Study on to review mining benefits

National, Normal

The National Monday, December 13, 2010

THE national government, through the Mining Department, is conducting a study on the framework of the royalty and equity issues, focusing on mine-related royalties and equities.
Mining Minister John Pundari told mining and petroleum investors in Sydney, Australia, last week at the 11th PNG Mining and Petroleum Conference, that in order to properly account for equity and royalty from mining activities, the independent study would fairly establish whether there were changes required.
“The expected outcome is to develop the royalty and equity provisions of the mineral policy that is favourable to, and adequately serves the interest and aspirations of the government and the people of Papua New Guinea,” Pundari said.
“Favourable to attract and retain foreign investment in the mining industry in PNG and user-friendly and simple with practical application and relevance to the current prevailing global practices while addressing the specific needs in PNG,” he  added.
The minister stated that over the years, since 2006, a total of 410 mineral tenements were issued while 203 tenements were under application.
He said these were proof that there continued to be an increased interest in mineral exploration in PNG and the study to review the framework of royalty and equity for greater PNG was paramount given the mining boom.
Pundari also said the last 35 years had been years of lost opportunities for PNG where there had been widespread reckless squandering of the country’s wealth with no tangible evidence.