The Papua New Guinea Chamber of Resources & Energy (PNG CORE) is cautioning the government from progressing with the proposed National Gold Corporation Bill 2022 to parliament for endorsement, citing serious repercussions to the country’s mining sector should it be passed. This week, the President of the PNG CORE, Mr. Anthony Smare warned in the media that the proposed bill is very harmful to the country and that it should not be entertained in parliament yet until proper consultations are conducted with all the concerned parties and stakeholders involved who will be impacted by it. It was for this reason that PNG CORE has written to Prime Minister (PM) James Marape requesting urgent consultations on the serious negative impacts the proposed Bill has. This is because the Bill will impact a cross section of players in the mining sector and the State, ranging from the existing mining projects to grassroots alluvial gold miners, PNG’s financial sector, the Bank of PNG, the Mineral Resources Authority (MRA), the police and other state agencies. Not to mention its impacts on international investment confidence in PNG. Although the PM promised consultations in 2021 with the industry, and a parliamentary committee that included MP Don Polye and Oro Governor Garry Juffa was appointed, no meaningful consultation has occurred since then and this is a very big concern because of what the Bill will create. According to the PNG CORE president, the proposed Bill will create a National Gold Corporation, National Gold Bank, and National Gold Mint to be majority owned by a foreign company, but taking key powers from the Bank of PNG and the MRA, including holding the country’s gold reserves, the sovereign right to issue legal tender, and regulation of gold exports. “The issuing of national currency is a sovereign right usually reserved to the country’s central bank but for the first time, the Bill proposes to also give this right to a Singaporean-based company.” PNG CORE is also shocked to note that the Bill does not require the proponents of the National Gold Corporation to build a gold refinery in PNG and allows it to send gold overseas to be refined and processed, if it wishes to do so. The Bill also seeks to override existing project agreements for PNG’s existing mines, which will jeopardise existing financial arrangements for these projects and undermine viability and investor and financing confidence in current proposed new mines. In addition, the Bill’s extension to encompass all precious metals, not just gold, introduces a layer of complexity and broad impact that could have unforeseen consequences across the mining sector. “This destructive Bill will have significant negative impacts on the gold sector, relevant state agencies and the economy in general.” Therefore, with the next parliament session coming up in May, PNG CORE is urging the National Government to engage transparently with the industry and not to progress this Bill to parliament.