PNG ‘not investment friendly’

The National Business

By DALE LUMA
PNG is not an attractive investment destination to the global community, according to research.
This was highlighted by international mining consultant John Gooding who said during the PNG Mining and Petroleum Seminar yesterday, that according to a survey conducted last year by the Fraser Institute in Canada, PNG scored 53 in investor confidence, a 12 per cent drop since 2015.
The survey is done in the mining industry regarding country investment attractiveness by measuring government policy factors including:

  • Taxation;
  • Regulatory uncertainty; and,
  • Potential for mineral endowment and exploration success among other things.

Gooding said PNG needed to compete with other countries with qualities that would attract investment in preference to PNG.
“It must make itself a compelling destination for exploration development and infrastructure that is so important,’ he said.
“Right now, there is a lot of competition out there.
“At the moment, PNG is considered not an attractive investment destination by the community.
“It is really important that fulfilling a mutually rewarding partnership with mining resource companies is critical with the Government.
“The key issues for a country’s selection is the political stability and security and the legal environment that exists among many other factors.
“Investors require comfort and defined rules of engagement.
“Once you set an agreement, you’ve got to stick by it.
“This is to justify the large expenditure in some billions of dollars in projects in Papua New Guinea.
“Investors need legal and long term regulatory stability which is critical to investment and operational decisions.”
He said the country was currently resource rich but lacked capital and needed to compete with other nations for foreign direct investment.
“Sensible solutions must be created by sensible legislation and leadership to improve PNG’s competitiveness and quality of life for its people especially with the impact of the Covid-19 restraints that will maybe be with us for a very long time.”

9 comments

  • Look at the equity aspect of it. Land owners miss out always. They are the resource owners of the natural resources in the mines where mines exist. Land owners also do not really experience the social services provided to them. For example, Pogera Gold Mine has mined gold for a long time and there is no road connecting Pogera to Lake Kopiago or pogera to Teleformin. PNGeans need to be weary of Western Propaganda.

  • John Gooding is an IMF economic hitman. They are prep to say the same thing all over the developing world.

  • Who cares about their propaganda they have rapped PNG resources enough. Enough is enough get them hell out of this resources rich nation thank you PMJM & your government for doing the right thing.

  • The same old language protecting interests of investors who reap off our country and victims are always landowners. Let us develop our agriculture and fisheries resources to balance up the massive exploitive extractive industries.

  • Investment not good for mining companies.

    But great investment opportunities for agriculture sector and fisheries. Also great investment opportunities for companies looking at investing in electricity generation using hydro power for distribution in PNG partnering PNG power. Great investment for food and beverage companies as well looking at down stream processing of locally produced food into beverages and food items for local and international market.

    I totally disagree with what this guy is saying. Keep your mining dollars.

  • That’s what they say when they can no longer steal the country’s wealth. No surprises!

  • I for some reason think that this article reflects on the current govt bad policies and poor leadership. Whether or not we disagree with this research, we must understand that PNG is and will be reliant on investors to grow its economy. One of the main factor pointed out here is bad leadership. James Marape needs to put the people of this country first rather than his bad policies that is crippling the working class and the unemployed. Nationalisation of resource projects will not work. The mining and petroleum sector cannot survive if the government wants to manage our resources. These sectors are technically advanced and therefore so expensive that our govt may starve other vital sectors such as education and health to keep them above water. We do not have the money to do that.

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