Chamber: Bid on mineral rights ownership will split country

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The National, Thursday 24th November 2011

A PROPOSAL to turn ownership of mineral rights over to landowners in Papua New Guinea would split national unity and devastate the country’s economically vital mining sector, the PNG Chamber of Mines and Petroleum warned last week.
Supporters of the move led by former prime minister Julius Chan believe it would better distribute royalties from the billions of dollars reaped each year from mining and oil directly to local communities instead of relying on the central government.
But chamber executive director Greg Anderson said this would lead to chaos and could deter foreign investment in the nation’s single-largest revenue earner.
The proposal was first tabled by North Fly MP Boka Kondra whose electorate covers the giant Ok Tedi mine and the proposed legislation was now dubbed as the Kondra Bill.
Supporting the move was current governor of New Ireland Sir Julius Chan whose electorate hosts two mines – Lihir gold and Simberi.
Sir Julius’s son Byron became the minister under the new government and one of the first positions he took was to publicly announce a shift in favour of the Kondra Bill for landowners to own the mining and petroleum resources under the ground and the sea.
It was likely to become a key issue ahead of national election next June, which was often described as an island of gold, floating in a sea of oil surrounded by gas.
“The proposal is getting a high profile because we’re coming up to the election,” Anderson said.
The country had long been a supplier of petroleum products, copper and gold and investor confidence in exploiting more reserves had been growing.
Exxon Mobil was developing a US$15 billion liquefied natural gas project and a consortium led by Metallurgical Corporation of China was digging a nickel mine.
Anderson said direct ownership of minerals rights could fracture the country’s national identity and promote individualism and personal greed.
A prominent lawyer Peter Donigi, who recently formed a political party in favour of resource landowners, was in Kiunga last week with Kondra where hundreds of people gathered to celebrate the mooted passage of the bill in Parliament.
The National newspaper believed that was not likely to happen with Prime Minister Peter O’Neill’s commitment recently at an investors’ luncheon in Brisbane “not to shift the goal posts”.
 
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