DMPGMDEPARTMENT OF MINERAL POLICY & GEOHAZARDS MANAGEMENT
OFFSHORE MINING POLICY 2013
REGIONAL FORUMS13th – 23rd August 2013
Presentation by:Asavi Kendua
Assistant Director - Policy Advisory Branch
REFORMING THE WAYGOVERNMENTDO BUSINESS
IN MININGImproving the Quality of Life of our People
OFFSHORE MINING POLICY 2013
Policy Development Processes
Expanding interest in PNG’s offshore mineral wealth began in the 1980’s and90’s. The State than recognized the need to develop an offshore policyframework
An inter-agency committee was therefore initiated by the then Department ofMining in March 1998, to recommend an offshore mining policy for considerationand approval by the Government
An internal workshop on Seabed Mining was held from 31 August to 2September 1998 in Port Moresby. A Draft Green Paper was developed after thisworkshop
From 22 to 26 February 1999 an international workshop, sponsored by theSouth Pacific Applied Geoscience Commission (SOPAC), the Marine MineralsAssociation of Japan (MMAJ), the Pacific Islands Forum Secretariat (FORSEC)and the then Department of Mining, was held in Madang. The draft Green Paperprepared by the Government was expanded and revised Green Paper wasproduced
OFFSHORE MINING POLICY 2013
Policy Development Processes Con't…..
Due to competing regulatory workload demands and institutional reforms to createDMPGM and MRA from the Department of Mining, the Green Paper was delayed andnever developed into a White Paper and submitted to National Executive Council(NEC) or Parliament for adoption and implementation
With the prospect of the commencement of commercial offshore mining operations,DMPGM with its Five Year Corporate and Strategic Plan 2009-2015 identified majorpolicy projects and planned to review Mineral Policy and Mining legislations includingthe development of the Offshore and other mining sector policies. DMPGM picked upthe Policy development process, and in March 2011 engaged a consultant and aDraft Policy was developed
Commencing April 12th to the 21st, DMPGM held Regional Consultation Forums,starting in Madang for the Momase Region, Goroka for the Highlands Region,Kokopo for the New Guinea Islands and in Port Moresby (MRA) for the SouthernRegion.
OFFSHORE MINING POLICY 2013
POLICY CONTENT1.Application2. Vision, Mission, Purpose and the Guiding Principles3. Policy Reviews and Development4. International Legal Context5. National Legal Context6. National Policies & Development Goals7. Promotion of Offshore Mining Industry8. Mineral ownership, Boundaries and Exploration Rights9. Sea Users10. The Mining Fiscal Provision11. Structure and Organization12.Marine Scientific Research, Capacity Building and Technology Transfer13. Environment14. Dispute Settlement and Arbitration15.Decommissioning and Rehabilitation16. Standard Sections of Mining Policy and its Applications
OFFSHORE MINING POLICY 2013
1. Application- policy referencing
2. Vision, Mission, Guiding Principles and Purpose2.1 Vision- Promote and to guide development of Offshore Mining in PNG- Investment destination for mineral exploration and mining- Mining is done responsibly in a socially, economically and environmentally sustainable manner.
2.2 Mission- Improve quality of life- Wealth Creation- Increased mineral exports- Local participation- Fair economic returns for the investors
OFFSHORE MINING POLICY 2013
2. Vision, Mission, Guiding Principles and Purpose……..Con’t
2.3 Purpose- To provide policy framework in consistent with relevant international and regional conventions- Favorable investment climate for offshore mining- Maximize economic benefit through downstream processing- Fair, equitable and effective distribution of benefits at National, Provincial and local levels of Government- to ensure due consideration is given to legitimate users of coastal and marine environment- there is minimum impact on biodiversity and marine environment and livelihoods of the people in accordance with precautionary principle.
