As an emerging economy, Papua New Guinea Government remains open to foreign investments with no restrictions on who to do business with but under strict policies set by the country.
This is according to Mining Minister, Johnston Tuke when signing a blanket Memorandum of Understanding (MoU) last Friday, 11th of November, with a Simon Energy Resource Co. Ltd of P.R China.
The company is an upstream oil and gas subsidiary of the Jaxin Group in respect to mineral projects in PNG.
In response to the government’s recent call for more foreign investors in PNG’s mining and oil & gas sector. Jaxin Group, one of China’s largest and rapidly rising corporations, has responded by expressing its interest to invest in PNG in various resource development projects.
The Jaxin Group has expressed strong interest exploiting for investment opportunities in both petroleum and mining projects
In order to expedite the process in identifying the opportunities and move into making investment decision, Minister Tuke and the Ministry of Mining have agreed to enter into the MoU. This was sealed last Friday.
Minister Tuke said: “The signing is an undertaking that we want to be a partner and so as the investor. This is a stepping-stone and beginning, we cannot commit ourselves into actions without coming to a mutual understanding.”
He said the signing is the testament of what is going to done in the future.
“As the Minister responsible for Mining, I am giving my enormous support in working with the investor as long as it is within the guidelines of operating business in PNG by virtues of the law and undertakings we have,” Minister Tuke said.
No specific projects have been identified for harnessing, but the signing will pave way for business opportunities through the Ministry.
According to the government, Foreign Direct Investment is significant bridge in which foreign investment dollars flow from one country to another. It sets a pace for lasting business and investment interests and relationship.
“The government is not confined to anybody or any particular investors who has got the expertise and know-how and who is willing to invite investors into PNG to be a partner.
“We readily available it depends on whatever business it is, but in this case as the Minister for Mining, I am prepared to work with the investor on behalf of the government,” added Minister Tuke.
He said China being one of the faster growing economy in the world, PNG recognizes this strategic investment as a significant boost to the PNG Economy.