Mining and petroleum seen as gems in PNG crown

PAPUA New Guinea is one of the few countries in the world where mining and petroleum projects provide socio-economic opportunities to areas they operate in, says the PNG Chamber of Mines and Petroleum.
The chamber made the statement in response to comment that the extractive sector was contributing very little to communities while enjoying tax concessions.
According to the chamber, such statements undermine the significant social and economic contributions resource projects had been making to local communities and the nation.
It stated that most people were not aware that PNG’s benefit structure was unique in the world as mining and petroleum companies in many jurisdictions do not provide socio-economic services to areas they operate in.
“The chamber is proud of this structure and we will continue to support this. It is also important to appreciate too that in PNG, resource projects have a strong focus on their corporate social responsibility and continue to invest millions of kina in making sure host communities have access to reliable health and education services, infrastructures such as roads, bridges, construction of classrooms and teachers’ houses, locally engaged employment and training, and agriculture programmes.
“The development of local SMEs also thrives of the local economy generated by the resources projects in these often remote and rural locations.”
It said the financial contribution of the resource sectors to the PNG economy included company tax, royalty, dividend-withholding tax, salary and wages tax, foreign contractors’ tax, duties, production levy, and development levies and dividends paid to the government and landowners if they hold an equity interest in the project.