In Papua New Guinea, approximately 90% of the land is privately owned. According to the Project Land and Environment Compensation Agreement (“LECA”), in the course of the development we are responsible for 14 categories of compensation such as land use and land loss compensation, social inconvenience compensation, compensation for loss of bushes, trees, creeks and sea water and others.

Under our CA Department we make the payment in accordance with the agreed rates and established record and verification procedures. By the end of 2010, we have paid 6.8million kina in total as compensation to landowners.

The compensation brings immediate benefits and development momentum to local landowners, and indirectly contributes to local economic development. With the compensation payment they set up small businesses such as vegetable gardening, poultry breeding and shops, and some clans even purchase equipments to obtain more substantial spin-off business.

In Papua New Guinea, land ownership can be a fluid issue in particular within the resources development industry. Currently, there are a number of registered land title disputes in the Project area waiting to be heard and determined by the Lands Title Commission, a government agency. For those disputed lands we will keep the compensation payment into a trust account pending the decision of the disputes.