PNG Offshore Policy Raaymakers Pres - SOPAC Workshop

8/6/2019 PNG Offshore Policy Raaymakers Pres - SOPAC Workshop

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Papua New GuineaPapua New Guinea

OFFSHORE OFFSHORE MINING POLICY MINING POLICY

³Serving the interests & aspirations of the people of PNG´



Rarotonga





IntroductionIntroduction::

Resources sector including mining is backResources sector including mining is back--bone of PNGbone of PNGeconomy (64% of GDP)economy (64% of GDP)

Driving GDP growthDriving GDP growth > 9%> 9% (stronger than China)(stronger than China)

Holds promise of PNG becoming middleHolds promise of PNG becoming middle--income nation (e.g.income nation (e.g.Malaysia) within 5 decadesMalaysia) within 5 decades

Within this sector offshore (seabed) mining has significantWithin this sector offshore (seabed) mining has significantpotentialpotential

Second country in the world to issue commercialSecond country in the world to issue commercial licencelicence for for µµdeepdeep¶ sea mining (to about 1,600 m depth)¶ sea mining (to about 1,600 m depth)

Makes PNG aMakes PNG a pioneering pioneering world leader world leader -- excitingexciting new frontier new frontier



Shallow Water Diamond Mining NamibiaShallow Water Diamond Mining Namibia

(shoreline to ~ 300m depth)(shoreline to ~ 300m depth)



Deep seabed mining proposed in PNG (~ 1,600 m)Deep seabed mining proposed in PNG (~ 1,600 m)



OffshoreOffshore Mining Policy is needed to:Mining Policy is needed to:

Clearly lay out theClearly lay out the GGovt¶sovt¶s aims and objectives for the sector aims and objectives for the sector

Provide certainty to industry for investment and developmentProvide certainty to industry for investment and development

Provide certainty to the people in terms of benefits and risksProvide certainty to the people in terms of benefits and risks

Provide safeProvide safe--guards for the environment and other marine usersguards for the environment and other marine users

In March 2011 consultancy commissioned to:In March 2011 consultancy commissioned to:

Draft a new, updated Offshore Mining PolicyDraft a new, updated Offshore Mining Policy

Recommend legislative reforms to implement the policyRecommend legislative reforms to implement the policy

Conducted in parallel with:Conducted in parallel with:

RReview of eview of Mining Act Mining Act andand Mining (Safety) Act Mining (Safety) Act



Definition of µoffshoreDefinition of µoffshore¶:¶:

PNG Mining Act 1992:PNG Mining Act 1992:

� ³land´ includes±

� the offshore area being the seabed underlying the territorial sea from the

mean low water springs level of the sea to such depth as admits of exploration

for or mining of minerals;

UN Law of the Sea Convention permits PNG to regulate mining toUN Law of the Sea Convention permits PNG to regulate mining to

the extent of the extent of Continental Shelf (200 nm or more)Continental Shelf (200 nm or more)

µthe offshore area being the seabed and the subsoil thereof from the mean low water springs level of the sea to the outer extent of the Continental Shelf







Provincial BoundariesProvincial Boundaries(currently not aligned with maritime zones)(currently not aligned with maritime zones)



PNG Offshore Mining PolicyPNG Offshore Mining Policy

Purpose & AimsPurpose & Aims

Purpose

� To promote and support the development of offshore mining in PNG, and toguide the development of this emerging industry, in an orderly, sustainableand environmentally and socially responsible manner.

Aims

1. consistent and compliant with relevant international conventions andstandards, including the United Nations Convention on the Law of theSea,

2. investment climate, fiscal regime and regulatory framework thatencourages investment in and development of offshore mining in PNG.

3. encourage value adding and maximum economic benefits to PNG,including on-shore/downstream aspects of the industry within PNG,



PNGPNG Offshore Mining PolicyOffshore Mining Policy

Purpose & AimsPurpose & Aims Aims (continued)

4. ensure equitable sharing of benefits from offshore mining at the National,

Provincial and Local levels

5. ensue that offshore mining does not unduly interfere with or negativelyimpact on other legitimate uses of the coastal and marine environment,

6. Protect PNG¶s precious coastal and marine environment, biodiversity,

ecology and living marine resources, from which our people have lived

sustainably for 1,000s of years, from the potential impacts of offshore

mining.




International Legal Context International Legal Context

LOSCLOSC

IMO ConventionsIMO Conventions

NoumeaNoumea ConventionConvention

Bilateral TreatiesBilateral Treaties ± ± e.g. Torres Strait Treaty with Australiae.g. Torres Strait Treaty with Australia




National Legal Setting National Legal Setting

Mining Act 1992 Mining Act 1992 (with amendments to address offshore)(with amendments to address offshore)

Mining (Safety) 1977 Mining (Safety) 1977 (with amendments to address offshore)(with amendments to address offshore)

Environment Act 2000 Environment Act 2000 (with(with Environment Policy on OffshoreEnvironment Policy on Offshore

Mining Mining to be developed)to be developed)

Maritime safety and pollution legislation (IMO Conventions)Maritime safety and pollution legislation (IMO Conventions)

Fisheries Act Fisheries Act

Many other laws (taxation, customs, industrial relationsMany other laws (taxation, customs, industrial relations etcetc))




Ownership of MineralsOwnership of Minerals

LOSCLOSC ± ± The Area¶ (beyond national jurisdiction):The Area¶ (beyond national jurisdiction):

³Common Heritage of Mankind´³Common Heritage of Mankind´

Managed by International Seabed Authority (ISA) for benefit of allManaged by International Seabed Authority (ISA) for benefit of allnationsnations

PNGPNG ± ± all minerals:all minerals:

