Resource sector challenged by down ward trends in global market

The Chamber of Mines and Petroleum saysthe resource sector is challenged by down ward trends in global market prices and local situations and it has cautionedthe government to be proactive.

The Chamber’s outgoing PresidentoDr Ila Temu, says projects which are intheir early stage of development would be hit hard.

The global market scenario appears bleak with falling commodity prices particularly for gold that’s currently tailing.

It is already projected thatthese will have an adverse impact back home; more so for projects behind ontheir production phase.

Dr Temu made specific indications on Marengo Mines Yandera project in Bandi, Madang Province; Frlieda projects by Xstrata and Highlands Pacific inthe Sandaun Province; andthe Wafi Golpu Project by Newcrest and Harmony in Morobe.

He saysthe government will have to play a proactive role in ensuringthese developments get offthe ground.

The situation here is that multi-national companies who mobilizetheir funds to invest on large scale projects are now calling ontheir investors to demonstratethey can provide clear returns despitethe uncertainty inthe global markets, a challenge that could be for project developers.

There are also local situations whichthe government needs to look into, mostly concerningthe multi-billion kina gas project. With a little over eighteen months beforethe first gas shipment,the chamber cautionsthe government to fast track and settle outstanding issues.

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