Mining
From The Report: Papua New Guinea 2018
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Shaped by shifts in supply and demand, Papua New Guinea’s economy has relied heavily on mineral extraction for most of its modern history. On the back of increased gold, copper, nickel and cobalt production, mining revenue expanded by 18.8% in 2017. As prices rebound, growth in mining activity comes at an important juncture, boosting export and fiscal receipts, as the country grapples with ballooning public debt. While the economy is still highly vulnerable to commodity price shocks, major investments across a number of strategic mining projects are set to bolster economic output. Despite the positive outlook, inadequate infrastructure, landowner identification issues and delayed amendments to the existing mining act continue to hinder the progress of the sector, which by most measures has immense potential.

This chapter contains an interview with Craig Lennon, Managing Director and CEO, Highlands Pacific.

Articles from this Chapter

Overview

Showing mettle: Demand brings growth despite legislative challenges
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Shaped by shifts in supply and demand, Papua New Guinea’s economy has relied heavily on mineral extraction for most of its modern history. On the back of increased gold, copper, nickel and cobalt production, mining revenue expanded by 18.8% in 2017. As prices rebound, growth in mining activity comes at an important juncture, boosting export and fiscal receipts, as the country grapples with ballooning public debt. While the economy is still highly vulnerable to commodity price shocks, major investments…

Analysis

Riding the electric wave: Lithium batteries generate opportunity for cobalt and copper
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Estimating the long-term global demand for cobalt, copper and nickel is a challenging task. While the rise of electric vehicles (EVs) in recent years has increased demand for the metals used in the production of lithium batteries, technological advances could alter the components used in their makeup. Despite that concern, the demand for these minerals is expected to rise for the foreseeable future, as more nations move away from diesel-powered vehicles in an effort to curb pollution. As a result, Papua New Guinea’s mining segment is benefitting from growing demand for lithium battery components, which in turn is bolstering economic…

Interview

From the ground up: Craig Lennon, Managing Director and CEO, Highlands Pacific, on overcoming sector constraints to boost productivity
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Interview: Craig Lennon, Managing Director and CEO, Highlands Pacific How might the public and private sectors overcome high entry costs in mining? CRAIG LENNON: The challenges for Papua New Guinea are not unique; many emerging markets have high entry costs. Investors entering the country’s mining sector often choose a joint-venture structure as it allows the investors full control over how much money they put into any given project. However, PNG must realise that although it considers itself…

Analysis

Ready ore not: Deep-sea development and the re-opening of a giant present opportunities, if they can circumvent challenges
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On the back of rising demand for metals due to the development of electric vehicles and storage batteries, the search for new sources of supply has grown in recent years. Home to significant reserves of the copper, nickel and cobalt required, Papua New Guinea is looking to expand production with the world’s first deep-sea mining project and the potential reopening of the Panguna copper mine for the first time since 1989. Both projects have the potential to boost resources and revenue, though they also present complications. While the wealth of metal deposits beneath the sea is considerable, the task of mining at extreme water depths,…