Papua New Guinea’s new Mining Minister, Hon. Wake Goi, was sworn in on September 25 at Government House in Port Moresby. Hon. Goi took over the role from Prime Minister James Marape, who had been filling in as mining chief.
Marape expressed confidence in Goi's experience and qualifications as the Member of Parliament for the Jimi electorate in Jiwaka Province and a member of the People’s Party of PNG.
Following his appointment, Goi visited the Mining Haus in Port Moresby, where he was officially welcomed by the Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, along with his management team, staff, and party executives.
Mr. Garry highlighted the integrity, maturity, and experience that Goi brings to the Ministry. He assured the Minister the MRA team has the expertise needed to support him in advancing the mining sector “to give you advice and appropriately position you and I, so that we can drive the industry forward.”
"The mining industry is the largest contributor to the national purse, but it is also one of the most challenging due to its complexities," Garry noted, giving the Minister an overview of the MRA and the mining sector, including exports revenue statistics and the challenges faced by the sector.
In addressing the MRA staff, Goi encouraged strong cooperation between his office and theirs.
“It is the government’s wish to see that the country gets a fair share from the exploitation of its resources, and at the same time ensure that investors get returns on investments,” he said.
Goi said he would provide the necessary political support and leadership to the MRA and the sector to ensure that all stakeholders are adequately serviced.
He encouraged strong cooperation between his office and the MRA to ensure the government's agenda of “Take Back PNG” is realized, in which the country receives a fair share from its resources while also allowing investors to see returns on their investments.
After the formalities, the Minister was given a tour of the country’s Mineral Production Data Monitoring Hub and Data Repository.
The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) has called for ongoing dialogue and greater collaboration among all stakeholders in the alluvial mining industry. PNGEITI emphasised that cooperation is essential to address key challenges within the sector, including non-compliance, under-reporting of mineral production, and environmental concerns. This follows the recent 6th PNG Alluvial Mining Convention and Trade Show, held in Goroka, Eastern Highlands, from 24 to 26 September.
PNGEITI’s involvement in the three-day event was driven by several strategic objectives:
The convention sparked important discussions on a wide range of topics, including challenges in alluvial mining legislation, mechanised mining operations, and the market value chain for alluvial gold in Papua New Guinea. The biennial event brought together key stakeholders from the alluvial mining sector to exchange insights, tackle pressing issues, and strengthen collaboration to ensure the sustainability of this crucial industry.
The 2024 convention’s theme, “Protecting & Sustaining the Alluvial Mining Sector of Papua New Guinea,” called for a unified commitment to bolster the development and longevity of the sector, which remains a vital source of income for many local communities. PNGEITI highlighted concerns around discrepancies in production data, monitoring and regulation of gold exports, and the need for stronger government support to safeguard the interests of local miners.
During the event, Stanley Nekitel, Register of Tenements at the Mineral Resource Authority, described the alluvial mining industry as a “grassroots economic sector,” while expressing concern over declining production levels despite rising global gold prices. Oro Governor, Garry Juffa, also pointed out a contradiction between the increase in alluvial mining activity and the reported decline in gold production data, calling for immediate government action to improve monitoring, reporting, and policies that protect the interests of Papua New Guineans involved in the sector.
Industry representatives, including Justine Parker of Tribal Mining Limited and Raymond Wally, a leaseholder and tributer, raised concerns about the growing influence of foreign investments, money laundering risks, and the need to build financial capacity for local landowners. Their input underscored the importance of equitable benefit-sharing across all stakeholders within the sector.
A key highlight of the event was the launch of the Resource Evaluation Code of Practice (RECP), developed in collaboration with the PNG University of Technology. This code is designed to standardise responsible and sustainable mining practices across the alluvial mining industry, addressing long-standing issues related to environmental sustainability and operational transparency.
Ok Tedi Mining Limited (OTML) is celebrating its 40th anniversary of operation, marking four decades of resilience and excellence in the mining industry in Papua New Guinea.
Starting in August 1984 as a gold mining operation by Broken Hill Property Limited (BHP), OTML transitioned to a copper-gold mine in 1987. From 2015 to present, OTML is a fully 100 per cent PNG owned mine.
OTML’s journey is characterized by both challenges and triumphs.
Throughout its history, OTML has demonstrated resilience in the face of adversity. These include:
• Navigating two significant droughts in 1997 and 2015; • The volatility of the world market and global gold and copper prices; • Legacy issues of its operations impact on the Ok Tedi and Fly River systems and the communities that depend on them;
Despite these challenges OTML continues to remain resilient and has operated successfully by providing economic and social benefits to Western Province and Papua New Guinea over the last 40 years. They include:
• K13.4 billion in Dividends; • K1.4 billion in Royalties; • K10.2 billion in Tax/Duties; • K1.6 billion in Compensation; • K1 billion in CMCA Payments; • K664 million in Tax Credit Scheme Projects; • Investing K146 million in education and training of graduates, apprentices, trade trainees, and school and university scholarships. • World class operational and environmental mitigation and monitoring measures.
OTML remains optimistic in continuing its operations for another 40 years. This is evident in the renewal of it’s Special Mine Lease (SML) to 2042 and the Company Boards in-principle agreement to extend mine life to 2050.
