Mineral Resources Authority Act 2005

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4. Establishment of the Mineral Resources Authority.
5. Functions of the Authority.
6. Powers of the Authority.
7. Authority not a Department.

8. Mineral Resources Authority Board.
9. Membership of the Board.
10. Eligibility to be a member of the Board.
11. Alternates.
12. Fees and Expenses of members of the Board and Alternates.
13. Chairman and Deputy Chairman.
14. Leave of absence of members.
15. Vacation of office by members of the Board.
16. Vacancy not to affect powers or functions.
17. Secretary of the Board.
18. Meetings of the Board.
19. Disclosure of interest by member of the Board.
20. Committees of the Board.
21. Government Policy and Advisory Committee.
22. Reports.

27. Application of Public Finances (Management) Act 1995.
28. Investments and borrowing.
29. Funds of the Authority.
30. Production levy.
31. Expenditure.
32. Liability to taxation.

PART IV. — FINANCIAL REPORTING, ACCOUNTING RECORDS, ANNUAL REPORT AND AUDIT.

36. Preparation of annual report.
37. Contents of annual report.
38. Availability of annual report.

40. Proof of certain matters.
41. Service of process.
42. Authentication of documents.
43. Appointment of attorneys.
44. Recovery of money due.
45. Protection from personal liability.
46. General penalty.
47. Information.
48. False statements.
49. Regulations.
50. Prosecutions.
51. Confidentiality.

54. Transfer of assets.
55. Security under the Mining Act 1992.
56. Saving of contracts.
57. Application of Acts.
58. No effect on previous acts and decisions.
59. Deeming of previous acts and decisions.

Being an Act to provide for the establishment of the Mineral Resources Authority and to define its powers and functions, and for related purposes,

MADE by the National Parliament to come into operation in accordance with a notice in the National Gazette by the Head of State, acting with, and in accordance with, the advice of the Minister.

(1) For the purposes of Section 41 of the Organic Law on Provincial Governments and Local-level Governments, it is declared that this Act relates to a matter of national interest.

(2) This Act, to the extent that it regulates or restricts the exercise of a right or freedom referred to in Subdivision III.3.C. (qualified rights) of the Constitution, namely -

(a) the right to freedom from arbitrary search and entry conferred by Section 44; and

(b) the right to freedom of expression and publication conferred by Section 46; and

(c) the right peacefully to assemble and associate and to form or belong to, or not to belong to, political parties, industrial organisations or other associations conferred by Section 47; and

(d) the right to freedom of choice of employment in any calling for which a person has the qualifications (if any) lawfully required conferred by Section 48; and

(f) the right of reasonable access to official documents conferred by Section 51,

of the Constitution, is a law that is made (pursuant to Section 38 of the Constitution), taking account of the National Goals and Directive Principles and the Basic Social Obligations, in particular the National Goals and Directive Principles entitled —

for the purpose of giving effect to the public interest in public order and public welfare.

"alluvial gold" means gold in alluvial form, and includes such gold after smelting or refining;

"Board" means the Mineral Resources Authority Board established by Section 8; and

"Chairman" means the Chairman of the Board for the time being appointed under Section 13;

"Deputy Chairman" means the Deputy Chairman of the Board for the time being appointed under Section 13;

"Government Policy Advisory Committee" means the committee established by Section 21;

"Ok Tedi Agreement" means the Principal Agreement described in Section 2(2) of the Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act 2001, as it may be varied, amended or supplemented from time to time;

"Ok Tedi Acts" means the Mining (Ok Tedi Agreement) Act (Chapter 363), the Acts set out in Subsections 1(4)(b) to 1(4)(k), both inclusive, of the Mining (Ok Tedi Mine Continuation (Ninth Supplemental) Agreement) Act 2001, and any other Act that amends, or is to be incorporated and read with, the Mining (Ok Tedi Agreement) Act (Chapter 363);

"production levy" means a production levy imposed by the Authority under Section 30;

"project", in relation to minerals in respect of which Section 30 applies, means the project conducted under the relevant mining lease or special mining lease from which the minerals were produced;

(2) Where, by or under any other Act, the Head of State, acting on advice of a Minister or the National Executive Council, may give directions as to policy, any directions as to policy given to the Authority under this section may not be inconsistent with the provisions of this Act, the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time.

(3) The common seal of the Authority may not be affixed to any document or instrument except pursuant to a resolution of the Board.

(4) The affixation of the common seal of the Authority is to be attested by any two members of the Board.

(5) All courts, Judges and persons acting judicially shall take judicial notice of the common seal of the Authority affixed to a document and shall presume that it was properly affixed.

(6) Subject to this Act, the Authority is an organ and instrument of the State and is entitled to the benefit of any immunity or privilege enjoyed by the State.

(a) to advise the Minister on matters relating to mining and the management, exploitation and development of Papua New Guinea's mineral resources; and

(b) to promote the orderly exploration for and development of the country's mineral resources; and

(c) to oversee the administration and enforcement of the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, and any other legislation relating to mining or to the management, exploitation or development of Papua New Guinea's mineral resources; and

(d) to negotiate mining development contracts under the Mining Act 1992 as agent for the State; and

(e) to act as agent for the State, as required, in relation to any international agreement relating to mining or to the management, exploitation or development of Papua New Guinea's mineral resources; and

(f) to receive and collect, on its own account and on behalf of the State, any fee, levy, rent, security, deposit, compensation, royalty, cost, penalty, or other money or other account payable under the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time; and

(g) on behalf of the State, to receive and collect from persons to whom a tenement has been granted under the Mining Act 1992 the security for compliance with the person's obligations under the Mining Act 1992 required to be lodged with the Registrar, and to hold and such security received or collected; and

(h) on behalf of the State, to administer and be responsible for the administration of any public investment programme relating to mining; and

(i) to conduct systematic geoscientific investigations into the distribution and characteristics of Papua New Guinea's mineral and geological resources, located on, within or beneath the country's land mass, soil, subsoil and the sea-bed; and

(j) to provide small scale mining and hydrogeological survey data services, and occupational health and safety community awareness programs; and

(k) to collect, analyse, store, archive, disseminate and publish (in appropriate maps and publications) on behalf of the State geoscientific information about Papua New Guinea's mineral and geological resources; and

(l) to carry out such other functions as are given to the Authority by this Act or by any other law; and

(m) generally to do such supplementary, incidental, or consequential acts and things as are necessary or convenient for the Authority to carry out its functions.

