DRAFT PAPUA NEW GUINEA OFFSHORE MINING POLICY 1. APPLICATION This Policy Handbook shall be read with specific reference to the Mining Act 2013 and any other legal documents and policies that relate to mineral exploration, operation, administration and regulation of mining industry in Papua New Guinea. 2. VISION, MISSION, PURPOSE & GUIDING PRINCIPLES 2.1 Vision (a) To promote and support offshore mining in Papua New Guinea and to guide the development of this emerging industry. (b) To promote Papua New Guinea as an investment destination for mineral exploration and mining, and (c) To ensure that mining in Papua New Guinea is responsibly conducted in a socially, economically and environmentally sustainable manner. 2.2 Mission To improve the quality of life for all Papua New Guineans through wealth creation resulting from increased mineral exports and local participation with fair economic returns for investors. 2.3 Purpose a) To provide a policy framework for offshore mining in PNG that is consistent with relevant international and regional conventions, while reflecting the development needs and aspirations of the people of PNG. b) To provide a favorable investment climate for the development of offshore mining in PNG. c) To maximize economic benefits to PNG by encouraging downstream processing of minerals extracted from the marine environment. d) To ensure fair, equitable and effective distribution of benefits derived from offshore mining activities at the National, Provincial and Local levels. e) To ensure that offshore mining gives due consideration to other legitimate uses of the coastal and marine environment. f) To ensure minimum impact on the biodiversity, ecology and living marine resources in the coastal and marine environment and the livelihoods of the people in accordance with the precautionary principle. 2.4 Guiding Principles Principle 1: The Constitution calls for the “wise use to be made of our natural resources and equal distribution of wealth to all our people.” Principle 2: The Mining Act 2013 declares for; (a) Exploration and Mining to be Public Purposes for a reason that is reasonably justifiable in a democratic society that has proper regard for the rights and dignity of mankind, and (b) The Discovery, Appraisal, Development and Exploitation of minerals to be in the National Interest. Principle 3: Development of an effective and tangible benefit distribution mechanism that will provide opportunity for local participation in the mine construction, development and operations. 3. POLICY REVIEWS AND DEVELOPMENT 3.1 The National Executive Council (NEC) may issue policy directives from time to time. Specific sections of the policy shall be amended to reflect the NEC policy directives. 3.2 The Department responsible for the mineral policy matters shall monitor and evaluate the implementation of the policy. The policy document shall be reviewed after five years from the date of execution of the policy. 4. INTERNATIONAL LEGAL CONTEXT 4.1 Papua New Guinea aspires to conform to all its international and regional obligations under treaties, conventions and agreements related to its offshore mineral resources, boundaries, and environmental management and others that are ratified and adopted into domestic legislations. 4.2 The Conventions and treaties include the United Nations Convention on the Law of the Sea (UNCLOS), the Convention for the Protection of the Natural Resources and the Environment of the South Pacific Region (the Noumea Convention) and the Bilateral Treaties such as the Torres Strait Treaty. 4.3 Where appropriate, Papua New Guinea may enter into treaties with other coastal states sharing its maritime boundaries for the joint development and management of marine mineral resources as provided under the United Nations Convention on the Law of the Sea. 5. NATIONAL LEGAL CONTEXT 5.1 Mining activities in Papua New Guinea are administered and regulated in accordance with the national mining laws formulated under the Constitution of Papua New Guinea and enacted through the National Parliament. 5.2 The two principle mining laws are; (a) The Mining Act 2013 and the Mining (Safety) Act 2013, and (b) Other national legislations relevant to mining industry including but not limited to those summarized in attachment “A” 5.3 The State shall work closely with the Autonomous Bougainville Government (ABG) to implement the Bougainville Peace Agreement to map out the sea boundaries for its offshore mineral exploration, exploitation and management of the marine environment. 6. NATIONAL POLICIES AND DEVELOPMENT GOALS 6.1 Mineral sector is the largest single contributor to Papua New Guinea’s economy. The receipts received from the mining sector supports the Government’s Development agenda through its budgetary support. It is envisaged that the sector shall ensure to achieve the development objectives and goals of the Government. 6.2 This sector policy is developed in line with the Government’s National Development Plans as per the- (a) Papua New Guinea Vision 2050, (b) PNG Development Strategic Plan 2010-30, (c) PNG Medium Term Development Plan 2011-15, (d) Other relevant development plans or revised amendments that the Government issues from time to time. 7. PROMOTION OF THE OFFSHORE MINING INDUSTRY The Mineral Resources Authority (MRA), the Papua New Guinea Investment Promotion Authority (PNGIPA) and the Chamber of Mines and Petroleum shall collaborate to promote the offshore mining industry in Papua New Guinea. 