Mixed bag

of fortunes for PNG mines

PAPUA New Guinea faces a paradox in its fortunes on one hand the natural resources boom places it out front for economic growth; on the other hand the boom has led to violent unrest as Papua New Guineans seek to increase their share of the profits.

I The general feeling of being ripped off led to the still unresolved Bougainville crisis of 1989, and probably last monllrs attack on Mt Kare. Ironically, the crisis has reached a point where some of the big companies have questioned if it is worth Continuing . If they do pack up prematurely, leave and not return, it ivould deprive the landowners of the very lource ofincome of which they are seeking a bigger share.

The PNG Chamber of Mines and Petroleum (CMP), for its part, is )ptimistic about a new Mining Act it is kishing through parliament.

“The present act is very archaic and \ e expect a number ofissues to be greatly implified with this act,” said CMP

ixecutivc officer, Greg Anderson,

eferring to compensation and ownership >f minerals. He said everyone had learnt i lot from the SUSI billion Bougainville nine saga but, “though we would like to hink that situation is improving, with he government making some sort of ompromise, politically the future of the nines is uncertain,”

Australia's CRA was forced to close low'll operations in May, 1989, after workers colluded with landowners to lemand greater returns. The crisis worsened when they included political emands for a secession of the island from

■apua New Guinea. Bougainville

ccounted for 40 per cent of national xport revenue and contributed 17 per ent of the budget, and a huge reduction of 166,000 tonnes of copper, 8 tonnes of silver and 14 tonnes of gold ras mined from there in 1988.

Indications arc that the potential of NG s mineral resources is significant nough, however, that the mining ompanics will not be keen to leave.

Anderson believes the SUSI.S billion )K Tedi and 3 USI bill ion Porgcra Du Id overtake production of ougainvillc in a couple of years. Ok edi is now the largest copper and gold roducer, and production at Porgcra will ink in 1993 with completion of the final age of its development. Kutubu also is i to produce up to 1 50,000 barrels of oil das seepage 10 . W hile there's that an h money to be made, they mav still >nsider the potential risks and losses orihwhile. f~