layer of the contract is what we call the memorandum of agreements (MOAs), that is typically a process where all the affected stakeholders are brought to a forum where we call a development forum and that forum is normally initiated by the mining minister under the law where every party is brought to that forum to discuss the benefit sharing agreements.
“So it is very important this mining development contract is locked in before the MOAs are formalised. These processes takes time so people who thought that they are missing out on benefits in many cases do not really understand these two stages regarding the MDC and the MOA. Under the MOA we have the host provincial government or if we have the two provincial governments, LLGs, landowners and the affected landowners that do not include those people from where the deposit is, but also along the footprint of any mine development project between the state and the company. This is where the major benefit sharing agreements is being negotiated. The third thing that came up with the Ramu project is the compensation agreement. The compensation agreement is basically restricted to the land holders and the company.” For compensation agreements, he said it is intended basically for the destruction to land surface, destruction to any cash crop of plans on the land within the mine itself or along the footprint or rather where the infrastructures will be built and also the provision of access to the
land.

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