MINING IN PNG
Highlights of the Minerals Sector
In 2006, the five mines in PNG and the alluvial miners produced just under 60 tonnes of gold and in 2005over 68 tonnes. Gold Production in 2007 is estimated to be about 65 tonnes. Minerals make up 50%of the country’s export revenue and PNG was the world’s eleventh biggest gold producer in 2006.
PNG’s sixth mine, Sinivit in East New Britain, has started production with the first gold pour in mid-June, 2007. The mine is ramping up to around 35-40 000 ounces per annum using vat leach technology.
Some excellent geological work at the Porgera mine has resulted in an increase of reserves that has extended the expected life of the open pit to beyond 2009 and the underground to at least 2020. At Lihir mine an intensive drilling program has further upgraded reserves by 1.5 million ozs to 21 million ozs. Mine life for Ok Tedi is expected to go beyond 2012.
After signing the joint venture agreement in October 2005, China Metallurgical Construction Corporation exercised its exclusive right to take up an 85% interest in the already fully permitted Ramu lateritic nickel cobalt project. This large-scale project is now in construction.
There are two gold projects currently in production - Simberi Island scheduled to come into production late 2007 and at full capacity to produce 75,000 ozs pa. Hidden Valley mine in the Morobe Province will start production in 2009 and peak at 310,000 ozs pa.
There are currently over 200 Exploration Licences throughout the country and drilling at about 10 advance prospects and mineralised areas across the country at any one time