The Minister for Mining Hon. Wake Goi on February 25 officially launched the Mining Bill 2025 for public consultation in Port Moresby at a formal event attended by members of parliament, government officials, industry stakeholders, landowner representatives, and the media.
Minister Goi emphasized the bill’s importance, calling it a “historic milestone” in Papua New Guinea’s mining industry. The government launched a six-week consultation period for the bill until April 4, 2025, inviting industry stakeholders, landowners, and citizens to provide feedback.
The bill represents a shift from the country’s current concessional regime to a hybrid production-sharing model, a key part of the Marape-Rosso Government’s “Take Back PNG” vision. This policy aims to ensure that PNG gains a greater share of the wealth generated from its rich mineral resources.
The Mining Bill 2025 introduces modern regulatory concepts aimed at securing a fairer share of mining revenues for Papua New Guineans while maintaining an attractive investment climate.
MP Goi reaffirmed that the government does not seek to discourage investment, but rather to create a framework that ensures certainty, fairness, and long-term sustainability.
The review of PNG’s mining laws began in 2009 and has spanned six previous Mining Ministers. As the seventh Minister responsible, Goi pledged to deliver the long-overdue reform, ensuring better regulation and greater national benefits from the mining sector.
He highlighted the significance of 2025, PNG’s 50th year of independence, as a year of renewal and transformation. This aligns with the government’s broader objective of economic growth, including its ambitious goal of achieving a K200-billion national budget by 2030.
While the bill is ready for parliamentary enactment, Minister Goi stressed the importance of public and industry participation before it becomes law. Stakeholders, including mining companies, landowners, and the general public, are encouraged to review the draft bill and provide feedback.
“This is a rare and historic opportunity to shape a law that will guide our nation’s resource management for decades,” he stated, assuring that all feedback would be considered.
Minister Goi made it clear that the time “for discussions and delays is over” and committed to taking the bill to Cabinet for endorsement, followed by Parliament for enactment, all before PNG’s 50th Independence anniversary later this year.
“This law has been in transition for 15 years. The time for action is now,” he declared.
DGMP Secretariat outlines bill’s key objectives
The Secretary for Mining Harry Kore presented the Mining Bill 2025 during the event, emphasizing maximizing national benefits, providing investor certainty, and ensuring sustainable resource management.
The proposed changes aim to strike a balance between economic growth, landowner rights, and regulatory oversight.
Key Features of the New Mining Bill:
- State Ownership and Investor Certainty: The Bill reaffirms that all minerals belong to the State, ensuring PNG retains control over its natural wealth. Investors will be granted rights through tenements but will not own the minerals outright.
- Industry and Landowner Benefits: A clear classification of beneficiaries will ensure fair distribution of royalties, equity, and compensation. Landowner identification and social mapping studies will be mandatory to prevent disputes.
- New Licensing and Regulatory Framework: Introduction of new tenements such as the Retention License (for projects in care and maintenance) and Mining Refinery Lease (to promote downstream processing). Expansion of Offshore Mining regulations to include a new Coastal Area of Benefit model, along with stricter measures against illegal mining.
- Stronger Environmental and Social Safeguards: Mine Closure and Rehabilitation plans will be a precondition for project approvals. Developers must allocate 2% of project operating costs for community development and infrastructure.
- Transparent Revenue Management: Royalty rates set at 5% if the State holds equity, and 10% if it does not, with mandatory quarterly financial reporting for government accountability.
Simplified Application & Tender Process
The government also set one standard mining lease classification to streamline project approvals and tendering of tenements for stranded deposits or areas of national interest, aligning with PNG’s National Procurement Act.
Review submissions can be sent to the DGMP or submitted in person at its Konedobu office in Port Moresby, Kore said. The revised bill will then be finalized before being presented to Cabinet and Parliament.
This new legislation is designed to prolong the lifespan of PNG’s resources, ensuring long-term benefits for both investors and the people of PNG, with the country's mining licenses set to expire by 2036, he noted
MRA Chief Calls for Balanced Mining Reforms
Prior to the official launch, the Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, said there is a need for balanced reforms in PNG’s mining sector as the country prepares to replace its 33-year-old Mining Act.
At the event, Mr Garry called for stability in mining policies while ensuring the new legislation aligns with global industry trends.
Reflecting on the extensive consultations leading to the proposed reforms, Garry noted that discussions on amending the Mining Act 1992 have been ongoing for 15 years, making it a critical moment to finalize and enact a bill that serves all stakeholders.
"We have been operating on this legislation for 33 years, and I think that most of what’s in the Mining Act 1992 has been inherited from before the country’s independence. The fundamental question we must ask as stakeholders is whether this law still works for us. Does it address the changing business landscape?" he said.
Garry warned that frequent changes to mining laws could create uncertainty for investors and make PNG an unattractive destination for mining projects. He stressed that while the bill must modernize the legal framework, it must also maintain stability and predictability for industry players, as “the investment climate will suffer” with recurring changes.
Among the significant reforms Garry highlighted were Environmental, Social, and Governance (ESG) Compliance, stressing the growing global focus on carbon neutrality and corporate social responsibility (CSR) in mining projects.
The bill aims to domesticate ESG principles into PNG’s regulatory framework, ensuring companies address environmental and social impacts, he noted.
Garry also noted the key proposal of the introduction of a Social License Fee, requiring mining companies to invest directly in communities affected by their operations. This approach seeks to prevent project disruptions caused by landowner dissatisfaction and reduce reliance on the government’s Tax Credit Scheme for infrastructure development, he said.
The bill proposes a mineral tendering system to manage assets left undeveloped due to legal disputes, company liquidation, or license refusals. Instead of granting licenses on a first-come, first-served basis, the government would assess applicants based on their financial and technical capacity to develop these assets.
Streamlining Mining Lease Conversions
Garry discussed simplifying the process for expanding mining operations, particularly in cases where companies transition from a Mining Lease (ML) to a Special Mining Lease (SML).
He suggested that conversion thresholds be clearly defined, considering factors such as investment levels, production output, and employment figures.
The current 60-square-kilometer cap for SMLs is being reconsidered, as some projects such as Ramu Nickel Mine require larger areas due to their lateral mining techniques. The bill will explore whether land expansions should be processed through variations or new SML applications,
If enacted, the Mining Bill 2025 will require the MRA to restructure its regulatory processes to accommodate the changes. Garry acknowledged that implementation may take up to two years, but he assured stakeholders the transition would be managed smoothly.
Garry emphasized the long-term vision behind the proposed reforms, saying the Marape-Rosso Government aims to establish a legal foundation that supports PNG’s mining sector for the next 50 years.
"These changes are not just for us today. They are about setting the direction for our children and future generations. The laws we pass today must ensure that Papua New Guinea benefits from its mineral wealth in a sustainable and equitable way," he said.
