Lucas Alkan

According to the Papua New Guinea Extractive Industry Transparency Initiative (PNGEITI), the time is ripe for changes to the legislation given the changing landscape of projects in the country.

Head of the PNGEITI National Secretariat, Lucas Alkan, said greater cooperation was needed between all stakeholders to put in place better fiscal and regulatory mechanism for the good of the industry and the economy at large. 

The PNG Extractive Industries Transparency Initiative Report 2014 says when mines reach the end of their productive lives, “there can be social and environmental ramifications”.

“Mechanisms such as the Future Generations Trust Fund and the new Sovereign Wealth Fund aim to smooth the economic impact when mines cease to provide revenues and employment,” it stated.

The PNG Extractive Industries Transparency Initiative Report 2014 says: “While the Government sets strong policy and has a relatively robust legislative regime and fiscal control, implementation is challenging due to weak capacity and a lack of accountability, particularly at local levels. The associated lack of transparency also leaves the way open for corruption.

This is highlighted in the PNG Extractive Industry Transparency Initiative (EITI) latest report of the industry.

According to the report, total value of mineral exports from PNG mines for 2014 was K17, 522.5 million comprising 84.18 percent of total export value.

Overall the mining and petroleum sector contributed 12.7 per cent of government revenue in 2014 compared with 7.5 per cent in 2013.

The report states this increase correlated with the commencement of the PNG LNG Project.

PNG EITI Head of Secretariat, Lucas Alkan, in announcing this in a statement, said they are currently compiling reports for 2015 and 2016.

This follows the endorsement of recommendations from the 2013 report by the National Executive Council (NEC) and the recent publishing of the 2014 Report.

Alkan said validation is an important feature of the EITI implementation.

This is after joining the PNG Extractive Industries Transparency Initiative (PNGEITI).

In a media statement, the PNGEITI announced that the MRDC has joined their Multi Stakeholder Group (MSG), which is the primary body responsible to oversee and coordinate the successful and effective implementation of the global EITI standards in PNG.

The body provides and establishes a framework to promote collaboration and consensus.

PNG EITI Head of Secretariat, Lucas Alkan, citing media reports last week that 300 shipment of Liquefied Natural Gas (LNG) cargoes have been made so far, said it was pleasing to note the company disclosing such information so that the public can be kept informed.

This is three years after the first shipment left on May 25, 2014.

Operations last year produced 7.9 million tons of LNG – an increase of 14 percent from the original design specification of 6.9 million tons per annum (mta).

The report was set for publication at the end of last year, however it was delayed due to some key revenue and production data not being made available on time.

Head of the National Secretariat Lucas Alkan said the independent auditor (Ernst & Young) is now finalising the outstanding data obtained from a couple of key reporting entities.

“The independent auditor has collated the financial data and reconciled any discrepancies arising from the figures provided by government agencies and companies,” said Alkan.

This has been made possible by the PNG Extractive Industries Transparency Initiative’s (PNGEITI) Beneficial Ownership Roadmap. It provides direction and outlines specific actions on how the country will report on Beneficial Ownership by 2020.

The Roadmap is consistent with the EITI Standard.

This was the message from the PNGEITI Head of National Secretariat, Lucas Alkan.