Mining

Shaped by shifts in supply and demand, Papua New Guinea’s economy has relied heavily on mineral extraction for most of its modern history. On the back of increased gold, copper, nickel and cobalt production, mining revenue expanded by 18.8% in 2017. As prices rebound, growth in mining activity comes at an important juncture, boosting export and fiscal receipts, as the country grapples with ballooning public debt. While the economy is still highly vulnerable to commodity price shocks, major investments across a number of strategic mining projects are set to bolster economic output. Despite the positive outlook, inadequate infrastructure, landowner identification issues and delayed amendments to the existing mining act continue to hinder the progress of the sector, which by most measures has immense potential. This chapter contains an interview with Craig Lennon, Managing Director and CEO, Highlands Pacific.