The Authority has, in addition to the powers otherwise conferred on it by this Act and any other law, power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

(1) There is established a board for the Authority to be called the Mineral Resources Authority Board.

(2) Subject to Subsection (6), the Board is to perform the functions, exercise the powers and manage and direct the administrative affairs of the Authority.

(3) The Minister may, after consultation with, and acting on the advice and recommendation of, the Mining Advisory Council, give to the Board general or specific directions as to mineral policy.

(4) In the exercise of its functions under this Act, the Board shall act in accordance with, and shall give effect to, any general or specific directions as to policy given to it from time to time by the Minister under Subsection (3) or the Government Policy Advisory Committee under Section 21.

(5) Any direction as to policy given by the Minister under Subsection (3) or the Government Policy Advisory Committee under Section 21 may not be inconsistent with the provisions of this Act, the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time.

(6) Notwithstanding anything else in this Act, the Managing Director has the sole right and responsibility, to the exclusion of the Board, to supervise and direct the staff of the Authority in the exercise of all powers, functions and discretions in respect of the administration and enforcement of the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, and any other legislation, regulation or national policy relating to mining or to the management, exploitation or development of Papua New Guinea's mineral resources.

(b) the Departmental Head of the Department responsible for finance matters, or his nominee who must occupy a position in the National Public Service of a level no lower than Deputy Secretary, ex officio; and

(c) the Departmental Head of the Department responsible for treasury matters, or his nominee who must occupy a position in the National Public Service of a level no lower than Deputy Secretary, ex officio; and

(d) the Departmental Head of the Department responsible for national planning matters, or his nominee who must occupy a position in the National Public Service of a level no lower than Deputy Secretary, ex officio; and

(e) two persons nominated by the President for the time being of the Papua New Guinea Chamber of Mines and Petroleum; and

(f) two persons nominated by the President for the time being of the Business Council of Papua New Guinea Inc. with professional qualifications and are members of one or more of-

(i) the Papua New Guinea Law Society established under of the Lawyers Act 1986; and

(ii) the Papua New Guinea Institute of Accountants established under the Accountants Act 1996; and

(g) the Departmental Head of the Department responsible for mineral policy matters, or his nominee who must occupy a position in the National Public Service of a level no lower than Deputy Secretary, ex officio.

(2) A nominee for a non-ex officio member of the Board under Subsection (1) -

(a) shall be considered for appointment in accordance with the Regulatory Statutory Authorities (Appointments to Certain Offices) Act 2004; and

(c) must be of generally recognised standing, experience and expertise in matters relevant to the functions of the Authority, including (without limitation) mining, mineral exploration, financial management, corporate governance, accounting or law; and

(3) In considering a nomination of a person as a non-ex officio member of the Board under Subsection (1), the nominator must have regard to the person's knowledge, skill and experience.

(4) A reference in Subsection (1) to any organisation or body includes the organisation or body as it may be renamed or reconstituted, and any successor to the organisation or body.

A person may not be appointed as a member of the Board under Section 9 if he —

(a) is or has been bankrupt, or has applied to take the benefit of any law for the benefit of bankrupt or insolvent debtors, or has compounded with his creditors or made an assignment of his remuneration for their benefit; or

(c) is standing or to stand trial for, or has been convicted of, any offence punishable under a law by imprisonment; or

(d) is prohibited from being a director or member or promoter of, or from taking part (in any way, whether directly or indirectly) in the management of, a company under any law; or

(1) A member of the Board appointed under Section 9 may, by a signed instrument in writing delivered to the Authority, appoint a person who is ordinarily resident in the country to be the member's alternate.

(2) If a member of the Board appointed under Section 9 is for any reason unable to act, his alternate, if any, has and may exercise all of the member's powers, functions, duties and responsibilities, and this Act applies accordingly.

(3) An alternate may, unless the Board otherwise directs, attend meetings of the Board but may not, except where he is attending in the absence of the member of the Board for whom he is the alternate, take part in debate, vote on any matter or be counted towards a quorum.

(4) An alternate is entitled independently to receive all notices, papers, minutes of meetings and other relevant information to which members of the Board are entitled.

(1) As soon as practicable after the coming into operation of this Act, the Board shall recommend to the Minister an appropriate fee to be paid under the Boards (Fees and Allowances) Act (Chapter 299) to each member of the Board, other than an ex officio member, having regard to the functions, duties and responsibilities of the members of the Board under this Act.

(2) Each member of the Board, other than an ex officio member, is to be paid such a fee as the Minister determines after considering the recommendation of the Board under Subsection (1).

(3) The Authority shall pay to each member of the Board reasonable travelling and other expenses incurred in carrying out their duties under this Act.

(4) An alternate of a member of the Board, other than an ex officio member, shall when attending a board meeting in place of his appointor, be paid by the Authority the applicable fee and any other expenses.

(1) The Board may from time to time appoint one of the members of the Board to be the Chairman of the Board, and shall determine the period for which the member so appointed is to hold office as Chairman of the Board.

(2) The Board may from time to time appoint one of the members of the Board (other than the Chairman) to be the Deputy Chairman of the Board, and shall determine the period for which the member so appointed is to hold office as Deputy Chairman of the Board.

