Delay debate on gold bill: Chamber

The National Main Stories

THE PNG Chamber of Resource and Energy has called on the Government to delay the debate on the National Gold Corporation Bill in Parliament until more consultations are held with stakeholders.
Chamber president Anthony Smare said the industry had been “blindsided by the resurrection of the Bill”.
“Although the Prime Minister (James Marape) promised consultations in 2021 with the industry, and a parliamentary committee that included Don Polye and Garry Juffa was appointed, no meaningful consultation has occurred,” he said.
“This destructive Bill will have significant negative impacts on the gold sector, relevant State agencies and the economy in general.”
He urged the Government to engage transparently with the industry and not to table the Bill yet in Parliament.
He warned that the Bill would have “serious negative impacts on existing mining projects, grassroots alluvial gold miners, PNG’s financial sector, the Bank of PNG, the Mineral Resources Authority (MRA), the police and other State agencies”.
“The introduction of a Gold Police with sweeping powers to search, seize, and detain Papua New Guineans raises alarms over potential overreach and abuse, which can be done at the request of the foreign company,” Smare said.
The chamber’s concerns include:

  • THE Bill creates a National Gold Corporation, National Gold Bank, and National Gold Mint to be majority owned by a foreign company but taking key powers from the Bank of PNG and the MRA, and holding the country’s gold reserves, the sovereign right to issue legal tender, and the regulation of gold exports;
  • IT has no obligation to refine in PNG;
  • IT seeks to override existing project agreements for PNG’s existing mines, which will jeopardise existing financial arrangements for these projects and undermine viability and investor and financing confidence in current proposed new mines;
  • ITS extension to encompass all precious metals, not just gold, introduces a layer of complexity and broad impact that could have unforeseen consequences across the mining sector.