Copper production slips past gold, silver
By ANTON HUAFOLO
PAPUA New Guinea is forecasted to produce more than 56.1 tonnes of gold, 40.9 tonnes of silver and 195,203 tonnes of copper by year’s end, and remains a top investor destination for mining companies.
Mineral Resources Authority manager special projects Philip Samar told the PNG-Sino Trade and Investment symposium on Wednesday that the projected output in resources are for the country’s seven mines comprising Porgera (14.2 tonnes gold; 2.3 tonnes of silver), Kainantu (2.1 tonnes gold; 0.2 tonnes silver); Ok Tedi (12 tonnes gold; 34 tonnes silver; 195,203 tonnes of copper); Tolukuma (2 tonnes gold; 4.3 tonnes silver), Sinivit (1.4 tonnes gold; 0.1 tonnes silver); Simberi (1.7 tonnes gold); and Lihir (22.7 tonnes gold).
From figures presented, the projected output of gold and silver for 2008 will be slightly lower than actual output last year, but MRA projects an increase in copper production this year.
“In 2007, the mines produced 57.7 tonnes of gold, 192,000 tonnes of copper and 61 tonnes of silver to contribute K7.5 billion representing 59% of PNG’s total export merchandise in that year,” Mr Samar said.
He said PNG is a mineral dependent economy, with exports from the sector comprising 57% of total export receipts in 2007 and, with four large mines coming into production in the next five years, mineral output, especially gold, is expected to reach 100 tonnes by 2013.
He said future mines such as Ramu (nickel and cobalt), Harmony (gold), Solwara 1 (gold) and Yandera (molybdenum) are a result of a shift in strong focus and diversification from the traditional gold, copper and silver base into other minerals in PNG.
Mr Samar said there are still immense potential in mining in PNG for international companies to explore, and PNG is confident of its mineral potential and is embarking on improving its “policy potential” to further investments in the sector.
He added that PNG remains a top investor destination for mining companies, with many showing interest in mineral exploration and development with an attractive fiscal regime.
Changes over the years to PNG’s fiscal regime have made the country an attractive mining investment destination.
Mining levy has been phased out, income tax rate has dropped from 35% to 30%, dividend withholding tax from 17% to 10%; changes to treatment of depreciation, gains on exploration and deductibility, and additional profits tax not applicable to mining companies.
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