(3) The Chairman and Deputy Chairman hold office as Chairman and Deputy Chairman respectively until the earlier of the termination or expiration of the period of their respective appointments or until they cease respectively to be a member of the Board.

(1) The Chairman may grant leave of absence to a member of the Board (other than the Deputy Chairman) on such terms and conditions as the Chairman determines.

(2) The Board may grant leave of absence to the Chairman or Deputy Chairman on such terms and conditions as the Board determines.

(1) A member of the Board, other than an ex officio member, may resign his office by writing signed by him and delivered to the Authority.

(c) is absent, except with the written consent of the Board or is on leave of absence under Section 14, from three consecutive meetings of the Board; or

(e) becomes a person who is not eligible under Section 10 to be appointed as a member of the Board; or

his appointment as a member of the Board (and as Chairman or Deputy Chairman, if the member is also the Chairman or the Deputy Chairman) shall be deemed to have been terminated with immediate effect, and shall cease to be a member of the Board accordingly.

(3) The Minister, acting on the advice and recommendation of the Board but not otherwise, may at any time, by written notice, inform a member of the Board (other than an ex officio member) that he intends to terminate the member's appointment on the grounds of inefficiency, incapacity or misbehaviour.

(4) Within 14 days after receiving a notice under Subsection (3), the member may reply in writing to the Minister, who must consider the reply and, where appropriate, terminate the appointment by written notice to the member.

(5) Where the member referred to in Subsection (3) does not reply in accordance with Subsection (4), the Minister may terminate the member's appointment by written notice to the member.

The exercise of a power or the performance of a function of the Board is not invalidated by reason only of a vacancy in the membership of the Board.

(1) The Board shall appoint an employee of the Authority to be the Secretary of the Board.

(2) The Secretary is responsible for convening meetings of the Board and for recording minutes of those meetings.

(1) The Board is to meet as often as the business of the Board requires, and at such times and places as the Chairman directs, but in any event not less frequently than once in every three months.

(2) Not less than seven days notice in writing of a meeting of the Board, setting out the date, time and place of the meeting and the matters to be discussed at the meeting, is to be sent to every member of the Board who is in the country.

(3) An irregularity in the notice of a meeting of the Board is waived where all members of the Board entitled to receive the notice either attend the meeting without protest as to the irregularity or agree to the waiver.

(a) subject to Subsection (7), the Managing Director and five other members constitute a quorum; and

(b) the Chairman, or in his absence the Deputy Chairman, is to preside, and if both the Chairman and Deputy Chairman are absent, the members present may appoint, from among their own number a chairman for that meeting; and

(d) subject to Section 28(3)(c), matters arising are to be decided by a majority of the votes of the members present and voting; and

(e) the person presiding has a deliberative, and if there is an equality of votes on any matter, also a casting vote.

(6) Subject to this Act, the procedures of the Board are to be as determined by the Board.

(7) At a meeting of the Board at which there is to be consideration of the investigation, suspension or recommendation for dismissal of the Managing Director under Section 23(4) -

(a) seven members of the Board, other than the Managing Director, constitute a quorum; and

(b) if the members present so permit, the Managing Director may be present, but may not vote or participate in any discussion or debate other than at a time determined by the members present to answer or defend any allegation against him; and

(1) A member of the Board who has a direct or indirect interest in a matter being considered or about to be considered by the Board shall, as soon as possible after the relevant facts have come to his knowledge, disclose the nature of his interest at a meeting of the Board.

(2) Any disclosure under Subsection (1) is to be recorded in the minutes of the relevant meeting of the Board, and the member making the disclosure —

(a) may not participate, after the disclosure, in any debate, deliberation, decision or vote of the Board in relation to the matter during the meeting at which the disclosure is made or at any other meeting of the Board; and

(b) is to be disregarded for the purpose of determining whether a quorum is present for the meeting of the Board at which the disclosure is made or at any other meeting of the Board for any such debate, deliberation, decision or vote in relation to the matter.

(1) The Board may, from time to time, establish committees of the Board to advise the Board on such matters as the Board considers necessary.

(3) A member of a committee who is not a member of the Board, an employee of the Authority or an officer of the National Public Service may receive fees and allowances under the Boards (Fees and Allowances) Act (Chapter 299).

(1) There is established a permanent committee to be called the Government Policy and Advisory Committee, comprising -

(a) the Departmental Head of the Department responsible for treasury matters who shall be the Chairman; and

(b) the Departmental Head of the Department responsible for national planning matters; and

(2) The functions, powers and responsibilities of the Committee are to provide written advice and directions to the Board concerning policies of the National Government (other than mineral policy) that are relevant to the Authority including, without limiting the generality of the foregoing, fiscal and budgetary policies and objectives.

The Board is to furnish to the Minister, in addition to the annual report under Section 36, such other reports in relation to the functions of the Authority as are reasonably requested by the Minister from time to time.

(1) There shall be a Managing Director of the Authority who is to be appointed in accordance with the Regulatory Statutory Authorities (Appointments to Certain Offices) Act 2004.

(c) responsible to the Board for the efficient carrying out of the functions of the Authority; and

(d) responsible to the Minister for the efficient carrying out of the applicable regulatory functions of the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time.

(3) Subject to this section, the Managing Director is to be appointed for a term of four years and, subject to the Salaries and Conditions Monitoring Committee Act 1988, on such terms and conditions as are determined by the Board, and is eligible for reappointment.

