Papua New Guinea's petroleum and mining industry is pleading with the government to postpone a new law before it puts PNG's economy and future at risk.

The proposed Organic Law will be tabled in Tuesday's parliamentary session but will cause "significant uncertainty for the industry but also for PNG explorers, landowners, provincial and local level governments, and communities", said the PNG Chamber of Mines and Petroleum.

The proposed Organic Law could put an end to an era of contribution and investment that has seen PNG grow as a nation and helped its people thrive.

It will do this by:

- introducing Production Sharing Agreements (PSAs) that have been shown not to work in the mining industry anywhere in the world and will put all future investment at risk;

- making it possible for the government to compulsorily acquire land from landowners that falls under a mining PSA, taking away certainty and livelihoods;

- the establishment of state-owned entities (SOEs) to manage valuable projects that may not have any direct oversight or regulation by government agencies; and

- the transfer of ownership of hydrocarbons and minerals from the state to the SOEs.

"The changes have been created by the government without the necessary steps being taken to understand the wide-reaching impact they will have on PNG’s people, employment and economy," said the chamber.

"Changes of this gravity and significance require careful and extensive assessment to protect the interests of our nation and the future investment in our resource industry that enables it to thrive."

The chamber said it requests that the proposed Organic Law and other amendments to the Mining and Oil and Gas Acts be postponed.

Also, the chamber wants to see an urgent round of consultation and dialogue between all stakeholders on petroleum and minerals policy and legislation.

"The chamber is confident that, with genuine consultation, the government can support the future of this industry in a fair and sustainable way that will secure the nation-building benefits it creates and the investment it requires to succeed."

Politics

Plea to Papua New Guinea government: postpone the reforms