mining act review push

Mining Act review push
The Ministry of Mining is currently taking bold steps to lure the interest of more overseas investors into Papua New Guinea’s virgin mining industry. Mining Minister Sam Akoitai said for this to happen, his department would get the 1992 Mining Act reviewed to suit investors. In an exclusive interview with United States of American-based newspaper The New York Times and the Post-Courier, Mr Akoitai said the 1992 Mining Act was in line for a review and would be tabled in Parliament in the first quarter of this year. Mr Akoitai said under the review, his department would establish the Mineral Resource Authority, whose task among other things, was to focus on regulating the mining industry and carry out exploration audits. “Papua New Guinea is still a virgin country in terms of mining because only one-third of the country has been explored but two-thirds have yet to be,” he said. “It’s the two-thirds we are interested in and would want airborne exploration. “I see a bright future for PNG and it is the duty of my department to manage the mining industry to attract the interest of investors.” Mr Akoitai said besides traditional foreign investment partners like Australia and Britain, PNG now had attracted investments from multi-million-kina corporations from Canada, South Africa and very recently the $US700 million (K2.25 billion) Chinese investment in the Ramu nickel project in Madang. Mr Akoitai said PNG used to enjoy a $US100 million (K321 million) a year in mining exploration expenses but when the Somare government came in 2002, the figure dropped to a mere $US2 million (K6.43 million) which signalled low to no exploration. When the Government took over in 2002, a new tax regime was introduced in the mining and petroleum industries which saw exploration in both sectors improving again. In the mining sector, exploration picked up again and total expenditure has now reached $US70 million (K225 million). “Papua New Guinea is a free country to do mining (business) in but so long as you comply with the laws of PNG,” Mr Akoitai said.