(4) The appointment of the Managing Director may be terminated or suspended in accordance with the Regulatory Statutory Authorities (Appointments to Certain Offices) Act 2004, and the grounds for such termination or suspension shall exist if the Managing Director —

(b) other than with the written consent of the Board, engages in any paid employment or carries on business outside the duties of his office; or

(c) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of his salary for their benefit; or

(d) is convicted of an offence that is punishable under a law by imprisonment; or

(5) If the Managing Director's appointment is terminated under the Regulatory Statutory Authorities (Appointments to Certain Offices) Act 2004 -

(b) the Board may not authorise the provision or giving to the Managing Director of, and the Authority may not provide or give to the Managing Director,

any compensation or payment in respect of the termination of his appointment, and the Authority will not have any liability whatsoever to the Managing Director in respect of the termination of his appointment, other than in respect of any unpaid remuneration or benefits attributable to the period before the termination, payable in accordance with the terms and conditions of the Managing Director's contract of employment as determined by the Board under Subsection (3).

(6) Any contract, arrangement or understanding under which the Managing Director would, but for this subsection, be entitled to any compensation or payment in respect of the termination of his appointment other than as provided in Subsection (5), is void ab initio and of no force or effect.

(a) subject to Section 8(6), to manage the Authority in accordance with the policies and directions of the Board; and

(b) to advise the Board on any matter concerning the Authority referred to him by the Board; and

(c) otherwise as specified in this Act and the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, and any other Act the administration of which is the responsibility of the Authority from time to time.

(a) shall carry out and perform the functions, powers and duties required of him under this Act and his contract of employment; and

(b) has such other functions, powers and duties as the Board may from time to time determine.

(3) The Managing Director may, by instrument in writing, delegate all or any of his functions, powers (other than this power of delegation) or duties to any person and shall forthwith report any such delegation to the Board in writing.

(4) The Minister may, after consultation with, and acting on, the advice and recommendation of the Mining Advisory Council, give to the Managing Director general or specific directions as to policy.

(5) Any direction as to policy given by the Minister under Subsection (4) may not be inconsistent with the provisions of this Act, the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time.

(1) The Managing Director may appoint persons to be employees of the Authority, in accordance with procedures established and approved by the Board, for the purpose of giving effect to this Act and carrying out the functions of the Authority.

(3) The Managing Director may dismiss any employee of the Authority in accordance with procedures established and approved by the Board.

(4) The Managing Director and the employees appointed under Subsection (1) constitute the staff of the Authority.

(5) The Managing Director is to direct and control the employees of the Authority.

(6) The staff of the Authority (including the Managing Director) are not officers in the National Public Service.

The Managing Director and each employee of the Authority is to be employed under a contract of employment that -

(a) in the case of the Managing Director, is to be executed by the Authority under its common seal attested by two members of the Board (not including the Managing Director) and by the Managing Director; and

(b) in the case of any other employee, is to be executed by the Managing Director on behalf of the Authority and by the employee in accordance with procedures established by the Board.

(1) Without limitation to any function or power of the Authority under this Act, Part VIII (other than Sections 51, 55, 56, 57 and 58) of the Public Finances (Management) Act 1995 applies to and in relation to the Authority.

(1) Moneys of the Authority that are not immediately required may be invested on deposit with an Authorized Institution or in any manner that a trustee would be authorised to invest funds in his hands under the Trustees and Executors Act (Chapter 289), on such terms that the Board, in its discretion, may determine.

(2) Subject to Subsection (3), the Authority may borrow money for its purposes from an Authorized Institution in any manner (including by overdraft), on such terms and within such limits as the Board, in its discretion, may determine.

(a) and to the extent that, immediately after the money is borrowed, the total principal amount outstanding of all money borrowed by the Authority exceeds 10% of the total assets of the Authority; or

(a) all monies appropriated by Act for the purposes of carrying out or giving effect to this Act; and

(b) all monies received by the Authority by way of grants and subscriptions; and

(d) all monies received by the Authority for goods or services provided by the Authority; and

(e) all fees paid or payable under this Act, the Mining Act 1992, the Mining Regulation 1992, the Mining (Safety) Act (Chapter 195A), the Mining (Safety) Regulation (Chapter 195A), the Mining Development Act (Chapter 197), the Mining Development Regulation (Chapter 197), the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) or the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time, after the coming into operation of this Act; and

(f) all rents paid or payable under the Mining Act 1992, the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) or the agreements that are scheduled to that Act, after the coming into operation of this Act; and

(g) any monies paid or payable under this Act in respect of the production levy; and

(h) any monies paid or payable to the Authority under any law (other than this Act) in respect of any fee or levy; and

(i) all fines or penalties paid or payable under this Act, the Mining Act 1992, the Mining Regulation 1992, the Mining (Safety) Act (Chapter 195A) or the Mining (Safety) Regulation (Chapter 195A), the Mining Development Act (Chapter 197), the Mining Development Regulation (Chapter 197), the Ok Tedi Acts, the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) or the agreements that are scheduled to that Act, or any other Act the administration of which is the responsibility of the Authority from time to time, after the coming into operation of this Act; and

(j) all other monies received by the Authority in the exercise and performance of its powers, functions and duties under this Act.

(2) The Authority is to retain any surplus funds accruing from its operations or activities in a given year, but the production levy for the subsequent year may allow a pro rated rebate equal to the surplus.

(a) in payment or discharge of expenses, obligations and liabilities of the Authority; and

(b) in payment of the remuneration of the staff of the Authority and of allowances to the members of the Board, or members of any committee of the Board; and

(d) for such other purposes as are consistent with the functions of the Authority as the Board, after consultation with the Managing Director, may determine.

(a) minerals produced from mining by the holder of a mining lease or special mining lease; and

(2) The Authority may, by notice in the National Gazette, impose a production levy in respect of minerals and alluvial gold in respect of which this section applies.

(3) Subject to Section 28(2), the production levy in respect of minerals to which this section applies is to be imposed at the rate of 0.25%, or such other rate that does not exceed 0.5%, as is determined by the Minister responsible for treasury matters in consultation with the Minister for mining matters and the Board, of the assessable income in respect of the project of the relevant producer or producers of the minerals.

