Council: Deal a positive step

By CLARISSA MOI
THE PNG Manufacturers Council says large-scale mining has massive operating costs to produce commodities which are impacted by world prices.
Council chairman Murray Woo was responding to the framework agreement signing between the Government and Barrick Niugini to reopen the Porgera gold mine in Enga.
Woo called the new licensed mining agreement “a positive step”. “We’re mindful that we have a narrow window to develop other important non-extractive industries if we are to become a middle-income developing country in the next two, three generations,” he told The National.
“We can’t keep pushing back stimulus and efforts to develop sustainable sectors like tourism, agriculture, research and education that we keep talking about.
“For example, we know we have a unique diverse culture and heritage in PNG we need to use that to generate income for future generations.”
“The reopening of the mine should provide income and benefits for both investors,” he said.
“The opportunities for new and existing contractors supporting the mine will certainly be welcomed by the business community.
“It is the people who put their trust in our Government to manage this and there are so many factors to be considered to make the right decisions for the country such as risk, debt, inflation, unemployment, foreign exchange, regulatory policies, infrastructure, including the bureaucracy in the public sector that will shape and drive the return growth of our economy.”
Woo noted that the Government might be handcuffed to deficit budgets for now, but many other countries were also in a similar situation.
“The decision of the State to be an equity investor isn’t surprising,” he said.
“However taking its share via taxation, which goes directly into the public accounts, would’ve given businesses more confidence that the State would have an early and transparent revenue stream.
“Having chosen to take majority ownership, not only exposes the State to the majority of the risk and liability but will make it very important for the State to improve the transparency of its earnings and the manner in which it can transfer its earnings from its investment vehicles and into the public account.”