Over K150 million in royalty payments have been made in 2016.
According to Mineral Resources Authority (MRA) mining activity in five projects generated K158.11 million.
The resource companies to have contributed are Simberi Mine (New Ireland), Hidden Valley (Morobe), Ok Tedi (Western Province), Porgera (Enga), and Lihir (New Ireland).
The following are royalty payments made by the resource companies.
- Simberi Mine – K7.55 million
- Hidden Valley Mine – K14.24 million
- Ok Tedi Mine – K28.34 milion
- Porgera Mine – K39.46 million
- Lihir Mine – K158.11 million
The royalties are a reflection of a rebound in the mining sector which the MRA says is reflected by several factors. They include:
- Improving mineral commodity prices, with the exception of copper. However, copper reacted to Trump the opposite to gold, and is currently up more than a third in value since hitting 6 year lows in February 2016;
- Rising production at key mines, notably Lihir (exceeding 903,000 oz gold) and Ok Tedi (copper up 77%, gold up 54% & silver up 96% on 2015); and
- Benefits from plant upgrades, greater efficiencies and new management strategies, especially at Lihir, Ok Tedi, Porgera and Simberi mines
The MRA says 2017 will still hold many challenges, but anticipates that a steady state of commodity prices and mine production is maintained to underpin the gains of last year and for mineral revenue will break through K10.5 billion this calendar year.
Picture credit: www.mra.gov.pg