The PNG Extractive Industries Transparency Initiative has expressed concern over unregulated mining activities in the country.
Executive Director for PNGEITI National Secretariat, Mr. Lucas Alkan says alluvial mining are largely unregulated activities which raises concern.
“Unregulated mining activities leaves authorities and stakeholders with limited information about this segment of mining industry and this is a concern,” said Mr. Alkan.
The concerns from PNGEITI over alluvial mining follows comments by PNG Chamber of Resources and Energy President, Anthony Smare that there is a problem on how alluvial gold is produced in the country.
The recent PNGCORE summit heard that bigger mining companies operating in the country are subject to PNG Mining Act and even international laws on mining and they are obligated to comply but the problem exists with alluvial gold producers who may underreport the quantity of the minerals produced.
Mr. Alkan expressed similar concern that the sector (alluvial mining) is largely unregulated that there is limited information about its magnitude and the scope of its activities.
PNGEITI Report 2022 raised similar concerns, strongly calling for proper coordination and regulatory mechanisms to keep track of opportunities and challenges that someone engaged in alluvial mining is faced with.
“Alluvial mining and associated activities contributed to economic well-being of a good number of people living in remote parts of the country. Taking an inclusive government approach in regulating different facets of the mining industry is important. In this way we can give every participant a fair share,” Mr Alkan stated in the PNGEITI Report 2014.
The Mining Act of 1992 allows people to mine for alluvial minerals on their land by using non- mechanical means without the need for a mining licence and this activity can be categorised as an informal activity that involves millions of kinas.
Mineral Resource Authority reported that K640 million kina was made from alluvial mining in 2022 and estimates this figure to increase in the coming years.
Mr Alkan says alluvial mining activities will continue to increase and therefore it is important that the Government takes stock of the magnitude of this informal activity and considers formalising this activity by putting in place proper coordination and regulatory mechanisms to keep track of this segment of the mining activity.
