Mining in Papua New Guinea

 Papua New Guinea is rich in natural resources, including minerals, timber, and fish, and produces a variety of commercial agricultural products. The economy generally can be separated into subsistence and market sectors, although the distinction is blurred by smallholder cash cropping of coffee, cocoa, and copra.

This slideshow requires JavaScript.

Papua New Guinea is very rich in Natural Resource

Papua New Guinea is rich in natural resources, including minerals, timber, and fish, and produces a variety of commercial agricultural products. The economy generally can be separated into subsistence and market sectors, although the distinction is blurred by smallholder cash cropping of coffee, cocoa, and copra. About 75% of the country’s population relies primarily on the subsistence economy. The minerals, timber, and fish sectors are dominated by foreign investors. Manufacturing is limited, and the formal labor sector consequently also is limited. High commodity prices in 2004 lifted both sectors after several years of declines.

Mineral Resources

Papua New Guinea is richly endowed with gold, copper, oil, natural gas, and other minerals. In 2001 mineral production accounted for 25% of GDP. This will inevitably increase as new discoveries are commencing sea beds of aluminium,zinc,oil,copper,gold,diamond,silver and more. Years of sluggish exploration mean that more new deposits will be open in the coming years. However, recent regulatory and tax reform have led to a resumption of exploration which may boost the sector in the out years. Government revenues and foreign exchange earning have depended depend heavily on mineral exports. Indigenous landowners in areas affected by minerals projects also receive royalties from those operations. Copper and gold mines are currently in production at Progera, Ok Tedi, Misima, and Lihir. A consortium led by Mobil/Exxon hopes to begin the commercialization of the country’s estimated 22.5 trillion cubic feet of natural gas reserves through the construction of a gas pipeline from Papua New Guinea to Queensland, Australia, however, the project has been stalled until major customers make purchase commitments. Interoil, an American firm, opened PNGÕs first oil refinery in 2004. It will produce 30,000 barrels of product a day, covering all of PNGÕs domestic requirements and leaving 15,000 b/d for export.

 

Trade and Investment

Australia, Singapore, and Japan are the principal exporters to Papua New Guinea. Petroleum and mining machinery and aircraft have been the strongest U.S. exports to Papua New Guinea. These have slipped as mineral exploration and new minerals investments have declined.
Australia is Papua New Guinea’s most important export market, followed by Japan and the European Union. The U.S. imports from PNG modest amounts of gold, copper ore, cocoa, coffee, and other agricultural products.Read (more…)

13

        Picture illustration - Ok Tedi Mining Papua New Guinea

More Papua New guinea Mining information ⇒ Kindle books o amazon

  1. Despite the difference in their populations and political status, New Caledonia and Papua New Guinea have comparable levels of economic dependence on the extraction and export of mineral resources. For this reason, read more

pngmininge1

2. In the 1970s and 1980s, Papua New Guinea used to be a good spot for in­ves­ting in the mineral sector. This situation, however, changed. Especially since the Bougainville crisis  Read more

pngminge2

 

Note: The links above are from my affiliate network (amazon). If you purchase any one of those resources, I will earn a little commission. If you find it helpful, please do the right thing by buying from here. Thanks.

 

 

 

Follow us on:

face button    twitter button     linkedin butoon      google+ button

 

 

s-l1600twitterappleiphone-refurbished

 

 

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s