Jayapura, Jubi – Around 20,000 ounces of gold in Papua New Guinea, which in today’s gold price is worth US$86 million (about K370.24 million), are lost to illegal mining annually in the Porgera special mining lease (SML) area, says operator New Porgera Mining Limited.
When asked about the continuous illegal mining activity up at Porgera mine, NPL told The National that a 2019 study revealed that the country’s top miner had lost up to 20,000oz of gold annually.
NPL staff recently raised security concerns regarding illegal miners entering the mine site, even threatening security personnel and staff on-site to illegally mine gold. Police are outnumbered at the mining site.
A statement by the Papua New Guinea Chamber of Resources and Energy (PNG Core) highlighted that unregulated alluvial mining posed “serious threat to the mining industry, local communities, and legitimate small-scale miners”.
Early last year, the Government, through a cabinet decision, authorised a joint military and police operation in the Porgera valley to curb this escalating problem of illegal miners.
Prime Minister James Marape said that this illegal mining activity endangered the lives of illegal miners as well as the mine workers.
Marape revealed that there was an influx of people flooding into Porgera valley every year to illegally mine gold.
Meanwhile, NPL revealed that illegal miners not only steal and disrupt the operations, but also harass and rob mine workers inside the pit.
The operator warned that continuous invasion into the SML area would force regulators to shut down the mine.
“Presence of illegal miners within the SML area violates mining safety standards,” they said.
“Ongoing disruption have placed heavy financial burden on NPL, and is affecting the company’s ability to collect dividend which is its main responsibility. Porgera (mine) could be producing more and generating higher revenue in this current gold market price if the operations here are stable.”…
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