Residents of PNG's Bulolo district demand goldmine royalties

Updated October 3, 2008 17:20:04

In Papua New Guinea, the people of the Bulolo district are demanding a larger cut of gold mine profits reserved for the Morobe province.

Our Pacific reporter, Helene Hofman, says they say they want half of the 36 per cent of royalties allocated to the provincial government.

The Hidden Valley Gold Mine in the Bulolo district is to begin pouring gold in July next year.

When it does, the Morobe provincial government will receive about 12 million kina a year - or over $US4.5 million - in profits.

Representatives for Bulolo say they want half of this to be put aside to build basic facilities like schools and roads in their district.

However, the governor for the Morobe province, Luther Wenge, says they can't afford to give more than 25 per cent and intend to use to develop the infrastructure of the entire province.

Negotiations between the two parties are continuing.

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