Members of Parliament have been informed that proposed amendments to the mining act must not affect investors’ confidence in the country.
PNG country manager for Newcrest Mining Limited and vice-president of the PNG Chamber of Mining and Petroleum, Peter Aitsi, recently told new MPs that regulatory frameworks that are detrimental to investment will have a direct impact on revenue streams for the country.
The comments were made during the National Parliament Induction Programme.
Speaking to recently elected MPs, Aitsi said they needed to be aware of the delicate correlation between PNG remaining an investment destination as well as regulations introduced for the country.
He said this when stressing how significant revenue streams from the mining sector contributed to the country’s purse.
“As new members of parliament, you have to be very aware of that sensitive relationship between ensuring that PNG remains an attractive investment destination, and the aspirations of our nation in terms of our legal frameworks that we develop.
“Because a change that is detrimental to investment will have a direct impact in those revenue streams. So you need to be very much aware of that,” said Aitsi.
Aitsi’s comments come in light of the proposed amendments to the Mining Act which the Chamber has continually emphasised must not scare investors away.
To drive home the importance of the mining sector, Aitsi revealed that the industry contributed 10 percent to the country’s total revenue, with personal income tax (PIT) the major contributor with just over 20 percent.
He said so not only did the state receive revenue through mineral production tax and dividends, but through employment from PIT.
“This means we need to sustain employment in order to receive the kind of revenue to look after our country and growing demand.
“What we’re promoting in terms of our regulatory framework, our fiscal regime and our regulatory must be attractive to global market,” Aitsi said.