Photo credit: RNZ - Mining Minister, Johnson Tuke
As a growing economy, the government of Papua New Guinea is open to international investment, with no limits on who may do business with them, but they must adhere to the country's rules.
This is according to Johnson Tuke, the Mining Minister, who just signed a blanket Memorandum of Understanding (MoU) with a Simon Energy Resource Co. P.R. China Ltd. of P.R. China.
In terms of mining developments in PNG, the firm is a Jaxin Group upstream oil and gas subsidiary.
In response to the government's recent request for additional foreign investment in PNG's mining and oil and gas industries. One of China's largest and fastest-growing firms, the Jaxin Group, has reacted by showing interest in investing in PNG's different resource development initiatives.
The Jaxin Group has stated a strong desire to pursue investment possibilities in both petroleum and mining ventures.
Minister Tuke and the Ministry of Mining have agreed to sign a Memorandum of Understanding in order to speed up the process of finding possibilities and moving forward with investment decisions. Last Friday, the deal was finalized.
Minister Tuke said: “The signing is an undertaking that we want to be a partner and so as the investor. This is a stepping-stone and beginning, we cannot commit ourselves into actions without coming to a mutual understanding.”
The signing, he remarked, is a testimonial to what will be done in the future.
“As the Minister responsible for Mining, I am giving my enormous support in working with the investor as long as it is within the guidelines of operating business in PNG by virtues of the law and undertakings we have,” Minister Tuke said.
The agreement will open the path for economic prospects within the Ministry, albeit no particular projects have been selected for harnessing.
Foreign Direct Investment, according to the government, is a vital link in the movement of foreign investment monies from one nation to another. It establishes the foundation for long-term commercial and investment interests and relationships.
“The government is not confined to anybody or any particular investors who have got the expertise and know-how and who is willing to invite investors into PNG to be a partner.
“We readily available it depends on whatever business it is, but in this case as the Minister for Mining, I am prepared to work with the investor on behalf of the government,” added Minister Tuke.
PNG sees this strategic investment as a substantial boost to the PNG economy, he added, because China is one of the world's fastest-expanding economies.
Reference: Loop (15 November 2021). “Govt Signs Deal With Chinese Investor”.
