Papua New Guinea remains one of the world's premier destinations for mining investment, said the Minister for Mining, Hon. Wake Goi, during the recent PNG Investment Week in Sydney, Australia.
Minister Goi stressed PNG's vast mining potential and highlighted the country's mining sector growth, future prospects, and investment opportunities to more than 2,000 delegates and potential investors.
Giving an overview of the mining sector, Goi said it is a mature and thriving sector, with roots stretching back to 1852.
“From the discovery of gold flakes in Motuan clay pots to the establishment of large-scale hard-rock mining operations like the Panguna mine in Bougainville, our nation has a rich mining heritage,” the minister said.
He noted that PNG hosts world-class giant mines, large-scale mines, and small-scale mines, along with several alluvial gold fields across the country.
Goi underlined the mining sector’s significance, which historically contributes over 80% of PNG’s total export revenue, citing impressive production figures from the past five years:
- Gold: 1.7 million ounces annually
- Silver: 2.4 million ounces annually
- Copper: 84,500 tons of concentrates annually
- Nickel and Cobalt: 33,500 tons and 3,000 tons respectively
- Chromite: 123,000 tons of concentrate
The sector generated an average annual export revenue of PGK13 billion over the past five years, he noted.
“PNG has established a strong reputation for mining safety, reducing fatalities from ten per year to an average of one, with zero fatalities recorded in 2017,” Goi added.
The minister also outlined several transformative mining projects:
- Ok Tedi Mine Extension: The mine's lease has been extended for 20 years, potentially extending operations beyond 2040.
- Porgera Mine Reopening: A 20-year special mining lease has been granted, with landowner compensation agreements nearly finalized. Compensation agreements with landowners and communities are in place, ensuring inclusive benefits and mutual prosperity. Goi also announced that New Pogera Limited has signed the Long Term Compensation Agreement with recognized Landowner Agents for 14 of its 15 tenements, which is in compliance with the Mining Act 1992. The CDA is ongoing and will soon conclude, he added.
- Ramu Nickel-Cobalt Mine Expansion: A US$1.5 billion investment aims to double or triple output, supported by downstream processing feasibility studies.
- Wafi-Golpu and Frieda River Projects: Two major copper-gold projects with combined investment potential exceeding US$11 billion are advancing toward permitting and development. As Prime Minister James Marape alluded to in his speech, Goi said the PNG government is paying careful attention to details to ensure they lock in an agreement that thoroughly underpins fair benefits of all stakeholders including, the investors, the State, Provincial Government, LLGs, and local landowners. Frieda River Project: A US$6 billion copper-gold project, with permitting anticipated hopefully by third quarter of 2025.
- K92 Mine Expansion: The completion of Stage 2A has boosted gold production, with Stage 3 and 4 expansions aiming for 470,000 ounces annually by 2026.
Goi reiterated the mining sector’s anticipation for strong annual production of minerals.
“For copper, we anticipate averaging between 500,000 to 700,000 tons over the next 30 years once new projects commence. For gold, projected annual production may reach around 2.5 million ounces by 2026. For nickel and cobalt, there is potential to double or triple production, reaching up to 90,000 tons of nickel and 9,000 tons of cobalt per annum,” he added.
The minister invited global investors to see PNG's rich geological resources, stable governance, and supportive investment climate for themselves. Major mining companies like Newmont, Barrick, Zijin, Harmony, and Rio Tinto are already operating in PNG, alongside emerging players like K92 Mining Inc., he said.
To enhance the investment environment, the PNG government plans to revise its Mining Act, introducing international best practices, improved tenement management, downstream processing incentives, and equitable benefit-sharing models, Goi said.
The minister reaffirmed the government's dedication to ensuring that mining-driven economic growth benefits all Papua New Guineans.
“I wish to acknowledge our investors who have made great efforts to foster growth in sustainable sectors like agriculture, building a resilient economic base. Mining in Papua New Guinea is not only about resource extraction; it's about building a legacy of sustainable development, innovation, and integrity.”
He encouraged industry leaders, government representatives, and community stakeholders to collaborate and maximize resource potential while upholding safety, environmental responsibility, and social development.
“Together, we can make PNG become a model for responsible mining on the global stage.” Goi said.
