‘K250mil spent on exploration’

ABOUT K250 million is being spent by the mineral sector on exploration activities annually, according to Mineral Resources Authority (MRA).
Authority managing director Jerry Garry said exploration activities in the sector were part of the investments that contributed to the Papua New Guinea’s economy.
“From the Bank of PNG in 2019, the statistics say that K17 billion in export revenue was from the mining sector alone,” he said. “The highest revenue by commodities, only comparable to the PNG LNG project that was first exported in 2014.
“When you compare that to the agriculture sector, which was the second highest and sustainable sector, has been producing below K4 billion.
“The capital investments for new projects was around K45 billion.
“That includes the Frieda River (copper/gold) project, Wafi-Golpu (copper/gold), Central lime and cement and Woodlark project.
“Around the same time, we are looking at K10 billion sustaining capital expenditure for the industry.
“That’s the amount of money in investment we are talking about.
“On the exploration point of view, we have spent over K250 million annually on exploration.
“And all of you would appreciate, and acknowledge that without exploration, there won’t be any mining. Exploration is the lifeline of the mining business.”
Garry was speaking yesterday at the two-day media workshop hosted by PNG Chamber of Mines and Petroleum in Port Moresby.
He also noted that none of the companies had shut down due to matters relating to landowner benefits.
“None of the mines have been closed or forced to close due to disagreements with landowners,” he said.
“I am also very pleased to announce that we have made some progress to ensure benefits flow to beneficiaries rather than being parked at places where they get abused and beneficiaries receive very little or none at all.
“I would like to acknowledge the work done by Lihir (in relation to this).”