PNG reassures miners ahead of tax review

PNG reassures miners ahead of tax review

PNG reassures miners ahead of tax review

Updated 3 December 2012, 21:35 AEDT

PNG's Prime Minister says he will be consulting mining companies as he reviews their tax arrangements.

Papua New Guinea's Prime Minister, Peter O'Neill, has moved to reassure the mining industry that they will not be left out of negotiations as his government reviews mining taxes.

Mr O'Neill addressed a an audience of industry delegates in Sydney on Monday, saying he will be engaging with them before deciding on any changes.

The Prime Minister has told Radio Australia that many landowners fell that they are not being rewarded fairly for the resources the mining companies dig up on their land.

"It is going to be done in a fair and equitable manner," he said.

"It is not going to be out there to deprive the investors who are investing in these projects.

"We understand very well that they are there for a return for their shareholders. But equally I am responsible for the return to my own people and my own country." he said.

He told the conference that after a decade of strong economic growth in PNG he wants his country's workers to have a greater role in the mining operations.

Mr O'Neill also flagged the idea of making fly-in-fly-out arrangements for mine workers exclusive to PNG nationals, rather than have workers flying in from countries like Australia.