Nippon Steel not to import from overseas mills in bid to save US Steel deal
Nippon is looking to close its $14.9 billion deal for US Steel by the end of the year.
Papua New Guinea’s new prime minister Peter O’Neill and the country’s Investment Promotion Authority have moved to quell concern about proposed changes governing ownership of resources in the country saying it needs further discussion and acknowledging genealogical problems.
Among sweeping changes promised for the impoverished country, PNG’s new mining minister introduced a plan to hand state ownership of mineral and energy resources to customary landowners forcing mining companies to renegotiate permits and contracts. Last week O’Neill guaranteed the support of 80% of MPs he needs to preserve his majority ahead of 2012 elections by expanding his cabinet by a third.
Radio New Zealand International quotes the Managing Director of PNG’s Investment Promotion Authority Ivan Pomaleu who has reassured foreign companies and developers that the country is a good place to invest in, but acknowledges that determining who the rightful owners of the land are is difficult and can be subjected to all kinds of disputes.
The Australian reports the country’s new Prime Minister Peter O’Neill last week reinforced his government’s position in the face of continuing legal challenges by appointing 11 vice-ministers in addition to the Cabinet of 33. Elections are scheduled for some time in 2012 and many observers have warned is bound to lead to civil unrest.
PNG’s economy is booming with growth this year expected to reach 11%. The mining industry employs roughly 30,000 people and supplies 80% of export earnings. PNG ranks at number 54 on the UN’s failed states index.
