How can Papua New Guinea improve extractive industry governance?
Maximising the full potential of the Extractive Industries Transparency initiative By JONATHAN PELI Papua New Guinea is endowed with huge reserves of oil, gas, gold, copper and other solid minerals. Over 78% of its exports derive from these natural resources. In an effort to improve transparency and governance of the country’s mining, oil and gas sectors, in 2013 the government of Papua New Guinea applied to join the Extractive Industries Transparency Initiative (EITI), a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources. Signing up to EITI was a condition of the Australian government’s support for the PNG Liquefied Natural Gas (LNG) Project worth AUD$30-50m in aid plus a AUD$500M loan through the Export Finance and Insurance Corporation. On the 19 March 2014 the board of the EITI approved Papua New Guinea’s application for EITI candidate status. The experience of oth