Ok Tedi Mining has announced strong profits and dividends – important because it accounts for over four per cent of Papua New Guinea’s economy. But the future of the company, which has new shareholders, will depend on finding new reserves beyond the Ok Tedi mine’s projected six-year mine life.
The decision by the Marape-Steven government not to extend the Special Mining Lease on the Porgera gold mine is headed for the courts after the National Court of Justice at Waigani ordered both parties to have discussions to resolve the matter.
Prime Minister James Marape moves to allays concerns among Papua New Guinea’s mining companies following the decision not to renew the special mining lease for the Porgera gold mine. Meanwhile, the mine’s temporary closure is already affecting local business.
The global economic crisis triggered by COVID-19 outbreak has increased the urgency for Papua New Guinea to facilitate mining projects, which are the biggest providers of crucial foreign exchange. Business Advantage PNG speaks exclusively PNG’s Mineral Resources Authority about where the sector is heading.
The Papua New Guinea Government has announced that it will not renew the existing Special Mining Lease at the Porgera gold mine, which is operated by Barrick Gold. Barrick is set to challenge the decision.
Papua New Guinea is facing a debt crisis according to new reports from the Asian Development Bank and the World Bank, and the country will need the cash injection of new major investments to avoid ‘lacklustre’ future growth.
Papua New Guinea’s largest company, Oil Search, is proposing to raise US$700 million (K2.4 billion) to strengthen its balance sheet in response to declining oil prices. The company’s stake in the PNG LNG project may also eventually be on the table.
Analysts have contrasting views on the effect of the oil price war between Russia and Saudi Arabia on long-term oil and gas projects in Papua New Guinea. David James considers these, and the likely impact on domestic petrol and diesel prices.
The departing Oil Search Managing Director tells Business Advantage PNG he remains positive about Papua New Guinea’s economic future, saying that LNG investment can help fund a stronger, more diversified economy. And he has some parting advice.
Papua New Guinea’s mining sector recorded its lowest result for five years in the Fraser Institute’s annual Investment Attractiveness Index. We consider the reasons, and their impact on PNG’s global competitiveness.