A series of events will be held in November to mark the 40th anniversary celebrations. These festivities will not only commemorate the past but also look forward to the future with optimism.
Prime Minister Hon. James Marape has underscored the urgency of finalising the Mine Development Contract (MDC) and issuing the Special Mining Lease (SML) for the Wafi-Golpu Mine in Morobe Province, stressing that time is running out to get this critical project off the ground.
During a high-level meeting with the State Negotiating Team, Joint Venture Partners Newmont and Harmony, Deputy Prime Minister Hon. John Rosso, and Mining Minister Hon. Wake Goi, Prime Minister Marape emphasised the importance of immediate action.
“Time is ticking away. As a nation, we have collectively agreed that the Wafi-Golpu project must move forward—on terms that are in line with our laws and policies, especially those that ensure the State and Papua New Guinea secure 55 percent of the project’s economic benefits. I am pleased that the Framework Memorandum of Understanding (MoU), which was signed in 2023, honors this commitment. The project contains over 12 million ounces of gold and three million tonnes of copper. It is a significant undertaking expected to extend beyond 60 years. However, we have agreed to a 40-year lease, contingent on the joint venture partners commencing the project within two years of the SML issuance,” the Prime Minister stated.
Reflecting on past delays, Prime Minister Marape lamented the significant time lost due to legal proceedings and reiterated that further delays were no longer an option.
“I want to make it absolutely clear: we cannot afford to lose any more time. The Wafi-Golpu project must advance without further delay. This is a project of national importance, and moving forward on key milestones is critical to the country’s economic progress.
The Prime Minister set a firm deadline, stating that the MDC and SML for Wafi-Golpu must be finalised before the 2024 Papua New Guinea Investment Week, which is scheduled to take place in Sydney, Australia, from December 6-11. “The Framework MoU signed in 2023 is our roadmap, and it is time to act,” he added.
Prime Minister Marape also highlighted the need to respect the patience of landowners and the
Morobe Provincial Government, represented by Governor Hon. Luther Wenge, who have
waited for years to see the project begin.
“We cannot continue to hold them in suspense. Delaying any further will only invite frustration and discontent from landowners and local authorities,” Prime Minister Marape warned.
Key provisions under the Framework MoU include:
Prime Minister Marape closed by reaffirming his government’s commitment to fast-tracking the Wafi-Golpu project, urging all stakeholders to move with urgency.
“The time for action is now. We have the framework, we have the opportunity, and now we need to execute,” he said.
Alluvial gold miners in the country have the potential to become billionaires if they diversify their ventures, re-invest wisely, and manage their finances effectively, said Mineral Resources Authority Managing Director, Jerry Garry.
Mr Garry was speaking at the 6th Alluvial Mining Convention & Trade Show 2024 in Goroka, where over 300 miners, government regulatory agencies, gold buyers, exporters, financiers, and other relevant stakeholders gathered to share information, experiences, and discuss regulatory policies, among other topics.
The MD shared an inspiring story about how the former operator of the Porgera Mine, Placer Dome, had humble beginnings in the Wau-Bulolo gold fields in 1926. He explained that two expatriates—an Australian and a New Zealander—ventured into Wau-Bulolo in 1926, recognising the abundant gold resources in the area. The pair formed a company called Placer Development Proprietary Limited. They raised funds, purchased eight dredge machines, and mined the Wau-Bulolo gold fields.
However, Mr Garry emphasised that these men did not limit themselves to gold mining; they diversified into other industries, including cattle farming, fishing, and forestry. The pine trees harvested today by PNG Forest Products in the Wau-Bulolo area were introduced by these two men as part of their business diversification efforts in 1926.
After more than 55 years, Placer Development Proprietary Limited acquired a mining licence to operate the Porgera mine. Some years later, the company merged with another, forming Placer Dome. By 2005, Placer Dome was operating about 16 gold mines across seven countries, with a market capitalisation of USD 6.7 billion.
Mr Garry reiterated that this successful company had its origins in alluvial gold mining at the Wau-Bulolo fields in 1926. He stressed that today’s alluvial gold miners have the same potential to achieve billionaire status, much like those two men.
The MD also highlighted the economic significance of the alluvial mining sector, which at one point contributed around K640 million annually to the country’s economy. Approximately 100,000 people are involved in the alluvial mining sector nationwide.
The Alluvial Mining Convention, an initiative of the MRA, aims to promote and showcase the sector’s potential. It brings all stakeholders together on one platform to share experiences, discuss regulatory policies, and raise awareness about the latest challenges and success stories in the industry.
The Mineral Resources Authority (MRA) Managing Director Jerry Garry, has assured the Porgera Mining Project Special Mining Lease (SML 13) landowners, that the resettlement of their villages away from the project SML area, is a Government’s priority.
The MD was addressing the parties and stakeholders of the Porgera Mining Project Community Development Agreement (CDA) in Port Moresby this week, where they (parties) are negotiating the CDA.
It is the responsibility of New Porgera Limited (NPL) to resettle SML landowners. It is understood that company is currently putting together a resettlement action plan.
However, Mr Garry said that as a responsible government, it has committed K700m infrastructure development funding for the exercise, through the Infrastructure Development Grant (IDG).
He told the landowners that the MRA and the Department of Lands & Physical Planning, have already started consultations with the Enga Provincial Government and the Porgera District Administration, and have identified possible resettlement sites.
