Dept slams chamber over statement

 By Gedion Timothy Lapan 

THE department of mineral policy and geo-hazard management has rubbished a statement by the PNG Chamber of Mines and Petroleum that two mines could be affected by proposed changes to the   Mining Act.

Department secretary Shadrach Himata, was responding to an article in the chamber’s recent newsletter which said neither Frieda in West Sepik or Wafi-Golpu in Morobe were likely to move ahead if the proposed changes to the Mining Act went ahead.

The chamber did not point out specific provision of the proposed amendments that would hinder the progress of the mines.

It however pointed out that “Prime Minister Peter O’Neill had given industry leaders an assurance that his government would maintain fiscal and regulatory stability for future mining ventures”.

Himata said it was “misleading information from the chamber”.

“It’s another rhetoric, negative propaganda and scare tactic employed by the chamber to propagate their interest,” Himata told The National.  He said it was the kind of view which suppressed the real added value to people’s lives as the main reason for changes. 

“The fact is that all financial aspects of the Mining Act has been referred to the Tax Review Committee headed by Sir Nagora Bogan,” he said.

“Hence, the current status quo of the fiscal regime is maintained until the tax committee recommends otherwise.

“The proposed Mining Act 2015 contains proposals of best international mining practices that are accepted domestically in Papua New Guinea. It does not have new fiscal proposals in it. 

“Any new fiscal terms recommended by the tax committee and approved by NEC will automatically apply to the new Mining Act.”

He said the chamber should really be talking to the Tax Review Committee “if they are worried about the mining fiscal regime”.

“There is a standing NEC decision directing me to refer all fiscal matters to the Tax Review Committee and that’s what we have done,” he said.