INDUSTRY SPOTLIGHT
MINERAL MINING
IN THE SOUTHWEST PACIFIC We examine the highly prospective industry of mineral mining within the Pacific island nation of Papua New Guinea Writer: Phoebe Harper | Project Manager: Matt Cole-Wilkin
T
he world’s third largest island county, Papua New Guinea (PNG) is universally acknowledged for its wealth of natural resources. This independent island nation boasts a diverse tapestry of geological landscapes resulting from significant tectonic activity, as relatively recent movements within the Earth’s crust prompted the collision of the northwards-moving Australian Plate with the Pacific Plate, thereby separating the island landmass of PNG from the Australian continent
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in bygone millennia. Today, PNG’s landscapes, comprising jagged limestone, impenetrable lowland rainforests, the towering Central Highlands of the Bismarck Range and fertile volcanic basins, are evidence of this geological movement. Meanwhile, vast deltas and areas of swampy plains are the result of high sediment loads within the Sepik, Ramu, and Fly River systems. This impressive geographical diversity to be witnessed above ground is equalled by the rich
mineral offering hidden beneath the soil, hosting a wealth that has long been explored and, in an industry that has historically received much criticism, exploited. The region is considered prospective for the exploration of several mineralisation styles, including epithermal and porphyry-related high and low-sulfidation systems, skarns, volcanic massive sulphides, exhalative manganese deposits, lateritic nickel-chromite-cobalt and sea floor massive sulphides. PNG’s capital of Port Moresby, situated on the fringes of the Coral Sea within the Gulf of Papua, is the dynamic seat of PNG’s export trade, which continues to represent the economic lifeblood of the nation. Naturally blessed with an abundance of minerals, gold and copper comprise PNG’s major mineral exports and are supported by stable trade links with surrounding nations across Asia Pacific, primarily Australia, Japan, China, and Singapore. Acknowledged as the land of gold and copper, PNG’s principal exports of minerals also include silver (a commercial by-product of most mines), nickel and cobalt.
A rich history The indigenous people of Papua New Guinea have mined clay and ochre from the earth for millennia, with traces of pottery unearthed in 1852 attesting to the presence of gold on the island. However, it wasn’t until the 1970s that the deposits of PNG were well and truly bought to the fore, triggering frenzied industrial activity at a pace that has more or less
continued to present day. A defining decade that also witnessed PNG gaining national independence in 1975, the country was effectively transformed by the discovery of major mineral deposits – both physically, as several large-scale mining operations were constructed across the country, and economically, as the export trade flourished and introduced a seismic shift for PNG’s economy. Financial activity was revolutionised by the nascent extractive sector and the subsequent tax revenue resulting from international trade. This originated in the pursuit of porphyry copper before the attention shifted to gold by the 1980s, when the discovery of deposits at both Porgera and Lihir exposed some 200 tonnes of gold, alongside other natural deposits of economic interest. Globally important mines are situated around intrusive centres and volcanic edifices that contain porphyry copper-gold ores and epithermal deposits of gold and silver.
Sector Challenges For various reasons, the primary challenge defining the mining of mineral resources across PNG, are the disputes surrounding contested mine locations and the fraught relationship between mining companies and local landowners. Historically, this has resulted in turmoil and even outright warfare, as evidenced by the significant conflicts that resulted in the closure of the Panguna mine in 1989 and the subsequent introduction of a ‘peace process’ in the late 1990s.
INTRODUCTION
PAPUA NEW GUINEA MINERAL RESOURCES AUTHORITY (MRA)
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High Arctic Energy Services (High Arctic) have over 25 years’ experience providing an ever-expanding catalogue of products and services to the energy sector. Priding themselves on industrial excellence, High Arctic operate both domestically and internationally as their expanding presence is fuelled by the operating requirements of their esteemed clients. High Arctic’s International Operations in Papua New Guinea (PNG) are testament to this ongoing success.