(4) Subject to Section 28(2), the production levy in respect of alluvial gold to which this section applies is to be imposed at the rate of 0.25%, or such other rate that does not exceed 0.5%, as is determined by the Minister responsible for treasury matters in consultation with the Minister for mining matters and the Board, of the value of alluvial gold that is or is to be exported.

(5) The value of the alluvial gold to which Subsection (4) refers will be taken to be an amount equal to the morning spot price of gold quoted on the London Metal Exchange on the date of authority being given under the Central Banking (Foreign Exchange and Gold) Regulation (Chapter 138) for the alluvial gold to be exported.

(6) The notice under Subsection (2) imposing the production levy is to specify —

(a) any other rate determined by the Authority under Subsection (3) for the production levy in respect of minerals to which this section applies; and

(b) any other rate determined by the Authority under Subsection (4) for the production levy in respect of alluvial gold to which this section applies; and

(d) the mechanism for payment to and collection by the Authority of the production levy; and

(f) such other matters as are necessary or convenient for the imposition of the production levy, as determined by the Authority.

(7) The Authority may from time to time amend, vary or replace a notice under Subsection (2) by a further notice in the National Gazette, to take effect in accordance with that further notice.

(8) A producer of minerals in respect of which this section applies, and
an exporter of alluvial gold in respect of which this section applies, shall pay to the Authority the production levy imposed by a notice under Subsection (2), as amended, varied or replaced under Subsection (7), in accordance with the notice, and a notice under Subsection (2) imposing the production levy, as amended, varied or replaced under Subsection (7), has the force of law by virtue of this section.

(1) The Authority shall, not later than three months before the end of each financial year, submit to the Departmental Head of the Department responsible for treasury matters an operating budget including -

(a) estimates of the receipts and expenditure of the Authority for the next financial year; and

(b) its proposed program (if any) for that financial year, and identifying any expenditure to be charged against the assets of the Authority, as approved by the Board after consultation with, and in such form as reasonably required by, the Departmental Head of the Department responsible for treasury matters.

(2) Any disagreement in relation to the appropriateness or quantum of any expenditure item in the operating budget between the Authority and the Departmental Head of the Department responsible for treasury matters shall first be discussed between them, and if the disagreement is not resolved not later than one month before the end of the relevant financial year, then the matter is to be referred for determination by a person nominated by the Papua New Guinea Institute of Accountants, whose decision shall be final, and whose costs are to be paid by the State.

(3) Where a disagreement referred to in Subsection (2) is not resolved prior to the commencement of the next financial year, the operating budget of the current financial year will apply for the next financial year and for so long as the disagreement is unresolved.

For the purposes of Section 24(1) of the Income Tax Act 1959, the Authority is a public authority constituted under this Act.

PART IV. — FINANCIAL REPORTING, ACCOUNTING RECORDS, ANNUAL REPORT AND AUDIT.

"accounting period" means the period commencing on the coming into operation of this Act and ending on the next succeeding balance date, and thereafter means the period of one year ending on a balance date; and

"financial statements", in relation to the Authority and a balance date, means -

(b) an income and expenditure statement for the Authority in relation to the accounting period ending at the balance date; and

(c) a statement of cash flows for the Authority in relation to the accounting period ending at the balance date,

together with any notes or documents giving information in relation to the balance sheet, income and expenditure statement or statement of cash flows; and

"generally accepted accounting practice" has the meaning given to it by Section 172 of the Companies Act 1997, as if the Authority were a reporting company within the meaning of that expression in that section and any provision referred to in that section.

(1) The Board is to ensure that, within five months after the balance date of the Authority, financial statements that comply with Subsection (2) are -

(2) The financial statements of the Authority are to comply with generally accepted accounting practice.

(3) For the purposes of this section, where, in complying with generally accepted accounting practice, the financial statements do not give a true and fair view of the matters to which they relate, the Board shall add such information and explanations as will give a true and fair view of those matters.

(b) will at any time enable the financial position of the Authority to be determined with reasonable accuracy; and

(d) will enable the financial statements of the Authority to be readily and properly audited.

(a) entries of money received and spent each day and the matters to which it relates; and

(b) in a form or manner in which they are easily accessible and convertible into written form.

(4) The Authority shall keep accounting records for the current accounting period and for the last five completed accounting periods of the Authority.

(1) The Board shall, within five months after each balance date of the Authority, furnish to the Minister an annual report on the affairs of the Authority during the accounting period ending on that date, and a copy of the annual report shall be furnished to the Departmental Head of the Department responsible for treasury matters.

(2) The Minister shall table the annual report at the first sitting of the Parliament subsequent to his receipt of the annual report.

(a) include a report on the performance and management of the operations and activities of the Authority during the accounting period; and

(b) include financial statements for the accounting period completed and signed in accordance with Section 34; and

(c) describe any change in accounting policies made during the accounting period; and

(d) state particulars of any interest disclosed by a member of the Board under Section 19(1) during the accounting period; and

(e) state, in respect of each member or former member of the Board (including the Managing Director and any former Managing Director), the total of the remuneration and the value of other benefits received by that member or former member during the accounting period; and

(f) state the number of employees or former employees of the Authority, not being members of the Board, who, during the accounting period, received remuneration and any other benefits in their capacity as employees, the value of which in aggregate was or exceeded K50,000.00 per annum, and is to state the number of such employees or former employees in brackets of K10,000.00; and

(g) state the total amount of any donations made or commissions paid by the Authority during the accounting period; and

(h) state the names of the persons holding office as members of the Board at the end of the accounting period and the name of any person who ceased to hold office as member of the Board during the accounting period; and

(i) be signed on behalf of the Board by the Chairman and the Managing Director.

(1) Any annual report of the Authority that is furnished to the Minister under Section 36 is a public document.

