The minerals and energy industry have long played a vital role in Papua New Guinea’s economic development.
The industry contributes 26% of PNG’s GDP and around 84% of the Nation’s export revenue which totalled K23 billion in 2017.
The financial contribution of the resource sectors to the PNG economy can be broadly divided into two categories:
- direct revenues – comprising company tax, royalty, dividend withholding tax, salary and wages tax, foreign contractors tax, duties, production levy, development levies and dividends paid to the government and landowners if holding an equity interest in the project, and
- indirect revenue – comprising of tax credit scheme projects, special support grants and development levies, employment, education and training, public health programs, business and agricultural development, and community infrastructure.
Value of Exports in 2018 (Sept) totalled K22.7 Billion
Prior to the completion of the LNG project, mining was the single largest export revenue earner; now reverting to the second largest, behind oil and gas (LNG) exports. Growth in the resource sectors has also acted as a large stimulus for growth in other sectors of the economy, including the financial sector, agriculture, telecommunications, construction, manufacturing and tourism.