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 8th 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.

The publication of the PNG Extractive Industries Transparency Initiative reports are meaningless if they do not give rise to critical policy debates for a robust mining and petroleum sector in Papua New Guinea, an official says. Head of PNGEITI National Secretariat Mr. Lucas Alkan told leaders at the 36th Australia Papua New Guinea Business Forum on Wednesday that EITI work in PNG is progressively helping to shape public policy discussions through EITI report recommendations, and open discussions within the PNGEITI Multi Stakeholder Group (MSG). Papua New Guinea to date has published a total of seven (7) EITI country reports since the PNG Government signed up to join other 50 plus mineral resource rich countries in 2014 to implement the EITI Global best practice Standard. To promote transparent and accountable conduct of business in the mining and petroleum industry the core function of EITI implementation is the publication of annual EITI country reports consistent with the requirements of the EITI Global Standard. Mr. Alkan said those reports must form part of policy discourse in mining and petroleum sectors of the economy as opposed to collecting dust in the shelves. “Producing EITI reports are meaningless if these reports do not give rise to critical policy and legislative reforms for better management of the sector, “he said. Mr. Alkan said important progress had been made since PNG’s first EITI report in 2015, providing greater transparency over revenue received by the government from the country’s mining and oil and gas industry. He said the PNG Government and resource owners receive maximum resource project benefits, with that EITI reporting process identifies revenue leakages to improve corruption perception which would in turn boost investor confidence. “To improve the country’s investment climate, we have to be transparent in all forms of payments, starting with the negotiation process for development projects to how licenses are issued. “EITI is a platform that enables all stakeholders to work collaboratively and build trust to realise PNG’s vision for resources development,” Mr. Alkan added. “Some of the improvements and reforms arising from the work of EITI in PNG are that EITI;• has been complementing other Government initiatives like the Open Government Partnership (OGP) and the Independent Commission Against Corruption Law (ICAC);• through its first report, ensured that the Income Tax Act was amended to remove secrecy provisions in the Act to enable the IRC to disclose tax revenue data for EITI reports.• provisions have been included in project MOAs and Agreements on benefits sharing arrangements for contract transparency;• establishes a platform for better collaboration and open discussions between different stakeholders to build trust;• ensures a comprehensive report with available data covering the extractive sector that is now used as reference in debates, which is not the same some years back;• Report outcomes have influenced the Government to embark on reforming policy and resource laws to strengthen government systems and to ensure fair share from the benefits derived from resource developments;• is now making progress in comprehensively reporting at sub-national levels of government, beneficial ownership disclosure, and increase transparency in State Owned Entities.• has forced the government to disclose quasi-fiscal data and taken steps to address opaque nature of some tax incentives such as the Infrastructure Tax Credits.• report recommendations have pushed the PNGEITI Secretariat and the Auditor General to work together to improve the quality of the financial data in the EITI reports.“In addition, a National Policy Framework on Transparency and Accountability was approved by Cabinet in 2018,” he said. Mr. Alkan said among the achievements made so far in EITI implementation in the country, the National Policy Framework on Transparency and Accountability has set the basis for the creation of EITI PNG as an independent administrative body to sustain its operation and the draft law is now being finalised.