Government unaware of K160 million Misima Mine acquisition

The National Government says it was not informed of a major transaction involving Ok Tedi Mining Limited [OTML], Kumul Mineral Holdings Limited [KMHL], and Kingston Resources for the K160 million acquisition of the Misima Gold and Silver Mine in Milne Bay Province.

Prime Minister James Marape told Parliament that neither the National Executive Council [NEC], his office, nor the minister responsible had any knowledge of the deal.

"I will have a trustee delegate minister ask Kumul Mineral Holdings Limited to clarify with Ok Tedi what exactly transpired," Marape said. "I only learned of the purchase through the media and have no full visibility of the transaction. This Parliament deserves a full briefing on what has happened."

The clarification came in response to a question from Samarai Murua MP Henry Isi Leonard, who raised concerns over the acquisition.

Kingston Resources is the first company seeking to restart gold production at Misima since Placer Dome ceased operations in 2004 after a 15-year mine life.

The move by OTML to acquire the mine has drawn criticism from locals and affected communities, who accuse both the company and the government of neglecting unresolved legacy issues, including deteriorated infrastructure, health facilities, roads, and airports.

MP Leonard said his people only agreed to an extension of the exploration license [EL 1747] for Misima and did not consent to the sale.

He expressed concern that millions of kina are being committed to mining operations without fresh exploration work to determine the remaining gold reserves.

“Misima is not a greenfield site, it has been mined for over 20 years,” Leonard said.

He also claimed that EL 1747 had expired and was not renewed.

However, the Mineral Resources Authority [MRA] clarified to NBC News that EL 1747 was renewed after expiring on March 20 this year.

MRA Managing Director Jerry Garry explained that an application for renewal was lodged on February 19, and under the Mining Act, a tenement remains active beyond its expiry date until a formal determination is made by the State.