MRA: Bill will not stop exploration

THE passing of the Mining Amendment Bill 2020 will not stop exploration nor chase away investors, according to the Mineral Resource Authority (MRA).
Managing director Jerry Garry told The National: “We do not see any deterrence or severe detriment to exploration in the amendments.
“Where the amendment deals with state application to participate in mining and mineral exploration, clearly spells out very specific conditions, after mineral tenements are expired, cancelled or surrendered.
“This does mean every tenement holder who has been compliant with all its statutory and mandatory obligations or conditions satisfactorily over a term does not need to worry about losing their tenement.
“The normal assessment and MAC (mining advisory council) process will protect the tenement holder.
“On the part of mineral and data repository, the companies have always complied with the Mining Act 1992 in terms of providing bi-annual and annual reports with all their data.
“The only inclusion is to tap into the live production data from the operating mines so we can have visibility on how much metals are being recovered or produced.
“This is to protect the tax base and also ensure the MRA obtain those data for historical purposes.
“The statistics are compelling and clearly reflect a country with weak control mechanisms to protect its tax or other revenue streams from businesses operating here.”
Garry said the PNG 2017 EITI Report stated that the mining and petroleum sector contributed 86 per cent of total exports of the country.
“From that total export the State revenue is only seven per cent. Furthermore, preliminary assessment by OECD (Organisation for Economic Co-operation and Development) revealed the tax to GDP (gross domestic product) ratio in PNG was very low at 13.7 per cent, well below by 20 per cent when compared to average OECD member countries.”
Garry said the legislation was drafted on the instruction of the government which has the prerogative of the legislature to make laws.