Papua New Guinea (PNG) Prime Minister James Marape has called for a review of mining agreements in response to record global prices for gold, silver and copper.
The directive aims to ensure the country secures fair and equitable returns from its natural resources.
“With global gold, silver and copper prices reaching historic highs, mining operations in Papua New Guinea, whether large-scale or alluvial, are now generating extraordinary profits,” Marape said.
“Most production costs remain relatively fixed, apart from inflation. When commodity prices rise sharply, the country must also benefit through appropriate tax returns and dividends.”
The Prime Minister confirmed that Treasury and the Internal Revenue Commission (IRC) have been instructed to compile individual files on every operating mine, including state-owned entities such as Ok Tedi Mining and joint-venture operations like Porgera.
The review will also involve accuracy and compliance testing on all production and revenue declarations, and joint reviews of project agreements with mining operators, with a focus on ensuring transparency in royalty, tax, dividend and equity returns.
Marape asked that officials work collaboratively with operators to ensure compliance, noting that many companies have operated in PNG for decades and goodwill, honesty and fairness are expected, particularly when global prices deliver what he described as windfall profits.
“We have already demonstrated our ability to support businesses during difficult economic periods. If we broaden the tax base and grow the economy together, tax reductions will follow,” Marape said.
The review underscores the Government’s intent to scrutinise existing agreements as international commodity markets continue to deliver historically high prices.
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