Apr 13, 2021 Last Updated 11:41 PM, Apr 12, 2021

PNG Mining: Layoffs and laws

Sarah Kuman Sarah Kuman
Published in July
Read 2178 times
Rate this item
(0 votes)

The Parliament of PNG has passed a series of amendments targeting the mining, oil and gas industries, which give the Minister greater flexibility in determining whether to grant or refuse petroleum development licences, according to a briefing note by law firm, Allens.

One of the key elements for the mining industry is that the Mining Minister may impose a 'minimum expected level of return' for the State on a licensee, say Allens authors Rob Merriam, Jacqui Rowell and Sarah Kuma, writing in Insights.

“What the level of return might be, how it would be calculated and how it would be enforced are not prescribed in the O&G Amendments,” they say.

Existing applicants may also be subject to these amendments if the Minister has not yet granted their licence, they add.

The legislation follows the Marape government’s refusal to grant an extension of the Porgera mining licence which expired last August, although JV company Barrick New Guinea Ltd (BNL) had sought a 20-year extension as far back as June 2017.

Barrick’s CEO, Mark Bristow, reaction was that it was “tantamount to nationalisation without due process” and legal action in the PNG Courts is continuing.

This month (July), Barrick has begun layoff staff. According to Barrick, most of the 116 expatriate employees have already been retrenched, while 2650 PNG nationals will have their employment terminated prior to the end of July at a projected cost to the company of K180 million (US$52 million).

“This is already having a big impact on the economy,” Shane McLeod, analyst at the Lowy Institute, told Islands Business.

For the complete story subscribe to Islands Business

Last modified on Tuesday, 21 July 2020 18:29
More in this category: Vanuatu celebrating 40 years »

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.