Mining

The mining industry is one of the main pillars of economic growth in Papua New Guinea. In 2017 the sector accounted for 29% of GDP and generated 86% of export revenue. Gold and copper account for the majority of mining export revenue, respectively comprising 76.8% and 13% of total sector exports in the first five months of 2019. The mining industry also remains an important source of job creation, employing more than 20,000 individuals and indirectly supporting another 45,800 people. Mining in PNG is closely tied to demand from China. Therefore, if China’s imports of key commodities fall in response to its trade war with the US, it will adversely impact mining in PNG. The political environment may also affect sector investment. Prime Minister Marape has signalled a more cautious approach and intends to acquire greater financial benefits for PNG from the extractive industries. This chapter also contains an interview with Jerry Garry, Managing Director, Mineral Resources Authority.