Govt told to consider effect of revised Act on economy

THE Papua New Guinea Chamber of Mines and Petroleum has urged the Government to consider the economic implications the revised Mining Act will have on the country.
Responding to Mining Minister Johnson Tuke’s statements in Parliament on Tuesday regarding the tabling of the revised Act, the chamber urged the Government to consult with the industry to fully understand the impacts some of the proposed amendments would have on future and existing projects.
The chamber in a statement said that with the revised Act expected to go through Parliament for its first reading, they (chamber) were hoping the Government could open consultation on the legislation.
The chamber said the amendments to the proposed Act rendered the mining industry in PNG internationally uncompetitive.
“The amendments are also a serious deterrent to future investments in mining in the country, and may even threaten the ongoing operations of mines currently in operation, as well as, those in the pipeline,” the chamber said.
“Some of the key issues with the proposed changes to the Mining Act outlined are causing investor uncertainty and will have severe negative impacts in the immediate and long term on both existing operations and proposed projects, to the detriment of PNG’s economy.
“This includes, increased tenure risk for mining companies, inadequate transitional arrangements to protect existing operations and increased costs to business which will impact on investor interest.”
The chamber also suggested that the Government undertake its own independent comprehensive modelling of the risks and financial implications of the changes being proposed, in the context of the broader fiscal regime.
The chamber said that despite these calls, and its support to the Government following its announcement late last year to undertake an independent review of the proposed changes to the Mining Act, it seemed none of its concerns had been considered.
The chamber said the industry supports the motivate of the state to update the mining legislation to meet present challenges of today.