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| Papua New Guinea Mining Act | |
|---|---|
| Name | Papua New Guinea Mining Act |
| Jurisdiction | Papua New Guinea |
| Enacted by | National Parliament of Papua New Guinea |
| Year | enacted=1977 |
| Status | amended |
Papua New Guinea Mining Act The Papua New Guinea Mining Act is primary legislation governing mineral exploration, development, and production in Papua New Guinea. The Act establishes tenure systems, licensing criteria, environmental obligations, and revenue-sharing arrangements affecting stakeholders such as Mineral Resource Authority of Papua New Guinea, international mining firms like Barrick Gold, Newcrest Mining, and host communities in provinces such as Enga Province, Porgera Rural LLG, and Western Province. The statute interacts with constitutional instruments such as the Constitution of Papua New Guinea and provincial laws including Morobe Province ordinances, while also influencing bilateral investment relations with states like Australia and institutions such as the World Bank and Asian Development Bank.
The Act was enacted shortly after independence to replace colonial mining statutes and to assert national control over subsoil resources alongside the Constitution of Papua New Guinea. Early legislative debates involved figures from the First Parliament of Papua New Guinea, ministers such as Michael Somare and advisors from international organizations including the United Nations Development Programme and the Overseas Development Institute. Subsequent reforms responded to incidents like the Ok Tedi environmental disaster, disputes at Porgera Gold Mine, and international arbitration involving companies like Placer Dome and Rio Tinto. Amendments reflect pressures from litigation before courts including the National Court of Papua New Guinea and arbitration venues such as the Permanent Court of Arbitration and the International Centre for Settlement of Investment Disputes.
The Act defines mineral categories (e.g., "minerals", "alluvial minerals", "industrial minerals") and tenure types including exploration, retention, and mining leases. Key statutory terms connect to institutions such as the Department of Petroleum and Energy (Papua New Guinea), Papua New Guinea Chamber of Mines and Petroleum, and customary landholders represented by bodies like the PNG Landowners Association. Definitions align with international instruments such as the Minamata Convention on Mercury and standards from International Council on Mining and Metals applied by operators including Newmont Corporation and Glencore.
The licensing framework establishes application processes, evidence of native land consent, and financial guarantees administered by agencies including the Mineral Resource Authority of Papua New Guinea and provincial land offices in areas like Gulf Province and Chimbu Province. Licences must comply with tax arrangements set by the Internal Revenue Commission (Papua New Guinea) and royalties negotiated under agreements similar to those in Australia–Papua New Guinea relations. Procedural steps reference environmental approvals from the Conservation and Environment Protection Authority (Papua New Guinea) and consultation protocols involving entities such as the Human Rights Commission (Papua New Guinea) and development partners like Asian Development Bank.
Licensees obtain rights to access mineral deposits subject to obligations including payments to the State of Papua New Guinea, compensation to landowners, and adherence to social commitments negotiated with local councils such as Wabag Local-Level Government and provincial administrations like Enga Provincial Government. Corporate actors such as Fortescue Metals Group and Anglo American have been referenced in comparative policy studies, and obligations include infrastructure contributions comparable to agreements in Tasmanian mining history and stakeholder benefit-sharing models used in Alaska Native Claims Settlement Act contexts.
Provisions require environmental impact assessments under the authority of the Conservation and Environment Protection Authority (Papua New Guinea), community consultation procedures that engage customary authorities, and mitigation measures addressing issues exemplified by the Ok Tedi environmental disaster and tailings management controversies at Porgera Gold Mine. International standards referenced include guidance from the World Health Organization, United Nations Environment Programme, and the Equator Principles employed by financiers like the International Finance Corporation. Social impact clauses address resettlement, cultural heritage protection linked to institutions such as the PNG National Museum and Art Gallery, and gender considerations promoted by agencies like UN Women.
Enforcement mechanisms empower agencies such as the Mineral Resource Authority of Papua New Guinea and the Royal Papua New Guinea Constabulary for inspections, seizures, and prosecutions in the National Court of Papua New Guinea and appellate review in the Supreme Court of Papua New Guinea. Penalties include fines, licence suspension, and forfeiture; civil remedies have been pursued in domestic courts and international arbitration forums like the Permanent Court of Arbitration. Compliance is monitored through reporting obligations aligned with standards from the Extractive Industries Transparency Initiative and audit processes similar to those used by multinational corporations including BHP.
Key amendments have addressed revenue sharing, environmental safeguards, and landowner compensation following disputes at Porgera Gold Mine and the Ok Tedi Mine. Legal challenges have involved claimants represented by firms experienced in resource litigation and have engaged courts such as the National Court of Papua New Guinea and international arbitrators under rules like those of the International Chamber of Commerce. Multilateral donors and institutions including the World Bank and bilateral partners like Australia have influenced reform through conditional financing and technical assistance, while non-governmental organizations such as Oxfam and Greenpeace have campaigned for stronger protections.
Category:Law of Papua New Guinea