“We won’t waste time,” said the MD. He said as soon as the CDA process is completed, the state would continue consultations with the stakeholders and progress the state’s part in the resettlement exercise which is to make land available.
He appealed to all parties to the CDA, to have an open mind, and to negotiate in the true spirit of sharing, fairness and equitable distribution of benefits.
He expressed satisfaction with the progress of the negotiations thus far.
The parties to the CDA are the Special Mining Lease (SML) landowners, Porgera Rural Local Level Government, Porgera Urban Local Level Government, Enga Provincial Government, New Porgera Limited (NPL) and the National Government. Non-SML landowners will be witnesses to the CDA when it is signed.
Great Pacific Gold Corp. is providing an update on one of its core projects, the Kesar Project located in the Eastern Highlands province of Papua New Guinea. The Kesar Project is contiguous with K92 Mining’s mine tenements, with several high priority targets at Kesar near the K92 property boundary (Figure 1). Multiple veins at Kesar are on strike and have the same orientation of key K92 deposits, such as Kora, and exploration work to date at Kesar has shown that these veins have high grades of gold present in outcrop, very elevated gold in soil grades and are coincident with aeromagnetic highs.
“The results of the two phases of geochemistry highlight the tremendous potential of Kesar” stated Greg McCunn, CEO of Great Pacific Gold. “With our recently announced plan to focus on our core projects, we intend to direct our financial and technical efforts on Kesar over the remainder of 2024. The high-grade nature of the nearby Kora deposit highlights the potential of Kesar and our Phase 1 drill program is designed to test our highest priority targets.
While focusing on Kesar, we will continue to evaluate and advance the other core assets in our high-quality portfolio, including recent drilling at the Arau project, from which initial results are pending, environmental baseline work at Wild Dog and consolidation of our knowledge on the Lauriston and Walhalla projects in Australia. Longer-term, the recently acquired Tinga project also has the potential to create significant shareholder value.”
About the Kesar Project
The Company received notification from the Papua New Guinea Mineral Resources Authority (the “MRA”) of the grant of Exploration License 2711, which wholly covers the Kesar Project. The notice was received on November 14, 2023 with the Exploration License in effect from October 31, 2023 for a period of two years until October 30, 2025.
Exploration by previous operators at Kesar identified the presence of semi-massive copper rich sulphide mineralization associated with quartz veins on strike to the Kora gold deposit, as well as the potential for copper-gold porphyry prospects within the tenement. Previous operator’s initial rock sampling programs returned high-grade gold-copper-silver values (see news release date November 17, 2023).
Initial Rock Chip Sampling
Thirty-two (32) rock chip samples were taken in Q2 2024 from outcrop and artisanal underground works and returned high-grade assays including 244 g/t Au (underground working), 116 g/t Au (outcrop), 36.5 g/t Au (float) and 33.4 g/t Au (underground working). Of the 32 samples, 19 samples were above 1 g/t Au and ten samples averaged 52.8 g/t Au (see news release dated May 13, 2024). Recently, a further 17 rock chip samples have been obtained and assayed with a peak result of 94.3 g/t Au and 11 samples of greater than 1 g/t Au averaged 25.1 g/t Au. Generally, these samples were collected from the Eastern Vein Zone where itinerant miners are operating small scale mines though larger scale potential occurs as indicated by the soil sampling results.
Soil Geochemistry
In addition to the rock chip sampling in Q2 2024, a soil sampling program was completed principally targeting the West and Central Vein Zones at Kesar Creek. In total, the 332 soil samples returned numerous significant gold grades over a strike length of 5.5 km including a high-grade assay of 20.9 g/t Au (see news release dated May 13, 2024).
The initial first-pass soil program used a 200 meter by 100 meter or 50-meter grid and was very broadly based to cover most of the known prospective ground and to get an indication of the location of the most prospective larger structures. Gold mineralization was found in samples covering the entire 5.5 km of sampled strike. Multiple parallel vein sets occur in close proximity within each of the three main vein zones.
Following the success of the initial soil sampling program principally targeting the West and Central Vein Zones at Kesar, a second follow up soil sampling program was carried out in July 2024. The follow up soil program consisted of a further 667 soil samples covering the West, Central and East Vein Zones, which all strike northwest. This follow up program has further defined gold prospects in West and Central Vein zones while also discovering gold mineralization in the Eastern Vein zone, which is in part associated with the itinerant miners’ small-scale operations. The mineralization in the Eastern Vein Zone is open to the northwest where several parallel vein sets occur. More sampling will be carried out as the opportunities arise.
Upcoming Drilling Program
The Company has contracted Quest Exploration Drilling (“QED”) to provide two CS1000 P4 diamond drill rigs which are expected to be delivered to the Project drill site in October 2024 via a helicopter located near the project. Drilling is expected to occur from five drill pads spaced generally at 100m intervals along the Anteruno vein structure in the Western Vein Zone. Sectional drilling from the pads will provide coverage along strike of approximately 400m. The proposed drilling plan consists of 9 initial holes averaging 300 meters in length for a total diamond drilling program of ~2,700 meters.
Results from the drilling program are expected approximately 4 weeks after the completion of each drillhole and drilling is planned to take place for two months.