8. MINERAL OWNERSHIP, BOUNDARIES AND EXPLORATION RIGHTS 8.1 Ownership of offshore minerals in PNG (a) Under the UNCLOS the seabed and its mineral resources beyond national jurisdiction (the ‘Area’), are classed as the Common Heritage of Mankind to be managed for the benefit of all nations and peoples of the world, through the International Seabed Authority (ISA). (b) Under the UNCLOS ‘State’ has full sovereignty over the seabed and its mineral resources out to the limits of the 12 nm Territorial Sea, and sovereign rights over the seabed and its mineral resources out to the limits of the Continental Shelf, providing the international legal mandate for ownership by the State. (c) Consistent with the principle of the Common Heritage of Mankind as applied to areas beyond national jurisdiction (High Seas), within areas of national jurisdiction, the seabed and its mineral resources are classed as the Common Heritage of the Nation; to be managed for the benefit of all the peoples of the Nation, through the State. (d) This principle is embodied in the National Constitution, including but not limited to the Preamble, which states, inter alia: that the national wealth (implicitly including from offshore minerals), be equitably shared by all. (e) All minerals on or below the surface of any land, waters lying over the land and the seas within PNG jurisdiction are the property of the State, (f) The State has the sovereign right to allow “suitable persons” to explore for, mine and sell marine mineral resources. 8.2. National Boundaries The National Boundaries in relation to offshore exploration or mining with national jurisdiction extending over the entire ‘offshore area’, from the mean low water springs level of the sea to the outer extent of the Continental Shelf, shall encompass; all Internal Waters, the Archipelagic Waters, the 12 nm Territorial Sea, the 24 nm Contiguous Zone, the EEZ out to 200 nm and the Continental Shelf. 8.3. Provincial Boundaries Ancillary to the Organic Law on Provincial and Local-level Governments is the Organic Law on Provincial Boundaries, which prescribes the borders of each of the Provinces in PNG, including the Autonomous Region of Bougainville and the National Capital District. 9. SEA USERS 9.1 The State and the mine project developer shall recognize customary user rights to access traditional fishing grounds, and scared sites in the marine environment which are significant to the coastal communities. 9.2 The State and mine project developer shall consult with relevant stakeholders regarding the usage of the sea for customary, commercial/artisanal fishing, shipping, transport, communication, research, military endeavors, petroleum, energy facilities, waste disposal plants, recreational, tourism and navigational purposes. 9.3 The mine project developer must ensure that, the offshore mining and associated activities does not unduly interfere with various existing uses. 10. THE MINING FISCAL PROVISIONS 10.1 Royalties collected from offshore mining outside of the national maritime jurisdictions (High Seas areas) shall be paid to the State as per the provisions of the International Seabed Authority (ISA) under the UNCLOS. 10.2 The State shall allocate or use all mineral royalties collected from the High Seas areas and those collected from the mining projects within Papua New Guinea jurisdiction to fund marine research and other State approved projects along the coastal area of benefit within the mine host province(s). 10.3 All mineral royalties collected from the offshore mining in the Papua New Guinea jurisdictions belongs to the State as the sovereign owner of all minerals. 10.4 Where appropriate, State may consider and make known to the developer through signed agreements on the investment incentives, if any at the time of the granting of the mining lease. 11. NATIONAL GOVERNMENT’S COORDINATION 11.1 The National Government shall coordinate and liaise directly with the mine host provincial government(s) on offshore mining within national waters. 11.2 The National Government shall invite the Local -level Government(s) representatives and the recognized leaders from the “coastal area of benefit” and other relevant stakeholders to attend Development Forums and MOA negotiations and quarterly project reviews. 12. MARINE SCIENTIFIC RESEARCH, CAPACITY BUILDING & TECHNOLOGY TRANSFER 12.1. Marine Scientific Research in Territorial Waters shall be undertaken within the applicable policy and legal framework of the Independent State of Papua New Guinea. 12.2. Marine Scientific Research in areas outside (High Seas) of PNG’s maritime jurisdiction shall be conducted in accordance with the relevant provisions of the UNCLOS. 12.3. The State shall endeavor to develop a Strategic National Plan for a locally-based “School of Excellence” in Marine Scientific Research” to be introduced within the established Papua New Guinea Universities with appropriate expertise and equipment. 