Signals of Mine Closure - A Strategic Approach for Retrenchment - A Case Study of Porgera Gold Mine, Papua New Guinea

The issue of retrenchment is a topic of considerable relevance for the Papua New Guinea (PNG) mining, petroleum and gas industries. The unique environments in which Porgera Joint Venture (PJV) and other similar operations operate are likely to confront these industries with particular dilemmas that will require a range of investments to mitigate the problems associated with retrenchment and employment. This paper discusses retrenchment and employment in the PNG mining industry using the specific case study of PJV. The paper deals with the issue of employment and retrenchment of local workforces in the PNG context, which presents a serious challenge for the resources industry and the achievement of sustainable development objectives. The issue of future retrenchment of the workforce as a result of mine closure is an obvious challenge for both PJV and the Porgeran community at large, who have now come to rely upon both the employment opportunities presented through the mining. This paper examines these challenges and in doing so highlights some progress made by PJV. The paper also discusses downsizing, strategic practices and holistic approaches of retrenchment and employment. In doing so the paper highlights issues that have been overlooked in both academic and applied studies from global and local perspectives in the PNG mining sector. The latter sections articulate the relevance of the information provided by the case study in the wider context of retrenchment. The conclusion promotes a perspective that a great deal more investment will be required by all stakeholders to respond to the challenges of managing retrenchments and mine closure.