Mining
From The Report: Papua New Guinea 2019
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The mining industry is one of the main pillars of economic growth in Papua New Guinea. In 2017 the sector accounted for 29% of GDP and generated 86% of export revenue. Gold and copper account for the majority of mining export revenue, respectively comprising 76.8% and 13% of total sector exports in the first five months of 2019. The mining industry also remains an important source of job creation, employing more than 20,000 individuals and indirectly supporting another 45,800 people. Mining in PNG is closely tied to demand from China. Therefore, if China’s imports of key commodities fall in response to its trade war with the US, it will adversely impact mining in PNG. The political environment may also affect sector investment. Prime Minister Marape has signalled a more cautious approach and intends to acquire greater financial benefits for PNG from the extractive industries. This chapter also contains an interview with Jerry Garry, Managing Director, Mineral Resources Authority.

Articles from this Chapter

Overview

Rich source of potential: Major projects in the pipeline could be a boon for the economy, but first they will have to navigate political and social barriers
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The mining industry is one of the main pillars of economic growth in Papua New Guinea. In 2017 the sector accounted for 29% of GDP and generated 86% of export revenue. Gold and copper account for the majority of mining export revenue, respectively comprising 76.8% and 13% of total sector exports in the first five months of 2019. The mining industry also remains an important source of job creation, employing more than 20,000 individuals and indirectly supporting another 45,800 people. Sector Structure The…

Interview

On firm footing: Jerry Garry, Managing Director, Mineral Resources Authority (MRA), on building resilience and widening the project pipeline
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Interview:Jerry Garry In what ways do global commodity markets affect the development of mining in Papua New Guinea? JERRY GARRY: It is difficult to predict mineral prices, given global volatility and the many factors influencing price. Gold remains PNG’s key mineral, as it accounted for 72% of mineral revenue in 2017-18. It is also one of the most volatile commodities, and therefore exposes our economy to greater risk. The US-China trade dispute is an obvious external variable that is…

Analysis

Under review: The state of the Wafi-Golpu project and future investments
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The future of Wafi-Golpu, a major gold and copper mine in Morobe Province to be developed by South Africa-headquartered Harmony Gold and Australian-owned Newcrest, appears uncertain after the government of Papua New Guinea told investors it intends to seek further benefits. Sam Basil, the then-treasurer, announced in June 2019 that the negotiation with the two firms was on hold until the national government negotiating team talks to the Morobe provincial government about its objectives for the project,…