Last week’s legislation to nationalise the PNG Sustainable Development Program (PNGSDP) and Ok Tedi Mining Limited carries severe risks and negative implications for development in PNG, writes Stephen Howes, Director of the Development Policy Centre at the Australian National University.
While its aims of encouraging small and indigenous business are universally supported, the Papua New Guinea Government’s recent dealings with investors have created a ‘feeling of unease’ in some business circles.
In an escalation of the public debate on the ownership of the Ok Tedi mine, the Chairman of the Papua New Guinea Sustainable Development Program Ltd (PNGSDP) has accused the government of ‘stealing’ Ok Tedi Mining Ltd.
Prime Minister O’Neill’s promise to leave the management of Ok Tedi Mining Ltd in place when his government takes over the mine is ‘very reassuring’, according to the company’s managing director, Nigel Parker.
New forex and asset finance heads for Moni Plus, while Ok Tedi Mining loses its corporate communications head.
Papua New Guinea Sustainable Development Program Ltd appears to be resigned to losing its main asset, the Ok Tedi mine, to the PNG Government. What are the implications if the takeover goes ahead?
Papua New Guinea Sustainable Development Program Limited has been under heavy political pressure to relinquish is majority ownership of PNG’s largest mine, Ok Tedi. In this speech, delivered at the announcement of the company’s 2012 annual report this week, PNGSDP Chairman Sir Mekere Morauta appears to concede the loss of Ok Tedi, arguing for a sale on fair terms, and ponders both the future of PNG’s largest mine, and his own organisation.
The ownership structure of the Ok Tedi mine ‘had stood the test of time’ and there was ‘no good reason to change it,’ according to Chairman of Papua New Guinea Sustainable Development Program Limited (PNGSDP), Sir Mekere Morauta.
Papua New Guinea’s Prime Minister, Peter O’Neill, has confirmed the government will restructure the country’s interests in oil, gas and mining resources into two separate mining and petroleum companies. All other state-owned enterprises will be absorbed into a third holding company.
While Papua New Guinea’s Prime Minister Peter O’Neill says the ‘marriage’ between the two owners of the Ok Tedi copper mine in Papua New Guinea’s Western Province is over, the method of divorce remains a mystery for the time being.