The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) made a significant contribution to the Porgera Community Development Forum, which took place at the Enga Innovative University Enga Campus last week. The goal of PNGEITI’s participation was to integrate a clause into the Community Development Agreement (CDA) that would require parties to disclose their activities and financial information in accordance with EITI standards. This was aimed to foster greater transparency and accountability in the extractive industry. The forum brought together impacted landowners, the Enga Provincial Government, New Porgera Ltd operator Barrick Niguini Limited, and the State team led by the Mineral Resources Authority, benefited from PNGEITI’s neutral presence.  The transparency body, comprising government agencies, extractive industry companies, and civil societies, played a crucial role in encouraging open discussions and fostering better collaborations and negotiations among the parties. The level of trust and confidence among the parties was noticeably enhanced throughout the process. By taking on a neutral stance, PNGEITI was able to provide a platform for all parties to engage in constructive dialogue, ultimately promoting a more collaborative and transparent approach to the discussion of community benefits of the New Porgera Mine.

Port Moresby, May 23, 2024: The staff of PNG Extractive Industries Transparency Initiative (PNGEITI) attended a one day workshop hosted by ExxonMobil’s Government Relations team. It was an information sharing session aimed to shed light on various aspects of the PNG LNG project, particularly its benefits that will have a positive and long lasting impact on the country. ExxonMobil PNG, the developer of the PNGLNG is a member of the PNGEITI Multi-Stakeholder Group. The company plays a pivotal role as a reporting entity, providing crucial information and data for the PNGEITI’s annual country reports. The EITI reports serve as vital source for the government and the citizens in promoting transparency and fostering public trust by disclosing revenue payments, and other relevant information related to mining, oil and gas sectors. The workshop covered an array of topics, including updates on the PNG LNG Project, revenue distribution to the State, the Infrastructure Tax Credit scheme, and National Content initiatives such as workforce and supplier development, along with corporate social responsibility efforts in community investment. During the session, Jonathan Omae, Government Relations Advisor and workshop facilitator, underscored the diverse array of benefits stemming from the LNG project. He highlighted both direct and indirect opportunities, citing royalty payments, dividends, equity entitlements, and development levies as direct benefits. Additionally, Omae emphasized indirect benefits such as employment, training, business opportunities, and infrastructure development such as roads, clinics, and schools. However, questions were raised regarding the distribution of payments to provincial governments and their subsequent impact on local communities. Diclah Taureka, PNGEITI Director of Projects and Procurement, queried the transparency and efficacy of this process, and if the company is providing data and information as required for the EITI reports.  In response, Omae clarified that payments are distributed as per the Umbrella Benefits Sharing Agreement (UBSA), an agreement between the State, landowners, and the local government.  The agreement, a prerequisite under the Oil and Gas Act, outlines a framework for fair benefit distribution. Omae added that unlike other revenue streams, the company pays development levies directly to the provincial governments. He emphasized that ExxonMobil adheres strictly to this agreement, leaving the allocation decisions and reporting to the provincial governments. Echoing similar concerns, Dickson Sorariba, PNGEITI Director of Communications and Stakeholder Engagement, queried if the benefits trickle down to the local communities. He highlighted instances where communities voiced grievances over inadequate benefit sharing and lack of tangible development in the impacted areas such as Gulf and Western provinces. PNGEITI currently reports at the national level, with discussions ongoing regarding subnational reporting. In the interim, stakeholders in the sector should continue to advocate for a more equitable distribution process, one that ensures clear criteria on revenue distribution, and transparent decision-making, that is accessible to the public. The challenge now lies with industry stakeholders and impacted communities to advocate for change and ensure that revenue from not only the PNGLNG Project but other extractive projects is distributed fairly and transparently to benefit all stakeholders, particularly the communities in the provinces directly impacted by the project. ENDS//

Papua New Guinea Extractive Industries Transparency Initiative has thrown its support behind the government’s decision to delay the passage of the Gold Corporation Bill and seek wider stakeholder consultation. Mining Minister, Muguwa Dilu at consultative workshop yesterday (Wednesday 15h April, 2024) said opportunity will be given to all stakeholders to make their recommendations for the amendment of the Gold Corporation Bill. In the next six months, stakeholders are expected to submit their recommendations for possible amendments to the bill  before it reaches the parliament. PNGEITI Executive Director Mr. Lucas Alkan says there must be transparency in all phases of discussions and recommendations by both government and stakeholders in the lead up to  the amendment and even to the passage of the bill. “This is an important bill as it will underpin the growth of the economy whereby PNG will have its own gold refinery and go into downstream processing of all natural resources to finished products ready for export,” said Mr. Alkan. “We commend the government for not rushing to pass this bill to seek views from the stakeholder. However, we call for transparency in all discussions and recommendations concerning the amendment of this bill,” he said. “PNGEITI plays an important role in promoting good governance in the country’s extractive sector and therefore, it is our wish to see all discussions and recommendations done in a transparent manner,” said Mr. Alkan. Mr Alkan also called on the government to disclose the content of deal it made with a Singaporean Company, Refinery Holdings Pte Limited. Mr Alkan said the interest of the mines, the government, the stakeholders among other parties concerned must be catered for in these proposed amendment to the bill