Chan flatters the mining industry and deceives the people of PNG

Byran Chan

Mining Minister Byron Chan is eager to praise foreign owned mines in PNG for increasing their production and revenues in 2016 – see story below. But what benefit are increased production and increased company revenues to the people of PNG?

What Chan should be talking about but does NOT mention is the government’s revenues from taxation and the landholders benefits. Have government revenues and benefits from Lihir increased by 38% this year to match the increased production and company revenue? Have government revenues and benefits from Hidden Valley increased by 33%? From Simberi by 20% and Porgera by 17%?

Looks like Chan is trying to fool the people of PNG into thinking increased production and revenues are good for them when in fact most of those benefits accrue to foreign shareholders and company executives – not landholders or the the PNG government.

Chan also tries to deceive by declaring “mineral exports will contribute just over K9 billion for 2016”. Sounds great doesn’t it, but why is Chan being so vague – will contribute K9 billion to what? Not government revenues, not landholder benefits but K9 billion to mining company revenues!

Production is up, revenues are up – but so what Mr Chan? Why aren’t you talking about government revenues and landholder benefits? That is what matters to the people of PNG, the people you are supposed to represent and be fighting for as an MP and Minister?

Sounds like Byron Chan is the Minister for Foreign Mining Profits…

Chan praises mines with increasing production
The National aka The Loggers Times | December 7, 2016
MINING Minister Byron Chan says several key mines in the country have shown increasing production and revenue this year.
“They are Lihir, our largest producer, projected to be up a whopping 38 per cent on revenue against 2015, Porgera (17 per cent), Ok Tedi (36 per cent) – an impressive recovery from their closure, Hidden Valley (33 per cent) and Simberi (20 per cent),” Chan said.
“Unless there are further commodity price falls in our key minerals of gold, silver, copper, nickel and cobalt, this level of production and revenue is expected to continue to rise over the next few years.”
He said this was cushioned by the smaller mines such as Kainantu and Tolukuma, which were resuming commercial production in 2017.
In addition, Crater Mountain and Eddie Creek is expected to increase gold production.
“With this growth profile, we project that mineral exports will contribute just over K9 billion for 2016,” he said.
“The number of world class operating mines and advanced projects in Papua New Guinea will undoubtedly attract investors, and open up new business opportunities, both locally for the country as a whole, but especially in mining provinces.
“Provinces such as East and West Sepik, and even Morobe, which have not had a major resource project, will experience an increase in business activities. Planning by provincial and local level governments in relation to these mines is crucial to make the most out of the growth opportunities.

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Filed under Financial returns, Papua New Guinea

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