Regulatory stability, and how industry and Government can work together to deliver ‘shared benefits,’ will be key themes of next week’s Papua New Guinea Mining and Petroleum Seminar in Port Moresby, according to PNG Chamber of Mines and Petroleum Executive Director, Greg Anderson.

The Star Mountains project is proving to be a positive for the mining industry in PNG. Credit: Highlands Pacific.

The three-day conference in Port Moresby will focus on current mining and petroleum activities, including new developments, advanced prospects, gas discoveries and the potential of PNG’s liquefied natural gas (LNG) industry.

Prime Minister Peter O’Neill will open the event, which will also provide an overview of the current economic outlook for PNG, including the recent national budget, and a summary of the new Kumul structure for PNG’s state-owned enterprises.

The PNG Chamber of Mines and Petroleum’s Greg Anderson.

‘There are a few messages we are trying to bring out at the conference and most of it centres on the industry’s need for stability, in both regulatory and financial regimes,’ PNG Chamber of Mines and Petroleum Executive Director Greg Anderson told Business Advantage PNG,

‘It’s particularly relevant at the moment because things are so tough. It is especially not a good time to be making major changes.’

Supporting the nation

Anderson said the conference would explore how the mining and petroleum industry could work with the PNG Government to tackle nationwide challenges, such as improving accessibility to power and developing successful landowner companies.

‘While we have a formula to share benefits and in the broad sense that is a world first, the challenge for us in this industry, and right across the board, is to make sure those benefits are distributed within those respective groups and utilised properly,’ Anderson explained.

‘We have included a session on power because it is critical for our projects and also critical for the whole nation. The industry can play a significant part in assisting the government to get power across the nation, and at the same time to some of the new projects.’

LNG progress

Another key focus of the conference will be the ongoing development of the LNG industry in PNG, and how it is now positioned on the global stage, as the value of oil has declined substantially over the past 12 months.

Two stakeholders in the PNG LNG project—Oil Search Ltd and Santos Ltd—have both been targeted with takeover offers in recent months, while the Elk–Antelope gas prospect, touted as PNG’s second LNG project, continues to move forward promisingly.

‘While we have a formula to share benefits and in the broad sense that is a world first, the challenge for us in this industry, and right across the board, is to make sure those benefits are distributed within those respective groups and utilised properly.’

‘We are a relatively hot spot in a cold background,’ Anderson said of the petroleum industry. ‘We have done very well in the LNG sense to keep these two projects rolling along—it’s not all negative [for PNG].’

Mining prospects

While the petroleum and gas sector progresses, PNG’s mining industry has been dealt several blows in 2015 due to drought conditions caused by the El Nino weather patterns.

Key existing mining operations—Ok Tedi and Porgera—are both currently suspended due to the drought.

Despite setbacks at these operations, Anderson pointed to several bright spots in PNG’s mining sector that would be highlighted at the conference.

‘Harmony Gold is also continuing exploration and has made a new discovery at Kili Teke west of Porgera. Both Frieda and Wafi-Golpu will complete Feasibility studies by the end of the year.’