PNG ‘not investment friendly’
PNG is not an attractive investment destination to the global community, according to research.
This was highlighted by international mining consultant John Gooding who said during the PNG Mining and Petroleum Seminar yesterday, that according to a survey conducted last year by the Fraser Institute in Canada, PNG scored 53 in investor confidence, a 12 per cent drop since 2015.
The survey is done in the mining industry regarding country investment attractiveness by measuring government policy factors including:
Regulatory uncertainty; and,
Potential for mineral endowment and exploration success among other things
Gooding said PNG needed to compete with other countries with qualities that would attract investment in preference to PNG.
“It must make itself a compelling destination for exploration development and infrastructure that is so important,’ he said.
“Right now, there is a lot of competition out there. At the moment, PNG is considered not an attractive investment destination by the community."
“It is really important that fulfilling a mutually rewarding partnership with mining resource companies is critical with the Government.
“The key issues for a country’s selection is the political stability and security and the legal environment that exists among many other factors.
“Investors require comfort and defined rules of engagement.
“Once you set an agreement, you’ve got to stick by it.
“This is to justify the large expenditure in some billions of dollars in projects in Papua New Guinea.
“Investors need legal and long term regulatory stability which is critical to investment and operational decisions.”
He said the country was currently resource rich but lacked capital and needed to compete with other nations for foreign direct investment.
“Sensible solutions must be created by sensible legislation and leadership to improve PNG’s competitiveness and quality of life for its people especially with the impact of the Covid-19 restraints that will maybe be with us for a very long time.”