The PNGEITI National Secretariat from the 6th-11th December, 2024 participated in the PNGCORE Investment Conference and Exhibition in Sydney, Australia. The three day event provided PNGEITI with a vital platform to engage with global investors, government officials, and industry leaders in the resources and energy sectors. PNGEITI’s participation highlights the importance of transparency and accountability in Papua New Guinea’s extractive industries, showcasing how these principles foster sustainable investments, boost investor confidence, and benefit our nation’s economy. PNGEITI extends its sincere appreciation and a word of thank you to all who visited our exhibition booth S41. We hope you learnt insightful information at our booth.

The PNGEITI Multi-Stakeholder Group (MSG) held its fourth quarter meeting of 2024 at Gateway Hotel, Port Moresby on Friday, November 01st. Acting MSG Chair and Acting Deputy Secretary, John Uware chaired the meeting. The meeting brought together MSG members and PNGEITI National Secretariat to discuss issues of importance concerning the National Secretariat. The meeting began with the review of matters arising from meeting minutes of second quarter and special meeting number three, 2024. National Secretariat staff provided an update on the following: There were discussions on a number of National Secretariat matters such as the;

A research Officer with the PNG Extractive Industries Transparency Initiative says lack of realistic policies and framework to address impacts of sudden mine shutdowns, affect businesses and communities among those whose lives depends entirely on the mine. Eileen Mosusu, in her presentation at the Geoscience, Exploration and Extraction Conference in Port Moresby shed light on a pressing issue faced by communities affected by sudden mine closures. Her research, which focuses on the ‘absence of realistic policies and frameworks to address the impacts of mine shutdowns’, offers both insights and recommendations for industry leaders and policymakers. Miss Mosusu identified two key areas of concern: The Need for Realistic Policies on Sudden Mine Closures Mosusu emphasized that Papua New Guinea (PNG) has experienced several sudden mine closures, notably the Panguna Mine on Bougainville in the Autonomous Region, the Porgera Mine in Enga Province, and the Hides Gas Project in Hela Province. These unexpected closure of operations leave impacted communities vulnerable, often triggering social unrest and economic collapse. “When mines close abruptly, the lack of a structured plan for the affected communities’ results in chaos. There is a breakdown in social and economic systems, which escalates tensions,” she said. Community Resilience and Adaptation in the Face of Adversity Despite the challenges, Mosusu highlighted the resilience of communities like those in Panguna, in Autonomous Bougainville. Thirty years after the mine closure and a subsequent civil war, Panguna’s communities have developed innovative survival strategies. “From artisanal mining to geo-tourism, these communities have found ways to thrive. They’ve turned to reusing and recycling materials and fostering a new market economy. This adaptability showcases their resilience,” Mosusu explained. Motivation for the Research Mosusu’s connection to Bougainville played a significant role in shaping her research. “Bougainville’s history is deeply intertwined with the extractive industries, and as my home island continues its journey toward independence, the lessons learned from the Panguna Mine closure remain critical. My background as an Environmental Scientist, specializing in heavy metal assessment, further motivated me to explore the impacts of artisanal mining on the environment and local communities,” Mosusu stated. Alignment with PNGEITI’s Goals Although her research began prior to joining PNGEITI, Mosusu highlighted how her findings align with the organization’s broader objectives of promoting transparency and accountability in the extractive sector. “Sudden mine closures often leave communities without critical support and economic stability, which underscores the need for better risk management strategies. PNGEITI’s mission to ensure extractive activities are managed in a way that minimizes negative outcomes for communities directly aligns with the discussions my research generates.” Mosusu pointed out that PNGEITI can play a key role in advocating for the inclusion of sudden mine closures in policy discussions, ensuring companies and governments are held accountable for their responsibilities toward affected communities. Shaping Future Policies Mosusu hopes her research will inspire conversations around creating frameworks that anticipate sudden mine shutdowns. She noted that while mining projects are required to present Mine Closure Plans, these often fail to address unexpected closures. “We must ask ourselves, what happens if a mine closes ahead of schedule? Do we let the community crumble, or do we implement policies that allow these communities to thrive sustainably, with or without the mine in operation?” Implications for Stakeholders Mosusu acknowledged the sensitivity of discussing the Panguna Mine, given its historical context and ongoing human rights complaints. However, she stressed the importance of considering the long-term impacts of mine closures on communities and the role artisanal mining plays in sustaining local economies. “Engaging in transparent and accountable practices is essential. Policies must reflect the realities on the ground, especially for artisanal miners, and include proper licensing and environmental protections.” Future Research and Recommendations Looking ahead, Mosusu plans to participate in the 6th Alluvial Mining Convention to further explore the discussions around the alluvial mining sector. She also called on PNGEITI to continue supporting research in the extractive industries by publishing comprehensive reports, partnering with academic institutions, and sponsoring case studies that showcase best practices in governance. Executive Director of PNGEITI, Lucas Alkan said the underlying objective of PNGEITI is to promote transparency and accountability in the extractive sector and that it mission to ensure extractive activities are managed in a way that minimizes negative outcomes for communities directly aligns with the discussions points raised by Miss Mosusu in her research paper. In saying this Mr. Alkan said “ on PNGEITI to continue supporting research in the extractive industries by publishing comprehensive reports, partnering with academic institutions, and sponsoring case studies that showcase best practices in governance”. In her concluding recommendations for policymakers and industry leaders, Mosusu urged stakeholders to engage in conversations about sudden mine closures and their impacts on local communities. “We need frameworks that sustain local economies with or without mine operations, ensuring that communities can continue to thrive after the mine is gone.”

