PNG’S KEY INDUSTRIAL SECTORS
national professionals. This has resulted from the strong growth in the industry in recent years and the exodus overseas of mining engineers, geologists and other industry professionals is testimony to the high standard of training and experience embodied in the domestic market. On the other hand, local training institutions tend to be viewed as underresourced and are in need of increased government funding for facilities upgrade and new equipment. In addition to industry-operated training centres such as the Star Mountains Training Institute at Tabubil and the Port Moresby and Juni Training Centres run by ExxonMobil to provide skilled workers for the PNG LNG project, institutions currently providing training relevant to PNG’s mining and petroleum sectors include: > Mining Engineering Department, Papua New Guinea University of Technology (Unitech), Lae > Division of Earth Sciences, University of Papua New Guinea (Port Moresby) > Australia Pacific Training College (Port Moresby) www.aptc.edu.au > Port Moresby Technical College (Pomtech) > The Mineral Resource Authority’s (MRA) Wau training centre, which trains 50–60 alluvial miners per training period each year in various mining techniques and on health and safety standards and issues.
4.1.2 Governance and legislation The principal laws in PNG that regulate mining activities are the Mining Act 1992 and the Mining Safety Act, which stipulates safety requirements on mine sites. Copies of these Acts are available on the Mineral Resources Authority (MRA) website. The MRA is responsible for administering both Acts.. The development of policy for the mining sector is the responsibility of the Department of Mineral Policy and Geohazards Management. The MRA became operational in June 2007. It has several roles, including: > To promote PNG as a destination for exploration and mine development;
As of July 2011, these two pieces of legislation were under review. It is anticipated that revisions to the Mining Act may include regulations for offshore mining and mine closures, and standards for employing mine workers. In addition, the Department of Environment and Conservation administers a Code of Practice for Mining, which stipulates the environmental responsibilities of mining projects in PNG. Use of water resources within mining and exploration tenements is governed by the Water Resources Act.
4.1.3 Mining licences and leases All land in PNG, including the seabed beneath the country’s territorial waters, is potentially open to mining activity. Under the Mining Act, the State owns all minerals existing on, in or below the surface of any land or in any water lying within the territory of PNG. The various types of mining tenements (licences and leases) issued under the Mining Act on recommendation from the Mining Advisory Council include: Exploration Licence (EL) A two-year licence that allows the licensee to occupy and explore a specified area. Mining Lease (ML) A 20-year lease that allows the licensee to mine within a specified area. Special Mining Lease (SML) A longer lease (typically 25 to 40 years), issued for larger, more complex projects. Alluvial Mining Lease A five-year lease reserved for Papua New Guineans conducting non-mechanised mining operations on their own land. This can include joint ventures with overseas partners, provided the project is at least 51% owned by Papua New Guineans. Mining Easement and Lease for Mining Purposes Issued explicitly for the development of roads, powerlines, port sites and other associated infrastructure related to a mining project.
> To facilitate and encourage exploration through the provision of relevant exploration and geological data; > To license all mining and exploration activity in the sector; > To closely monitor mining projects and provide support to operating companies, landowners and communities > To encourage sustainable development.
48
THE PNG INVESTORS’ MANUAL - THIRD EDITION