Finance Minister Denies Cash Payments to Refinery Holdings: Clarifies Government's Position on Project Financing
Finance Minister Denies Cash Payments to Refinery Holdings: Clarifies Government's Position on Project Financing
Summary: Finance Minister Rainbo Paita has refuted claims of any K5 million cash payments made by the government to Refinery Holdings, emphasizing that neither the current nor former government has provided any funding for the project. Paita asserted that Refinery Holdings is solely responsible for financing the Gold Project, with obligations amounting to significant sums for construction, working capital, and gold inventory financing. The Minister emphasized that the government has no obligation to contribute financially to the project, as outlined in the project terms agreed upon with Refinery Holdings.
Paita Says No Cash Paid To Company
Post Courier
22 March 2024
Paita said the government, including the former O’Neill government, has not paid any cash to Refinery Holdings in respect to the development and approval or the financing of this Project, and has no obligation to do so in the future.
It has been reported widely that payment has already been made to the Refinery Holdings or to the project. “Any statement or suggestion to the contrary is wrong,” Paita said.
“Let there be no doubt on this.
“The government, including the former O’Neill government, has not paid any cash to Refinery Holdings in respect to the development and approval or the financing of this project, and has no obligation to do so in the future.”
“Also, everyone should be aware that Refinery Holdings has not asked the Marape government, or the former O’Neill government, for any such cash payment, and nor will they.
“The reason being is that from the very beginning in 2012, Refinery Holdings made it clear in its project proposal, and in all subsequent dealings and negotiations with government, that it was not seeking, and would not seek, any such cash payment,” Paita said.
“The Project arrangements are clear. Refinery Holdings is the Project financier, not the State and, consequently, the Government has no obligations to finance the project.”
“Under the new project terms Refinery Holdings remains solely responsible for arranging the financing of the construction and operation of the Gold Project.
“The government has no obligation to provide any cash payment to assist Refinery Holdings with its project financing obligations.
He said the Refinery Holdings’ financing obligations include an estimated:
US$160 million construction finance facility for the initial Refinery and Mint facilities at Jacksons International Airport and the LNG Park;
US$40 million for working capital to commence the bullion bar, National Bird of Paradise PNG legal tender international investment grade gold and precious metals currency coin program and the National Gold Note program, and general working capital until the Project becomes self sufficient; and US$5-7 billion pa, once the Project is fully operational, gold inventory financing facility to finance the gold inventory and operations of the National Gold Refinery and the National Mint, including the bullion bar trading program and the production of value-added gold products.
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