Lihir Gold Mine in the New Ireland Province has topped the mining sector in the country as the most productive mine current according to Mining Minister Johnson Tuke in his address at the 15 PNG Mining and Petroleum Investment Conference in Sydney, Australia yesterday.
Mr Tuke gave brief summaries of all major mining projects currently undertaken in the country.
“Lihir mine in New Ireland province is our largest and most productive mine. In 2017 it achieved a record level of export revenue of K3.686 billion and production and revenue to date in 2018 are ahead of last year,’’ he said.
“Royalty of K74.31 million was paid in 2017 and K55.32 million has been paid up to August 2018.
“The mine has the 3rd largest reserves in the world at 56 million ounces of gold and is anticipated to continue mining for at least 35 more years.”
He said after Lihir in second place is Ok Tedi mine which has increased its revenue in 2017 by a remarkable 52 per cent to K3.179 billion.
“Although the February earthquake disrupted production, and both production and revenue figures to date are down, further recovery is expected to take place over the remaining months of 2018,’’ he said.
“K48.97 million in net royalty was paid by Ok Tedi in 2017 and K26.2 million has been paid up to august this year.
“This was a mine that was intended to be closed in 2009, but with the Prime Minister’s great determination to install peter graham as the CEO, the mine has achieve a significant turnaround for PNG.”
Mr Tuke said project such as Ramu Nickel, Cobalt and Chromite Mine and Refinery, had exceeded name plate capacity and also had a significant revenue increase in 2017, to K1.276 billion, an increase of 50 per cent over 2016, with royalties only recently starting to flow.
“Due to a dispute ramu had failed to pay any royalty since production first commenced in 2013. However, whilst elements of the dispute remain unresolved an initial royalty payment of K25,537,210 million was made in July 2018,’’ he said.
“Now that ramu have finally commenced royalty payments, after a 6 year dispute, the benefits from this mine will now be felt within the community and province and it is expected, like all other mines paying royalty, that they will make their regular monthly payments in accordance with the mining act and as a good corporate citizen.”
He stated Porgera’s special mining lease is due to expire in 2019 with process for extension subject of discussions, with an extension will ensure mining continues for another 20 years with Porgera having currently disclosed reserves of 2.2 million ounces of gold.
“In 2017 Porgera paid royalty of K42.38 million and to August this year they have paid K20.83 million.”
He mentioned other developments such as Simberi, Hidden Valley, and other projects all still paying royalties in varying degrees.
