The Extractive Industries Transparency Initiative Report for 2016 has found that improvements are being made to registry and payment systems, but more needs to be done. It notes that budgeting to government revenues remains difficult because of the industry’s volatility and the relatively small number of companies paying full tax.
The Mineral Resources Development Company (MRDC) was formed in 1975 and is as old as Papua New Guinea itself. Chief Executive Augustine Mano tells Business Advantage PNG that the enterprise has a wide mandate.
Work at the Misima gold project has commenced, with Kingston Resources planning to extend the current resource and develop new mining areas. Kingston Resources Managing Director, Andrew Corbett, tells Business Advantage PNG he expects drilling programs to commence in April.
To remain impartial, the Papua New Guinea Government should not be a shareholder, but only maintain regulatory oversight of mining projects, according to geologist and mining consultant, Jerry Nombri Garry. He tells Business Advantage PNG, there are other ways for the country to derive healthy revenues from mining projects.
The operators of the Papua project are expected to make a financial investment decision on the project in 2019. But now that Papua New Guinea has ‘proven itself’ as a good manager of major global projects, it should be able to negotiate less generous terms with the operators of the second LNG plant, say economists and investment analysts.
A ‘cash culture’ in Papua New Guinea is beginning to change and there is more willingness to buy shares, according to Aiabba Minerals Executive Chairman and Managing Director, Moses Mondowa. He tells Business Advantage PNG it is a significant shift for the future success of the country’s resources and business sectors.
Oil prices are up and copper is also strong, but LNG has weakened. Business Advantage PNG’s monthly review of Papua New Guinea commodity and financial markets.
The fourth Extractive Industries Transparency Initiative (EITI) report, compiled by consultants Ernst & Young, shows that the sector dominates exports and is a major part of the nation’s GDP, but it is less of a contributor to employment and government revenue.
Oil prices continue their rise but LNG prices have eased. Cocoa and palm oil prices are slightly stronger. Business Advantage PNG’s monthly overview of commodity and financial markets.
Perth-based explorer Kalia Ltd has begun geological surveys on its two licence areas, after winning exploration licences under the new Bougainville Mining Act. Managing Director Terry Larkan tells Business Advantage PNG that, while the licence areas’ resources are unknown, the licences have ‘the right address’.