Great Pacific Gold Corp. is pleased to provide an update on its short-term exploration strategy. After a thorough review of its dominant land position in both Papua New Guinea (“PNG”) and Victoria, Australia, the Company has developed a focused short-term plan aimed at advancing gold-copper resources on its core projects.
Core Projects:
Kesar – Located in the Eastern Highlands Province of PNG and contiguous with K92 Mining’s mine tenements, Kesar is a greenfield exploration project with several high-priority targets near the property boundary with K92. Multiple epithermal veins at Kesar are on strike and share the same orientation as key K92 deposits such as Kora. Exploration work by GPAC at Kesar has revealed high-grade gold in outcrop and elevated gold in soil samples, coinciding with aeromagnetic highs. A phase two sampling program supporting initial drilling has recently been completed, with results pending.
Arau – Also located in the Eastern Highlands Province of PNG, the Arau Project includes the highly prospective Mt. Victor exploration target, with potential for a high-sulphidation epithermal gold-base metal deposit. A Phase 1 Reverse Circulation drilling program at Mt. Victor was completed in August 2024. The Arau project also includes the Elandora licence, which hosts various epithermal and copper-gold porphyry targets.
Wild Dog – Situated in the East New Britain Province of PNG, Wild Dog is a brownfield exploration project with a history of small-scale gold mining. The project contains numerous epithermal and porphyry hydrothermal-magmatic targets identified through previous exploration and operations. In August 2024, the Company completed road refurbishment and established access to the project for baseline environmental and exploration work.
Lauriston – Located in the state of Victoria, Australia, the Lauriston project is situated on the southern extension of the Fosterville Goldfield Belt and is adjacent to Agnico Eagle’s Fosterville tenements and mine operations. Lauriston contains the Comet-Trojan target, a 4.5 km long epizonal orogenic system. The discovery hole at Comet intersected 8m at 105 g/t gold, and a follow-up drilling program was completed in Q3 2024. The Company is consolidating its data on Lauriston and expects to publish an NI 43-101 compliant technical report.
Walhalla – Also located in Victoria, the Walhalla project comprises over 1,400 km² of concessions, including numerous historical mining operations and the recently acquired Woods Point land package. The Company is consolidating its data on Walhalla and expects to publish an NI 43-101 compliant technical report. Walhalla contains a high-priority greenfield target known as Pinnacles. Extensive soil geochemistry has highlighted a 400m x 1,100m gold mineralised aplitic dyke with disseminated sulphides, outcropping at surface. The Pinnacles target is fully permitted and ready for drilling.
“The Company has spent the last four years building an extensive portfolio of high-quality exploration assets,” stated Greg McCunn, CEO of Great Pacific Gold. “After this period of acquisition, it is now time for the Company to focus on developing one or more of its core projects into a mineral resource. While the focus will be on these five assets in the short term, the recently acquired Tinga project also has the potential to create significant shareholder value in the longer term and is an important part of Great Pacific Gold’s future.”
The Company is also evaluating its non-core assets in Australia and exploring opportunities to maximise their value. As part of this process, the Company may consider asset sales, project spin-outs, or other strategic transactions.
Prime Minister Hon. James Marape has announced that the Government’s Position Paper on the Wafi-Golpu Mine in Morobe has been delivered to Joint Venture Partners, Newmont and Harmony. The Government is now awaiting a response from the two companies before moving forward with the issuance of the Mine Development Contract (MDC) and Special Mining Lease (SML).
This statement was made following a meeting held on Friday, September 6, 2024, in Port Moresby, attended by State Negotiating Team (SNT) Chairman Mr. Dairi Vele, Deputy Prime Minister and Lae MP Hon. John Rosso, Morobe Governor Hon. Luther Wenge, and Community Development Minister and Huon Gulf MP Hon. Jason Peter.
“The SNT has been negotiating with the two joint venture partners on what benefits Papua New Guinea gets from the Wafi-Golpu project. That includes our 30 per cent equity, financing of that equity, value of the 3 per cent royalty, local content, and others,” said Prime Minister Marape.
He emphasised the importance of not delaying the project, stating: “As we prepare to release the SML, work must start immediately, rather than being delayed as we have seen in other projects. The project is now one or two meetings away from the MDC being signed and issuance of SML.
“The joint venture partners have received the SNT’s recommendations on August 8, 2024, and we are waiting for them to respond. I have requested Newmont and Harmony to respond at the earliest so the MDC can be signed and the SML issued.”
Prime Minister Marape noted that the Wafi-Golpu project is expected to operate for over 40 years, and the Government is focused on ensuring all agreements are finalised before the commencement of operations, drawing lessons from the Lihir Mine in New Ireland, which does not pay corporate tax.
“We want to make sure that we get the total 55 per cent economic benefits we want to get out of the project,” the Prime Minister said.
The Prime Minister highlighted that the terms for the Wafi-Golpu project were captured in the Framework Memorandum of Understanding (MoU) signed in April 2023 between the State and the joint venture partners. This MoU will serve as the foundation for the MDC and SML.
Tolu Minerals is poised to breathe new life into the Tolukuma gold mine, aiming to unlock substantial gold resources and restore production. This strategic effort not only signals a significant revitalisation of one of Papua New Guinea’s historically high-grade mines but also promises far-reaching economic and social benefits for the region.
