PNG Ready to Share Mining Experience as Solomon Islands Plans Resource Growth

Papua New Guinea has pledged to assist Solomon Islands develop a stronger mining industry by sharing its experience in resource governance and encouraging PNG companies to invest in future mining ventures across the neighbouring Melanesian nation.

 PNG Ready to Share Mining Experience as Solomon Islands Plans Resource Growth

The offer followed discussions between Prime Minister James Marape and Solomon Islands Prime Minister Matthew Wale in Port Moresby, where the leaders explored ways of strengthening regional cooperation in the management and development of mineral resources.

Mr Marape said Papua New Guinea had learned many valuable lessons over several decades of mining and believed those experiences could help Solomon Islands establish policies that attracted investment while protecting national interests.

He said the two Melanesian nations possessed rich mineral deposits because of their location along the Pacific Ring of Fire and should work together to maximise the benefits from future projects.

The Prime Minister said PNG was prepared to make its legal and technical expertise available to Solomon Islands as it drafted new mining legislation.

He said Papua New Guinea continued to pursue policies aimed at securing at least 55 per cent of the economic returns generated by major mining operations through equity ownership, taxation, royalties and other revenue streams.

Mr Marape said achieving a fair balance between investor returns and national benefits remained a key objective of PNG's resource strategy.

He added that equity ownership provided governments and customary landowners with a direct stake in projects, allowing them to participate in decision-making while sharing long-term financial rewards.

Mr Marape said the Bougainville conflict highlighted the dangers of excluding customary landowners from meaningful participation in mining developments.

He stressed that future mining policies should recognise customary ownership and ensure communities directly benefited from projects taking place on their land.

The Prime Minister also highlighted the Porgera Gold Mine agreement, where PNG negotiated majority ownership through a 51 per cent interest.

He said Prime Minister Wale had welcomed a similar ownership approach for Solomon Islands and invited Papua New Guinea mining companies to become investment partners in future developments.

Mr Marape confirmed he had instructed Kumul Minerals Holdings Limited and Ok Tedi Mining Limited to explore opportunities in Solomon Islands.

He also said France had invited PNG to consider participating in nickel projects in New Caledonia following his recent official visit.

Mr Marape said PNG mining companies were increasingly expanding beyond national borders after years of operating alongside international investors.

He encouraged Solomon Islands to adopt strong local content measures to create employment, strengthen local businesses and generate greater economic value from mining.

"As you develop your mining laws, it is important to get them right from the beginning.

"Papua New Guinea is still refining its own resource laws, but we have accumulated decades of experience. We are prepared to send our resource lawyers and technical experts to work with your team so that together we can develop policies that deliver long-term benefits for our people."

"Our objective is simple. Investors must make a reasonable return because they bring capital, technology and expertise. At the same time, the country that owns the resources must also receive a fair and equitable share of the benefits."

"The Bougainville crisis remains a lasting reminder of what can happen when resource development is not perceived as fair by the people who own the land.

"Our biggest lesson is this: if you do not get the relationship with customary landowners right, the project will ultimately fail. Landowners must be central to any resource development policy."

"Resource investors are not charities. Governments must strike the right balance so investors continue to achieve internationally competitive returns while resource-owning countries receive a substantially greater share of the overall benefits."