The primary driver of new mine exploration and development will be more foreign investors or investments into the country.
Tommy Tomscoll, country manager of Ramu Nico Management (MCC), stated that exploration is a high-risk business, and that the PNG government and landowners will not be able to operate and finance upstream mining activities.
According to him, because the mining sector is worldwide, legal frameworks, stability agreements, and the operating environment must be stable, robust, and clear.
“I urge the industry to formulate a White Policy Paper that would articulate industry thoughts from mining companies operating in the mining sector,” Mr Tomscoll said.
“Let us work together in unity and unison.
“We are not competitors but partners in a global industry.
“Our competitors operate in another mining sector in other countries.”
He said the PNG mining sector is the spine of the national economy.
“As new mining production increase, so does the dividend and taxes to government treasury and public investment,” he said.
“The mines create significant domestic demand for smaller suppliers of goods and services (or MSME) unmatched by any other sector.
“The potential growth area for viable MSME also lies in the mineral sector by developing new mines and expanding old mines.”
Mineral Resource Authority managing director Jerry Garry also mentioned that exploration is the lifeline of the industry.
“From an exploration point of view, we have been averaging between K200-K350 million annually on exploration.
“All of you would appreciate and we have repeated that in many fronts that without exploration there would be no mining because exploration is the lifeline of the mining business and that sector needs to be encouraged,” he said.
Despite COVID-19, Garry believes that investments in the exploratory industry will continue.
Reference:
Tom, Patrick. Post-Courier (17 August 2021). “More Foreign Investors To Drive Exploration, Says Tomscoll”.
