Solomon Islands, PNG deepen cooperation on mining sector reforms

Solomon Islands and Papua New Guinea are set to deepen their cooperation in governing their respective mining sectors, with plans for Papua New Guinea officials to visit Solomon Islands. This collaboration aims to implement reforms designed to maximize the benefits derived from the countries' mineral wealth.

The agreement follows a roundtable discussion in Port Moresby involving Solomon Islands Prime Minister Matthew Wale and Papua New Guinea Prime Minister James Marape. The meeting also included representatives from Kumul Minerals Holdings Ltd. and the Mineral Resources Authority. Prime Minister Wale highlighted the opportunity for Solomon Islands to learn from Papua New Guinea's extensive experience in managing its mining industry as his government pursues reforms.

Wale stated that reforming the mining sector, particularly the alluvial gold industry, is a key priority for his administration. The government is working on reforms to introduce greater structure, transparency, and national benefit into the sector. Plans include establishing a dedicated gold export unit and, in the longer term, a national gold refinery. "This will allow us to refine our own gold, control pricing and retain more value within our economy," Wale said, stressing the need for trusted partnerships across the mining value chain.

“

This will allow us to refine our own gold, control pricing and retain more value within our economy.

Prime Minister Marape acknowledged the significant challenges Papua New Guinea has faced in developing its mining sector but reaffirmed the commitment to ensuring greater benefits reach its people. He stressed that landowners should be central to resource policy and that fiscal arrangements must be transparent and clearly defined. "There is often confusion between taxes, royalties and equity. Investors must know upfront what they will pay and what benefits will flow to landowners and the State," Marape commented.

Both leaders concurred that robust governance, clear legislation, and effective regulatory oversight are crucial for the fair and sustainable management of mineral resources. The collaboration will see Papua New Guinea's mining authorities visit Solomon Islands to provide support for the ongoing reform efforts.

“

There is often confusion between taxes, royalties and equity. Investors must know upfront what they will pay and what benefits will flow to landowners and the State.