Proposed changes to our mining laws are creating uncertainty for some mining companies inthe country.
The government’saysthe changes are meant to improverthe quality of life and safety ofthe people through effective mineral policies and reduction of geological risks. Bet mining operators are uncertain of whatthe changes will mean for them.
The recently passed national budget did not specify any expenditure plan for the mining sector. It did however acknowledge thatthe mining sector rakes in 66% ofthe States export revenue.
Sadly, presentations atthe mining and petroleum seminars held this week forecast thatthe mining sector is in for a downturn affected by global trends. Adding to this uncertainty, mining companies are anticipating more changes inthe government-initiated mineral policy review.
Yesterday, Secretary ofthe Department of Mineral Policy & Geohazards ManagementoShadrach Himata, revealed that changes will include developers having ‘’Community Engagement Plan and Grievances Mechanism… added details to tenement administration… State equity participation… Downstream processing… auditing… and EIT,’’ to name a few.
The challenge forPNG is to findthe balance and addressthe inadequacies between investors and landowners. To have a strong mining sectorPNG must demonstrate that it can out-compete ther nations for international capital investment flows.
The seminars were an opportunity for industry players and stakeholders to integrate and learn from each ther for their shared benefit.
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