The PNG Extractive Industries Transparency Initiative has expressed concern over unregulated mining activities in the country. Executive Director for PNGEITI National Secretariat, Mr. Lucas Alkan says alluvial mining are largely unregulated activities which raises concern. “Unregulated mining activities leaves authorities and stakeholders with limited information about this segment of mining industry and this is a concern,” said Mr. Alkan. The concerns from PNGEITI over alluvial mining follows comments by PNG Chamber of Resources and Energy President, Anthony Smare that there is a problem on how alluvial gold is produced in the country. The recent PNGCORE summit heard that bigger mining companies operating in the country are subject to PNG Mining Act and even international laws on mining and they are obligated to comply but the problem exists with alluvial gold producers who may underreport the quantity of the minerals produced. Mr. Alkan expressed similar concern that the sector (alluvial mining) is largely unregulated that there is limited information about its magnitude and the scope of its activities. PNGEITI Report 2022 raised similar concerns, strongly calling for proper coordination and regulatory mechanisms to keep track of opportunities and challenges that someone engaged in alluvial mining is faced with. “Alluvial mining and associated activities contributed to economic well-being of a good number of people living in remote parts of the country. Taking an inclusive government approach in regulating different facets of the mining industry is important. In this way we can give every participant a fair share,” Mr Alkan stated in the PNGEITI Report 2014. The Mining Act of 1992 allows people to mine for alluvial minerals on their land by using non- mechanical means without the need for a mining licence and this activity can be categorised as an informal activity that involves millions of kinas. Mineral Resource Authority reported that K640 million kina was made from alluvial mining in 2022 and estimates this figure to increase in the coming years. Mr Alkan says alluvial mining activities will continue to increase and therefore it is important that the Government takes stock of the magnitude of this informal activity and considers formalising this activity by putting in place proper coordination and regulatory mechanisms to keep track of this segment of the mining activity. ENDS/////////

The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) made a significant contribution to the Porgera Community Development Forum, which took place at the Enga Innovative University Enga Campus last week. The goal of PNGEITI’s participation was to integrate a clause into the Community Development Agreement (CDA) that would require parties to disclose their activities and financial information in accordance with EITI standards. This was aimed to foster greater transparency and accountability in the extractive industry. The forum brought together impacted landowners, the Enga Provincial Government, New Porgera Ltd operator Barrick Niguini Limited, and the State team led by the Mineral Resources Authority, benefited from PNGEITI’s neutral presence.  The transparency body, comprising government agencies, extractive industry companies, and civil societies, played a crucial role in encouraging open discussions and fostering better collaborations and negotiations among the parties. The level of trust and confidence among the parties was noticeably enhanced throughout the process. By taking on a neutral stance, PNGEITI was able to provide a platform for all parties to engage in constructive dialogue, ultimately promoting a more collaborative and transparent approach to the discussion of community benefits of the New Porgera Mine.

Port Moresby, May 23, 2024: The staff of PNG Extractive Industries Transparency Initiative (PNGEITI) attended a one day workshop hosted by ExxonMobil’s Government Relations team. It was an information sharing session aimed to shed light on various aspects of the PNG LNG project, particularly its benefits that will have a positive and long lasting impact on the country. ExxonMobil PNG, the developer of the PNGLNG is a member of the PNGEITI Multi-Stakeholder Group. The company plays a pivotal role as a reporting entity, providing crucial information and data for the PNGEITI’s annual country reports. The EITI reports serve as vital source for the government and the citizens in promoting transparency and fostering public trust by disclosing revenue payments, and other relevant information related to mining, oil and gas sectors. The workshop covered an array of topics, including updates on the PNG LNG Project, revenue distribution to the State, the Infrastructure Tax Credit scheme, and National Content initiatives such as workforce and supplier development, along with corporate social responsibility efforts in community investment. During the session, Jonathan Omae, Government Relations Advisor and workshop facilitator, underscored the diverse array of benefits stemming from the LNG project. He highlighted both direct and indirect opportunities, citing royalty payments, dividends, equity entitlements, and development levies as direct benefits. Additionally, Omae emphasized indirect benefits such as employment, training, business opportunities, and infrastructure development such as roads, clinics, and schools. However, questions were raised regarding the distribution of payments to provincial governments and their subsequent impact on local communities. Diclah Taureka, PNGEITI Director of Projects and Procurement, queried the transparency and efficacy of this process, and if the company is providing data and information as required for the EITI reports.  In response, Omae clarified that payments are distributed as per the Umbrella Benefits Sharing Agreement (UBSA), an agreement between the State, landowners, and the local government.  The agreement, a prerequisite under the Oil and Gas Act, outlines a framework for fair benefit distribution. Omae added that unlike other revenue streams, the company pays development levies directly to the provincial governments. He emphasized that ExxonMobil adheres strictly to this agreement, leaving the allocation decisions and reporting to the provincial governments. Echoing similar concerns, Dickson Sorariba, PNGEITI Director of Communications and Stakeholder Engagement, queried if the benefits trickle down to the local communities. He highlighted instances where communities voiced grievances over inadequate benefit sharing and lack of tangible development in the impacted areas such as Gulf and Western provinces. PNGEITI currently reports at the national level, with discussions ongoing regarding subnational reporting. In the interim, stakeholders in the sector should continue to advocate for a more equitable distribution process, one that ensures clear criteria on revenue distribution, and transparent decision-making, that is accessible to the public. The challenge now lies with industry stakeholders and impacted communities to advocate for change and ensure that revenue from not only the PNGLNG Project but other extractive projects is distributed fairly and transparently to benefit all stakeholders, particularly the communities in the provinces directly impacted by the project. ENDS//