Since 2007 from their base in Port Moresby, and additional regional offices in Brisbane, High Arctic have leveraged their presence in PNG to provide significant value and performance for their customers. High Arctic’s mantra of ‘every challenge has a solution’, and ‘no problem is too difficult’ is evidenced by their ongoing success in the challenging PNG landscape, overcoming harsh and remote physical environments with their leading energy industry services. High Arctic are specialists in remote worksite equipment operations, maintenance management, logistics and support services, including Heli-portable drilling and workover rigs, material handling and camps. The company also offer an extensive specialised fleet of support equipment for rental, including cranes, trucks, forklifts, gensets, light towers and Worksite Matting Systems, thereby providing safe road and site access solutions - no matter how challenging the environment.
services teams. A comprehensive and reliable line up of equipment enables High Arctic to deliver high quality services across drilling, workovers, completions, and more, with an emphasis on delivering affordable, safe services to their customers. High Arctic are renowned as one of the largest providers of HDPE Composite Mat Systems. These consist of temporary road and site access solutions, that are by nature fit for purpose and environmentally friendly. These worksite mats offer a durable platform service suited for access across harsh and uneven terrains concerning the mobilisation of heavy equipment and ground protection. These innovative mats streamline and facilitate the rapid construction of site locations and temporary roads with minimum equipment and personnel.
Across PNG, High Arctic own and operate Heli-portable drilling rigs for specialised drilling with advanced performance. Combining convenient mobilisation with reliable and economic operation, a High Arctic Heli-portable drilling rig is designed and manufactured to respond to the varied and complex operating needs of their clients. High Arctic rigs are equipped with state-of-the-art electronic control systems delivering safe, cost effective efficient services in challenging environments.
With four primary pillars of operations comprising drilling rigs, workover rigs, worksite matting and rental equipment, High Arctic are bolstered by the support and expertise of their highly trained and qualified crews, logistics, trade, and
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The company’s incomparable standards of excellence continue to make the decisive difference, as High Arctic endeavour to create superior value for investors through the delivery of dependable and innovative energy services. Leading with the central values of caring for the customers, the community, and their own invaluable backbone of employees, High Arctic have the utmost respect for both the people and places within which they operate, and conduct activities with the highest ethical and professional standards. In August of 2020, High Arctic’s PNG operations marked a laudable four-years recordable incident free. High Arctic understands that this achievement does not come by luck. Hard work, dedication to safe work initiatives and skills development through internationally recognised training of its personnel are fundamental to this result. High Arctic recognises the strong community values throughout PNG and fosters these values within their business to unite all towards a common goal. High Arctic is looking forward to maintaining its safety leadership record well into the future. A key contributor to High Arctic achieving this will be its continued focus in developing and enhancing the capabilities of its citizen workforce. This record could not be achieved or maintained without a dedicated workforce, supportive clients, service providers and suppliers.
The company seek to motivate and inspire their workforce through exceptional leadership, which is instrumental in creating a safe environment and an ethical workplace, whilst delivering innovative, efficient, and profitable solutions. It is this relentless focus on quality that enables High Arctic Energy Services to enjoy an enviable reputation within the sector today.
Aside from drilling rigs, High Arctic’s other offerings in PNG comprises their extensive gamut of equipment rentals and support services. High Arctic’s owned and operated inventory of support equipment includes the following: • • • • • • • • • •
Crawler Cranes High Pressure Water Pumps Forklifts/Wheel Loaders Telehandlers Lighting Towers Camps (10 to 100 bed) Trucks Washdown Packages Vehicles Drill Strings
www.haes.ca E: info@higharctic.com.au T: +675 307 2000 APAC Outlook issue 50 | 5
INDUSTRY SPOTLIGHT
INTRODUCTION
Alongside the humanitarian issues evidenced by the relationship between mining companies and the local population, environmental concerns prevail. The PNG space introduces further complexities of safeguarding the needs of local communities and resource owners whilst demonstrating a concern for environmental sustainability in the face of the government’s continued drive for development, as evidenced by the major projects of the Wafi-Golpu and Frieda-River from Australia-based PanAust – a gold and copper mine that has received significant backlash for the potential environmental damage to the Sepik River.
