Mining
From The Report: Papua New Guinea 2014
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In spite of the logistical challenges posed by Papua New Guinea’s geography, strong global demand for raw materials against the backdrop of the commodity super-cycle continues to fuel investment in the country’s mining sector. Mining and petroleum taxes are expected to increase their contribution to the national budget, rising from $331.6m in 2013 to a projected $406.5m for 2014. Joint-venture agreements have seen new mining activity being added to the country’s portfolio, which could help enhance gold, silver and ore output in the medium term. Notwithstanding the challenges facing the sector, which stem from the global economic situation as well as local regulatory uncertainties, the mining sector is projected to remain a major contributor to the economy for many decades to come, with Australia-based ANZ Bank forecasting gold and copper exports of $3.3bn and $3bn up until 2030. This chapter contains an interview with Byron Chan, Minister for Mining, and a viewpoint from Nigel Parker, Managing Director & CEO, Ok Tedi Mining.

Articles from this Chapter

Overview

In gold we trust: While challenges remain, global demand is boosting long-term prospects
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Situated within the Pacific ring of fire and immensely rich in mineral deposits, Papua New Guinea is one of the last frontiers for mining firms searching for unexploited treasure. Yet the same geologic forces which have concentrated gold, copper, nickel and other precious metals within the country – at the convergence of the Australian Plate to the south and the Pacific Plate to the north – have also contorted the earth’s crust into rugged mountain ranges and steep valleys. The logistical challenges…

Interview

OBG talks to Byron Chan, Minister for Mining
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Interview:Byron Chan Given current world economic trends, when can the recovery of the mining sector be expected? BYRON CHAN: We had a slow start to 2014, but the sector is set to recover promptly in the second quarter of 2015. This is what analysts are forecasting for the industry worldwide. Specifically in Papua New Guinea, the improved economic conditions and the windfall derived from the PNG liquefied natural gas (LNG) project should strengthen the position of the kina, thereby providing…

Viewpoint

Nigel Parker, Managing Director & CEO, Ok Tedi Mining, on the roles of townships and fly-in-fly-out employees in Papua New Guinea
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The debate over the benefits or disadvantages of the fly-in-fly-out employment model in the PNG resource industry is, in my view, often misguided, as it tends to target foreign employees, when in reality it is more applicable to the national workforce. Most resource extractive operations are located in very remote areas of PNG, so there is a need to recruit skilled workers from outside the local area. As the proportion of foreign employees in most extractive operations is less than 10% of the total…

Analysis

Understanding the amendments to the regulatory framework
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Although mineral extraction provides a large portion of the country’s economic output and exports, much of Papua New Guinea’s vast mineral wealth remains underexplored due, in part, to the mining sector’s challenging regulatory regime. Grey areas include, but are not limited to, land rights issues, royalties, length of contract, environmental and social obligations, contract sanctity by the government, and perhaps most importantly, a lack of clarity regarding ongoing revisions to the country’s…

Analysis

At the forefront of growing interest in deep-sea mining
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As global demand for precious metals and other minerals presses mining companies to seek out new deposits in remote locations, the next phase of the mining growth story could well take place beneath the oceans. Recent technological advances have brought the industry to a point where regulatory hurdles, rather than technical abilities, are the primary barrier to embarking on a new wave of subsea mines, much as the petroleum industry opened up vast new reserves with the advent of offshore drilling.…