Subnational Governance, Transparency and Reporting in the Mining Sector

As Papua New Guinea (PNG) struggles to transition its natural resources into inclusive and sustainable forms of development, the taxes, fees and levies collected from extractive projects provide much needed revenue to the national government. These ‘resource rents’ help the national government to fund basic services to its citizens—many of whom live in remote areas with limited access to health, education, electricity and sanitation services. Mining, oil and gas projects also generate important financial flows at the subnational level, where extraction takes place. Subnational payments and transfers fund a diverse range of public and private spending—from household budgets to landowner business investments,education scholarships to cultural heritage programs,village projects to subnational service delivery.

Supported by New Ireland Provincial Government, PNG Extractive Industries Transparency Initiative (PNGEITI) and The Pacific Leadership and Governance Precinct (PLGP), this dialogue and training workshop was organized around the theme of ‘Governance, transparency and reporting in the mining sector’. Key stakeholders from the mining sector in New Ireland province, including national, provincial and local government, landowner associations, civil society and extractives sector officials participated in the workshop. A lively sharing of ideas, learnings and stories on global approaches to mining governance and New Ireland experiences ensued. A key focus of the program was the identification of opportunities to improve the reporting of mine-derived payments in New Ireland through greater participation in PNGEITI including, considering the potential to extend PNGEITI to the provincial and local levels. An adaptive pilot project to implement a PNGEITI subnational multi-stakeholder group is now in the planning stages. This collaboration illustrates Square Circle’s commitment to multi-stakeholder governance structures that enhance local agency.