³Common Heritage of the Nation´³Common Heritage of the Nation´

Owned and managed by the State for the benefit of all citizensOwned and managed by the State for the benefit of all citizens




T enements Regime

T enements Regime

As per As per Mining Act 1992:Mining Act 1992:

ExplorationExploration LicenceLicence (larger for offshore)(larger for offshore)

Mining LeaseMining Lease (actual mine)(actual mine)

Lease for Mining PurposesLease for Mining Purposes ((ancilliaryancilliary infrastructure)infrastructure) Mining EasementMining Easement (roads,(roads, powerlinespowerlines, pipelines, pipelines etcetc))

RelinquishmentRelinquishment of Explorationof Exploration LLicencesicences

New for offshore:New for offshore:

RetentionRetention LLicenceicence

Pilot Mining PPilot Mining Permitermit




Fiscal RegimeFiscal Regime

As per Mining Act 1992 As per Mining Act 1992

Plus Taxation and related lawsPlus Taxation and related laws




Benefits Sharing

Benefits Sharing

As per As per Mining Act 1992 Mining Act 1992

Plus amendments to provide for national mapping and identificationPlus amendments to provide for national mapping and identification

of customaryof customary T raditional Sea UsersT raditional Sea Users ( T SU)( T SU)

((vsvs µland¶ owners)µland¶ owners)

New concept of New concept of Coastal Areas of Benefit Coastal Areas of Benefit (CAB )(CAB )

Memorandum of Agreement Memorandum of Agreement ( (MoAMoA) ) to provide for benefits sharingto provide for benefits sharing




Regulation of Safety Regulation of Safety

As per As per Mining (Safety) Act 1997 Mining (Safety) Act 1997 (with amendments re. offshore)(with amendments re. offshore)

Plus PNGPlus PNG maritimemaritime safety legislationsafety legislation /IMO Conventions/IMO Conventions




Environment ProtectionEnvironment Protection As per As per Environment Act 2000 Environment Act 2000

Environmental Impact Assessment (EI A)Environmental Impact Assessment (EI A)

Environmental PermitsEnvironmental Permits

ConsultationConsultation

CompensationCompensation

etc etc

Plus newPlus new Environment Policy on Offshore Mining Environment Policy on Offshore Mining (under Environment Act) to(under Environment Act) toimplement relevant/appropriate parts of:implement relevant/appropriate parts of:

LOSCLOSC NoumeaNoumea ConventionConvention

ISA EnvironmentISA Environment RegsRegs

InternationalInternational MMarine Minerals Society (IMMS)arine Minerals Society (IMMS) Code of Environmental Code of Environmental Practice for Marine Mining Practice for Marine Mining




Environment ProtectionEnvironment Protection

Strategic Environmental Assessment Strategic Environmental Assessment (SE A)(SE A)

Seabed Protection AreasSeabed Protection Areas (SPAs)(SPAs) ± ± propose 20% of PNGpropose 20% of PNG

Continental Shelf to be protected from miningContinental Shelf to be protected from mining




Marine Scientific Research (MSR)Marine Scientific Research (MSR)

Part XIII of LOSCPart XIII of LOSC

PNG hasPNG has GuidelinesGuidelines on MSRon MSR -- Legislate to give force of lawLegislate to give force of law

Ensure consistency with exploration provisions of Mining ActEnsure consistency with exploration provisions of Mining Act

Include mandatory for all MSR and explorationInclude mandatory for all MSR and exploration data to be provided data to be provided

to the Stateto the State and participation by Nationals in MSR and explorationand participation by Nationals in MSR and exploration

EstablishEstablish National Marine Research Vessel National Marine Research Vessel ± ± available to regionavailable to region




T echnology

T ransfer

T echnology

T ransfer

Part XIV of LOSCPart XIV of LOSC

Incorporate in amendments to Mining Act 1992 re. offshoreIncorporate in amendments to Mining Act 1992 re. offshore

miningmining

Respect Intellectual Property rightsRespect Intellectual Property rights

EstablishEstablish Regional Regional T raining Centre of Excellence for OffshoreT raining Centre of Excellence for Offshore

Mining Mining in PNG with industry and donor supportin PNG with industry and donor support



a takea take--home messagehome message

Compliance with international law and standardsCompliance with international law and standards is essential is essential

Regional harmonization and standardizationRegional harmonization and standardization can be useful can be useful

However,However, significant diversity significant diversity between countries in the region, e.g.between countries in the region, e.g.

PNGPNG population of population of 6 million6 million and GDP growth of and GDP growth of 9%9%

NZ NZ population of population of 44 millionmillion and GDP growth of and GDP growth of 0.8%0.8%

Cook IslandsCook Islands population of 11 and no GDPpopulation of 11 and no GDP

T ongaT onga located inlocated in outer spaceouter space

One sizeOne size does nodoes not fit all t fit all

Need toNeed to tailor tailor offshore mining regimeoffshore mining regime to suit each country¶s needsto suit each country¶s needs

and circumstancesand circumstances

Must respectMust respect sovereign right sovereign right of of NationsNations to make their to make their own lawsown laws andand

manage their own resourcesmanage their own resources,,

in accordance with their in accordance with their national development goalsnational development goals andand aspirationsaspirations,,

aand consistent with international lawnd consistent with international law



Who knows what the future holds?Who knows what the future holds?

Seabed mining todaySeabed mining today ± ± and tomorrow? . . .and tomorrow? . . .



What we do today will affect those to comeWhat we do today will affect those to come

Do we want them to thank us . . .

?

Or curse us . . . ?



TankyiuTankyiu TruTru

MeitakiMeitaki MaataMaata

Documents

PNG Offshore Policy Raaymakers Pres - SOPAC Workshop