Tolu Minerals acquired the Tolukuma gold mine in October 2022 after an extensive due diligence process, culminating in a purchase agreement with the mine’s liquidator for 20 million kina. The mine, located in the Woitape area of Goilala District in the Central Province, has a rich history, having operated for 20 years as a high-grade gold producer since its establishment in 1995.
Throughout its operational life, the mine consistently produced approximately 15 grams of gold per tonne of ore, peaking at 23 grams per tonne during its early, more productive years. However, by the late 2000s, several critical cost factors led to the mine’s closure and subsequent care and maintenance status in 2015.
With a clear understanding of the challenges that led to Tolukuma’s previous closure and a well-defined strategy to address them, Tolu Minerals is well-positioned to ensure the long-term success of the Tolukuma gold mine, benefiting both its shareholders and the local communities it serves.
Social Impact:
The social impact of the Tolukuma mine’s revival cannot be understated. The support for socio-economic development includes:
At its peak, the mine employed 600 to 700 people, with a multiplier effect empowering an estimated 9,000 individuals economically. As the mine ramps up operations, it is expected to create hundreds of jobs and stimulate secondary economic activities, such as agriculture and local manufacturing. The new road and power infrastructure will open up opportunities for further economic development in Goilala District and surrounding areas, transforming the region’s economic landscape.
In an exclusive interview with PNG Business News (PNGBN), the Chief Executive Officer & Managing Director of Tolu Minerals Ltd, Iain Macpherson, shared insights into their plans for both the Tolukuma mine and the surrounding area. He elaborated on the importance of balancing the mine’s development with regional infrastructure and socio-economic development. He said, “The company is committed to reviving a historic mine and also to fostering sustainable economic growth in the Central Province.”
Addressing Key Cost Challenges:
One of the primary challenges faced by Tolukuma was its reliance on helicopter service for all logistical needs, including the transport of diesel fuel, which escalated operational costs. Additionally, the deterioration of the mine’s hydropower station, once a reliable source of power, forced a shift to expensive diesel-powered electricity generation. The mine’s design also contributed to its downfall, as it was developed from the top of the mountain downward without a lower entrance, resulting in costly water pumping operations.
Recognising these issues, Tolu Minerals has made addressing these cost drivers a top priority. The company began road construction in December 2023, which will significantly reduce the exorbitant costs associated with helicopter transport.
Strategic Investments and Partnerships:
Following its initial public offering (IPO) on the Australian Exchange in November 2023, Tolu Minerals successfully funded the Tolukuma project. The company’s shareholding is noteworthy, with nearly half of it held by important Papua New Guinean private individuals and institutions, including Trans Wonderland Limited (TWL), Kumal Minerals, and Mineral Resources Development Company Ltd (MRDC).
Tolu Minerals has also forged strategic partnerships to ensure the successful revival of Tolukuma. The company is collaborating with the Allan Guo Group of Companies, known for constructing the Edevu Power Station, to build the road and develop proposals for the hydropower station’s refurbishment. The hydropower station, which is scheduled for re-commissioning within 18 months, will be oversized to establish a local power grid, further stimulating economic activity in the surrounding areas.
Advancing Exploration: Airborne MT Geophysical Survey:
In addition to exploration and technological improvements, Tolu Minerals has commenced an airborne Magneto Telluric (MT) geophysical survey over the Tolukuma Gold Mine in Central Province—a portfolio of gold, silver, and base metal mineralised projects. This technique has already been used with success at K92 Mining in PNG. This high-resolution survey will enhance regional exploration targeting, crucial in the challenging terrain of the region, where exploration is expensive due to mountainous landscapes and the need for helicopter service.
Airborne MT resistivity data is modelled to provide a more accurate guide to the depth and location of drill targets. New targets are expected to be interpreted, requiring an ongoing field exploration program of geological mapping, sampling, and drill testing following the current drill programme.
The company has contracted Expert Geophysics Limited (EG) to perform the MT Survey, which covers the Tolukuma Mining Lease and surrounding tenements, including Ipi River ELA2780 to the northwest of Tolukuma.
It’s interesting to note that the Mobile MT utilises naturally occurring electromagnetic fields from three orthogonal induction coils that are contained within an aerodynamically shaped capsule towed by a helicopter 60 to 70 metres above the ground. This is when magnetic data is collected to assist in mapping sub-surface geology.
This process will also inform an evolving exploration strategy.
The results will increase the existing extensive database of technical information, including airborne and ground geophysics, geochemistry, historical drilling results, and geology.
Tolu Minerals has launched the Bakoiudu-Tolukuma Road Project in Central Province, Papua New Guinea. This crucial infrastructure initiative will connect the Kairuku and Goilala Districts, benefiting both the Tolukuma Mine and local communities.
Governor for Central Province, Hon. Rufina Peter, and Managing Director of the MRA, Mr. Jerry Garry, the Managing Director of Tunnel Engineering Ltd Allan Guo, and members of both the Kairuku and Goilala Districts attended the event along with local leaders, media representatives, and residents from both LLGs.
A Collaborative Effort
The project is a joint venture between Tolu Minerals, the Mineral Resources Authority (MRA), and various government bodies and local stakeholders. It has received strong support from the Central Province Government, Kairuku and Goilala Districts, and local leaders.
