8 June 2021

Australian mining companies have paid little or no corporate income tax in Papua New Guinea despite earning hundreds of millions of dollars from their PNG operations, benefiting from a complex taxation system that experts say leaves the country’s resources sector significantly “undertaxed”.

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“Since 2009, St Barbara’s Simberi Operations has delivered $31m in royalties, paid an annual 0.5% production levy and contributed AU$38m in contracts to landowner businesses. The company pays 2.0% royalties, based on revenue,” the company said in a statement. It added it had invested more than AU$43m in the surrounding community, including in health, education and farming projects. “St Barbara respects and complies with tax obligations in all the markets in which it operates, including Papua New Guinea,” it said.

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In response to Guardian Australia’s questions, a Newcrest spokesperson said [...] the company had paid a total tax contribution of PGK199m (AU$74m) in the 2020 financial year, as well PGK629m (AU$233m) in royalties between 2010 and June 2020. They also contributed PGK96m (AU$35m) to “approved infrastructure developments on behalf of the PNG government through the tax credit scheme, which is deemed to be ‘prepaid’ company tax,” the spokesperson said.

“Since August 2010, Newcrest has invested more than US$3bn in capital expenditure into Lihir, which is a significant injection into PNG’s economy ... The majority of this capital expenditure qualifies for tax depreciation as per the PNG tax law,” the spokesperson said.

“Our tax profile is in line with the operation of the PNG taxation law and we are fully compliant with the law.”

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