Mining

In spite of the logistical challenges posed by Papua New Guinea’s geography, strong global demand for raw materials against the backdrop of the commodity super-cycle continues to fuel investment in the country’s mining sector. Mining and petroleum taxes are expected to increase their contribution to the national budget, rising from $331.6m in 2013 to a projected $406.5m for 2014. Joint-venture agreements have seen new mining activity being added to the country’s portfolio, which could help enhance gold, silver and ore output in the medium term. Notwithstanding the challenges facing the sector, which stem from the global economic situation as well as local regulatory uncertainties, the mining sector is projected to remain a major contributor to the economy for many decades to come, with Australia-based ANZ Bank forecasting gold and copper exports of $3.3bn and $3bn up until 2030. This chapter contains an interview with Byron Chan, Minister for Mining, and a viewpoint from Nigel Parker, Managing Director & CEO, Ok Tedi Mining.