BSP: Mine reopening to boost growth

THE reopening of the Porgera gold mine in Enga will be a catalyst for growth after the Coronavirus (Covid-19) pandemic, says the Bank of South Pacific Financial Group Ltd.
BSP group chief executive officer Robin Fleming, providing an insight into the BSP Pacific Economic and Market Insight Q2 2022 report, said the resumption of production at the Porgera gold mine would represent a significant injection into the PNG economy.
He said some of the key mining industries were awaiting the finalisation of negotiations, projections are looking positive with anticipation of some operations commencing as early as the first half of 2023.
The outcome of the General Election and the policy priorities of the emerging government will determine the pace of these process.
“We expect that the re-opening of the Porgera mine will be a key priority for the Government that emerges from the 2022 General Election,” Fleming said.
“Porgera and other resource investments are important as the post-Covid economic activity has been led by government spending in infrastructure, and private investment is important to make the recovery sustainable in the long term.
“PNG has benefited from high global prices for its major exports in 2022.
“Mining exports in particular have seen sustained price increases which positively impact PNG’s gross domestic product (GDP), and present much upside for economic activity and government revenue generation.”
Fleming also said the recent positive announcements made on large resource projects present some upside in the medium term.
“Apart from the reopening of the Porgera gold mine, Wafi-Golpu, Papua LNG and P’nyang LNG are still being progressed,” he said.
“The delivery of these large projects represent a significant injection into the PNG economy and will ultimately impact growth and government revenue.”