Miner wary of policy changes

THE developer of the Woodlark gold mine project Geopacific Resources Limited says any future material adverse changes in Government policies or legislation affecting how the company operates, may affect viability and future profitability.
It said in particular, the Government has recently experienced, “and may continue to experience, significant political instability and economic and fiscal issues”.
“Some or all of (them) could directly and indirectly affect the Papua New Guinea economy and the operations and financial position the company,” it said in a statement.
“The company’s ability to acquire, retain and gain full value from assets may also be affected by a number of political and social issues such as differing political agendas and decision-making, environmental and social policy and the impact of bribery and corruption.
“Further, the media, non-government organisations and other activists may or may not play an increasing role at local, national and international levels influencing political policy, societal perception and community actions or otherwise impacting the organisation’s reputation. In addition, the legal systems operating in foreign jurisdictions are different to those operating in Australia and may result in further risks in seeking redress or enforcing judgments.
“Currently in PNG, there are a range of potential political matters which, depending on the outcome, may or may not have an impact on the company and the Woodlark gold project.
“While the company believes that the project is universally supported in principle, these matters may delay finalisation of the application for an extension of conditions associated with ML (Mining License) 508 and limit accessibility of government ministers to finalise various matters which the Company is negotiating with the Government.”