NEWS AND PRESS STATEMENTS

The final leg of the Papua New Guinea Extractive Industries Transparency Commission Bill covering the Southern Region is underway in Port Moresby this week.

Central Governor Robert Agarobe opened yesterday the workshop with the key message that honesty and transparency must be the cornerstone principle guiding the management of PNG’s resource to derive best value for development.

Mr. Agarobe gave the backing of the Central Province on the proposed law to transition the PNGEITI National Secretariat into a statutory body to be known as the “PNG Extractive Industries Transparency Commission”.

“The Central Provincial Government and its people recognize the need to have visibility of the various revenue streams and other benefits received from our extractive projects in the country, and particularly in our province,” Mr. Agarobe said.

“Our government also recognizes the importance of supporting the work of the PNGEITI in transforming itself into a Statutory Commission to effectively administer and sustain EITI implementation in PNG.

We also recognize the importance of having an efficient and an independent administrative body or a commission that would enable better management and governance of the extractive sector and the proposed EITI Commission law to transition the PNGEITI National Secretariat currently parked at the Department of Treasury is a step in the right direction going forward,” he said.

PNGEITI Head of National Secretariat Mr. Lucas Alkan said: “The sustainability and effectiveness of implementing EITI in PNG is dependent on having it legally established”.

Mr. Alkan said a NEC decision on which the PNGEITI operations rode held “no legal obligation to reporting entities to ensure compliance.

“Furthermore, the NEC Decision that created PNGEITI holds limited powers in enforcing compliance therefore presenting risks susceptible to being made redundant and dissolved,” Mr Alkan explained.

Voluntary compliance in EITI reporting is high, however, comprehensiveness in reporting is low. These incomprehensiveness results from the absence of EITI enabling legislation.

To mitigate incomprehensiveness in the short term, the State Solicitors and MRA have prescribed EITI reporting and transparency undertakings in mining MOA agreements.

So far EITI provisions are captured in the K92 and Woodlark Mining contractual agreement with all future mining MoAs to receive similar undertakings.

Limited visibility in revenue reporting over the years have hindered informed decision making for effective governance in the extractive sector.

The introduction of the EITI concept and the subsequent intervention of the PNGEITI National Policy now sets the framework for effective governance, not only in the mineral sector, but also in the non- mineral sector utilizing the EITI model for improved transparency and accountability. “Mr Alkan said.

ENDS/

Image Caption: Head of the PNGEITI National Secretariat Mr. Lucas Alkan and Central Governor Hon Robert Agarobe at the Stanley Hotel yesterday where PNGEIT Commission bill for the Southern Region is underway.

Governor for Eastern Highlands Province Hon Peter Numu has given his full support for the establishment of the Extractive Industries Transparency Commission.

Governor Numu opened the lower Highlands Consultation workshop on the PNG Extractive Industries Transparency Commission Bill in Goroka on Monday, September 6^th, 2021.

He welcomed the State legal and policy officials from key government departments, Department of Petroleum and Energy, Department of Treasury, Constitutional and Law Reform Commission, National Economic and Fiscal Commission, Internal Revenue Commission, including Provincial administration key representatives from Western Highlands, Jiwaka, Chimbu, Eastern Highlands, and the PNGEITI staff who gathered in Goroka for the week-long consultation.

“As the Governor of Eastern Highlands Province, I am in support of transparency and accountability in the extractive sector.

“The government must be accountable and it must make sure the developer is transparent in the extraction of our natural resources,” he said.

“Our government recognises the need to have transparency and visibility of revenue received from the extractive projects and other sectors in the country particularly in our province.

“We also acknowledge the importance of having factual data from the sector to ensure we are able to make informed decisions in the governance of the sector.

He added that Eastern Highlands Province contributes significantly to the economy of the country through coffee production and exports. The province is a major coffee producer and from coffee exports revenue is generated for the country, while local farmers benefit directly from selling their coffee produce.

“The province also hosts the K92 Mine located in the Kainantu District, that started four years ago. The company K92 Mine Ltd paid K25 million to the government last year, given the tough economic times and is looking at a promising future for the province,” he said.

“Our government also recognises the importance of supporting the work of the PNGEITI in transitioning to an independent entity as proposed ‘Commission’ to fully implement the EITI requirements and best practice Standards that PNG has signed up to implement for our benefit.

“We look forward to providing our comments and views on the proposed PNGEITI Commission Law and work in close consultation with the PNGEITI as it promotes good governance, accountability and transparency in the resources sector.

He acknowledged the National Secretariat’s leadership and the government agencies for their participation and contribution to drafting of the Commission law and the consultation process and reiterated that consultation is the way forward as it captures our people’s views in framing this important legislative requirement.

