Aopi: Best to wait for recovery

The National Business

By PETER ESILA
THE finalisation of the resource project agreements for P’nyang in Western, Wafi-Golpu in Morobe, Pasca A project in Gulf and the extension of Porgera mine in Enga are no doubt all important enablers to stimulate a resurgence of the Papua New Guinea economy, says an official.
PNG Chamber of Mines and Petroleum president Gerea Aopi however said uncertainty presented by Covid-19 was causing all, including major economies, to slow down significantly and it was about timing and that PNG needed to wait this out.
“The oil price has declined, demand is diminished so the extractive projects around the globe are on hold and PNG is not immune,” he said.
“The developers have invested significantly and the Government has not sanctioned any of these projects.
“What would be prudent is for the Government to continue to review and evaluate these submissions and place in a holding position so that when the global economy recovers, when demand for petroleum and their mineral commodities shifts, PNG can work with its developers to expedite these projects.”
There were a number of resource projects in different stages of project preparedness including Papua LNG, Pasca A, P’nyang gas, Wafi-Golpu gold and Frieda River copper/gold – with each before Government for review and consideration.
“Bringing these projects expeditiously to sanction will provide a massive impetus to kick-start PNG’s economy when this tide turns.”
However, Aopi said consistency of legislation and regulation was critical to investment in the economy not just the extractive sector.

5 comments

  • Disagree.

    These projects are allready delayed.
    Use this period to progress the projects so we (PNG) is ready to start as soon as the COVID-19 crises is normalised .

    Proceed now.

  • The disease pandemic has positioned PNG well to re-structure existing regime. LET PNG MAKE OVERHAUL OF EXISTING REGIME…. The current regime in the extractive industry is not healthy for PNG… We should not rush through with the existing regime. PNG can survive for the next 12 months in the current lockdown situation too…. The only concern is for the urban few (15-18%) of the population. NO external shock will ever have big impact on PNG……… PNG is immune to such systems….. We only talk about protecting the minority in cities and towns…. Regime changes is a must for alll extractive industries…

  • Is he an unbiased expert who believes there will be no worldwide recession for some years to come after the C-Virus pandemic eases.
    Does he know the price of oil products is going to increase from around today’s US$20 a barrel sooner than later

  • I support the idea delaying the new project like Wafigolpu mine and others so that Mining Act should be reviewed by the National Government and the National Parliament pass the amendment. This will pave way for the Landowners and the National Government have improved benefits and not only the Investors for too long.

  • If you are comparing the world with PNG then you really suppose to be progressing the projects now. Not waiting. I disagree.

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