Radical change needed in Mining Act: Kua

Charles Yapumi | PNG Loop | April 10, 2017

The PNG National Party will amend the Mining and Petroleum Act to benefit the country if it is a member of the coalition government after the National Elections in June.

This was the statement by the party parliamentary leader, Kerenga Kua, when addressing their convention on Friday.     

Kua said the country is losing out on billions of Kina annually because of the current law governing the mining and petroleum industry.

“Economy of the country is underpinned by petroleum and mining,” he said.

“The current law states that the State owns all the resources under the ground, so investors, when they come, ask for petroleum licence.

“The first licence they get is an exploration licence, they do the exploration but the ownership still remains with the State.     

“When they make a commercial discovery, then they (investors) come to the government and ask for a development licence, and when government gives them the licence, the ownership of those resources which was owned by the State is now transferred 100 percent to the developer, free of charge.

“That is where the entire problem had been for all those years.

“The same law states that, once the licence and ownership is in the hands of the developer – in petroleum the state has to buy the 22.5 percent share from the developer and same with the mineral industry.

“We must stop that to have a radical change.

“We will introduce a law and system known as Productive Sharing and Equity Scheme. It means for petroleum, our share will be given at the well head. There will be a valve there that will measure the flow.

“For minerals, we will get our shares after the gold and copper are refined after cost of production is taken into account,” Kua said.

He added that this is a common practice internationally.

Advertisements

2 Comments

Filed under Financial returns, Papua New Guinea

2 responses to “Radical change needed in Mining Act: Kua

  1. Moses Wininga

    The PNG National Party Leader is deserved to be voted in collect enough MPS and become our Good Mouth piece at the Floor of Parliament and assist in Amending the Petroleum and Mining Acts.

    We all the Resource Landowners support Kerenga Kua now as he has the best and rightful mind to set us to a relief junctiont as far as Mining and Petroleum Prospects are concerned.We love such leaders who have minds of this nature and degree and the whole country will definitely support you Honourable Kerenga Kua.

    Papua New Guineans,please give your support to Kerenga Kua and his like-minded PNG Leaders as he is addressing the Real Problems that are supposed to have been done by our Past Prime Ministers and Party Policy Makers of this Very Rich and beautiful Papua New Guinea.

  2. Moses Wininga

    100% SUPPORT YOUR PARTY AS TIME IS RIGHT NOW TO FIGHT OUR IGNORANCE OF THE PREVIOUS PRIME MINISTERS AND VARIOUS PARTIES OF THIS COUNTRY.

    KERENGA KUA IS SPEAKING THE UTMOST PROBLEM AND THIS POLICY IS RELIEVING AND WE ASSURE YOU TO COLLECT ENOUGH NUMBERS AND FORM THE GOVERNMENT TOGETHER WITH OTHER COALITION PARTNERS TO MOVE INTO GOVERNMENT AND HELP US AS WE ALL PAPUA NEW GUINEANS ARE WITH YOU NOW.

    THERE ARE NO PARTIES SO FAR HAVE PRIORITIESED THEIR POLICIES LIKE YOUR PARTY AND WE ARE HAPPY TO HEAR AND READS FROM YOUR PARTY POLICIES AS ARE THE BEST AND ALMOST GOOD AGENTS FOR CHANGE FOR THE BETTER TO OUR RESOURCE OWNERS AND THE GOVERNMENT OF THIS COUNTRY AND BEYOND.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s