(2) At the request of any person at any time, the Authority is to provide the person with a copy of its most recent annual report on payment by that person of such fee (if any) as is determined by the Authority.

(3) The fee under Subsection (2) may not exceed K10.00, or such other higher amount as may be prescribed.

(1) Nothing in this section affects the application to the Authority of the Audit Act 1989.

(2) The Board shall, in respect of each accounting period of the Authority and before, or as soon as practicable after, the commencement of the relevant accounting period, appoint a member of a reputable accounting firm who is a Registered Company Auditor under the Accountants Act 1996 and who is ordinarily resident in the country, to be the auditor of the Authority and to audit the financial statements of the Authority for the relevant accounting period.

(b) hold office on such terms and conditions as are determined by the Board; and

(4) Sections 190(2), 192, 193, 198, 199, 200 and 202 of the Companies Act 1997 shall apply in relation to an auditor appointed under Subsection (2) as if—

(a) references to a company or a reporting company were references to the Authority, and references to the board of a company were references to the Board; and

(b) a reference to a director of a company were a reference to a member of the Board; and

(c) a reference to the shareholders of a company were a reference to the Minister; and

(d) the financial statements of the Authority were financial statements to which Section 200 of the Companies Act 1997 applies.

(5) The Authority shall appoint a qualified person to be the Authority's internal auditor, who shall provide a written audit report as requested by the Board, but not less often than quarterly, and a copy of each audit report shall be presented to the Minister and to the Departmental Head of the Department responsible for treasury matters.

In any proceedings by or against the Authority, proof is not required, unless evidence is given to the contrary, of —

(e) the presence of a quorum at a meeting of the Board at which a determination is made or an act is done.

Any notice, summons, writ or other process required to be served on the Authority may be served by being left at the office of the Authority or, in the case of a notice, by being sent by post.

Any document requiring authentication by the Authority is sufficiently authenticated with the common seal of the Authority affixed in accordance with this Act.

(1) The Authority may, by instrument under its common seal, appoint a person to act as its attorney for the purpose of doing anything that the Authority itself might lawfully do.

(2) A person appointed under Subsection (1) may, on behalf of and in the name of the Authority, do any act, exercise any power and perform any function that he is authorised by the instrument appointing him to do, exercise or perform.

Any money due to the Authority (including all funds of the Authority under Section 29(1)) may be recovered by the Authority as a debt.

A member of the Board, or a member of a committee of the Board or an officer or employee or servant or agent of the Authority is not personally liable for any act or default of himself or the Authority done or omitted to be done in good faith in the course of the activities or operations of the Authority or for the purposes of the Authority.

(1) A person, who acts in contravention of or fails to comply in any respect with a provision of this Act is guilty of an offence against this Act.

(2) A person who commits an offence against this Act for which no penalty is provided elsewhere in this Act is liable to a penalty of a fine not exceeding K25,000.00 or imprisonment for a term not exceeding two years, or to both, and where the offence is a continuing offence, is further liable to a default penalty of a fine not exceeding K2,500.00 for each day during which the offence is committed after conviction.

(a) any information, book or record in the possession or custody or under the control of a person is or are relevant to the exercise or performance of the powers or functions of the Authority or to the achievement of the purposes of this Act; and

(b) it is desirable that the information be furnished to the Authority or that the book or record be produced for inspection by the Authority,

the Authority may issue to the person a written notice to that effect specifying the relevant information, book or record and specifying the place and time at which any information, book or record is to be furnished or produced to the Authority.

(2) A person who receives a notice under Subsection (1) is to furnish or produce for inspection at the place and at the time specified in the notice the information, book or records specified in the notice and copies of or extracts from the information, book or record so furnished or produced may be made and retained by the Authority.

(3) The Authority or its employees may take copies of and extracts from any information, book or record furnished or produced under Subsection (2).

(4) Subsection (2) does not affect the operation of any law by or under which any information, book or record is to be kept confidential.

(5) Subject to Subsection (6), a person who, without reasonable excuse (proof of which is on him), refuses or fails, after receiving a notice under Subsection (1), to furnish any information or to produce for inspection any book or record, or who furnishes any information that is false or misleading in a material particular, is guilty of an offence.

(6) It is a defence to a charge of an offence against Subsection (5) if the person charged proves that the information, book or record was not relevant to the exercise or performance of the powers or functions of the Authority, to the achievement of the purposes of this Act or the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, or was not in the possession or custody or under the control of the person at the time of receipt of the notice under Subsection (1).

A person who, in a statement made or information furnished under or for the purposes of this Act, makes, without reasonable excuse (proof of which is on him), a statement, or gives information that is false or misleading in a material particular, is guilty of an offence.

The Head of State, acting on advice, may make regulations not inconsistent with this Act, prescribing all matters that by this Act are permitted or required to be prescribed, or that are necessary or convenient to be prescribed for carrying out or giving effect to this Act and generally for achieving the purposes of this Act, and in particular for prescribing fees and for prescribing penalties of fines not exceeding K10,000.00 and default penalties of fines not exceeding K1,000.00 for infringements of the regulations.

(1) Subject to the approval of the Public Prosecutor, the Authority may prosecute any offence against this Act, the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts, the Mining (Bougainville Copper Agreement) Act (Chapter 196), or any other Act the administration of which is the responsibility of the Authority from time to time.

(2) A prosecution under this Act shall be made on indictment to the National Court.

(3) In any action brought under this Act by the Authority or against the Authority, the Court may award costs against any party or claimant other than the Authority, which costs may be recovered by the Authority as a debt due to the Authority.

(4) Any fine or penalty or any default fine or penalty to be paid by a person as a result of an action brought by the Authority is to be paid to the Authority and, in addition to any other remedy, may be recovered by the Authority as a debt due to the Authority.

