About Papua New Guinea
Papua New Guinea is located on a major tectonic boundary between the Pacific and Australian tectonic plates. Papua New Guinea is a large mineralised region, with a long history of mining and exploration, commencing in the early 1900s. Large scale gold mining commenced in the 1930s with the development of Wau – Bulolo gold dredging, gold mining in the Milne Bay Goldfields, Misima, Sudest, Edie Creek, Wau, Kainantu and at the Laloki Copper Mines.
World class copper-gold, gold and nickel deposits were since discovered. These include Ok Tedi, Porgera, Frieda, Hidden Valley, Wafi/Golpu, Yandera, Lihir, Ramu and Panguna. Six mines are currently in operation and several projects are undergoing mine development and feasibility stages. Several exploration projects are undergoing intense or advanced exploration stages of investigation. Although a number of discoveries and mines have been found, Papua New Guinea still remains largely under-explored.
PNG Mines, advanced Projects and Pacific Niugini Ltd (PNL) Project Locations
Papua New Guinea (PNG) is a parliamentary democracy, it gained independence from Australia on 16th, September, 1975. There is a multi-party system and most governments are formed from coalition of parties and independent members. PNG has diverse cultures, ethnic groups and has the highest number of different (830) languages in the world. English is the national and business language.
Despite its diversity PNG remains a vibrant democracy and stable government. The government fully and actively supports foreign investment in the mineral sector and in all other sectors as well. The laws of PNG state minerals are owned by the State.
The corporate tax rate applicable to mining is 30% and there is a dividend withholding tax of 10% payable on dividends paid out of mining income. A royalty is payable on all mined products to the Government of PNG at the rate of 1.25% of:
- Free on board (FOB) revenue applicable to deliveries of mine products by the company where the mine products are directly or indirectly for export from PNG and,
- The net smelter returns applicable to deliveries of mine products where the mining products are smelted or smelted and refined in PNG.
Under the laws and upon grant of a mining licence (ML) or a special mining licence (SML) the Sate may elect at its discretion to take, at sunk cost, up to a 30% participating interest in any major mineral development in PNG. Upon exercise of that option, the State will fund its share of capital and ongoing costs and the mine developer will be repaid its share of sunk costs. Although still having this right under law, it has not been exercised in new project developments of recent times.
PNG has a comprehensive exploration, mining and business database located in various respective government departments and semi-government entities.
PNG mining and exploration databases are mostly located at the Mineral Resources Authority (MRA) of PNG. This data can be purchased at minmal cost in digital and in hard copy formats. Other data related to mining and exploration can be sourced from either, the Lands, Public Works, Environment Department, Internal Revenue Commission, Bank of PNG and Investment Promotion Authority.