The environmental effects of large-scale mining operations are still hotly contested, as polluted fields and poisoned water supplies continue to pose a real threat concerning the improper marine disposal of mine tailings, and the illegal use of mercury in alluvial gold mining. The exploration stage of scouting for mining locations and consequent extraction processes can have significant environmental impact, involving road building, forest clearances and resettlement for communities. Due to the nature of the mineral deposits, mines across PNG are located in remote, isolated areas, situated amidst mountainous terrains and on the surrounding outer islands. The nature of the terrain translates to a lack of visibility and is a major hurdle in effectively overseeing mining activities and dispelling illegal operations that continue to plague the industry. Most recently, the earthquake of February 2018 hampered the sector’s progress, particularly regarding liquefied natural gas (LNG) operations, as a natural disaster of significant magnitude wreaked widescale disaster, burying local communities and causing landslides and sinkholes.
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Today, ongoing fluctuations in commodity prices and increasing operating costs are a challenge, with mining companies walking the tightrope of balancing shareholder dividend expectations whilst maintaining a pipeline of investments. On a journey to becoming an enabling business environment, industry in PNG can be hampered by a weak public infrastructure and limited access to land and finance, alongside political instability, and a general skills shortage. Meanwhile, all industrial operations on the island face constraints in the shortage of foreign currency and unfavourable exchange rates. All of the above remain pertinent to the PNG industrial mining landscape and continue to effect operations, with mining companies on the island expected to revere and respond to these challenges, thereby confirming the need for a regulatory body to oversee and safeguard the interests of the sector in a modern context.
...the PNG government are now focused on facilitating broadbased, inclusive and sustainable development with greater diversification, by investing and strengthening the business environment to encourage development within the private sector”
PAPUA NEW GUINEA MINERAL RESOURCES AUTHORITY (MRA)
A hopeful future Despite this fraught context, mining in PNG continues to boom in the 21st century with several new mines opening across the landscape. In the face of sector-wide challenges, PNG remains a prospective region rich with opportunity for largescale development, as the country seeks to move on from this dark past. Today, the sector advocates a renewed consciousness and awareness concerning the mitigation of environmental and societal damage. As the country’s second largest employer and a significant contributor to the development of rural
infrastructure, mining has a key role to play within the development of PNG as a Small Island Developing State (SIDS). Gold and copper deposits currently represent two-thirds of the value of countrywide exports, with income from mineral mining representing one fourth of the gross domestic product (GDP). In recognition of the economy’s dependence on the extractive industries, the PNG government are now focused on facilitating broad-based, inclusive and sustainable development with greater diversification, by investing and strengthening the business environment to encourage development within the private sector. APAC Outlook issue 50 | 7
INDUSTRY SPOTLIGHT
Papua New Guinea Mineral Resources Authority (MRA) Realising the untapped potential of small-scale operations and overcoming sector wide challenges with the guardian body of PNG’s mining sector
A
t the forefront of mining operations within PNG are the Papua New Guinea Mineral Resources Authority (MRA), charged with overseeing the industry’s vast footprint across the country. As an official Government Agency, the actions of the MRA are intrinsically linked with governmental activity, with all functions essentially
operated on their behalf. The MRA came to fruition in 2005, established as a direct response to the enactment of the Mineral Resources Authority Act passed by the national Parliament that same year. The authority adopts an essential role of stewardship in overseeing the compliance of all PNG tenements to sector regulations.
