Papua New Guinea experienced a remarkable year for gold production in 2024, with exports soaring by 14.8% during the first three quarters compared to the same period in 2023. These is according to the latest PNG Westpac Wailis Economic for February 2025 Report.
Based on the report, PNG exported 34,200 tonnes of gold, with the export value increasing by an impressive 47% to K9.2 billion.
This surge in exports was driven by strong global gold prices and the revival of Porgera mine, which resumed production last year. December alone saw K1.4 billion worth of gold exported to Australia for refining, bringing PNG’s total gold exports to Australia in 2024 to K9.7 billion, a 50.8% increase from K6.4 billion in 2023.
Global gold prices surged to unprecedented levels in 2024, with analysts expecting this robust trend to continue into 2025. Westpac Economics forecasts gold to reach $2,870 per ounce in Q1 2025, with the possibility of short-term spikes higher before easing to $2,850 per ounce by year-end. Prices are expected to stabilize before climbing again in 2026.
The rise in gold prices has been fueled by global economic uncertainty, rising US tariffs, and unpredictable policy decisions from the Trump administration, making gold an increasingly attractive safe-haven asset.
Strong Global Demand for Gold
The World Gold Council reported that global gold demand (excluding over-the-counter transactions) rose by 1.4% in 2024 to 4,553.7 tonnes, with total demand including OTC transactions at 4,975 tonnes. Investment-related gold demand jumped by 24.7%, while central banks continued their strong purchasing trend, acquiring 1,044.6 tonnes last year.
Although demand for gold jewellery declined by 8.6% due to China's economic slowdown, India remained a strong buyer. Meanwhile, technology-related gold demand increased by 6.9%, with electronics demand rising 8.8% to 270.6 tonnes.
The report shows that the PNG’s gold sector remains well-positioned for another strong year in 2025, with global prices expected to remain high and an expansion of gold projects driving growth in this sector. As such, the performance of Porgera and other mining operations will be key determinate of the country’s export earnings and the overall economic contribution from gold production.
Economic analysts will be closely watching gold price movements and global market conditions as PNG continues to capitalize on the strong demand for its most valuable export commodity.
