Support explorers, govt urged

THERE must be more effort from the government to protect the economy by promoting exploration to discover new projects in the resources sector.
Support explorers, govt urged Support explorers, govt urged Support explorers, govt urged Support explorers, govt urged Support explorers, govt urged

Philip Samar

Staff Reporter

This is the view of PNG Chamber of Mines and Petroleum vice-president Philip Samar, who highlighted some of the contributions made by the sector to the state.
Samar said that based on figures from the 2019 EITI country report, direct contributions from resources to government included K2.9 billion to state-owned enterprises, K1.2 billion paid as taxes, K1 billion in royalties, K637 million in fees and levies to state agencies and K444 million for social projects in impacted communities.
Samar said most of the existing mines were mature while some had a very limited life, treating lower grades, The National newspaper reported.
"PNG has had a very large drop in production from our major exports over the last three years," he said.
"Gold was down 40% due to the closure of Porgera, copper down 55% and nickel down 15%.
"While this has been largely offset by increased commodity prices, this is a worrying trend that must be addressed by doing more in the exploration stage to ensure the discovery, development, growth and continuity of the mining sector in PNG.
"This does not measure the multiplier effect which adds further to government contributions, suppliers and contractors with every mine employee also contributing to the economy when spending their wages."
Samar said the multiplier effects were great when there were major construction projects taking place, citing Newcrest's Wafi-Golpu copper-gold development, the Porgera restart, LNG projects and the Kainantu gold mine expansion.