Temu defends Mining Act

LANDOWNER mismanagement, fraud and corruption are to blame for the debate over resource ownership in PNG, the PNG mining and petroleum seminar was told recently in Port Moresby.
PNG Chamber of Mines and Petroleum president Dr Ila Temu told participants at the Gateway Hotel that the issue had gone so far as to influence Prime Minister Peter O’Neill and Mining Minister Byron Chan to look at amending the Mining Act.
“In our view, as the chamber, as an industry, we feel this is wrong and ill-conceived,” he said.
“It is inconsistent with the constitutional provision that calls for resource development for the benefit of all citizens.
“We believe it will give rise to an unworkable resource framework with no security of tenure and it will drive investment out.
“We think it is too big a risk to take.”
Temu said the argument was that landowners received only a minimal benefit from the development of their resources.
“In my view, under current law, landowners’ rights are fully recognised through appropriate compensation, royalties, equities, preferential treatment in employment and business development opportunities.
“This has been raised more because of the mismanagement, fraud and corruption of landowners’ benefit management … it is not an ownership question.
“Changing the laws will not address this problem.
 “In our view, it will make it worse.”
Temu spoke passionately about an industry he believed was capable of providing the financial impetus to enable the country to grow.
The mining industry was currently responsible for approximately 80% of PNG’s export income and about one-third of government revenue as well as other taxes, royalties, duties, dividends, tax credits, employment and community development infrastructure. –  Industry News
“I am of the view that PNG must use its natural resources to fund its development,” Temu said.
“There is strong global competition for the exploration investment dollar.”
Temu said the challenge for the mining industry in PNG was still the same – it needed to generate benefits and provide tangible improvements to the citizens of PNG in terms of better health, education, community development and general infrastructure.
“It can be done. It’s not impossible,” he concluded.
“What is needed is a fundamental shift in the way government and landowner leaders manage, utilise and distribute resource benefits.
“We need effective and transparent management of resources revenue so that the country and the people are better off from the use of their natural resources.”- Industry News