Mineral exploration drops

MINERAL exploration activities in Papua New Guinea have plunged from a peak of K944.3 million in 2011 to K325.5 million last year, according to the Papua New Guinea Chamber of Mines and Petroleum (PNGCMP).
A survey conducted by the chamber found that grassroots exploration in particular were severely impacted by the decline in exploration.
The chamber noted this in its recent mining and petroleum newsletter that the drop in exploration expenditure was worrying for grassroots even though it reflected current global trends.
“Much mineral exploration work is highly labour-intensive and utilises many local workers in remote parts of the country where most people are subsistence farmers,” executive director Greg Anderson said. “The drop in exploration activity has significant impacts on the rural economy.”
He said the sharp fall in grassroots exploration was of even greater concern because this would have detrimental impacts on medium and longer term outlook for the minerals sector. Anderson said exploration in Papua New Guinea generally takes a very long time and when exploration activities are constrained or reduced, this allows for long term effects that could threaten the sustainability of the mining sector.