The distribution of nearly $208 million (K859 million) in royalties from the Ramu Nickel-Cobalt (NiCo) mining project between 2013 and 2024 underscores the complex intersection of resource wealth, local governance, and community development in Papua New Guinea’s Madang Province.
The Madang Provincial Government’s share of $17 million (8% of total royalties) highlights the provincial level’s stake in managing and channeling resource revenues to broader regional priorities. Meanwhile, landowners received the largest share at 57%, reflecting PNG’s landowner-centric resource governance framework, with Incorporated Land Groups (ILGs) also playing a significant role.
Beyond royalty payments, the Ramu NiCo operation has committed to community investments, including the establishment of learning centres and support programs for women-led SMEs — initiatives aimed at fostering local economic empowerment and sustainable development. This approach aligns with growing expectations for resource companies in PNG to contribute meaningfully to social infrastructure and economic diversification in host communities.
The company’s $12.73 million in compensation payments further addresses community impacts, although questions remain regarding the adequacy and transparency of such payments in meeting local expectations and mitigating social risks.
Notably, Ramu NiCo’s extensive procurement expenditures, amounting to approximately $1.8 billion from 2013 to 2024, represent a significant economic stimulus. The bulk allocation towards fuel services indicates the heavy operational demands of the mining project, while spin-off business opportunities for local suppliers and service providers are critical for long-term regional economic growth.
The Ramu NiCo project, a USD 2.411 billion investment, exemplifies the scale and stakes of large resource developments in PNG. Its royalty flows and community investments are key indicators to assess how resource wealth can be translated into sustainable development outcomes amid persistent challenges in governance, equity, and infrastructure.
For policymakers and stakeholders, ongoing transparency in royalty distribution, effective provincial management, and strengthened partnerships between companies and communities remain essential to maximize the benefits of such mega-projects for Madang Province and Papua New Guinea as a whole.