Papua New Guinea’s Mining Fiscal Regime: H1 2014

Synopsis
Timetric’s Papua New Guinea fiscal regime report outlines governing bodies, governing laws, mining licenses and key fiscal terms covering five commodities: copper, gold, silver, nickel and zinc.

Summary
Papua New Guinea has a variety of natural resources such as gold, copper, silver and natural gas. The mining industry in Papua New Guinea is governed by the Mineral Resources Authority and Chambers of Petroleum and Mines. The Mining Act 1992 is the apex law for the mining industry in the country.

Scope
The report outlines Papua New Guinea's governing bodies, governing laws, mining licenses and key fiscal terms which includes royalties, development levies, corporate tax, withholding tax, stamp duty, tax incentives, capital and exploration expenditure-allowable deductions, and goods and service tax.

Reasons To Buy
To get an overview of Papua New Guinea's mining fiscal regime.

Key Highlights
‧ The Mineral Resources Authority was established through the enactment of the Mineral Resources Authority Act 2005. It is a government agency working under the authority of the government of Papua New Guinea.
‧ The Corporate Services Division provides manpower, financial and technology information services and support to the MRA.
‧ The development Coordination Division ensures that exploration and mining activities in Papua New Guinea are carried out within the regulatory framework.
‧ The GSD is responsible for carrying out earth sciences research and studies, and processes field data to assist and promote exploration, geological and related activities in the mineral sector.

Table of Contents
1 Executive Summary 1
2 The Papua New Guinean Mining Industry – Governing Bodies 5
2.1 Mineral Resources Authority (MRA) 5
2.1.1 Corporate Services Division (CSD) 5
2.1.2 Development Coordination Division (DCD) 5
2.1.3 Geological Survey Division (GSD) 5
2.1.4 Regulatory Operations Division (ROD) 5
2.1.5 Special Projects Unit (SPU) 5
2.2 Chamber of Mines and Petroleum 5
3 The Papua New Guinean Mining Industry – Governing Laws 6
3.1 Mineral Resource Authority Act 2005 6
3.2 Mining Act 1992 6
3.3 Environment Act 2000 6
4 The Papua New Guinean Mining Industry – Mining Licenses 7
4.1 Exploration License 7
4.2 Mining Lease 7
4.3 Special Mining Lease 7
4.4 Lease for Mining Purposes 7
4.5 Mining Easement 7
5 The Papua New Guinean Mining Industry – Key Fiscal Terms 8
5.1 Royalty 8
5.2 Development Levy 8
5.3 Corporate Tax 8
5.4 Withholding Tax 8
5.5 Stamp Duty 8
5.6 Tax Incentives 9
5.6.1 Loss Carry Forward 9
5.6.2 Additional Provision for Allowable Capital Expenditure 9
5.7 Capital and Exploration Expenditure-Allowable Deductions 9
5.7.1 Allowable Capital Expenditure 9
5.7.2 Exploration Expenditure 9
5.7.3 Allowable Exploration Expenditure 9
5.8 Goods and Service Tax (GST) 9
6 Appendix 10
6.1 What is this Report About? 10
6.2 Methodology 10
6.3 Secondary Research 10
6.4 Primary Research 10
6.5 Contact Timetric 11
6.6 About Timetric 11
6.7 Timetric’s Services 12
6.8 Disclaimer 13


List of Tables
Table 1: The Mining Industry in Papua New Guinea – Fiscal Regime Terms and Other Taxes 1
Table 2: The Mining Industry in Papua New Guinea – Withholding Tax (%), 2014 8


List of Figures
Figure 1: The Mining Industry in Papua New Guinea – Commodity Mines at Different Stages 1