Photo caption: Eastern Highlands Governor Hon Peter Numu (seated third from left) with stakeholder representatives from provinces Western Highlands, Chimbu, and Eastern Highlands including the State legal and policy officials and the National Secretariat staff at the Bird of Paradise Hotel after he officially opened the lower highlands regional consultation on the PNGEITI Commission Bill.

PRESS RELEASE: 02nd August, 2021,
LAE, MOROBE PROVINCE

MAKE ALL TRANSACTIONS IN MINING AND PETROLEUM VALUE CHAIN TRANSPARENT: GINSON SAONU

Morobe Governor and Deputy leader of the ruling Pangu Pati Hon Ginson Saonu today opened the PNG Extractive Industries Transparency Commission Bill Momase Regional consultation in Lae and gave his backing for the establishment of the Extractive Industries Transparency Commission.

He welcomed a State Technical working group comprising the Department of Petroleum, Department of National Planning, Constitutional and Law Reform Commission, Department of Treasury and staff from the PNGEITI National Secretariat to administer the consultation.

The Governor underscored the importance of reflecting the national goals and directives enshrined in the Constitution in making policies and laws that govern the resource sector.

The Momase consultation is the second leg of a series of regional consultation to gauge views from stakeholders to shape a bill that is reflective of views from wider community for better implementation of EITI Global Standard in Papa New Guinea.

Consultation workshop starts today and ends on Thursday this week.

The implementation of EITI Principles and the Standard in Papua New Guinea rides on a National Executive Council Decision administered by as a secretariat under the Department of Treasury.

The proposed law aims to establish the PNGEITI National Secretariat as a commission to provide policy recommendations to the Government and more so provide a clear description of activities taking place in the PNG mining and petroleum industry.

Deputy Head of PNGEITI National Secretariat Christopher Tabel thanked the Governor for opening the workshop which is the second of regional consultation rolled out and will continue to two other regions.

“The PNGEITI is a state initiative and it’s only fitting and delightful moment for the state working group on the legislation and the instrumentalities involved in the process to have a Governor of existing and upcoming resource projects of huge magnitude.

“PNGEITI has been in operation since 2014 effected by a NEC decision and now we are moving into the next step in anchoring this extractive industry reporting process into PNG’s legal and administrative system.

PNGEITI has published 7 country reports detailing activities taking placing in the PNG mining and petroleum space.

“We thank the Morobe Governor and his hardworking administration team for the support and the welcome that we have received from Morobe.

We look forward to a meaningful consultation in the coming days with all stakeholders from Government, Civil Society organizations and resource companies,’’ Mr. Tabel said.

ENDS…

Image Caption: Morobe Governor Hon Ginson Saonu (third from left) with stakeholder representatives from Provinces East and West Sepik, Madang and Morobe Provincial administration including the State legal and policy officials and the National Secretariat staff at the Lae International Hotel after he officially opened the PNGEIT Commission Bill Momase Regional consultation.

 The Government of Papua New Guinea has moved in the direction of taking transparency and accountability within the mining, oil and gas sectors seriously.

Since 2014, the PNG Government has demonstrated its commitment to implementing the Extractive Industries Transparency Initiative (EITI) through the publication of seven reports in compliance with the requirements of the international best practice Standards reporting.

The PNGEITI National Secretariat under the Department of Treasury, coordinates a tripartite Multi-Stakeholder Group consisting of key Government agencies, mining and petroleum companies and civil society organisations for oversight and guidance in the publication process of the EITI Reports.

Papua New Guinea is among 53 countries that promotes transparency and accountability in the mining and petroleum space through the EITI Reporting process.

We are pleased to inform the general public that substantiative work has been undertaken to anchor the Global EITI Reporting Standard and practices into PNG laws, taking into account local practices and the operating environment.

This legislation process is consistent with the Government’s National Policy Framework on Transparency and Accountability adopted in NEC Decision NO. 80/2019.

The proposal to enact into law a transparency commission, is to provide the legal basis to administer and coordinate the publication of the EITI Reports, and its operation as an entity to coordinate implementation of the EITI Standards in the country.

The commission has been proposed to be named as the Extractive Industries Transparency Commission (EIT Commission).

As part of a nationwide consultation on a draft (EIT Commission Bill), a technical team comprising experts from key Government departments will be conducting a consultation on the draft PNG EIT Commission Bill to ensure the proposed legal set-up of this transparency commission adequately reflects the views from all stakeholders as required in this legislative process. This consultation will take into consideration other extractive sectors to include forestry, fisheries and agriculture.

