The paper presents an overview of the mining industry of Papua New
Guinea. Although the Bougainville problem is still unresolved, new
mines like Ok Tedi, Misima and Porgera, which have come on stream
during recent past, have raised hopes of sustained growth period in the
industry. Kutubu Oilfield is also being developed in the Southern
Highlands and the oil production has commenced from July 1992.
Government revenue from these mega projects will increase five-fold
during 1993 and 1994. A new mine which is being planned is the
fabulous Lihir Deposit, on an island renowned to be full of gold. Gold
occurs within a volcano which still contains high temperature ground
water because the system which created the deposit is still geothermally
active.
In Papua New Guinea, problems of environmental management are far
easier to tackle than those of a socio-political and economic nature
involving compensation payments to the landowners and the distribution
of royalties and taxes between the national and provincial governments.
At the socio-political level, the country has not been able to resolve the
problems of land rights versus mining rights. Whenever mining starts in a
big way, it raises people's expectations to a very high level, which then
becomes the focal point of dispute between landowners, provincial
governments, national government and mining companies. A new system
called 'Forum' has been tried to bring all parties together and son out the
issues. The system appears to be working well in new mines like Ok
Icdi, Porgera, Misima and Kutubu Oilfields.