Mining and resources remains the biggest focus of the Papua New Guinea (PNG) government to drive growth for the country. We unpack some of the opportunities and challenges for miners looking to operate in PNG
PNG Analysis
Opportunity – high
Business Risk – significant
Recommendation – partner with a trusted advisor /or engage local communities
In 2025, Papua New Guinea celebrated fifty years of independence from Australia, a remarkable milestone for an extraordinary country.
Speaking on Independence Hill, Prime Minister James Marape reflected on PNG’s rich history and diversity, acknowledging the challenges of the past five decades while setting out a vision for the future: “The next 50 years must be about nation building, renewal, and transformation.”
Central to that transformation, he noted, will be PNG’s resource sector. Gas, gold, copper, and other natural wealth are pivotal to the country’s economic ambitions. For Australian and international businesses, this outlook presents real opportunities, and serious challenges that must be managed with care.
Opportunities
PNG is home to world-class projects such as Ok Tedi, Porgera, and Lihir, highlighting the scale of opportunity, and the demand for mining and supporting services. Prime Minister Marape’s Take Back PNG agenda emphasises that resource projects must deliver tangible benefits for PNG communities. Far from limiting investment, this agenda creates opportunities for firms that are prepared to engage in true partnerships, build local capacity, and contribute to national development.
With geopolitical interest from Australia and global powers, resource projects are increasingly tied to regional security and economic cooperation. This creates an environment where well-run projects can attract backing and protection, provided companies navigate these relationships responsibly.
Risks
Operating in PNG is not without significant risks:
- Security and safety: High levels of criminal violence and law-and-order challenges are a daily reality, particularly for staff deployed to remote regions.
- Environmental and social: Communities and NGOs are scrutinising the environmental and social impacts of mining more closely than ever.
- Regulatory and political: Shifting policies, complex landowner agreements, and uneven enforcement can add volatility to operations.
Mitigations
These risks are real but not insurmountable, and can be managed through proportionate and proactive measures including:
- Secure transport, travel tracking, and thorough preparation of staff before deployment.
- Sustained engagement with local communities and landowners, ensuring that benefits are transparent and shared.
- Investment in sustainability and environmental responsibility, which not only mitigates risk but builds long-term credibility.
- Active dialogue with government officials and alignment with national development goals.
The PNG government recognises the vulnerability of mining and infrastructure projects to criminal threats and is investing in strategic policing initiatives. This signals an awareness of the challenges and a willingness to partner with industry in addressing them.
Looking Ahead
After half a century of self-rule, PNG stands at a crossroads. It has the resources and the ambition to drive a new era of transformation, but the path forward depends on how effectively opportunities and risks are balanced. For miners and mining support firms, success will not come from extraction alone. It will come from building trust, delivering security and resilience, investing in sustainability, and creating shared value for the communities in which they operate.
For those willing to take that approach, PNG’s represents immense opportunity.
Executive Risk Solutions Head Office
