Gold refining, minting not the answer

I AM writing to voice my concerns along with many Papua New Guineans regarding the recent Government initiative to monopolise the gold refining and minting industry.
While the intention to bolster the country’s gold sector is commendable, the current approach overlooks key economic realities and fails to harness the true potential of our gold resources.
The revenue generated from refining and minting operations is marginal and heavily reliant on volume throughput.
Thus, it is essential that such operations remain within the domain of the private sector, which has the requisite expertise and incentive for such ventures.
The Government’s push for heavy legislation to create a monopoly environment is unwarranted, and counterproductive.
Instead of stifling competition, we should be fostering a competitive landscape that encourages innovation and efficiency.
Rather than focusing solely on owning refineries and mints, the Government should prioritise maximising the value of locally-produced gold for the Treasury and Central Bank (BPNG).
We have demonstrated our ability to produce high-quality gold for the international market under existing regulations, without the need for external partners lacking capital and expertise.
Contrary to belief, owning a bullion refinery will not solve our forex issues.
The net effect of refining large mine productions is minimal, and the demand for value-added products like coins and medallions remains uncertain.
Furthermore, the proposed allocation of significant funds for bullion refinery projects is excessive and misguided.
These resources could be better utilised to support small-scale mining projects, boost production output, and facilitate gold trading through established channels.
It is crucial that we acknowledge the realities of our gold industry and adopt a more pragmatic approach.
By embracing competition and investing in sustainable ventures, we can unlock the true potential of our gold resources for the benefit of all Papua New Guineans.

Reginald Renagi