The federal government must back Australian companies and investors operating in the South Pacific

A Brisbane-based mining company had a licence to develop a mine in the Solomon Islands. The Solomons Mining Minister, without proper justification, suddenly cancelled the licence. No compensation was offered.

The licence was subsequently given to a Chinese company.

The Australian Government protested, lashing the decision and the SI Government with a wet lettuce!

It had absolutely zero effect .and that was even before China massively extended its influence over the SI Government.

The next major project in the region is unquestionably the Wafi-Golpu mine in PNG's Morobe Province.

The negotiation process for the mine's development has been long and complex. There are a number of significant environmental issues, landowner disputes and differences between the national and provincial governments.

It would seem most have been resolved, but the joint venture will pay a heavy price for getting its way on tailings disposal. It insists on deep sea disposal. The provincial government was opposed to that. It seems to have given way but has extracted a high price.

The Marape Government wants a 30 per cent equity in the project.

The question is how will the National Government pay for its equity.

There are reports China is prepared to lend the PNG Government the funds to finance its equity.

The mine developers are Newcrest, an Australian company with an excellent record in PNG, and Harmony, which has South African Origin, but it is also a mining investor in Australia.

The Australian Government needs to focus on ensuring the mine gets developed and does so without Chinese involvement.