Unregulated mining activities pose a threat to the overall performance of the mining sector and the economic performance of the country, something the PNG Extractive Industries Transparency Initiative (PNGEITI) has raised concern about.
The Executive Director for PNGEITI National Secretariat, Mr. Lucas Alkan in a recent statement said that one such mining activity is alluvial mining, which he stated that they are largely unregulated activities.
“Unregulated mining activities leaves authorities and stakeholders with limited information about this segment of mining industry, and this is a concern,” said Mr. Alkan.
The concerns from PNGEITI over alluvial mining follows comments by PNG Chamber of Resources and Energy (PNGCORE) President, Mr. Anthony Smare that there is a problem on how alluvial gold is produced in the country.
The recent PNGCORE summit heard that bigger mining companies operating in the country are subject to PNG Mining Act and even international laws on mining and they are obligated to comply, but the problem exists with alluvial gold producers who may underreport the quantity of the minerals produced.
Mr. Alkan expressed similar concern that the sector (alluvial mining) is largely unregulated that there is limited information about its magnitude and the scope of its activities.
The PNGEITI Report of 2022 raised similar concerns, strongly calling for proper coordination and regulatory mechanisms to keep track of opportunities and challenges that someone engaged in alluvial mining is faced with.
“Alluvial mining and associated activities contributed to economic well-being of a good number of people living in remote parts of the country. Taking an inclusive government approach in regulating different facets of the mining industry is important. In this way we can give every participant a fair share.”
The Mining Act of 1992 allows people to mine for alluvial minerals on their land by using non- mechanical means without the need for a mining licence and this activity can be categorised as an informal activity that involves millions of kinas.
The Mineral Resources Authority (MRA) of Papua New Guinea reported that K640 million kina was made from alluvial mining in 2022 and estimates this figure to increase in the coming years.
Mr. Alkan further said alluvial mining activities will continue to increase and therefore, it is important that the Government takes stock of the magnitude of this informal activity and consider formalising this activity by putting in place proper coordination and regulatory mechanisms to keep track of this segment of the mining activity.