Landowner Equity in Papua New Guinea’s Minerals Sector: Review and Policy Issues
Author(s)
Banks, Glenn
Abstract
The involvement of local communities as equity holders in major mineral resource developments dates back over a decade in Papua New Guinea. This article reviews the history and result of landowner equity at two of Papua New Guinea’s major mines (Porgera and Lihir), with a particular focus on the contribution of these equity holdings to local sustainable development. It is found that while an equity holding can provide significant returns to a local community, it also exposes them to significant financial risk. A second major area of concern is the structures and instruments by which revenues generated from the equity are distributed and utilized within the local community. Further research and policy redirection is required before local equity holding can be viewed as making a significant contribution to local sustainable development.
