Gold bringing benefits

The National Business

By SHIRLEY MAULUDU
PAPUA New Guinea will benefit from a recent increase in the price of gold, according to a mine executive.
This is despite other resources like liquefied natural gas (LNG) and crude oil reporting a drop in their prices.

Peter Graham

Ok Tedi Mining Ltd (OTML) managing director and chief executive Peter Graham told The National yesterday that the price of gold had increased.
“Commodity markets at this time are volatile,” Graham said.
“Copper has improved from a low in recent months to around US$2.30 (K7.72)/lb (per pound) which is down from around US$2.80 (K9.39)/lb in late 2019.
“Gold, on the other hand, has increased and is currently around US$1,700 (K5,706.48)/ounce (per ounce).
“Ok Tedi exports a copper concentrate which includes some gold (and silver) and therefore benefits from the higher gold prices.
“For Ok Tedi the drop in copper price due to the substantial drop in global economic growth is largely offset by the increase in the gold price.
“PNG’s gold mines will obviously benefit from the higher gold price.”
Following lockdowns in countries around the world as a result of the Covid-19 outbreak, there were reports of a drop in LNG prices as well as oil prices.
“Gold has already received most of its supportive news and in my opinion that might cause a very light pull back, a little consolidation,” David Meger, director of metals trading at High Ridge Futures, said in a recent Reuters report.
“In the short-term you might not have that additional boost to prices.”
Spot gold fell 0.5 per cent to US$1,703.49 (K5,883.74) per ounce.

3 comments

  • Good to hear that gold price is high. If Porgera mine continuing the operation it will better for the nation as well in terms of tax.

  • That is exactly stated. If we have no corruption in this country then there will be developments in the country. For example, if more Papua New Guineans working in mine industries from top management down the line, I don’t think the benefits can be shared equally. For instants, if my brothers or tribesmen are bosses of the departments in the mine, then I would be promoted very early instead of someone who has been there for many years.

    This typical example is apply especially in mine centers. If my tribesman is a foreman is the open pit projects, then I would be promoted to supervisor. This process I’ve seen in Porgera and Lihir mines.

    In terms of government running the mine, the PNG politicians will be a overnight millionaires because all the major contacts will be theirs and hard for the local people to engage in contracts. The profit for mine will not be shared equally because some of the funds can be remitted to their people company accounts etc… For better benefits, let the foreigners operate the mine and PNG government and LO’s have equal shares like 50% to the operators and 50% to the LO’s. We are not capable because of wantok system.

  • Mr. Wild West, I second your comment.
    Very very true in line of what is happening every where in our country.

Comments are closed.