(1) The Authority shall take all reasonable steps to protect, from unauthorised use or disclosure, information given to it in confidence or in connection with the performance of its functions or the exercise of its powers.

(2) For the purposes of Subsection (1), the disclosure of information as required and permitted by any law or court of competent jurisdiction is to be taken to be authorised use and disclosure of the information.

(3) For the purposes of Subsection (1), the disclosure of information by a person for the purposes of performing that person's functions as an employee of the Authority or as a member of the Board is to be taken to be authorised use and disclosure of the information.

In this Part, "Department" means the Department of Mining as constituted immediately before the coming into operation of this Act.

(1) The assets described in Schedule 2 (other than land held by the State), which, immediately before the coming into operation of this Act were occupied, held, owned or used by the Department, and all rights, obligations and liabilities of the Department immediately before that coming into operation, are, on that coming into operation, transferred to and become the assets, rights, obligations and liabilities of the Authority.

(2) Any assets other than those described in Schedule 2 that immediately before the coming into operation of this Act were occupied, held, owned or used by the Department and which in the Board's opinion are required by the Authority for the purposes of this Act may be the subject of a written requisition directed to the Secretary of the Department, and a requisition shall not be made later than 12 months after the coming into operation of this Act.

(3) On receipt of a requisition under Subsection (2), the Secretary shall either —

(a) forthwith give possession of the requisitioned asset to the Authority, which shall then be the property of the Authority, or

(b) forthwith deliver to the Minister and to the Authority a written objection to the requisition, stating his reasons for the objection.

(4) On receipt of a written objection under Subsection (2), the Minister shall decide whether the requisitioned asset should be transferred to the Authority and shall issue a written direction to the Secretary which the Secretary shall act upon.

(5) Where an asset is transferred to the Authority under Subsections (2) or (3), Subsections (6) and (7) shall apply to that asset as the circumstances require.

(6) Any register maintained under any Act on which any of the assets transferred under Subsection (1) are registered in the name of the Department or the State, is taken to be amended as from the coming into operation of this Act by substituting the name of the Authority for the Department or the State, as the case requires.

(7) Without limitation to Section 32, the transfer to the Authority of the assets, rights, obligations and liabilities of the Department under Subsection (1) is exempt from any stamp duty, fee, tax, charge or other duty payable under any Act.

(8) Where the asset transferred to the Authority under this section is an interest over government land being a right previously granted to the Department to occupy of the land, the Authority shall, on the coming into operation of this Act, be deemed to have been granted the right of occupancy of the land in accordance with the provisions of the Land Act 1996.

(1) As soon as practicable after the coming into operation of this Act, the State is to -

(b) deliver to the Authority all bank guarantees, insurance company bonds, or other documents,

lodged as security under Section 150 of the Mining Act 1992 before the coming into operation of this Act to the extent that -

(c) such security has not been discharged under and in accordance with the Mining Act 1992; and

(d) such security has not had deducted from it any amount permitted to be deducted from it under and in accordance with the Mining Act 1992; and

(e) such security, or the balance thereof after deduction of any amount permitted to be deducted from it under the Mining Act 1992, has not been remitted to the holder or the former holder of a tenement under and in accordance with the Mining Act 1992,

(2) Notwithstanding anything in the Mining Act 1992, the Registrar is not required to remit to the holder or former holder of a tenement any security lodged under Section 150 of the Mining Act 1992 before the coming into operation of this Act, or the balance of any such security after deduction of any amount permitted to be deducted from it under the Mining Act 1992, from any cash deposits, bank guarantees, insurance company bonds, or other documents held by the Authority except to the extent that the relevant security has been paid or delivered to the Authority under Subsection (1).

(3) Notwithstanding anything in the Mining Act 1992, the Managing Director is not required to discharge, wholly or in part, any security lodged under Section 150 of the Mining Act 1992 before the coming into operation of this Act from any cash deposits, bank guarantees, insurance company bonds, or other documents held by the Authority except to the extent that the relevant security has been paid or delivered to the Authority under Subsection (1).

(1) All contracts and agreements (other than contracts of employment) entered into, made with, or addressed to the Department, are, to the extent that they were, immediately before the coming into operation of this Act, binding on and of full force and effect against or in favour of the Department are, on that coming into operation, binding on and of full force and effect against or in favour of the Authority as fully and effectually as if, instead of the Department, the Authority had been a party to them or bound by them or entitled to the benefit of them.

(b) as a breach of any contractual provision prohibiting, restricting or regulating the assignment or transfer of assets, rights, obligations or liabilities; or

(c) as giving rise to any remedy by a party to an instrument or agreement, or as causing or permitting the termination of any instrument or agreement; or

(d) as releasing any surety or other obligee wholly or in part from any obligation.

(1) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever made or executed, contains a reference, express or implied, to the Department, that reference, on the coming into operation of this Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Authority.

(2) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever made or executed, contains a reference, express or implied, to the Secretary, that reference, on the coming into operation of this Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Managing Director.

(3) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever made or executed, contains a reference, express or implied, to the Director, that reference, on the coming into operation of this Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Managing Director.

(4) Without limitation to Section 56, where an Act or other law (other than this Act) or any other document or instrument wherever made or executed, contains a reference, express or implied, to the Departmental Head, in relation to the Department, that reference, on the coming into operation of this Act, except where the context otherwise requires, is to be read and construed and have effect as a reference to the Managing Director.

Nothing in this Act affects the validity of any act or decision done or made by the Department (or any officer of the Department), the Secretary, or the Director before the coming into operation of this Act, and every such act and decision will be taken to be valid and effectual and to have continuing effect despite anything in this Act.

