THE Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) has voiced strong support for the government’s decision to delay the passage of the Gold Corporation Bill. This move, aimed at allowing for broader stakeholder consultation, was announced by Mining Minister Muguwa Dilu during a consultative workshop held in early April 2024.
In the coming six months, stakeholders will have the opportunity to submit their recommendations for possible amendments to the bill before it is presented to parliament.
This period is designed to ensure that diverse perspectives and concerns are incorporated
into the final legislation, fostering a more inclusive and balanced approach.
PNGEITI Executive Director Lucas Alkan stressed the importance of transparency throughout all phases of the discussions and recommendations. “This is an important bill
as it will underpin the growth of the economy whereby PNG will have its own gold refinery
and go into downstream processing of all natural resources to finished products ready for export,” said Alkan.
“We commend the government for not rushing to pass this bill and for seeking views
from stakeholders. However, we call for transparency in all discussions and recommendations
concerning the amendment of this bill.”
The Gold Corporation Bill holds significant economic potential for Papua New Guinea.
It aims to establish a gold refinery within the country, promoting the downstream processing
of natural resources into finished products ready for export. This development is expected to add substantial value to the nation’s natural resources and boost the overall economy.
Additionally, Alkan called on the government to disclose the details of its agreement with Refinery Holdings Pte Limited, a Singaporean company involved in the proposed refinery project.
Such transparency is essential to ensure that all agreements and negotiations are conducted openly and that the interests of all parties, including mining companies, the government, and other stakeholders, are adequately addressed.
The PNGEITI’s call for transparency aligns with its mission to promote good governance in Papua New Guinea’s extractive industries. By advocating for an open and inclusive legislative process, PNGEITI aims to enhance accountability and ensure that the benefits of the Gold Corporation Bill are widely shared across the country.
As the stakeholder consultation period progresses, PNGEITI will continue to monitor and advocate for transparent and inclusive discussions, hoping to contribute to a robust and well-supported legislative framework that will drive economic growth and good governance in Papua New Guinea.
Gold has played a significant role in the history and development of Papua New Guinea (PNG). The discovery of gold dates back to the late 19th and early 20th centuries, with the first substantial finds occurring in the 1880s. Notable discoveries on Sudest Island in 1888 sparked interest in the region.
The real gold rush began in the early 1920s with the discovery of significant gold deposits in the Bulolo and Wau valleys. This led to the establishment of numerous small-scale mining operations and attracted prospectors from around the world.
The alluvial gold mining in these areas was prolific, and the Bulolo River was dredged, producing substantial quantities of gold, which significantly contributed to the local economy.
In the post-World War II era, gold mining expanded with the development of larger, mechanized mining operations. The establishment of major mining projects such as the Panguna mine in Bougainville in the 1970s, although primarily a copper mine, also produced significant amounts of gold as a by-product.
The 1980s and 1990s saw the development of some of PNG’s largest gold mines, including the Porgera Gold Mine and the Lihir Gold Mine, which have become major contributors to the national economy. These mines have provided substantial revenue through exports and have been pivotal in the modernization of the mining sector in PNG.
Today, gold mining remains a critical part of Papua New Guinea’s economy, with ongoing exploration and development of new projects. The sector faces challenges, including environmental concerns and the need for greater transparency and equitable distribution of mining benefits.
The Gold Corporation Bill aims to address these issues by promoting local processing and ensuring more inclusive stakeholder involvement.
Comments