Foreign owned mining companies not good corporate citizens in PNG

Foreign owned mining companies operating in PNG are abusing our hospitality and trust by failing to pay any corporate tax.

Companies like Barrick Gold, Newcrest Mining and Harmony Gold make millions of dollars from their “World Class” gold, copper and silver mining in PNG.

But they manipulate their income and expenditure to avoid declaring profits and thereby avoid corporate income tax, according to figures released by the PNG government [pdf file].

The table below shows the corporate taxes paid by the mining industry in PNG in 2013.

corporate income tax

Foreign owned Barrick Gold (zero), Lihir Gold (K4.5million), Hidden Valley (zero), MCC Ramu nickel (zero), Simberi Gold (zero), and Harmony Gold (zero) paid a total of K4.5 million in Corporate Income tax.

In contrast, PNG owned Ok Tedi Mining paid a whopping K105 million – so clearly 2013 was not a bad year for mining in PNG.

To compound the injustice, Lihir, Porgera and Hidden Valley actually produce 3 times as much gold (1.5 million ounces) as Ok Tedi (500,000 oz) – so these foreign owned entities should be paying the most in tax, but they manipulate the rules to avoid their liabilities.

production

In stark contrast to their miserly corporate tax contribution, the total value of the gold, copper and silver exported from Porgera, Lihir and Hidden Valley in 2013 was over K4,500 million.

export value

YUP, FOUR THOUSAND FIVE HUNDRED MILLION KINA!

But these foreign mining companies paid NO corporate tax.

2 Comments

Filed under Financial returns, Papua New Guinea

2 responses to “Foreign owned mining companies not good corporate citizens in PNG

  1. imelda ambelye

    Neo Liberal capitalists who come in the guise of Development but which and what DEVELOPMENT??

    • Eric

      Or more particularly, DEVELOPMENT for who?
      Land owners in PNG are actually citizens of a nation and I prefer the latter term’
      The CITIZENS of the nation are missing out.
      Unless companies coming into PNG are focussed on tangible benefits to the Nations CITIZENS they really have a fundamental problem with their thinkings.

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