MRA STRUCTURE: THE FIVE DIVISIONS • Corporate Services Division (CSD) - Fulfilling a facilitative and supportive role, the CSD’s goal is to
ensure the MRA realises its corporate mandate through the provision of Finance and Accounting, Human Resources, Information Technology and Assets Management on a timely and costeffective basis to ensure that operating divisions maintain an optimum level of efficiency. • Development Coordination Division (DCD) - The DCD ensures that exploration and mining activities in Papua New Guinea are done within the regulatory and policy framework, with benefits from these activities being distributed fairly and transparently to all beneficiaries and stakeholders. DCD have four branches: Exploration Coordination, Mining Project Coordination and Sustainable Development. The division also has a small Gender Coordination Unit that deals with gender participation/issues, for all three branches. • Geological Survey Division (GSD) - Geological Survey’s primary function is to carry out earth sciences research and studies and process the field data to assist and promote exploration, geological and related activities in the mineral sector. It also manages the MRA Library which is a depository of all exploration and mining, and other earth science related activities in PNG. • Regulatory Operations Division (ROD) - This division contains the Tenements and Mines Safety Branch that carry out regulatory functions of exploration and mining in PNG. • Special Projects Unit (SPU) - One of the small units that deals with the administering and management of all special projects. This includes on-going development and support function in the areas of project procurement, financial accounting and management for the European Union (SYSMIN), World Bank and other future donor funded projects.
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BUSINESSS INSIGHT
PAPUA NEW GUINEA MINERAL RESOURCES AUTHORITY (MRA)
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Simberi Simberi is is set set for for Anton Pegi, cocoa farmer on Simberi Island who also works for the local umbrella landowner company, Simberi Mine Services
Return to cocoa farming On the island of Simberi, approximately 1,000km north of Port Moresby (Papua New Guinea), a dedicated team is working towards a sustainable future for Simberi and the Tabar Island group. Home to St Barbara’s Simberi Operations, Simberi and Tabar Islanders are producing cocoa plantations for the first time in approximately 35 years; a practice reinvigorated by St Barbara’s sustainable development program in 2012. In line with St Barbara’s commitment to building Stronger Communities, St Barbara’s Simberi Operations has been working with locals to help build sustainable businesses to economically empower people for a life post-mining. Under the umbrella of Simberi Mine Services (SMS), a community business coordination and governance company, St Barbara is helping to empower local community members with training to help them develop commercial ventures to set them up for success. Helping locals build on
the success of their businesses created under SMS is a priority for St Barbara. Under the guidance of SMS, local community members and landowners have created mariculture (seafood) inland fisheries, market gardens, a poultry farm, a pizzeria, a bakery and cocoa plantations. Planting of cocoa crops began in 2017. Today, a total of 50 hectares have been planted around Simberi and Big Tabar Islands. More than 27,000 disease-resistant cocoa seedlings, grown in St Barbara’s nursery, were distributed to local farmers who use traditional mixed cropping organic farming methods, where subsistence food crops provide shade for the lower growing cocoa plants. Community Relations Officer and agriculture specialist Emmanuel Agua explains the need for careful handling of cocoa from planting and harvesting to drying and packing. “We guide the farmers in all stages of cocoa planting and production. Cocoa is a delicate crop that requires high rainfall and the right temperatures
to flourish. It also needs suitable trees to give it shade and protection from the sun and strong winds. The work is hard but also rewarding as we are seeing now with Tabar’s first-ever chocolate,” Emmanuel said. Tabar Islands Chocolate is made from 75% cocoa, sourced entirely from cocoa farmed by locals on Tabar Island and is made in partnership with Paradise Foods. 2020 saw the first batch of Tabar Islands chocolate produced with 1,900 packets of dark confectionery distributed. The people of Tabar Islands were excited to see the finished product as the cocoa that was previously produced was exported to other countries to make chocolate and other products. Today, more than 120 family farmers are involved in the project and receive guidance from St Barbara’s Community Relations team by way of technical and agricultural advice. St Barbara hopes to see this number grow as they continue to deliver on their commitment to building Stronger Communities.
success success
Empowered people and diverse teams St Barbara is an employer of choice, committed to inclusion and diversity. Earlier this year, St Barbara announced the appointment of Iso Ealedona as General Manager of its Simberi Operations. Mr Ealedona is the first ethnic Papua New Guinean to head an operation owned by an Australian Stock Exchange (ASX 200) company. Of the 750 employees at St Barbara’s Simberi Operations, 96% are Papua New Guinean nationals. The company is committed to empowering its people and creating diverse teams where, in a safe and healthy work environment, talented Papua New Guineans are inspired and supported to reach their full potential. Craig Jetson, St Barbara’s Managing Director and Chief Executive Officer is confident Iso Ealedona will capably lead the Simberi Operations. “As a publicly recognised employer of choice, we are proud to be the first public company in Papua New Guinea to entrust this important role to a capable PNG national with the right skills and experience to lead our 1,200 strong workforce at Simberi.
