• PNG Business News

Call to postpone changes



The PNG Chamber of Mines and Petroleum has requested Parliament to postpone the proposed changes to the organic law on resources in its next sitting.

The proposed changes are on the Mining Act and Oil and Gas Act.

“These changes will cause significant uncertainty for the industry, explorers, landowners, provincial and local level governments, and communities, it said.

“Only MPs can protect our valuable resource industry, landowners and people against the unnecessary uncertainty this change will create. Failing to do this will see this proposed Organic Law end contribution and investment that have seen PNG grow as a nation.”

This will be done by:

  • Introducing production sharing agreements that have been shown not to have worked in the mining industry anywhere in the world and would put all future investments at risk;

  • Making it possible for the Government to compulsorily acquire land from landowners that fall under a mining agreement taking away certainty and livelihoods;

  • The establishment of state-owned entities (SOEs) to manage valuable projects that may not have any direct oversight or regulation by Government agencies; and,

  • The transfer of ownership of hydrocarbons and minerals from State to SOEs.

The chamber and industry request that:

  • The proposed Organic Law and other amendments to the Mining and Oil and Gas Acts be postponed; and,

  • An urgent consultation and dialogue are undertaken with the industry and other stakeholders on the hydrocarbon and minerals policy legislation.

Source: https://www.thenational.com.pg/call-to-postpone-changes/

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