The PNG Chamber of Mines and Petroleum is concerned that proposed changes to the Mining Act and the Mineral Resources Authority Act could potentially curtail future exploration and development activity.
Executive Director of the PNG Chamber of Mines and Petroleum, Greg Anderson said stable government policies and a favourable investment climate are critical for future growth within PNG's resources sector.
He said the sharp drops in mineral and petroleum prices has adversely impacted PNG's current economic outlook but these sectors will return to their traditional role as strong contributors to PNG's economic prosperity once commodity prices increase again.
He is calling on the Government to carefully consider the implications of these amendments for future economic growth and prosperity.
Anderson added that while the slowdown in economic growth in China has been a key reason for the fall in prices of copper, nickel and other mineral products, oil and gas prices have fallen because global production is presently exceeding world demand.
He said: "In past years the Organisation of Petroleum Exporting Countries acted as a 'swing producer' to try and maintain higher oil prices. This role has been undermined in recent years by an upsurge in oil production from oil shale deposits in the United States.”
Anderson said PNG was very fortunate because some major advanced projects are still being considered for development in the next three to five years at a time when many projects worldwide are losing money and many are shutting down.
He said: "For this reason we need good forward-looking policies from Government for PNG to remain attractive for investors so that the nation's future potential can be realised in a manner that promises improved living standards for people throughout the country. "
Among the advanced projects still under consideration are the multi-billion dollar Papua LNG Project, the Wafi-Golpu and Frieda River copper-gold projects in Morobe and West Sepik provinces respectively.
"It is important for policy makers to remember that some of these projects, such as Frieda River, were discovered many decades ago with hundreds of millions of dollars spent to explore and evaluate them."