Chief Executive Officer & Managing Director of Tolu Minerals Ltd, Iain Macpherson’s keynote address, highlighted the transformative potential of the road project, not just for the Tolukuma Mine but for the entire Central Province. “Physical infrastructure always supports economic development,” he stated.
“Roads, in particular, allow sustainable business operations, promote the exchange of goods and services, facilitate the movement of people and skills, and generally enhance economic activity. The mere fact that a road is going through is going to change the nature of the region. It’s going to make it of more interest to people coming in from outside.”
Transforming the Region
The road will significantly improve access to the Tolukuma Mine, reducing reliance on costly helicopter transport. It will also boost economic activity in the region, creating jobs and facilitating trade.
“The road has to be built for the future of the mine and for the future of the region,” Macpherson remarked.
Hon. Rufina Peter said, “This road has been here for a long time. We have to make use of it.”
“Today, it is a new initiative we came together to launch. The power to change our lives and livelihood is in our own hands, individually. We can’t sit and wait, watch the opportunity to pass us. It’s a good opportunity that this developers have come to develop our district. Let’s take it,” she added.
Two-Stage Construction
The project is divided into two phases:
“My objective is to have the first vehicle drive that road well before the end of this year,” Macpherson declared.
“Thank you for your support in the past, today, and in the future to get this project completed. For the benefit, not only of Tolu Minerals and Tolukuma Mine, but for the communities and the district and the region as a whole. And indeed, for the benefit of Papua New Guinea as a whole.”
Economic and Social Benefits
The road will:
“With the right team, the right contractors, the right technology, I believe our plans to build and develop the regions will be successful.” Garry added.
A Catalyst for Development
The Bakoiudu-Tolukuma Road Project is a testament to the positive impact that responsible mining can have on local communities. It demonstrates Tolu Minerals' commitment to sustainable development and its role in driving progress in Papua New Guinea.
"The successful completion of the road will not only rejuvenate the Tolukuma Mine but also provide long-term economic benefits to the region, including employment opportunities and increased access to markets,” Macpherson said.
He reiterated, "We are absolutely committed to delivering this project and delivering the return of Tolukuma Mine and delivering the economic development of the entire region."
The PNG Extractive Industries Transparency Initiative (PNGEITI) has called on companies operating in the extractive sector to honour their commitments to the EITI process by being transparent in all areas of their operations, including their obligation to pay taxes to the government.
The Executive Director of the PNGEITI National Secretariat, Lucas Alkan, said these companies made their commitments to the EITI reporting framework when they signed up to support the government in implementing the EITI Global Best Practice Standard in 2013.
The call by PNGEITI follows concerns raised by the Internal Revenue Commission (IRC) last month that leading mining companies are not complying with their mandatory obligation to pay Dividend Withholding Tax (DWT). The IRC emphasised that a lack of DWT payments implied that these companies were either not generating adequate profits or were simply avoiding their tax obligations, thus depriving the government of much-needed revenue. The IRC stated that the payment of these taxes not only upholds fair tax practices but also supports the national economy and the government’s revenue.
The IRC Commissioner General indicated that despite a significant increase from K9 billion in 2013 to K44.2 billion in 2021, as reported by the Bank of PNG in its Quarterly Economic Bulletin (QEB), there have been no corresponding dividend payments to the stakeholders from these resource companies.
The President of the PNG Chamber of Resources and Energy (PNGCORE), in a media statement, explained that companies in the resources sector were reinvesting their profits back into the country. He emphasised that all existing projects have dedicated significant capital to mine expansion and development projects.
The Executive Director of the PNGEITI stated that while extractive sector resource companies may be reinvesting in expansions and capital expenditures as stated by PNGCORE, they must provide actual figures to justify this in the EITI annual reports as members of the EITI.
“Reinvesting in expansions among other capital expenditures is good for the economy, and the PNGEITI supports what they are doing, but this must be justified by providing actual data or figures on such expenditures in the EITI reports for transparency purposes,” said Mr Alkan. “I’m calling on resource companies to disclose to the public the actual figures expended on reinvesting in expansions and capital expenditures, as these alone will justify their stance,” he added.
The call for transparency and accountability in PNG’s extractive sector is not just about compliance but also has broader implications for good governance, social equity, and sustainable development in the country.
Mr Alkan added that enhanced transparency can lead to better resource management, build trust among different stakeholders, and contribute to long-term development goals.
He said these companies signed the Multi-Stakeholder Group (MSG) Memorandum of Understanding (MoU) in 2013 to be transparent in their operations through the EITI reporting process and must always demonstrate that they are honouring their commitments.
The PNGEITI reports are considered reliable and comprehensible sources of information aimed at increasing industry transparency and accountability. This is because the reports are prepared by independent administrators in accordance with the requirements of the EITI Standard.
The extractive sector contributes significantly to the economy, both directly and indirectly, in terms of government revenues and its contribution to GDP, while also delivering a range of socio-economic benefits. The revenue streams deemed material for EITI reports include those that contribute 2% or more of the total known revenue received by the government from the mining and petroleum sectors for that financial year. Revenue streams that are not considered material for reconciliation are reported unilaterally by the receiving government entity, or, in the case of social expenditures, by the companies making the payments.