2.4 Policy Guiding Principles1. The Constitution call on the wise use to be made on natural resources and equal distribution of wealth to people2. The Mining Act 20133. Benefit distribution mechanisms and opportunity for National participation
OFFSHORE MINING POLICY 2013
3. Policy Reviews and Development - Amendments are subject to NEC policy directives- Monitoring and evaluation of implementation of the policy- Review after 5 years
4. International Legal Context- PNG aspires to conform to UNCLOS, Noumea Convention, Toress Strait Treaty- Other treaties with coastal states sharing maritime boundaries for joint development of marine resources as per UNLCOS
5. National Legal Context - Mining Act 1992 and the Mining (Health and Safety) Act 2013- The Environment Act 200 and other relevant legislations (Annexure “A”)
6. National Policies and Development Goals- Policy statements on the Government’s Development Plans- Mining sector policy is developed inline with the National Development Plans of the Government
OFFSHORE MINING POLICY 2013
7. Promotion of Offshore Mining Industry- MRA, PNGIPA & PNGCMP
8. Mineral Ownerships, Boundaries and Exploration Rights
8.1 Ownership of offshore minerals in PNG- UNCLOS-High Seas/Areas, “Common Heritage of Mankind”, manage by
International Seabed Authority (ISA).- State has full sovereignty rights out to the limits of 12nm territorial sea and Continental
shelve- State maintains mineral ownership for equal distribution of benefits to the people- “Suitable persons” can explore for, mine and sell marine minerals.
8.2 National Boundaries- mean low water springs level of sea to the outer extend of continental shelve- 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- OLPLLG and the OLPB applies including NCD and ARoB
OFFSHORE MINING POLICY 2013
9. Sea Users- State and mine developer’s recognition of customary user rights- Other uses such as, commercial fishing, shipping, transport, communication research,military endeavours, petroleum, waste disposal plants, tourism, recreational and navigationalpurposes.- Offshore mining must not unduly interfere with various existing uses.
10. Mining Fiscal Regimes- State to collect royalties paid from mining in the High Seas/Areas as per ISA provisions under UNLCOS and within PNG Jurisdictions.- Royalty monies to fund marine research (school of excellence)- Fund State approved projects along the “Coastal Area of Benefit” within the mine host province- Investment incentives
11. National Government’s Coordination - Direct liaison with mine host provincial government- Invitation to attend development forums or MoA negotiations and reviews
OFFSHORE MINING POLICY 2013
12. Marine Scientific Research, Capacity Building and Technology Transfer- Marine and Scientific Research (MRS) within PNG to be undertaken within applicable PNGpolicies and laws.- MRS in the High Seas/Areas to be undertaken in accordance with relevant provisions ofUNLCOS- Strategic National Plan for locally based school of excellence- Considerations on the State’s right to negotiate on the patent rights- Marine Research data to be made available to State
OFFSHORE MINING POLICY 2013
13. Environment- The Applicable clause of the UNCLOS, Noumea Convention, Convention on Biological Diversity,Relevant Conventions administered by the International maritime Organization (IMO) shall apply- High Seas/Area, UNLCOS and the environment management regime and the Marine MiningCode developed under ISA.- Adopt best available technologies, standards, guidelines and code of practice developeddomestically and internationally.- Within PNG Jurisdictions, the Environment Act 200, Maritime laws, the Environment Protectionand Natural resource laws, Noumea convention and relevant provisions of UNLCOS shall apply.- Environment Bond- Comply with Environment Permit Conditions and the Environment Act 2000- Update Quarterly on Environmental Performance Monitoring- Availability and accessibility of quarterly reports- Conduct community awareness programs- Marine Protected Areas and other conservation programs in accordance with “Coral TriangleInitiative”
OFFSHORE MINING POLICY 2013
14. Dispute Settlement and Arbitration - To be dealt with under the Arbitration Act - ADR shall apply- Dispute to other coastal State to be dealt with under the UNCLOS legal framework.
15. Decommissioning- Shall be done in accordance with Mining Act 2013, Mining (Health & Safety) Act 2013, MineClosure Policy 2013 and relevant provisions of the PNG Maritime laws and the Environment Act2000
16. Standard Sections of the Mining Policy shall apply
Discussions and Questions in thenext session
Mr. Asavi KenduaAssistance Director-Policy Advisory BranchPhone: 321 4138; Fax: 321 4995E-mail: [email protected] or [email protected]
DMPGM�DEPARTMENT OF MINERAL POLICY & GEOHAZARDS MANAGEMENT�REFORMING THE WAY�GOVERNMENT�DO BUSINESS�IN MINING�OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013OFFSHORE MINING POLICY 2013Slide Number 14
