PNG government rethinking China mining deal after opposition

8:13 pm on 13 December 2018

Papua New Guinea's mining minister says the government is looking at changing parts of a mining deal struck with China.

Mining tunnel

Photo: 123RF

In November, China and PNG signed a $US148 million memorandum of understanding to extend the Ramu nickel mine's refinery in Madang's Basamuk Bay.

But more than 1,000 locals are now threatening to shut down the Basamuk refinery if their demands aren't met.

They want funding for a local highway extension and other local benefits from the Chinese developer, the Metallurgical Corporation of China.

The minister, Johnson Tuke, met with landowners on Tuesday and said he's now raising their concerns with the company.

"There are some terms and conditions of the MoA might change and the treasury department are waiting on certain terms and conditions of the physical responsibilities too."

The petitioners have given the government until 19 December to respond to their demands.

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