Papua New Guinea (PNG) is entering a significant phase of transformation in its mining sector, with renewed ambitions to harness its vast natural resources to drive long-term development.
Key to this shift is a broader push by the PNG Government to redefine how the country engages with its mineral wealth, including increasing local participation and renegotiating resource-sharing agreements.
Marking six years in office, Prime Minister James Marape recently outlined his vision to deepen national involvement in resource projects and promote an era of increased mining and energy development.
“We have stabilised our economy, attracted better investment terms for our resources, improved roads, built hospitals and schools, and strengthened governance, despite the turbulence of global headwinds and constant political noise,” Marape said in a national address.
A major PNG economic update from the World Bank released in June found PNG’s economy is expected to grow by 4.7 per cent in 2025, well above historical averages. This is largely driven by increased gold and copper production.
“Despite global headwinds, PNG is charting a path forward,” World Bank senior economist for PNG Reshika Singh said.
“Higher gold production and renewed momentum in agriculture are lifting growth, but lasting, inclusive development will depend on greater efforts to bolster macroeconomic stability, stimulate private investment, and spur more and better jobs.”
PNG has an unemployment rate of below three per cent, but Marape – with the help of the mining and petroleum sectors – has his sights set on creating one million new jobs by 2030. Critical to this goal are the employment opportunities afforded to PNG natives by the resources industry, as well ongoing training and development of the workforce.
“I would like to truly acknowledge the mining and petroleum sector of our country for tremendous work and contributions they have made through the five decades that we have come through as a nation, especially in terms of creating job opportunities and training programs,” Marape said at the 2024 PNG Investment Week in Sydney.
“PNG is a growth country economically. My government has been working hard to diversify the economy.
“In the resource sector, there are also business and employment opportunities through spin-off businesses, apart from the actual project operations.”
Plans for the future
Marape has set an ambitious national goal of raising PNG’s gross domestic product (GDP) to K200 billion ($73.12 billion) by 2032. The country’s GDP has grown from K79.6 billion ($28.88 billion) in 2019 to an estimated K122.5 billion ($44.78 billion) in 2024, a trend the government hopes to accelerate through reforms in resource governance.
A key policy initiative of the PNG Government has been the reconfiguration of country’s resource ownership framework, renegotiating several mining and gas project agreements to ensure Papua New Guineans receive a larger share of benefits.
“We’ve changed the resource equation,” Marape stated. “What used to be 19 per cent (share of benefits) for PNG is now 51 to 55 per cent.
“This is generational change.”
Key projects driving this evolution include the Wafi-Golpu gold and copper mine, the Frieda River copper-gold project, and the P’nyang gas development. New ventures such as Mt Kare and Yandera are also poised to contribute to long-term mineral output and employment.
Despite positive forecasts, the mining sector faces challenges that may shape how benefits are realised. Infrastructure bottlenecks, landowner relations, environmental protections, and regulatory stability remain major concerns for investors and communities alike.
Community groups and environmental advocates continue to call for greater transparency, environmental protections, and equitable compensation arrangements to ensure resource development does not come at the expense of PNG’s rich biodiversity or social cohesion.
The future of PNG’s mining industry is expected to be defined by opportunity and complexity. Analysts and sector leaders anticipate a new wave of exploration and development, underpinned by rising global demand for critical minerals and a growing interest in responsible investment.
Technology and innovation are also expected to play a larger role in future mining operations, with a growing emphasis on automation, cleaner extraction methods, and improved stakeholder engagement. Digital monitoring, remote sensing, and sustainability metrics are being increasingly adopted across large-scale projects.
As PNG moves towards the implementation of its broader national economic strategy, observers are keen to see how the government will sustain momentum and deliver on its goals.
With the right combination of investment conditions, governance, and social engagement, the country’s mining sector could become a cornerstone of inclusive, long-term growth.
This feature appeared in the August–September 2025 issue of PNG Mining.
