Report on Small-scale Mining in Papua New Guinea
A briefing on the state of ASM in Papua New Guinea in 2001, providing an introduction to ASM in the country, with key statistics defining its production and economic contribution to outline the industry’s significance. The report also highlights the environmental and social impacts ASM has on its landscapes and communities before laying out practices and interventions that have been employed to control the trajectory of the industry’s development. An analysis of the efficacy of these is given.
Small-scale mining is a legally recognized economic activity and a significant contributor to the rural economy in PNG. Characteristics of gold mining are quite different from any other industry (cash crops, fisheries and timber) because the value of the gold mined is paid directly to the miner. Most rural commodities are priced differently and the PNG growers are often paid a small percentage of the price paid by the ultimate consumer of the final product. Since alluvial gold is very common in PNG and it is readily seen and mined in all provinces there is a strong possibility to increase the present production rate of 4.0 tonnes a year valued about PNG K100m. There is potentially a high number of miners. Current estimates are between 50,000-60,000 and possibly up to 80,000-100,000. Approximately 90 per cent of miners are categorized as grassroots miners and so most of the attention will be given to training and broadening the mining knowledge and skills of this group. PNG can achieve these objectives by:
• Encouraging new alluvial miners;
• Improving the efficiency of existing miners; and
• Identifying new alluvial gold areas. It should be stated clearly here that each miner is a small business operator and by supporting them, PNG is promoting and supporting a substantial economic and business infrastructure development.
PNG’s strong desires and ambitious plans to expand the artisanal and small-scale mining sector has been inspired by the AusAid pilot educational project undertaken in the last three years. The experience and encouragement drawn from the AusAid support is that, despite the financial constraints, small-scale mining functions can be developed and promoted by soliciting resources from within PNG and through external donor sources. It is encouraging to note the country’s only private metal-refining company (MRO) has consistently supported this pilot project while some medium and major mining companies have committed both logistical and organizational support. The financial limitations encountered from national government annual budgets and the individual private company assistance are not solid enough foundation for future developments therefore external donor funds will be sought for the next five years. The proposal by the ADB to set up a pilot micro-finance scheme in Wau will be an encouraging incentive for the advancement of small-scale miners. It will provide financial support to members of the small-scale mining community who can show solid business ability. Possible support from both the Japanese Social Development Fund and the EU’s Sysim scheme will build solid foundations such as infrastructure, training facilities and pilot programmes which will consolidate efforts towards long-term development. DOM’s vision have been documented in a Five-year Plan for 2002–2006. The expansion programmes proposed for funding under ADB, JSDF and EU Sysim Fund will be guided by priorities set in the Five-year Plan. DOM has a strategic plan to become a corporate body within the next five years. If this becomes a reality and a 1 per cent levy is charged on all gold exports, long-term sustainable development can be internally financed. The ultimate objective to increase and strengthen the PNG economy is not impossible task and certainly our rural population will enjoy great benefits together with improvements to livelihoods.
Additional Info
- Author(s)
- B Susapu, G Crispin
- Publication Year
- 2001
- Associated Partners
- WBCSD (World Business Council for Sustainable Development), Communty and Business Forum
- Language
- English
- Publishing Institution Webpage
- https://www.iied.org/
- Data Source Classification
- Program Report
- Research Type
- Secondary
- Research Methodology
- Secondary - PREVIOUS RESEARCH, Secondary - OFFICIAL STATISTICS
- Thematic Tags
- Political, Formalization, Social, Child Labor, Legal, Land Rights, Laws and Regulations, Licensing, Mineral Rights, Tax
- Minerals
- Gold
- Region
- East Asia & Pacific
- Country
- Papua New Guinea
- Last Updated
- October 1, 2019