To the extent necessary or desirable for the application or the administration of the Mining Act 1992, the Mining (Safety) Act (Chapter 195A), the Mining Development Act (Chapter 197), the Ok Tedi Acts and the Ok Tedi Agreement, the Mining (Bougainville Copper Agreement) Act (Chapter 196) and the agreements that are scheduled to that Act, after the coming into operation of this Act —

(a) any act or decision done or made by the Department before the coming into operation of this Act, will be taken to be an act or decision, as the case requires, of the Authority; and

(b) any act or decision done or made by the Director before the coming into operation of this Act, will be taken to be an act or decision, as the case requires, of the Managing Director.

(b) by inserting immediately after the definition of "approved proposals" the following new definitions:-

(c) by inserting immediately after the definition of "lease for mining purposes" the following new definition:-

Section 11 of the Mining Act 1992 is amended by repealing Subsection (2) and replacing it with the following:-

(b) the Director of the Department of Environment and Conservation, ex officio, or his nominee appointed in writing; and

(c) the nominee of the Departmental Head of the Department responsible for treasury matters, who must occupy a position in the National Public Service of a level no lower than Assistant Secretary and must not be a member or alternate member of the Board of the Authority, ex officio; and

(d) the head of the Department responsible for provincial affairs matters, ex officio, or his nominee appointed by him in writing; and

(e) three employees of the. Authority holding management positions, appointed in writing by the Managing Director; and

(f) the nominee of the Departmental Head of the Department responsible for mineral policy matters who must occupy a position in the National Public Service of a level no lower than Assistant Secretary and must not be a member or alternate member of the Board, ex officio; and

The Mining Act 1992 is amended in Section 15(3) by repealing the words "or to any person occupying a designated position in the Department".

The Mining Act 1992 is amended b repealing Section 146 and replacing it with the following:-

The Fees in respect of all matters shall be as determined by the Authority from time to time by notice published in the National Gazette.".

The Mining Act 1992 is further amended by amending the provisions specified in Column 1 of the Table in the manner specified in Column 2 of the Table and set out opposite.

Provision	Manner of amendment
All affected provisions except Section 43(1)(a)(ii) and Section 163(1)(a)	Repeal the word "Department" wherever it appears and replace it with the following:- "Authority".
All affected provisions	Repeal the words "Director" or "Chairman", as the case may be, wherever they appear and replace them with the following:- "Managing Director"
All affected provisions	Repeal the word "Mining Advisory Board" wherever it appears and replace it with the following:- "Mining Advisory Council"
All affected provisions	Repeal the word "Board" wherever it appears and replace it with the following:- "Council"
Sections 15(1) and (3); 16(1)(a); 56(1); 57(1)(b); 163(1) and (2); 165(1); 166; 167(4)(g) and 169	Repeal the word "officer" wherever it appears and replace it with the following:- "employee"
Sections 16(1)(b) and 103 (b)(ii)	Repeal the word "officers" wherever it appears and replace it with the following:- "employees"

Occupancy of land on Allotment 8, Section 47 Konedobu, City of Port Moresby, Certificate of Reservation of Occupancy 02/2004 R (S/R).

Occupancy of land on Allotment 10, Section 47 Konedobu, City of Port Moresby, Certificate of Reservation of Occupancy 03/2004 R (S/R).

Office buildings and associated fixed chattels and equipment on Allotments 8 and 10, Section 47 Konedobu, City of Port Moresby.

Occupancy of land on Allotment 1, Section 9019T Town of Wau, Morobe Province Certificate of Reservation of Occupancy 0039/2004 (N/R).

Occupancy of land on Allotment 14, Section A (9000) Park Street, Town of Wau, Morobe Province.

Office Buildings and associated fixed chattels and equipment on Allotment 14, Section A (9000) Park Street, Town of Wau, Morobe Province.

Occupancy of land and house on Allotment 5, Section L, Dover Road, Town of Wau, Morobe Province.

Occupancy of land and house on Allotment 15, Section B (9001), Park Street, Town of Wau, Morobe Province.

Occupancy of land and house on Allotment 1, Section B (9001), Edie Road, Town of Wau, Morobe Province.

Occupancy of land and house on Allotment 1, Section F (9005), Pryke Street, Town of Wau, Morobe Province.

Occupancy of land and house on Allotment 1, Section 0 (9014), Money Avenue, Town of Wau, Morobe Province.

Occupancy of land on Allotment 6, Section 5, Town of Paiam, Enga Province.
Mineral Resources Authority

Occupancy of land on Allotments 3,4,5,6,7, Section 12 Town of Yauwosoru, East Sepik Province.

Office building and associated fixed chattels and equipment on Allotment 18, Section 5, Town of Vanimo, Sandaun Province.

All library books, publications and equipment contained within the Engineering Geology Building, Elanese Street, Konedobu.

All library books and publications held within the Geological Survey Library in the Geological Survey Office, Elanese Street, Konedobu.

All library books, publications and equipment held within the Exploration Geophysics building, Geological Survey Office, Elanese Street, Konedobu.

All chattels and equipment held within the Small Scale Mining Branch Office, Wau.

All files, books, publications, digital and paper records and computer software relating to the management and promotion of the mining sector and the geological resources of Papua New Guinea held within the offices of the following divisions and branches of the Department of Mining:

Engineering assessment and environment sections of the Project Assessment Branch, Mining Division

Geological Mapping and Mineral Districts Studies Branch, Geological Survey Division

Exploration Geophysics Section, Geophysical Observatory Branch, Geological Survey Division

PacLII Editor's Note:- Please see/download PDF original for the table of 'Motor Vehicles' in Schedule 2 of the Act.

I hereby certify that the above is a fair print of the Mineral Resources Authority Act 2005 which has been made by the National Parliament.

I hereby certify that the Mineral Resources Authority Act 2005 was made by the National Parliament on 9 November 2005 by an absolute majority in accordance with the Constitution.

Papua New Guinea Sessional Legislation

Mineral Resources Authority Act 2005