The government of Papua New Guinea and its partners in the Ok Tedi copper-gold mine have signed a compensation agreement aimed at ending a claim for environmental damages launched by local landowners.
The agreement provides for compensation payments of about $80 million over the 15-year mine life, as well as other provisions. The package also provides for an additional 10% equity in the company to be transferred to the government for the benefit of people in the PNG’s Western province.
According to Platt’s Metals Week, the agreement also contains a controversial provision that makes it a criminal offence for any person to sue the mine for further compensation for environmental damages.
The agreement and the draft legislation containing the penalty clauses must be ratified by the PNG government to become law.
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