PNG throws open mining doors to Chinese investors

Papua New Guinea has rolled out the welcome mat for Chinese mining companies, with Mining Minister Solan Loifa telling delegates at a major industry gathering in China that the country is ready for new business partnerships. The Minister made the pitch while addressing the China Mining Conference and Exhibition held in Tianjin last week.

Loifa used the platform to reassure Chinese investors that PNG's resources sector was undergoing reform to make it easier and faster to do business, while stressing that any development must still deliver real benefits to landowners and the wider country.

He told the gathering that a fair deal for everyone involved was non-negotiable.

"Mining should be done with a win-win cooperation for the government, people and the investors," Loifa said.

The Minister said Port Moresby had taken note of longstanding complaints from miners and explorers about how slow and unpredictable the approval process could be, and pledged that changes were already under way to fix it.

Among the reforms he outlined was a plan to bring licensing, permitting and compliance functions under a single roof, doing away with the fragmented, department-by-department process that has frustrated investors in the past. Exploration Licences, currently valid for two years, will be extended to five years to give explorers more breathing room during the riskier early stages of a project.

The Government also intends to introduce retention licences, which would let companies hold onto a mineral discovery without losing it if market prices dip or a feasibility study comes back unfavourable. For projects considered strategically important, PNG will move away from strict first-come, first-served allocation, instead favouring operators judged on merit — though Loifa clarified this would not touch existing licence holders or areas not already earmarked for exploration.

A firmer timeline for renewals is also planned, aimed at stopping projects from stalling in administrative limbo.

Loifa said the overall message to the world's mining community was straightforward.

"We have heard your concerns regarding regulatory uncertainty and administrative delays," he said. "We are removing the hurdles that have slowed discovery, and at the same time, ensuring that the people of PNG benefit equitably from our resource wealth."