Overview

PNG has enormous reserves of various minerals and gas. Mineral exports are gold, copper, silver, nickel and cobalt. PNG mines are spread across the country, the largest of which include Ok Tedi Copper and Gold Mine, Porgera Gold Mine, Lihir Gold Mine, Hidden Valley Gold Mine, Simberi Gold Mine, Tolukuma Gold Mine and Ramu Nickel Mine.  According to the Bank of PNG’s Quarterly Economic Bulletin, weighted average kina price of PNG’s export commodities, excluding LNG, increased by 20.7 per cent in the September quarter of 2021, compared to an increase of 2.5 per cent in the corresponding quarter of 2020. There was an increase of 16 per cent in the weighted average price of mineral exports, compared to an increase of 8.2 per cent in the corresponding quarter of 2020.

PNG’s mining sector is facing a range of competing trends and a rapidly changing global business environment. Against the backdrop of commodity price fluctuations, miners need to balance shareholder dividend expectations whilst maintaining an investment pipeline amid increasing operating costs. Safety, environmental and community principles also continue to shape the industry as miners look to achieve their license to operate and deliver on corporate social responsibilities. In addition to the global mining landscape, mining companies in PNG must deal with additional complexities, such as balancing the government’s desire for development, the needs of communities and resource owners, and environmental sustainability. 

Despite these challenges, PNG is in a highly prospective region and the opportunity for large-scale development is significant. There are a few major projects that are in the pipeline for development, including Wafi-Golpu and Frieda-River Mine. The Newcrest Mining Limited and Harmony Gold Mining Company Limited each own 50 per cent of the Wafi-Golpu Project through the Wafi-Golpu Joint Venture (WGJV). The Wafi-Golpu Project is an advanced exploration project located in the Morobe Province, 65 kilometers south-west of Lae City. Wafi Golpu will be PNG’s first block caving operations and has the potential to make a significant economic and social contribution to PNG over a period. WGJV has applied for a Special Mining Lease for the Wafi-Golpu Project and has submitted an Environment Impact Statement to the PNG Government that is currently undergoing a regulatory review process. 

Opportunities

The Wafi-Golpu copper and gold mine, Porgera gold mine, and the development of the P’nyang LNG provide opportunities for U.S. exports in heavy machinery, trucks and other mining and energy equipment. PNG’s principal metal exports – cobalt, nickel and copper are all likely to be important in the growing quest for the use of renewable energy and battery storage. There are opportunities for U.S. businesses to tap into the mining industry as and when many of these large-scale projects commence.

Events

PNG Mining and Petroleum Investment Conference and Exhibition

PNG Energy Summit & Exhibition. The Summit is a platform for the national Government to disseminate key messages relating to the energy sector and discuss new opportunities for development with international buyers, IOCs, NOCs, service providers and local SMEs.

Resources

• PNG Department of Petroleum and Energy
• PNG Chamber of Mines and Petroleum
• PNG Chamber of Commerce & Industry