According to PNGEITI reports, the Dividend Withholding Tax payments received from 2013 to 2021 were considered not material for reporting. This meant that government revenue from DWT was consistently under 2% of total receipts annually. For instance, in the 2017 and 2018 PNGEITI reports, K47,229,739 and K387,722 were received, respectively, as DWT payments.
Mr Alkan noted that from January 2017, a standardised DWT rate across all sectors of 15% came into effect. Prior to this, withholding taxes had been concessional for resource taxpayers, with the DWT rate being nil for dividends paid out of gas or petroleum income and 10% for dividends paid by companies engaged in mining operations.
Taxation amendments introduced in the 2018 and 2019 Budgets exempted PNG LNG-sourced profits from paying dividends, consistent with the PNG LNG Gas Agreement, which also contributed to low DWT revenue to the government from 2018 to 2022.
The table below provides a summary of DWT received by the government from the years 2013 to 2022 as contained in the PNGEITI reports that have been published over these years.
Ok Tedi Mining Limited (OTML) hosted a delegation from the East Sepik Provincial Administration on a fact-finding mission to gain insights from the Ok Tedi operations to prepare for the upcoming Frieda River Project in the Sepik Region.
The delegation from the Provincial Administration Mining Desk Team, visited from the 11th – 16th August, to understand the various aspects of the mine operations to address some of their concerns with the upcoming Frieda River Copper-Gold Project.
The Frieda River Project is located in a region shared by both East and West Sepik Provinces, and has garnered significant attention from local communities due to its potential impact on the environment, particularly concerning the Sepik River and its floodplain system.
The delegation visited the Mine, Mill, Ok Menga Hydro Power Station, Bige and Kiunga Operations, and had the opportunity to witness the second stage of regional meetings for the current Community Mine Continuation Agreement (CMCA) Review.
They observed the management of mine waste, pyrite concentrate plant, environment monitoring, community relations activities, national and local content business structure, and community development programs, particularly through the Ok Tedi Development Foundation (OTDF).
Team Lead Mr Martin Torovi said Ok Tedi is of a similar physical setting to the proposed Frieda River Mine and the legacy issues of Ok Tedi are the very concerns and anxiety of the Sepik River People.
“If Environmental Permit is granted, East Sepik Provincial Administration will be tasked with managing a large mine’s environmental “impact” and benefit sharing agreements and negotiations. We Sepiks do not have the experience to manage these issues. As such we reached out to Ok Tedi for the learning experience,” said Mr Torovi.
“Some of the key takeaways from the visit include: The Development of Engineered Waste Rock Dumps; pyrite treatment plant; Bige Dredging; sustainable development projects; and understanding the Equity, Royalty, Trusts and Development Funds structure.”
Mr Torovi added, “We also could not have asked for a better time to conduct this visit. We had the opportunity to observe the CMCA meetings that is very appropriate to the concerns we have.”
Provincial Mine and Lands Minister & President of Gaui LLG Mr Leo Singut said he was appreciative of the opportunity to visit and learn from Ok Tedi.
OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, said “We are pleased to provide the delegation valuable insight into the multifaceted activities of our operation. We believe the visit has provided them valuable information as they prepare for the upcoming Frieda River Project and its impacts in their respective region and province.
A state team recently conducted a pre-Community Development Agreement (CDA) awareness program in Lae, involving parties to the Wafi Golpu mining project CDA.
The parties are Yanta, Hengambu, Babuaf, Wampar, Butibam, Wagang, Morobe Provincial Government and host Local Level Governments.
The consultation program was aimed at educating the parties who are landowners, impacted communities and stakeholders of the project, on the various benefit streams that will be available to them and how the CDA process will go.
The benefit streams include royalties, equity, Business Development Grants, Infrastructure Development Grants and Tax Credit Schemes amongst others.
The state team explained the various laws, policies and processes, governing the distribution of benefits, and who the beneficiaries of the CDA are going to be.
The highlights of the team's presentations were the explanation on what CDA is and its processes, equity break- ups and business spin -off opportunities that will be available to the landowners and stakeholders.
The landowners and stakeholders asked questions regarding the different agendas that were presented by the State Team, which the team explained.
John Nema, President of Hengambu Landowners Association, thanked the state team for sharing vital information on benefits. Hengambu is one of the three Special Mining Lease (SML) 10 landowner groups, that will benefit from Wafi Golpu Project. The other two are Yanta and Babuaf.
Mr Nema said his group wanted the project to commence immediately. However, he said they needed more information to prepare well for the CDA proper.
He said: “Our people fully support the project. We are willing to sacrifice our land and move this project forward,” said Mr Nema. He urged all landowner groups and stakeholders to cooperate with the state team inspite of their differences in opinions, so that the CDA could be signed in a timely manner.
The State Team said they were going to share more information and that this was the first of more meetings to come. Officer-In-Charge (OIC) of the Mineral Resources Authority’s (MRA) Development Coordination Division (DCD), Jerry Naime, said the state team would put together a road-map going forward for all parties to follow, with the focus to successfully completing the CDA.
The State Team was led by the Department of Prime Minister and National Executive Council (PM & NEC). Other departments represented were the Office of the State Solicitor, Mineral Policy & Geohazards Management (DMPGM), Commerce & Industry, Treasury and the Mineral Resources Authority (MRA).
