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.
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.