Four of these women work on an all-female truck mining crew, operating haul trucks in the pit. The women were green hires. They underwent 400 hours of intensive theory and practical lessons before qualifying to operate haul trucks. Left to right: Serah Lawat, Roselyn Leto, Olivia Pikene and Hanshaine Gasoreng.
“We are at an important stage of operations in Simberi, as we continue to productively mine the oxide deposit and plan for a bright future via the Simberi sulphide project. Iso will capably lead us through this transition as we support our Simberi community, contribute to New Ireland Province and deliver on our commitments to PNG and its people. “St Barbara is committed to creating a workplace where our talented people can reach their full potential in their chosen field and expertise. This key appointment is aligned with our commitment to develop and promote great PNG Professionals,” said Mr Jetson. Mr Ealedona was humbled by the appointment. “It’s an honour to lead, on behalf of St Barbara, a mining operation in my home country. With the St Barbara executive, Simberi leadership team and the workforce behind me, I am determined to lead Simberi safely and successfully through this transition period of oxide to sulphide mining for the benefit of all stakeholders,” Mr Ealedona said. Demonstrating its commitment to gender diversity, St Barbara has recently achieved its three-year target of 16% women in its PNG workforce. Their Simberi Operations employs 121 women, of whom 65% are local Simberi Islanders.
About St Barbara St Barbara is a growing gold company with a global outlook, committed to creating value in everything it does: for its people, its communities and St Barbara Limited itsLogoshareholders. Horizontal Format CMYK
CMYK
An ASX200 company, St Barbara’s gold mining operations are located in Australia (Western Australia), Canada (Nova Scotia) and Papua New Guinea (Simberi). The company is guided by its five commitments and values-led culture. Its five business-wide commitments are: Safety always; Empowered people, Diverse teams; Stronger communities; Respecting the environment; and Growing sustainably.
Preferred reproduction Red on white/light background Original file format: Illustration CS3
Studio Periscope 2009 All Rights Reserved
The company’s Simberi Operations are fully integrated into the community, with high levels of local employment and ongoing community support and involvement. Around 96% of employees are from Simberi, the nearby Tabar Islands and other parts of Papua New Guinea, creating business opportunities for local businesses and suppliers.
Papua New Guinea
Simberi Operations
BUSINESSS INSIGHT
INDUSTRY SPOTLIGHT
MRA’S SMALL SCALE MINING SCHOOL - WAU, MOROBE PROVINCE Mineral Resources Authority’s Wau Small Scale Mining Training School in Wau, Morobe Province, has more than 200 students graduating each session. The school trains artisanal miners on simple geology, mining techniques, occupational health and safety, including the proper use of mercury, and business skills in business management and bookkeeping. The initiative was funded and established by the European Union and is located within one of the country’s historical mining townships at the Wau/Bulolo gold fields. The training centre is the first of its kind in PNG.
The MRA effectively began operation in 2006, as the former PNG department of mining was divided to form two new organisations: the MRA and the Department of Mineral Policy and GeoHazard Management. The Authority is structured around a board of members representing a range of professions, including economists, geologists, and mining engineers. This combines to create an assembly with extensive industry expertise and managerial experience, resulting from the board members’ combined responsibilities spanning both the public and private sector. Indeed, board membership is divided equally, as the total nine members are split into four representatives from the
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public and private sectors respectively and presided over by the Managing Director. Today, Managing Director Jerry Garry holds tenure over the MRA, bolstered with extensive industry experience. Previously working as Director at Explominer Geoservies Ltd in Port Moresby and the former PNG Country Manager at Crater Gold Mining Limited, Garry brings a unique understanding of the industrial context to his position. His professional and post-graduate background comprises contracting and consulting services for mineral exploration, tenement management, including supervising environmental permit application, alongside conducting training and mentoring within the field.