Mayur Resources is pleased to provide an update on Stage 2 wharf development at the Central Cement and Lime Project in Papua New Guinea.
Mayur Resources Managing Director Paul Mulder said the wharf development was a critical piece of work enabling marine infrastructure for both PNG, and the Company’s future plans.
“Dedicated wharf facilities are strategically important to Mayur’s CCL Project. The proximity of the wharf is less than one kilometre from Mayur’s manufacturing facilities and quarries. This compares incredibly favourably over some of our Southeast Asian competitor suppliers, who have trucking distances of some 100 kilometres to the wharf prior to barging to the FOB loading point that are significantly further away from customer markets in Australia and the Pacific, both of which, generate a significant cost advantage for Mayur
“Our wharf facilities create a unique, vertically integrated development with a highly efficient supply chain and direct access to Southeast Asian markets. We look forward to completing construction in Q4 CY2024 and generating earlystage revenue from the sale of limestone and aggregates,” Mr Mulder said.
Second Stage of Wharf Construction Commences
Mayur has placed key orders for construction materials i.e. sheet piling for Stage 2 construction of the wharf with PNG owned and operated Hi-Lift Global, a company with over 48 years of experience in PNG in logistics and facilitating the delivery of construction materials. This is a key milestone in the Company’s CCL project construction program, with the wharf development scheduled to be completed by Q4 CY2024.
Stage 2 of the wharf (Figure 2) will enable both roll-on/roll-off barge access and crane loaded double sided barge operations. First revenues from the sale of limestone and aggregates are expected once Stage 2 of the wharf completes later this year.
Stage 3 of the wharf development is planned for 2025. Once completed, the wharf will be capable of loading and unloading bulk materials on vessels up to Handymax size (40,000 to 55,000 tonnes).
Mayur will own the wharf, which is a strategic asset for the Company’s CCL project. It will provide the Company with ownership and control of its supply chain within PNG, while also providing access to both domestic and export markets. The Company will also continue engagement with other third party prospective Port Operators and Owners.
PNG establishes State Negotiation Team engagement to facilitate Central Lime and Cement Project
Mayur is pleased to report that the National Executive Council of Papua New Guinea’s Government has established a State Negotiation Team to finalise the terms of a Project Development Agreement (the PDA) between Mayur and the PNG Government. The PDA will set out the terms upon which the PNG Government will participate in the CCL Project, ensuring the interests of the state, provincial government, and landowners are adequately represented.
Finalising a PDA with the PNG Government is a critical final step towards Mayur commencing full scale construction of the Central Lime Project and the later expansion into Clinker and Cement.
Mayur expects to finalise the PDA within Q3 CY2024.
Ongoing Stakeholder Engagement & Community Benefits
Mayur is soon to commence construction of a new rugby and sports field for the local community in Kido. Design works are complete with construction to commence in parallel with Stage 2 development of the wharf.
The sports field is critical social infrastructure for the Kido community and early construction will allow for a transition from the existing field to a new location by the end of Q4 CY2024.
Infrastructure projects that will benefit the Kido community will commence upon Financial Investment Decision Conditions Precedent being achieved for the Central Lime Project financing. These include but not limited to the provision of water and electricity supply infrastructure and connecting road and bridge access to Port Moresby.
The Autonomous Bougainville Government (ABG), Bougainville Copper Limited (BCL), and Rio Tinto have signed a Memorandum of Understanding to address concerns around future risks of ageing infrastructure in the former Panguna mine area.
This collaboration comes in response to information obtained during field work forthe independent Legacy Impact Assessment, which identified several ageing structures requiring prompt attention. The MoU aims to mitigate potential risks associated with deteriorating infrastructure and promote safety in the region.
Works will be carried out on old BCL assets, including the Jaba Pump Station and the Momau River Bridge, as well as the former mine area workshop, storage facilities and concrete wall in the Panguna town area. The works are expected to commence in November 2024 and will take several months to complete.
ABG Chief Secretary Kearnneth Nanei said concerns about run down infrastructure had been escalated to the government following field work conducted as part of the Panguna Mine Legacy Impact Assessment (PMLIA).
“We are very pleased to be working with BCL with support from Rio Tinto in responding to the issues raised, in the best interest of our people. As we await the final results of the legacy impact assessment, these works represent a positive sign of cooperation by BCL and Rio Tinto,” he said.
BCL Chairman Sir Mel Togolo said as the mine’s former operator and holder of the EL01 exploration licence for the area, BCL maintains a presence and is recognised as a development partner on the ground in Bougainville.
“Our local team will be working closely together with the ABG in overseeing the project works to ensure these ageing buildings and structures don’t cause issues for the community,” he said.
Rio Tinto Country Director for PNG Andrew Cooper said: "We are pleased tosupport the Autonomous Bougainville Government and Bougainville Copper Limited in addressing these issuesidentified as a priority during the legacy impact assessment field work. We commend the ABG and Chief Secretary Nanei for their proactive leadership in driving tangible action.”
The results of Phase 1 of the PMLIA are due for public release in the fourth quarter of 2024. These will provide all parties with a clearer understanding of the potential environmental impacts and directly connected social and human rights impacts, associated with the Panguna mine since the cessation of mining in 1989.
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