Tag Archives: Mining Act

Bougainville clans regain power over mining rights

Bougainville Finance Minister Robin Wilson

The National aka The Loggers Times | January 12, 2018

Bougainville landowners own all the resources on their land and the Bougainville government only facilitates resource development, says Bougainville Finance Minister Robin Wilson, pictured.

“Unlike the rest of Papua New Guinea, landowners in Bougainville have the power to allow or disallow exploration and extraction of minerals on their land,” he said.

Wilson was speaking when handing the province’s 2018 Budget of K254 million to national Treasurer Charles Able in Port Moresby yesterday.

Wilson said Bougainville has lifted the ban on mining in Panguna, Mt Tore and Isinai and mining activities in those areas are now being driven by the landowners.

“We introduced a law that is unique to the rest of the country where in terms of mining we have made the landowners the owners of resources,” he said.

“If there are resources in an area the landowner will give consent on, whether or not exploration will take place and if exploration has found minerals, the landowner will again give consent to whether it will be extracted or not.”

In regard to the PNG Mining Act, Able said the Act states that any resources below six feet (about 2m) under the earth belongs to the government, but the ABG has done away with that provision – only for Bougainville.

Abel said the PNG government’s ownership of mining resources was to ensure that profits were equally distributed throughout the country.

Meanwhile, to continue to strengthen relations between Bougainville and the Papua New Guinea government, Wilson is providing quarterly reports to the government on how money it provides is spent on Bougainville.

“The accountability of the grants will not be an issue anymore. I have provided those reports throughout last year and am committed to do it in this term,” he said.

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Mining Laws In Need Of Review

Jeffrey Elapa | Post Courier | November 27, 2017

The Resource Owners Federation of PNG Inc is against development of new mines in the country without amendments to the existing laws governing the industry.

President Jonathan Paraia said while the Federation acknowledges the government’s desire to open new mines as expressed by the Mining Minister Johnson Tuke a review of the mining laws must be undertaken first.

“The customary landowners of Papua New Guinea by all means will oppose the development of any new mining projects without amending the Mining Act 1992 and the Mineral Resource Authority Act of 2005.

“The reasons are that the Mining Act 1992 must be amended to be compliant with the Constitution and the customary laws of Papua New Guinea, which both vest the ownership of all lands and minerals contained therein by those who own the lands.

“The amended Mining Act must therefore ensure that the landowners receive a fair share of the profits from any mining project.

“In the past, the mining companies have deceived the landowners and the national government into believing that their entitlements from the mining projects, such as contracts, compensation payments, royalties, taxes, levies and so on, were benefits, when in fact, an entitlement as in the English language is not a benefit. The dictionary of English, states that a benefit is a profit. Entitlements are therefore not benefits as we have been led to believe for so long by the mining companies,” he said.

Mr Paraia said the Federation also continues to support many calls for the removal of the representatives of the PNG Chamber of Mining & Petroleum and the PNG Business Council from the board of the Minerals Resources Authority (MRA), because of their inherent conflict of interest.

“MRA is the regulator of PNG’s mining laws and regulations and the Chamber of Mining & Petroleum and the PNG Business Council are representative bodies of the mining industry, the subject of the mining laws administered by the MRA. It is therefore inappropriate for those that are being regulated to be on the board of the regulator,” he said.

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Proposed policy to declare mining revenue

Cedric Patjole | PNG Loop | October 9, 2017

The Department of Mineral Policy and Geohazards Management (DMPGH) says it is working to introduce a policy for stakeholders in the mining industry to declare any revenue received or made from mining projects.

Secretary Harry Kore told Loop PNG that the policy idea came about during consultations for the Revised Mining Act.

He said while there are reports of mining revenue generated, a lot of locals impacted by mining activities claim to not see any tangible results.

Kore said the policy will ensure stakeholders such as provincial governments, authorities such as the Mineral Resources Authority (MRA), Mineral Resources Development Cooperation (MRDC), as well as landowner association chairmen and landowner company CEOs declare revenue received for the bene t of all.

“You fail to do that and you will be held accountable and you will be penalised under the law. So it becomes a practise. Every quarter they just declare their interest. We know that so much money goes to our landowners but whether it trickles down to the peoples is another thing,” said Kore.

The policy idea is similar to a draft legislation currently being drawn up by the PNG Extractive Industry Transparency Initiative to make mandatory all revenue from the mineral, petroleum and gas sectors to be fully disclosed as per good governance standards.

Kore said they are yet to have formal discussions regarding the policy idea however, there is cooperation and the policy complements that of the work the EITI is undertaking.

Secretary Kore added that one of the agendas of the policy is to ensure there is sustainability in how revenue is invested back in the country.

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Tuke Optimistic About Mining Act Review

Post Courier | September 21, 2017

Mining Minister Johnson Tuke says he is optimistic about the outcome of the Mining Act review.

Mr Tuke told the Papua New Guinea Chamber of Mines and Petroleum this during his ministerial meeting yesterday.

He told the Chamber officials that despite his proposal to review the Mining Act which has created a lot of anxiety within the industry, he is optimistic of an outcome that would be accepted by affected parties.

He said as per the review of the Mining Act, his ministry and the National Government were working in line with government priorities to address it.

He said Prime Minister Peter O’Neill will meet with the Secretary for Department of Mining Harry Kore for a briefing on the review of the Mining Act this week and that the Mineral Resources Authority (MRA) and the Department of Mining will also conduct a power-point presentation next week for all industry stakeholders.

His meeting with the chamber was to enhance the ministry’s relationship with the industry at which the minister said he is more than happy to hear what the chamber has to say regarding the mining industry in Papua New Guinea.

