Papua New Guinea – Corruption Risks in Mining Awards

30 June 2017

Papua New

Transparency International Papua New Guinea is part of the first cohort of 20 Transparency International Chapters involved in TI’s global programme to improve transparency in the process of awarding mining permits.

This global programme seeks to improve transparency and accountability in the extractive industries, focusing specifically on the very first link in the mining value chain: the decisions by government to grant mining or exploration permits and licenses and negotiate contracts. 

This research found

  • a low likelihood of petty corruption in the regulatory agencies that vet applications for licences and permits
  • Lax administrative procedures amount to a form of collusion because they frequently act to benefit several levels of government, powerful officials, and the mining company applicant – at the expense of the rural poor and people whose land is affected by mining
  • Regulatory capture by political elites is a risk