Rapidly Expanding and Socially Responsible Mining for the Prosperity and Sustainable Development of Papua New Guinea At K92 Mining, we have a strong focus on the prosperity and sustainable development of PNG. At our underground Kainantu Gold Mine in Eastern Highlands Province, we are proud to: • Be a major contributor to the tax base of Papua New Guinea • Employ +1,000 people, of which +95% are from PNG and majority local landowners • Have one of the best safety records in the Australasia Region
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• Advance multiple long-term social and economic development initiatives, including: business development, education, health care, infrastructure and service programs • Continue to develop the resource potential for future generations through exploration • Receive the prestigious 2021 Thayler Lindsley Award for Best Global Discovery, a first for PNG - Congratulations to all!
BUSINESSS INSIGHT
INDUSTRY SPOTLIGHT
Safeguarding the Sector The MRA fulfil a crucial role in supervising mining activities and thereby safeguarding the interests of the sector. This translates to enabling smooth operations, and ensuring that all mining activities are conducted according to government expectations. As most land across PNG continues to be controlled through traditional systems of land tenure, the MRA are critical in endorsing the legal requirements of all mining companies to adequately compensate local landowners, thereby easing the tension that has historically caused significant disruption within the sector. This is particularly relevant in a modern context, whereby mines currently operating in PNG are no longer isolated to specific geological terranes or elements. As a regulatory voice, the MRA promote strict regulations for any company seeking to conduct business within PNG. This is evidenced by the public updates that the authority distributes, performing a key role in inter-sector communication – as in February of this year when the MRA released a notice encouraging all mineral tenement holders within PNG to report and address unlawful mining activities. By identifying hazards, conducting
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As most land across PNG continues to be controlled through traditional systems of land tenure, the MRA are critical in endorsing the legal requirements of all mining companies to adequately compensate local landowners”
awareness and informing offenders about the imminent dangers associated with unauthorised mining activities, the MRA define themselves as the point of contact to raise such issues. All tenement holders are therefore obliged to report unsafe artisanal or mechanised mining activities to the MRA’s Chief Inspector of Mines or the PNG Director of Mining.
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HIDES GAS DEVELOPMENT COMPANY LTD A commercially diverse Company group founded on service to the Oil & Gas industry, providing economic and social benefits for churches, shareholders and the communities we operate in. Sustainable growth through building skills, developing professional operations and delivering tangible value to customers, shareholders and communities.
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INDUSTRY SPOTLIGHT
The MRA overcomes the challenge of the remote location of PNG’s mines by deploying a band of inspectors who travel to sites across the island to fulfil their supervisory role. These inspectors are charged with conducting regular inspections of stockpile areas and other regulatory matters. The crucial role of these inspectors was evidenced in 2018, when one of PNG’s major mines, Ok Tedi Mining Limited (OTML) came under fire with false allegations regarding illegal alluvial gold mining activities. It was a claim that MD Jerry Garry was quick to publicly dispel, thanks to the MRA inspectors who could confirm that no evidence of the claim had been uncovered on board the mine’s dredge, allowing the Authority to effectively safeguard the mine’s reputation.
Protecting Papua New Guinea The MRA endorse equal respect for the environment in which they operate. The Authority appreciates that an understanding and reverence for the diverse culture and socio-economic context of PNG is essential to guarantee successful and long-lasting mining and exploration operations. Promoting a community-conscious approach,
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In addition, the MRA endeavours to foster and nurture a healthy consideration for the biodiversity and natural landscapes of PNG”
MRA recognise and encourage the vitality of strong, beneficial relationships between mining operators, landowners and local communities. This is enforced through strict regulations and parliamentary laws that seek to protect the interests of all parties involved. In addition, the MRA endeavours to foster and nurture a healthy consideration for the biodiversity and natural landscapes of PNG. Similarly, this is implemented by ensuring that all tenement holders abide by existing environmental legislation whilst also advising other corporate entities on how to do the same, thanks to the expertise gained from the Board’s collective experience in the sector.
