Papua New Guinea

Papua New Guinea (PNG) is the world’s eleventh largest producer of gold, with output at 68 tonnes (2.2 million oz) in 2001 (source, GFMS). The output comes mainly from four mines, two on the mainland and two volcanic offshore islands.

PNG is strategically based on the Pacific basin’s ‘rim of fire’ with its many epithermal gold deposits.

Gold was originally discovered near Port Moresby in 1873 and alluvial mining, including several large dredges, produced at least 125 tonnes (4 million oz) over the next one hundred years.

In 1972 the first important mine, CRA’s Panguna copper/gold deposit, opened on the island of Bougainville, reaching an annual output of 20 tonnes (6.4 m oz). The mine was shut down in 1989 due to action by local tribal separatists and has not re-opened.

In 1984 the Ok Tedi copper/gold mine was opened by Australia’s BHP, but output was reduced after a spillage in 1994 and did not fully recover until 2000, when production was 16.6 tonnes (0.53 million oz).

Placer Pacific (now Placer Dome) started their mine at Mount Isa on Misima Island in 1989 and two years later Porgera in the western highlands on the mainland. Porgera’s output peaked at 46 tonnes (1.5 million oz) in 1992, when it was the world’s sixth largest mine; more recently output at the mine has been much lower with reported production in 2001 at 24 tonnes (0.76 million oz). Output has also been in decline at Misima, indeed Mining was completed at the mine in May 2001, with production for the remainder of the year sourced from lower grade stockpiled ore.

New output has come at Lihir, a volcanic island nearly 400 miles (600 kms) north-east of the mainland. The long delayed project to mine this huge, but technically difficult, refractory orebody finally came onstream in 1997 and is producing 18-20 tonnes (0.60-0.65 million oz) annually.

The potential on Papua New Guinea mainland and the islands is substantial, but is caught up in local political battles and tribal claims so that it may only gradually be exploited.

Informal alluvial output supplements the mines.