Kassman hails resource sector in his Aussie talk

The National Business

The resource industry has long been the cornerstone of Papua New Guinea’s economy, driving development from pre-Independence to modern PNG, says PNG Chamber of Mines and Petroleum vice president Richard Kassman.
Speaking at the Papua New Guinea Business Update in Townsville, Australia, Kassman explained how PNG’s resource sector has played a vital role in the country’s economic development.
PNG is one of the few countries in the world where mining and petroleum projects provide socio-economic opportunities to the local areas they operate in.
Kassman highlighted the following:

  • As of September 2017, the mineral and petroleum resources sectors contributed over 26 per cent of PNG’s GDP and around 80 per cent of the nation’s export revenue valued at K23 billion (approximately US$7.3 billion);
  • The industry in PNG directly employs over 20,000 people, with significantly more working in other sectors dependent on the industry, including landowner businesses.
    Kassman told the forum organised by the Australia PNG Business Council that: “Resource development brings with it key infrastructure and contributes to a wide range of community development programmes in host communities and provinces.

“This includes health, education, law and order, and infrastructure as well as numerous health care and medical outreach programmes, scholarships and student support and agriculture outreach.
“The industry establishes and supports landowner companies and other PNG-based businesses that provide services to the project sites such as transportation, labour hire, catering, security, earthmoving, freight and logistics, janitorial services, agriculture, and livestock and livelihood programmes to promote food security and agribusiness.
“The economic and social contributions of the industry are significant and impact not only the economy of PNG but the local footprints of host communities in some of the most inaccessible parts of PNG.” World-class projects across PNG include Ok Tedi, Lihir, Porgera, Ramu Nickel and Hidden Valley and the smaller mines of Simberi and Kainantu.
Two major mining projects that have applied for Special Mining Leases are the Newcrest Mining/Harmony Gold Wafi Golpu Joint Venture and the PanAust-led Frieda River projects.