12-04-2012, 12:14 PM
Must admire O'Neill and what he has done in his short time since being elected. Calling out licensees who don't develop than try and sell licenses to make money. No more; invest or lose licenses:
http://www.postcourier.com.pg/20121204/news04.htm
PM: Prospector’s will forfeit licences
By BLAISE NANGOI in Sydney
INDIVIDUALS or companies holding prospecting licences in the petroleum and mining industries will lose it by forfeiture if they do not use it to develop their claims within a reasonable time.
Prime Minister Peter O’Neill flagged the move when he delivered the keynote address at the 12th PNG Mining and Petroleum Investment Conference at Sydney’s Hilton Hotel yesterday morning.
Trading in speculative and undeveloped licence trading occurs when an entity applies for a licence to prospect and possibly develop mineral deposits or gas reserves but usually sells that off to bigger companies usually for a huge profit.
The practise is rife in the industry at present and currently not tightly controlled.
But yesterday Mr O’Neill said that could be a thing of the past as the Government will ensure there is more control of trading of licences. “I want to make it very clear that my Government will not tolerate the speculative and undeveloped licence trading that has been going on for too long. We will tighten procedures to put a stop to it,’’ Mr O’Neill told the packed conference.
“As part of this process, licences where no activity has taken place within the terms of the licence or a reasonable time, will be forfeited as happens here in Australia. Forfeited areas will then be advertised and put to tender so they can be developed by genuine investors and not tied up by speculators. The Prime Minister said this as part of moves the Government wants to introduce to protect the industry which he says has a strong foundation for growth that can last for a generation.
He said this is now complemented by a stable political system, and also the fact that his government was intent on tackling the scourge of corruption. Over and above that the government was also addressing social challenges.
This was underwritten by a strong economy and “a sound fiscal position’’ for the government. “My invitation to you today is to join my government with the seven million men and women and children of Papua New Guinea in maximising the opportunities we now have.
“If we work together, if we involve our people fully in the growth of the sectors then we will share in the prosperity that will surely follow,’’ Mr O’Neill said.
Mr O’Neill also suggested that it was time resource developers changed their thinking on flying in their employees on rotational basis on breaks to their places of origin both within and outside the country. This was counter-productive to PNG in a number of ways and he wanted to see a serious effort to change the arrangement.
“Successive governments have been reasonable, if not generous, when it comes to “fly in fly out” arrangements for our major resource sector projects. What I want to encourage is review of these arrangements so that more of our own resort areas and regional centres can benefit.