The audio player could not be loaded.
Ok Tedi Mine CMCA Review
Papua New Guinea now has 419 cases of COVID-19, but this not only faces a build-up in some cases, but also has crippling economic benefits and Australia and Japan are expected to provide financial assistance to keep the country afloat.
Before the pandemic hit, PNG Prime Minister James Marape said the country was in a “very deep economic hole” and PNG economist Maholopa Laveil said the coronavirus had compounded things.
“It has a lot and the government expects a deficit of 2.2 billion kina in revenue,” Laveli said.
An expected budget update for this week is expected to show a larger deficit and the CBA understands that the budget documents will also provide Australia’s monetary support.
Australia already provided a $440 million loan last year and provided $20 million in cash in May.
Although Mr. Marape was asked when the main points will be announced, Japan is also believed to offer a loan of approximately $400 million.
This comes at a time when global crashes and falling commodities have hit PNG hard.
The Porgera gold mine is closed lately due to a dispute between the operator and development in the courts.
While Ok Tedi Mining Ltd (OTML) suspended operations after an outbreak of COVID-19 at the site.
In a statement, OTML said it plans to restart operations until mid-September, and workers are expected to be fully quarantined at designated isolation facilities before returning to work.
Ok Tedi CEO Musje Werror said the suspension of mining operations had an effect not only on the mine, but also on PNG’s economy.
“The company lost about $20 million a week in revenue, which had a direct effect on currency inflows in PNG.
“While inconsistent stocks are suspended, OTML continues to bear a significant portion of its overall costs inconsistent with them and therefore losses of approximately $10 million consistent with the week in which this period is incurred,” Werror said.
Pacific Beat on iTunes or RSS
Pacific Review on iTunes or RSS
Wantok on iTunes or RSS
Find ABC podcasts on the ABC Listen app
Just to have in Australia