Publish details: Chamber

The National Business

By PETER ESILA
PAPUA New Guineans need to know the details of the National Gold Corporation Project because of “alarm bells ringing”, says the PNG Chamber of Resources and Energy (PNGCORE).
Chamber senior vice-president Richard Kassman said: At the very high level when a legislation to create a private corporation is going to come into the country, when that legislation requires two amendments to the Constitution and then subsequent amendments to other legislation, then it has got to ring alarm bells.”
He said during a chamber gathering in Port Moresby on Friday that the industry would provide more comments but with “more details, facts and figures”.
“We want to develop Papua New Guineans with the knowledge and not the gross knowledge of what you read on Facebook or knowledge on a PNG WhatsApp group.
“Read, read, read – because the people of PNG rely educated Papua New Guineans to have that discussions on their behalf,” he said.
“Some of these things will have an impact that your grandchildren will pay.”
According to Finance Minister Rainbo Paita, features of the new project deal includes that the:

  • STATE now owns 50 per cent from the project start and can acquire 100 per cent at a time of the Governments choosing;
  • STATE will no longer be a permanent minority shareholder in the project;
  • STATE pays no cash contribution for the financing, construction or operation of the project, that is Refinery Holdings sole responsibility and obligation;
  • NATIONAL Gold Corporation, being the PNG Project company initially owned 50:50 by the state and Refinery Holdings pays full dividend withholding tax (15 per cent) on project dividends it receives in Singapore; and,
  • THERE is a 60 year exclusivity granted to Refinery Holdings, or anyone else.

Kassman said conversations on this should continue.
“We need to inform our people and let our people engage in the discussion. We as Papua New Guineans need to be matured, have professional conversations.”