Speaking at the formal handover ceremony, Tuke noted proper frameworks had to be established to maximise the benefits, Loop PNG reported.
"I have directed the Department of Mineral Policy and Geohazards Management to work with the Mineral Resource Authority, to develop a policy for the alluvial mining sector in PNG," he said.
"There is a huge potential in alluvial mining that directly serves our people."
According to the PNG Extractive Industries Transparency Initiative report from 2014, alluvial mining in PNG accounts for 120,000 ounces of gold annually, or about 6% of total gold mined, at a value of over K300 million.
The sector is mostly unregulated, however, the MRA estimates up to 80,000 small-scale miners are involved in alluvial mining, which, based on figures from the UN and PNG Chamber of Mines and Petroleum, is more than double that of formal employment in the extractives sector.
Tuke said he would ensure an overdue review of the Mining Act 1992 would be undertaken and completed in his term, as well as further developing proposals to establish a gold bullion bank and an independent audit of all PNG gold shipments and the offshore processing facilities to which they were sent.
"The two discussion papers will be open to wider industry stakeholder consultations and I will stand to appreciate any pros and cons prior to any recommendation to the national government," Tuke said.