The Mining Industry of Papua New Guinea

The paper presents an overview of the mining industry of Papua New Guinea. Although the Bougainville problem is still unresolved, new mines like Ok Tedi, Misima and Porgera, which have come on stream during recent past, have raised hopes of sustained growth period in the industry. Kutubu Oilfield is also being developed in the Southern Highlands and the oil production has commenced from July 1992. Government revenue from these mega projects will increase five-fold during 1993 and 1994. A new mine which is being planned is the fabulous Lihir Deposit, on an island renowned to be full of gold. Gold occurs within a volcano which still contains high temperature ground water because the system which created the deposit is still geothermally active.In Papua New Guinea, problems of environmental management are far easier to tackle than those of a socio-political and economic nature involving compensation payments to the landowners and the distribution of royalties and taxes between the national and provincial governments. At the socio-political level, the country has not been able to resolve the problems of land rights versus mining rights. Whenever mining starts in a big way, it raises people's expectations to a very high level, which then becomes the focal point of dispute between landowners, provincial governments, national government and mining companies. A new system called 'Forum' has been tried to bring all parties together and son out the issues. The system appears to be working well in new mines like Ok Icdi, Porgera, Misima and Kutubu Oilfields.