Minister reveals plans for landowners

 THE Government will introduce a policy to promote increased participation and ownership by landowners of resource projects in the mining sector. 

Mining Minister Byron Chan said this when presenting a ministerial statement in Parliament on the progress made by the ministry on the matter.

The proposed changes include :

• Companies applying for licenses must have local participation with at least a PNG citizen on its board with an office and an onshore bank account in PNG;
• increased equity participation with 5% to landowners and 5% to provincial governments;
• revised improved royalty and compensation schedule; 
• revised landowner participation in business activities and ventures to ensure our people participate as responsible shareholders and not only as small-time contractors for small business spin-offs; and,
• Abolition of tax incentives that contribute to loss of revenue for the State.

“The state is now creating these opportunities for our people,” he said.

“But everyone must understand that according to PNG laws, while the land may belong to you, the ownership of all minerals found on that land and under water in PNG belongs to the State for the collective benefit of every Papua New Guinean.

“This Government is well aware that the real issue is accountability and transparency in the use and application of mine derived benefits by the beneficiaries.”

He said the ministry had adopted the principles of a National Content Plan within the revised legislation by giving legal emphasis to the requirements that were formerly captured only in project MOA (memorandum of agreement) documents relating to the supply and procurement of goods and services, employment and training and business arrangements,” he said. 

“In line with the policy, the Government is also very mindful of the sensitivity and expectations surrounding the issue of mineral ownership.”