ANTHONY Smare, President of the Papua New Guinea Chamber of Resources and Energy (PNG CORE) in a recent information session at the University of Papua New Guinea, delivered a compelling presentation outlining the detrimental effects of the proposed National Gold Bill 2022. Addressing key stakeholders on May 9, 2024, Smare underscored the potential “catastrophic impact” of passing the bill, slated for parliamentary consideration on May 29, 2024.
Smare expressed grave reservations about the bill’s content, particularly its intricate
500-plus pages, which he deemed impractical for thorough examination by policymakers.
He criticized the bill’s lack of consultation with local industry experts and its
apparent disconnect from the realities of the gold refining industry in Papua New Guinea
(PNG). Smare highlighted discrepancies in profit projections, suggesting an unrealistic
portrayal of potential earnings compared to established industry standards.
Among PNG CORE’s primary concerns regarding the bill are the creation of a National
Gold Corporation, Bank, and Mint, predominantly owned by foreign entities. These
provisions, coupled with the proposed delegation of significant regulatory powers from
PNG’s central bank and regulatory authority, raise alarm bells within the industry.
Moreover, the absence of a requirement for onshore gold refining poses a threat to
PNG’s economic sovereignty and local industry development.
The bill’s broad scope extends beyond gold to encompass all precious metals, introducing
unforeseen complexities and risks for the mining sector. Smare also criticized the
attempt to establish a statutory monopoly in a market characterized by oversupply and
minimal refining costs, questioning its sustainability and impact on sector stability.
Furthermore, PNG CORE expressed apprehension over the bill’s excessive powers and
marginalization of state agencies, as well as its unprecedented state guarantee for
foreign-owned entities. Transparency and accountability issues surrounding the governance
and ownership structure of the National Gold Corporation further compound
industry concerns.
In light of these apprehensions, PNG CORE called upon the National Government
to prioritize transparency and engage in meaningful dialogue with industry stakeholders.
Smare urged against advancing the bill to Parliament, emphasizing the need for
careful consideration of its potential implications on PNG’s economy and resource
management.
In a recent information session at the University of Papua New Guinea, Anthony
Smare, President of the Papua New Guinea Chamber of Resources and Energy (PNG
CORE), raised significant concerns about the proposed National Gold Bill 2022. Smare
highlighted the potential detrimental impact of the bill, scheduled for parliamentary
review on May 29, 2024.
He criticized its extensive length and lack of consultation with local industry experts,
questioning its alignment with the realities of the gold refining industry in Papua New
Guinea (PNG). PNG CORE outlined several key concerns, including the creation of
foreign-dominated entities with significant regulatory powers, the absence of requirements
for onshore gold refining, and the bill’s broad application to all precious metals.
Moreover, Smare emphasized the risks posed by the bill’s attempt to establish a statutory monopoly and its unprecedented state guarantee for foreign-owned entities.
PNG CORE called upon the National Government to prioritize transparency and engage
in meaningful dialogue with industry stakeholders before advancing the bill to
Parliament. The concerns raised underscore the importance of careful consideration of
the bill’s potential implications on PNG’s economy and resource management.
In conclusion, the concerns raised by PNG CORE regarding the National Gold Bill 2022
highlight the need for transparency, consultation, and careful consideration of the
bill’s provisions. It is imperative that the National Government engages in meaningful
dialogue with industry stakeholders to address these concerns and safeguard PNG’s
economic interests. One can only hope that these concerns are taken into regard.
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