Shadow Minister for Mining & Environment, Conservation and Climate Change, James Donald has bluntly asked the government to publicly show cause why they are hell bent on legislating a clearly shady and questionable Bill in Parliament.
In light of heated public debate, Mr. Donald said the government has failed its obligation to provide clear and transparent information on the National Gold Corporation Bill that will have massive implications for the country if enacted.
“Firstly, I have never heard of a government trying to pass legislation to validate a deal they have already signed on behalf of the State. Good governance and parliamentary practices don’t mean sign a massive deal on behalf of the State and then run to parliament to validate the deal.
“It is clearly a reflection of the mismanagement and hastiness of Prime Minister James Marape to tie the Independent State of Papua New Guinea down to a deal before ensuring the necessary legislation and policy framework are in order before doing so.” Mr. Donald said
“I ask the Prime Minister this: Did you read and understand the Shareholders Agreement signed in 2021 at Government House?
“If your answer is no and you were merely used as a rubber stamp for the gain of others, I am sad to say that you have sold our country short Prime Minister.” The shadow minister added.
Mr. Donald highlighted that much of the Shareholders Agreement signed in 2021 benefits the company and not the country.
“What is the reasoning behind this agreement when something like a gold refinery should be uniquely sovereign, or at the very least not tied to a poor business model that guarantees a monopoly for this company.
“This deal will kill the mining industry – plain and simple. It is no wonder our mining industry leaders, experts and businesses are not coming out in support of this bill because they know it is a bad deal for the country but don’t want to burst Marape’s bubble.
“We hear that the Mineral Resources Authority has been left on the outskirts of this Bill’s drafting and policy discussions and has nothing to do with this. I say they should maintain their distance.
“Has the government spoken to Newcrest, OK Tedi, Porgera, Woodlark, the Chamber of Mines, and thought about Wafi-Golpu before signing away our sovereignty?” he further added.
Mr. Donald stated that PNG stands at losing not only our gold rights, but the ailing credibility of our international reputation, especially after shutting down Porgera for so long.
“According to the agreement, the gentleman behind Refinery Holdings Limited is one James Scobie who has very little information about himself. Internet searches about his company provide no website or functioning business, and only shows their auditors and registered offices.
“If Mr. Scobie was truly reputable and had the appropriate credentials, he would be stating it and having links to his businesses and history. The government has made no mention as to the business or financial credibility of the 70% private sector owner of this proposed entity.
“The very little documents relating to this deal and have been made public indicate the need for PNG to guarantee up to USD$4 billion or PGK10 billion. PNG simply does not have the capacity to guarantee such an amount.
“And given the lack of transparency around the investors, our international aid donors will certainly not agree to such a proposal,” the shadow minister for Mining said.
Mr. Donald also added that no international banks would support a new gold corporation unless it is absolutely transparent as to who is involved, the business model, forecasts, industry expertise, royalties, and the government’s involvement.
“It would also take several years to actually get this idea up and running if worst case scenario it is legislated.
“Given that the government has gone ahead and signed a deal with this company, the only thing we can do as responsible members of parliament is to not endorse this bill when it reaches the floor.
“I urge our Chamber of Mines, industry figures, mineral experts, and other stakeholders to publicly make your stance known and denounce this clearly political deal for the sake of our country’s reputation.
“It is now time for the people of Papua New Guinea to exercise their democratic right and question their local MP what their stance on this bill is and whether they support it or not, and for what reasons.
“I know the Opposition will not be entertaining such a one-sided and questionable deal,” Mr. Donald emphasized.
