Radical mining laws unlikely to pass cabinet: source Blair...

Radical mining laws unlikely to pass cabinet: source

Blair Price
Monday, 22 August 2011

PAPUA New Guinea Mining Minister Byron Chan is already starting to backtrack on his controversial mining law amendments, according to a government source who also expects a quick outcome to a Supreme Court challenge over the legitimacy of the new government.

Chan, who only officially received his ministerial post two weeks ago, has already caused considerable uncertainty to PNG-focused resource companies by outlining a plan to shift resources ownership from the government to landowner groups.

But after considerable media coverage in Australia, and possibly some opposition from colleagues in the fledgling coalition government, he might be forced to put these plans on ice.

A government source told PNGIndustryNews.net he did not think Chan?s proposed changes would happen or get through cabinet.

Ex-treasurer Peter O?Neill won an overwhelming Parliament vote to succeed Sir Michael Somare as prime minister in early August.

While Somare has remained on medical leave since April, there are doubts over whether the leadership position was actually vacant in accordance with the Constitution.

Two court challenges have failed so far, but the challenge by the East Sepik provincial government has been backed by the independent Ombudsman Commission.

In a sign the O?Neill government is worried, newly appointed Treasurer Don Poyle cut national government funding to the East Sepik provincial government last week.

This type of court action is usually fast-tracked and the government source expects an outcome from the Supreme Court in mid-September, when the court could rule on whether the formation of the O?Neill government was constitutional or not.