Head of Japan International Cooperation Agency (JICA) in Papua New Guinea (PNG), Matsuoka Hideaki has requested the PNG government and its implementing agencies to continue to provide leadership, maintain cooperation and continue to have in place necessary arrangements with donor agencies such as JICA to reap maximum benefits from various projects implemented. Mr. Hideaki said this when addressing the first Joint Coordinating Committee meeting for Phase 2 of Improving Resource Related Revenue Management Project between PNGEITI and JICA officials  in Port Moresby on the 30th September 2024. The comments by the senior JICA representative comes at a time when JICA marks 50 years of development assistance to PNGMr. Hideaki says “in order to maximize and sustain the outcome and impact of the project (Resource Related Revenue Management), it is necessary to maintain and strengthen further its implementing structure”. The first JCC meeting chaired by Deputy Secretary Economic Policy Department of Treasury, John Uware brought together consultants to provide the update of the project being conducted at Auditor General’s Office and Department of Petroleum, and recommend a way forward.  The meeting was also attended by representatives from the Department of Treasury, Auditor General’s Office, Department of Petroleum, Department of National Planning, & Monitoring, Internal Revenue Commission, and Customs. The Project for Improving Resource Related Revenue Management started in 2018 following a request from PNG government through the Department of Treasury to address the recommendations from the first PNGEITI Report of which, among others the need to improve license registry at the Department of Petroleum (DPE) and also to build the capacities of government agencies in data collection and reporting for EITI with high priority. Phase 1 of the JICA Project concluded in 2022 with the project purpose and outputs achieved. The Phase 2 Project is a continuation and enhancement of the progress made in Phase 1 by looking at the following two main outputs:

PNG Extractive Industries Transparency Initiative has called for an ongoing dialogue and collaboration among all stakeholders in the alluvial mining sector.PNGEITI believes that collaboration among stakeholders is necessary to address pressing issues such as non-compliance, under-reporting the quantity of minerals produced and environmental concerns among other challenges faced in the alluvial mining sector. This follows the recent 6th PNG Alluvial Mining Convention and tradeshow in Goroka, Eastern Highlands from 24th to the 26th of September. PNGEITI participation in the three day event was driven by key objectivities. The event generated discussions on various topics, including the challenges in alluvial mining legislation, mechanized mining operations, and the market value chain of alluvial gold in Papua New Guinea. The bi-annual event convened key stakeholders in the alluvial mining sector to discuss critical issues, share insights, and forge stronger collaborations aimed at ensuring the sustainability of this vital sector for the country. The 2024 convention’s theme, “Protecting & Sustaining the Alluvial Mining Sector of Papua New Guinea,” called for a collective commitment to bolster the development and longevity of the sector, which provides a crucial source of livelihood for many local communities. PNGEITI took note of the discussions especially on production data discrepancies, monitoring and regulation of gold exports, and the need for stronger government support to protect the interests of local miners. Register of Tenements with Mineral Resource Authority, Stanley Nekitel in his presentation described the industry as a “Grassroots Economic Sector” whilst expressing his concern over the drop in production levels despite rising global gold prices. Oro Governor, Garry Juffa highlighted a concerning on what he described as a contradiction between the increase in alluvial mining activities and the reported decline in gold production data. He called for immediate government intervention to address gaps in monitoring, reporting, and creating policies that safeguard the interests of Papua New Guineans in the sector. Industry representatives, Justine Parker of Tribal Mining Limited and Raymond Wally, leaseholder and tributer, raised critical concerns about the impact of foreign investments, money laundering activities, and the need for financial capacity building for local landowners. Their inputs emphasized the importance of equitable benefit-sharing among all stakeholders in the sector. The key highlight of the event was the launch of the Resource Evaluation Code of Practice (RECP), developed in partnership with the PNG University of Technology. This code aims to standardize responsible and sustainable mining practices across the alluvial mining sector, addressing long-standing issues with environmental sustainability and operational transparency.