The latest amendments to the Mining Act diminish the role of foreign and local private sector investors with privileges accorded to Kumul Minerals or other state-owned entities.
President of the Chamber of Mines and Petroleum, Gerea Aopi says the changes increase tenure risk for existing exploration tenement holders, many of them Papua New Guinean explorers, who may have to offload development rights to a state entity
The Chamber believes the changes also marginalize landowners and provincial governments by making development forums optional.
Mr. Aopi noted that the amendment to Section 7 of the Mining Act relates to all reservations in the future, giving an advantage to the State that other investors will consider being unfair and anti-competitive.
Mr. Aopi said, “This is a misrepresentation of the Mining Act, which takes a neutral regulatory stance regarding the source of investment, whether foreign or local.
