Chamber: Changes to Act will deter investments

THE country’s future is at the crossroads with the Government considering a range of changes to the Mining Act, according to the Chamber of Mines and Petroleum.
In a statement yesterday, the chamber said changes would deter investment in long-term mining projects and jeopardise the future success of Papua New Guinea’s small businesses and citizens.
According to the 2019 World Bank Papua New Guinea Economic Update, one of the major risks to PNG’s projected economic growth were delays or impediments to future large-scale resources projects.
It is understood that mining projects across PNG deliver millions of kina in taxes and royalties, create thousands of jobs and deliver major infrastructure support to rural communities.
The statement further said: “PNG’s existing mining laws have been critical in maintaining a world-class mining sector and attracting investment in PNG.
“Stable and supportive mining regulations have made the industry internationally competitive and allowed it to finance a range of valuable initiatives in project areas.”
An example of this is the presence of Harmony Gold Mining, who have contributed over K5 billion to Morobe and national economy over the last 10 years through wages, procurement, royalties and taxes.
Their support for regional health programmes has resulted in over 15,000 health examinations taking place over the past year.
The PNG Chamber of Mines and Petroleum said the Government needed to ensure that any changes to the revised Mining Act that was planned to be tabled in the current sitting of Parliament must not chase away mining companies and other international investors.
“When investment dries up, new mining projects will disappear taking with them millions of kina that would have been invested in schools, local businesses and health programmes, which are investments projects have been making to most of the country’s rural areas,” the chamber stated.
In order to continue this important work, the industry requires legislation that strikes a balance between national and investor interests.
Mining companies will look to make future investment in countries with competitive and predictable mining regulations.
“Developing a new mine is a very costly exercise, and mining companies look at the fiscal and regulatory processes when deciding to invest, including whether the governing legislation is likely to change or not.”