BUSINESSS INSIGHT
INDUSTRY SPOTLIGHT
By so doing, the MRA seek to protect PNG’s rich biodiversity and biological heritage, consisting of unspoilt natural landscapes and multiple rare species, for the sake of future generations. The MRA continue to assist the PNG government in these commitments. The MRA’s mandate of promoting positive mining sector development in PNG is best evidenced by the educational role that the authority chooses to adopt. As an educational voice, the MRA runs a small-scale mining school in the town of Wau in Morobe province, whilst additionally supporting the further development of the sector through training activities and other forms of technical support. The MRA produce and circulate mining specific publications, including brochures and pamphlets covering a range of topics pertinent to the sector. This includes the bi-annual Mining Exploration Bulletin and the MRA’s official newsletter, Mineral Tok. This ensures that all MRA stakeholders are kept up to date with industry updates, exploratory work, sustainable people centred activities, legislative policies and updates, capacity building and institutional strengthening developments as well as investment and marketing drives.
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Between 60,000 and 80,000 small scale miners earn a living out of alluvial mining by commonly using non-mechanical methods thereby making a contribution to Papua New Guinea’s total production of 1.9 million ounces of gold in the same year”
An on-site library is the repository of records and information on geo-scientific studies and work from pre-independence era to present. It contains a huge volume of geo-scientific knowledge and archives of statutory reports submitted by mineral tenement holders that are available for all MRA members. Finally, the MRA’s educational role is furthered
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PAPUA NEW GUINEA MINERAL RESOURCES AUTHORITY (MRA)
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Painim Wokinvolvement PNG, Friday, November by the authority’s dedicated in 6, 2020 1 the country’s geological survey in the face of a | | | | | | | | | | significant lack of data. MRA is continuously working to improve the quality and coverage of geo-scientific data in PNG, and does so through leveraging its own resources, whilst also cooperating with international partners.
ment Section 12Section | Saraga 32, Allotment 32, Street, Allotment 12 6 Mile Section | Saraga 12PO Saraga 32, Street, Box Allotment 734 Street, 6 Mile Port 612 Mile Moresby, POSaraga Box PO734 Box Papua Street, Port 734 New 6 Moresby, Mile Port Guinea Moresby, PO Papua Box 734 Papua New Port Guinea New Moresby, GuineaPapua New Guinea
Championing sector development Operating under the mantra ‘Minerals for Life’ the MRA are invested in championing a sustainable vision of development to ensure the sector’s long-term success. In a recent interview with the Oxford Business Group, Garry stated that MRA were currently investing in and utilising innovative exploration techniques to ensure sector sustainability. Garry went on to comment that with a mature mining sector that has been stable for the past 50 years, investors should approach the industry with confidence. In order to guarantee this stability, new laws across PNG pertaining to mining must find the right balance between wealth distribution and a competitive fiscal and regulatory regime. A key segment of this development is the progress
of small-scale mining - a relatively untapped area with huge potential at the local level of businesses, with approximately 95,000 ounces of gold exported in 2012. Between 60,000 and 80,000 small scale miners earn a living out of alluvial mining by commonly using non-mechanical methods thereby making a contribution to Papua New Guinea’s total production of 1.9 million ounces of gold in the same year. Crucially, this kind of activity sustains the livelihood of rural mining communities whilst contributing to country revenue. Just one example of promising developments within the sector is K92 Mining Inc. – a tenement holder within the MRA. Earlier this year, the mine was awarded the prestigious Canadian Thayer Lindsley Award for Best Global Discovery by the Prospectors and Developers Association of Canada (PDAC). A statement of excellence, the award represents an important achievement for PNG mines and all stakeholders concerned in making the Kainatu Mine a world class site. With an estimated 100 years’ worth of future extraction currently supported by the country’s mines and new projects under construction, the MRA will continue to guide the sectors’ responsible development for the coming century. APAC Outlook issue 50 | 19
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