Commodity price fluctuations have rendered sporadic development across Papua New Guinea’s mining sector in recent years. Nevertheless, a diverse basket of minerals continues to attract international investors, who remain eager to unearth the nation’s resources, which have fuelled economic expansion. However, a lack of hard infrastructure and challenging natural conditions continue to escalate operating costs, which hampers revenue streams across the industry. Despite infrastructure drawbacks, mining continues to play a crucial role in the economy, contributing more than 34% of export revenues, according to figures from the Mineral Resources Authority. The sector registered impressive production numbers throughout 2016, following a weaker performance in 2015, which was characterised by a depressed commodities market and a temporary closure of one major mine.
This chapter contains an interview Peter Graham, Managing Director and CEO, Ok Tedi Mining and Chairman, Kumul Minerals Holdings.