Barker: Plans for gold needed

A feasibility study is needed to determine if the domestic processing of gold is viable or achievable in the time frame envisioned, an economist says.
Responding to queries from The National on the possible establishment of a gold bullion bank in country, Institute of National Affairs executive director Paul Barker said any value-adding undertaken which creates local jobs was good but factors needed to be considered.
“For gold, clearly there will not be a deterioration of the product over time or space so it’s the other factors that must be borne in mind,” he said.
“In principle, as with domestic timber, hydrocarbon and agricultural processing, the more that can be achieved locally, the better it is for PNG.
“But, as with other countries that export some raw materials in raw form, including Australia, it’s often cheaper to process products overseas, where long established skills and gaining economies of scale are better achieved.
“So, before venturing into local processing, it’s necessary to conduct a professional feasibility study that’s specific to that activity to ensure that it is viable and achievable, and within the time frame envisaged.”