Chamber wants to ensure fair distribution of benefits

The last time mineral exploration expenditure reached its peak was in 2013 when it was K596 million, according to PNG Chamber of Mines and Petroleum.
The chamber said according to data supplied by Mineral Resources Authority (MRA), mineral exploration expenditure in 2018 was K295.9 million compared to K339 million in 2017, K373 million in 2016 and K358 million in 2015.
President Gerea Aopi said while certainty of mining leases was critical, all chamber members were committed to ensuring that benefits flowed from their operations to local communities.
He applauded the Government’s continuing commitment to ensuring the sustainable and accountable sharing of benefits.
Aopi said this following reports that projects such as Porgera, Ok Tedi and Ramu Nickel may not have their leases extended.
“The industry remains ready and willing to work with Government and relevant authorities to ensure a fair distribution of benefits for the State, local communities and the industry,” he said.
“PNG is one of the first countries in the world where mining and petroleum projects consistently provide socio-economic opportunities to the local areas they operate in.
“Projects have opened up access and opportunities in some of the most-isolated rural communities in PNG.” In 2017, mineral and petroleum resources sectors contributed over 26 per cent of PNG’s GDP and about 84 per cent of the nation’s export revenue valued at K23 billion.
Ok Tedi contributed to PNG’s mineral export revenues in 2017 over K3.1 billion, Porgera contributed over K1.8 billion, Ramu Nickel over K1.1 billion, and Lihir over K3.6 billion (FY18).
According to the 2017 PNG Extractive Industry Transparency Initiative report, the industry paid a total of K1.5 billion in direct and indirect taxes.
The mining and petroleum industry directly employs over 20,000 people, with significantly more working in other sectors dependent on the industry, including landowner businesses.
The industry invests millions of Kina in community development in sectors such as health and education, infrastructure including roads and airstrips, employment and training, and agriculture and livelihood programmes.
The industry also establishes and supports landowner companies and other PNG-based businesses that provide services to the project sites.
This is in areas such as transportation, labour hire, catering, security, earth-moving, freight and logistics, janitorial services, agriculture and livestock and livelihood programmes to promote food security and agribusiness.