The Papua New Guinea mining and petroleum industry is worried about the changes that have been proposed to the mining laws in the country. The government is reviewing existing laws to revert ownership of resources on, as well as under the land and seabed to the traditional owners.
The Executive Director of PNG's Chamber of Mines and Petroleum, Greg Anderson has said that such a move will scare off investors and it'll be disastrous for the country's economy. He met with the Prime Minister Peter O'Neill two weeks ago to hand over a letter of concern signed by the leading players in the industry.
Doctor Colin Filer, Convenor of the Resource Management in Asia-Pacific Program at the Australian National University also said that the revision may give PNG a messy piece of legislation and court challenges.
The mining industry which employs 30,000 people in the country and provides 80 per cent of PNG's export earnings. It is sending annual economic growth soaring, up to 9.7 per cent of gross domestic product last year and 11 per cent expected in 2011.
Companies that operate in the country and will be affected include Oil Search, Santos, BHP-Billiton, Rio Tinto, Newcrest, Xstrata Copper, Barrick, Harmony, Newmont, Vale, Nautilus Minerals, Allied Gold, Highlands Pacific, China's MCC, Marengo, New Guinea Gold, Petromin, ExxonMobil, Mitsubishi, Mitsui, Talisman, Sasol, Nippon Oil and InterOil.