“All economic ministries have been given a 100-day ultimatum to perform by the National Government and therefore I would like to work closely with you, the Department of Mining, Mineral Resources Authority and all extractive industry companies in order to realise the government’s agenda.

“My plan is to visit all mining projects in Papua New Guinea as minister responsible and I would like to meet with company officials and discuss matters of importance,” said the Minister.

He also announced that during his term in the ministry he will take on board the Wafi-Golpu and Frieda River mining projects and ensure that these important mines are operational.

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Revised mining act will be passed: Minister

Cedric Patjole | PNG Loop | August 23, 2017

Mining Minister, Johnson Tuke, has announced that he will make it his business to have the revised Mining Act passed in Parliament this year.

Tuke said the revised Mining Act, which contains six new laws, will immediately be brought before the National Executive Council for endorsement.

The Minister announced this during a Ministry handover-takeover ceremony in Port Moresby.

He takes on the role of Mining Minister from former Namatanai MP, Byron Chan.

In his maiden speech as Mining Minister, Tuke said he will ensure the new law is passed by the end of the year. This also includes the Mineral Resources Authority Act (2005) review.

“The proposed changes to the Mining Act are focused on improving the regulatory framework of the mining sector through the application of international best practice principles.

“So inline with the undertaking that was given by the Prime Minister at the PNG Mining and Petroleum Conference in Sydney last year, I will ensure the new law is passed by parliament before the end of this year,” he said.

“In addition, I’m also quite pleased to know that the six new policies that were developed for the mining sector in PNG, these new policies will be brought before cabinet immediately for endorsement so that they can be applied in PNG to address predominant issues in the mining sector.”

Minister Tuke gave praise to Chan for his leadership as the Mining Minister in the 9th Parliament and that he will continue the progress he has made.

That includes the review of the Mining Act (1992) and the upgrading of the Department of Mineral Policy and Geohazards Management (DMPGM) capacity.

Tuke has given the assurance that while the Government is committed to bringing change, it will also protect the interest of investors.

“Let me assure the people of PNG that this government is a government that will bring about change to bene t the people and serve the interest of Government.

“It will also protect the interest of the investor and ensure there is transparency, accountability, in the mining sector under my leadership,” Tuke said.

Chan said he was happy that a man of Tuke’s stature has taken on the role.

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Self interested foreign mining industry threatens and bullies new MPs

Peter Aitsi addresses the new MPs

Proposed amendments must not affect revenue: Chamber

Cedric Patjole | PNG Loop | August 20, 2017

Members of Parliament have been informed that proposed amendments to the mining act must not affect investors’ confidence in the country.

PNG country manager for Newcrest Mining Limited and vice-president of the PNG Chamber of Mining and Petroleum, Peter Aitsi, recently told new MPs that regulatory frameworks that are detrimental to investment will have a direct impact on revenue streams for the country.

The comments were made during the National Parliament Induction Programme.

Speaking to recently elected MPs, Aitsi said they needed to be aware of the delicate correlation between PNG remaining an investment destination as well as regulations introduced for the country.

He said this when stressing how signi cant revenue streams from the mining sector contributed to the country’s purse.

“As new members of parliament, you have to be very aware of that sensitive relationship between ensuring that PNG remains an attractive investment destination, and the aspirations of our nation in terms of our legal frameworks that we develop.

“Because a change that is detrimental to investment will have a direct impact in those revenue streams. So you need to be very much aware of that,” said Aitsi.

Aitsi’s comments come in light of the proposed amendments to the Mining Act which the Chamber has continually emphasised must not scare investors away.

To drive home the importance of the mining sector, Aitsi revealed that the industry contributed 10 percent to the country’s total revenue, with personal income tax (PIT) the major contributor with just over 20 percent.

He said so not only did the state receive revenue through mineral production tax and dividends, but through employment from PIT.

“This means we need to sustain employment in order to receive the kind of revenue to look after our country and growing demand.

“What we’re promoting in terms of our regulatory framework, our fiscal regime and our regulatory must be attractive to global market,” Aitsi said.

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Govt Urged Not To Rush Mining Laws

Post Courier | July 25, 2017

The Mineral Resources Authority’s (MRA) challenge going forward, is for it to reposition itself to effectively regulate the sector through the amendments to the laws that are before parliament. These include the Mining Act and the Mineral Resources Act. This is from MRA’s outgoing board chairman Robin Moaina.

Mr Moiana has been replaced by Ok Tedi Mining Limited’s deputy chief executive officer Musje Werror after 10 years at the helm of this regulatory entity.

Mr Moaina said both acts were before parliament.

He said the MRA board was never informed nor consulted on the whole process of how the Government went about amending the MRA Act in particular, and which remained a concern to him.

He had appealed to the incoming government not to rush into passing both amended acts; instead, to re-engage on the fundamentals of these proposed legislations.

He said this is to ensure the growth and investment of the exploration and mining sector in PNG.

The outgoing chairman said he was proud of MRA’s achievements over the past decade, and he was confident the authority would continue to support the government through its role.

“The organisation has grown from strength to strength and developed very robust and competent systems to service stakeholders of the exploration and mining sector including the government,” he said.

In congratulating his successor, Mr Moaina said he was confident Mr Werror would continue to provide the leadership needed by the board and management.

Mr Werror, who was elected during a recent board meeting, had assured of his commitment to engage with all stakeholders including industry, government and the landowners.

“MRA regulates the mining sector, which is an international business. It therefore has to continue to improve its regulatory services to meet that international expectation but do so within the laws of PNG,” Mr Werror said.

“I am confident MRA has the board and management expertise to effectively regulate the sector and to promote its growth to sustain the economic prosperity of the country.

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