Mining Biggest Export Commodity

According to the Bank of Papua New Guinea, export revenue from the mining sector stands at K17 billion, making it the largest export revenue commodity in PNG’s export history.

The Managing Director of Mineral Resources Authority, Jerry Garry revealed this at the recent Community Affairs and Media Workshop run by the PNG Chamber of Mines and Petroleum in Port Moresby this week.

“This is one of the highest export revenue by commodity and is only comparable to the PNG LNG. When PNGLNG was first exported in, 2014 has matched the export revenue for the mining sector.

“When you compare that to agriculture, which is the second highest and sustainable sector that has been producing well below K4billion export revenue annually, this is a big gap. Marine and Forestry have fallen well below K1 billion export revenue. So, by comparison, this industry really is the largest industry in the country,” Mr Garry said.

He said the industry continues to grow with the authority currently looking at potential new capital investment for new projects around K45 million, that includes Frieda River, Wafi Golpu, Central Cement and Lime and Woodlark.

“At the same time we are looking at around K10 billion component taxes sustaining car package for the industries,” Mr Garry said.

He said from an exploration point of view the industry has been raising between K200-K350 million annually from exploration.

“All of you would appreciate, and we have repeated this on many fronts, that without exploration there is no mining.

“Exploration is the lifeline of the mining business, so that sector needs to be encouraged. Despite COVID-19, we still see investment in the investment sector so this is good news.”

Mr Garry also announced to community affairs workers who were present that significant progress has been made in ensuring that benefit streams flow directly to the beneficiaries.

“This is a better option than having those benefits parked in intermediate holdings or places here they get milked out, abused and the recipients often seem to receive very little or none at all.”

“I want to acknowledge the work put together by Lihir in backing the integrated benefit package and ensuring that we have now complied with the Mining Act in separating the compensation agreements from other benefits, relocation and resettlement package. Which is very smart move in the right direction,” he concluded.

Author: 
Melissa Wokasup