The Papua New Guinea government’s proposed National Gold Corporation Bill (NGC) faces fierce opposition including the public and reputable institutions like the Papua New Guinea Chamber of Resources & Energy (PNG CORE) and PNG Law Society.
The Bill proposes to create a National Gold Corporation (NGC), National Gold Bank (NGB), and National Gold Mint (NGM) to be majority owned by a foreign company but taking key powers from the Bank of PNG and the MRA, including holding the country’s gold reserves, the sovereign right to issue legal tender, and regulation of gold exports. The issuing of national currency is a sovereign right usually reserved to the country’s Central Bank but for the first time the Bill proposes to also give this right to a Singaporean based company.
Proponents of the Bill argue that foreign ownership of the NGC could attract significant investment into the PNG gold sector, leading to increased gold production and boosting government revenue. They argue that a dedicated National Gold Corporation might streamline operations and potentially improve the overall management of PNG’s gold resources as well as incentivizing investments in building gold refineries within PNG thus creating more local jobs and promote expertise in gold processing.
On the flip side, PNG CORE released a statement last week warning the government that the Bill will be destructive to PNG’s sovereignty and economy.
PNG CORE stated that it has written to the the Prime Minister James Marape requesting urgent consultations on the serious negative impacts of the proposed National Gold Corporation Bill on existing mining projects, grassroots alluvial gold miners, PNG’s financial sector, the Bank of PNG, the Mineral Resources Authority (MRA), the police and other state agencies as well as on international investment confidence”
“Although the Prime Minister promised consultations in 2021 with the industry, and a parliamentary committee that included Hon Don Polye and Hon Garry Juffa was appointed, no meaningful consultation has occurred. The industry has been blindsided by the resurrection of the Bill” the Chamber revealed.
The Chamber says that the Bill is destructive and will have significant negative impacts on the gold sector, relevant state agencies and the economy in general and has urged the National Government to engage transparently with the industry and not to progress this Bill to parliament.
The PNG Law Society President Hubert Namani also called for full disclosure of the shareholders agreement relating to the Bill. He also echoed the sentiments of PNG Core on transparency, accountability, national interest and potential conflict of interest.
The National Gold Corporation Bill is a complex issue with strong arguments on both sides. The future of the Bill and its potential impact on PNG’s gold sector and overall economy depend on the government’s decision-making process and the level of transparency offered in the coming months.