12.4. The mine project developer shall collaborate with the State to fund the establishment of the facilities of the “School of Excellence” in Marine Scientific Research for the purposes of research and training on marine environment including mining. 12.5 The mine project developer shall give due consideration to the State’s right to negotiate on the patent rights relating to the technology developed for offshore mining. These negotiations shall occur prior to the granting of the mining lease. 12.6 The mine project developer shall make available all data collected from research on the offshore marine environment including the mineral exploration to the State through the Mineral Resources Authority and the Department responsible for mineral policy matters. 13. ENVIRONMENT 13.1. The mine project developer shall act in accordance with the applicable clauses set out in both regional and international agreements, treaties and conventions especially the Noumea Convention, UN Convention on the Law of the Sea, Convention on Biological Diversity, relevant conventions administered by the International Maritime Organization (IMO). 13.2. Exploration and exploitation of mineral resources in High Seas areas shall be subjected to the relevant provisions of the UNCLOS and the environmental management regime and the Marine Mining Code developed under the International Seabed Authority. 13.3. The mine project developer shall adopt best available technologies, standards, guidelines and codes of practice developed domestically, regionally and internationally by the recognized organizations. 13.4. Environment management and regulation of offshore mining activities within the national maritime jurisdiction shall be done in accordance with the relevant provisions of the Environment Act 2000 and its Regulations, the National Maritime laws, and the Environment Protection and Natural resources laws including the Noumea Convention and the UNCLOS. 13.5. The developer shall in accordance with the Environment Act 2000 put in place an Environment Bond as a requirement under its environment permit conditions. 13.6. Where appropriate, the State, through its relevant agencies shall conduct inspections on the results of environmental and safety monitoring and compliance as required under the permit conditions. 13.7. The State through the Department of Environment & Conservation shall engage qualified independent expertise to peer review the Environment Reports submitted by the developer as required under the Environment Act 2000. 13.8. The mine project developer shall provide updates on its environmental performance during quarterly project meetings with relevant State agencies. 13.9. The mine project developer shall make available copies of its Quarterly Environmental Reports to the general public at nominated offices in the National, Provincial and Local -level Governments, in addition to publications in the print media, company website and its locally-based offices. 13.10. The mine project developer shall conduct community awareness programs on the results of its environment monitoring program to coastal and island communities of the host province(s) during the project life-cycle. 13.11. The mine project developer shall promote the establishment of Marine Protected Areas and any other conservation programs in accordance with the Coral Triangle Initiative. 14. DISPUTE SETTLEMENT & ARBITRATION 14.1. Any dispute regarding offshore mining within PNG’s Continental Shelf or EEZ, shall be dealt with under the Arbitration Act. 14.2. The State and holder of an offshore exploration licence, mining lease or other relevant tenement may agree on an Alternative Dispute Resolution (ADR) process that is independent of the Arbitration Act. 14.3. Any dispute with coastal States regarding claims to areas in High Seas shall be dealt with under the relevant provisions of the UNCLOS legal framework. 15. DECOMISSIONING & REHABILITATION 15.1 The decommissioning of mining equipment and onshore facilities shall be done in accordance with the provisions of the Mining (Health & Safety) Act 2013, the Mining Act 2013, relevant provisions of the PNG Maritime laws and the Environment Act 2000. 16. STANDARD SECTIONS OF MINING POLICY AND ITS APPLICATION The Standard Mining Policy provisions in the main Sections and its sub-sections of 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 27 shall apply in the Offshore Mining. For further information, please contact: The Secretary The Department of Mineral Policy & Geohazards Management Private Mail Bag Port Moresby Post Office Papua New Guinea Telephone (+675 ) 321 4138 / 322 7678 Facsimile: (+675) 321 4995 Email: Website: The Managing Director Mineral Resources Authority P.O. Box 1906 PORT MORESBY 121 Papua New Guinea Telephone: (+675) 321 3511 Facsimile: (+675) 321 57811 Email: [email protected] Website: mra.gov.pg Potential developers are also advised to make contact with the PNG Chamber of Mines and Petroleum which offers a wide range of assistance to its members. Its address is: The Executive Officer PNG Chamber of Mines and Petroleum PO Box 1032 Port Moresby Post Office Papua New Guinea Telephone: (+675 )321 2988 Facsimile (+675) 3217107 Email: [email protected] Website: pngchamberminpet.pg
Posted on: Thu, 16 Jan 2014 06:51:23 +0000
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