“The demand for gold almost always rises as the economy worsens. And that is just what is happening today,” New Ireland Governor Sir Julius Chan said in a statement during a meeting with Kumul Petroleum Holdings Limited (KPHL) board in the province.
He added, “In less than two years, gold has gone from US$1,200 (K4,197) per ounce to nearly US$2,000 (K6,995) per ounce – an increase of nearly 70 per cent in two years. The outlook is that the price will continue to rise at a moderate but steady rate. That means the returns from gold – unlike returns from oil, LNG or copper – will be much higher over the next year than in the past year. Returns from gold in PNG will increase by about 40 per cent over the next year. The revenues from gold will likely go from about K10.5 billion last year to around K15 billion next year – an increase of K4.5bil in one year, I believe these windfall profits should benefit the people, not just the companies.”
With the meeting held at the newly-opened New Ireland legislative building, the KPHL paid a courtesy visit to Sir Julius and other executives of the New Ireland administration. Among those who visited and took part in the meeting included KPHL board chairman Dr Benedict Yaru, managing director Wapu Sonk and directors Dr Ila Temu and Peterson Pipi.
Aside from the price of gold, Some of the things discussed were the proposed amendment to the Oil and Gas ACt slated to have a reading in the next Parliament sitting, the power issues faced due to PNG Power’s lack of capacity to supply to the town of Kavieng (some suggested solutions where the use of LNG and the preferred energy solar power of the government of New Ireland), and the welfare of the mining sector.
