Four of the six parties involved in the Porgera Mining Project Community Development Agreement (CDA) initialled the draft CDA on October 9th in Port Moresby. This follows six months of negotiations. The signatories included the Special Mining Lease landowners, the Porgera Urban Local Level Government, the Porgera Rural Local Level Government, and the State. New Porgera Limited and the Enga Provincial Government did not attend the ceremony, but the State said it is confident of reaching a consensus with them soon. The draft CDA will undergo government vetting, focusing on fiscal, monetary, and legal terms before being presented to the National Executive Council for endorsement. Major clauses in the draft CDA which the Department of Treasury will look at are the equity and royalty break-ups between SML landowners, non SML landowners and the EPG. Under the Porgera Project Commencement Agreement (PPCA) which was signed between Barrick, SML landowners, EPG and the State, the equity break-up is as follows: SML landowners 5% EPG 2.5% Non SML 2.5%, Mineral Resources Enga (MRE) 5%. This adds up to 15 % equity out of the total 51 % owned by PNG parties. The balance of 36 percent is owned by Kumul Minerals Holdings Limited (KMHL) on behalf of the State. In terms of royalties, the PPCA provides for a total of 3 percent royalty of which, 2 percent goes to the SML landowners, 1 (one) percent to EPG and the other 1(one) percent to others (non SML, riverine, Mining Lease, Lease for Mining Purposes). The SML landowners have however, proposed their own break-up of equity and royalties, and a plan on their business development aspirations. These proposals will be attached with the draft CDA to the NEC for decision making. CDA is a benefit sharing agreement whereby the National government shares benefits from mining projects with the host Provincial Government Local Level Governments and Landowners as required by law