The public, especially the stakeholders in the extractive sector (oil, gas, mining, fisheries, forestry and agriculture) are invited to meaningfully participate in this important consultation at the respective venues and dates as set out in the schedule shown on the picture.

AUTHORIZED BY

LUCAS ALKAN

HEAD OF PNGEITI NATIONAL SECRETARIAT

Anomalies in the extractive industry governance system in Papua New Guinea can only be tidied up by parties other than the PNG Extractive Industries Transparency Initiative (PNGEITI) with Government agencies taking a lead.

Head of the PNGEITI National Secretariat Mr. Lucas Alkan was commenting on a recent report by an overseas media on two Australian companies omitting corporate income tax in certain recent years.

The Guardian publication on its website “Australian mining companies have paid little or no corporate income tax in PNG despite huge profits “on Tuesday 8^th June, 2021 depicted a complex PNG taxation system that created room for anomalies . The news publication corroborated the findings of the 2018 PNGEITI Report with other sources.

According to this report;

• St Barbara, operator of the Simberi Mine in New Ireland Province paid no corporate income tax between 2012 & 2020
• Newcrest, operator of the Lihir mine in New Ireland Province paid nothing as well in corporate income tax during the 2017/2016 financial years.

“PNGEITI, through the reporting process sheds light on revenue leakages, policy and legislative inefficiencies and ineffectiveness with the aim of influencing policy thinking to help shape a robust governance system in the mining and petroleum sector,” Mr Lucas Alkan said.

He explained that PNGEITI detects the anomalies and defects in the system and “it is the onus of stakeholders in the industry to take the relevant decision to make things work better for the industry.”

“PNGEITI’s core mandate is to promote revenue transparency in the mining and value chain through the publication of the EITI reports which is a culmination of efforts of a Multi-Stakeholder Group comprising industry companies, relevant government agencies and civil society organisations.

EITI work in PNG and other EITI member countries is limited to reporting and working on ways to improve successive reports. Report recommendations and findings are left open to the public with the hope that those findings and recommendations may receive the attention that they deserve and acted upon.  When the EITI reports are published, EITI becomes the backend with the discretion now with parties concerned to act upon. “Mr Alkan said.

“The EITI Reporting process in PNG continues to facilitate critical policy and legislative reforms and improvement in current institutional capacities and business practices on key Government department and agencies for improved governance of the extractive sector.

One example is the Department of Petroleum & Energy. It has benefited from a JICA and PNGEITI technical cooperation with the installation of electronic license registry as a result of earlier EITI reports decrying its paper ledger license registry which was prone to fire hazards,” he said.

Mr. Alkan urged members of the public to make productive use of the PNGEITI reports and to come up with constructive and sensible debates on matters affecting the industry.

The PNG Extractive Industries Transparency Initiative (PNGEITI) has praised the open stakeholder dialogue culminating in reaching consensus to re-open the Porgera Mine in Enga Province.

Parties in April this year sanctioned a “Framework Agreement for the New Porgera Project” which spells out the roadmap to reopen the mine.

Mark Bristow, CEO and President of Barrick Niugini Ltd Gold last week explained key elements of “Framework Agreement for the New Porgera Project” at a public forum at the Piam Oval in Porgera witnessed by PNG Prime Minister James Marape, landowners and other leaders.

In the new agreement, PNG stakeholders will together own a 51 % equity stake in the mine while Barrick Niugini Limited (BNL), a joint venture company in which Barrick and Zijin Mining Group each own 50% will hold 49 % which BNL will remain the mine operator. At the end of the first ten year period, the PNG stakeholders will have the option to purchase BNL’s 49 %.

PNGEITI Head of Secretariat Lucas Alkan commented that the open discussion throughout the negotiation process on the part of the mine operating lead, government and landowners has culminated in this agreement signing by all parties.

“We at the PNGEITI congratulate the Government and the project lead BNL and other stakeholders for reaching a consensus decision to reopen the mine.

“Porgera has been an economic powerhouse for many years and people in the country have been waiting for the outcome.

“We commend the Prime Minister Hon. James Marape, the President and CEO of BNL Mr. Mark Bristow for the leadership in ensuring that the negotiations were done in the transparent and open manner.

“PNG Extractive Industries Transparency Initiative highly encourages such openness in the negotiating process for resources benefits and importantly the responsibilities that each stakeholder must take to ensure smooth flow of proceeds.

“We look forward to working with the Government and the project operator in the areas of transparency and accountability to help derive best value for all stakeholders.

PNGEITI’s commitment to reporting on developments in the mining and petroleum space is becoming stronger with new reporting dimensions taking shape as we making progress in promoting transparency and accountability in the PNG mining and petroleum industry” Mr. Alkan said.