Chamber worried about law reform

 THE Papua New Guinea Chamber of Mines and Petroleum is concerned that proposed changes to Mining Act and Mineral Resources Authority Act could limit future exploration activities in the country. 

Executive director Greg Anderson said stable government policies and a favourable investment climate were critical to the future growth of the resource sector. 

He said sharp drops in mineral and petroleum prices had adversely impacted the country’s current economic outlook. 

But these sectors would return to their traditional role as strong contributors to Papua New Guinea’s economic prosperity once commodity prices increase again.

“For this reason, the chamber is very concerned that proposed changes to the Mining Act and the Mineral Resources Authority Act could potentially curtail future exploration and development activity,” he said.

“We therefore hope that the Government will carefully consider the implications of these amendments for future economic growth and prosperity.”

Anderson said while the slowdown in economic growth in China has been a key reason for the fall in prices of copper, nickel and other mineral products, oil and gas prices had fallen because global production was exceeding world demand.

“In past years, the Organisation of Petroleum Exporting Countries acted as a swing producer to maintain higher oil prices,” he said. 

“This role has been undermined in recent years by an upsurge in oil production from oil shale deposits in the United States, having impact on the world market.”