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

If China funded the PNG Government equity there would be conditions attached. One would almost certainly be that the mine would have to take its electricity from the Ramu Two hydro scheme being funded by a large Chinese loan with construction contracts already awarded to a major Chinese state-owned construction company.

The Australian Government needs to urgently discuss with the PNG Government, and the mine JV partners, how to best finance the PNG Government equity.

The capacity of the government to borrow on its own is questionable.

The mine will employ a significant number of Australian workers and contractors.

It will enhance the stability and growth of the PNG economy at a time when it is desperately needed.

Canberra needs to get a move on and work with the parties to get the project under way.

It also needs to consider how best to keep China out of it.

This is a very good project. It is large, it's capacity to provide long term benefits to Papua New Guinea is beyond question.

It demands Canberra's urgent attention to strengthen the economic base of our neighbour and protect the Australian national interest.