The four mines in Papua New Guinea and the alluvial miners produced 68 tonnes of gold in 2003 and minerals made up 49.4% of the country's export revenue. Production in 2005 is estimated to be over 65 tonnes. Papua New Guinea boasts three out of the six top producing gold mines in Australasia. The relation between geological aspects, high prospectivity / large occurrences / ease of discovery, and commercial aspects, high capital / operating costs, are the main reasons why the mines are large. Smaller, higher grade mines will be part of the industry's future.

Many international companies from Australia, South Africa, Canada and the USA are engaged in the country's mining and exploration activities. Recently, the Chinese company, "China Metallurgical Construction Company" (CMCC) has begun to show interest investing in PNG and has signed investment agreements with the PNG Government, especially in nickel and cobalt in the Madang Province of PNG. This appears to be a new initiative by the Government to lure investments from other countries apart from its traditional investors who are still a part of the PNG economy which also compliments the Governments "export driven economic strategy" policy.

Just in a nutshell, the following projects give an impression of what is currently going on in Papua New Guinea. The OK Tedi has produced, after 20 years of mining, 2.875 million tonnes of copper, 7.136 million ounces of gold and 15.599 million ounces of silver. It still has reserves for about 10 more years of production. Gold production at Porgera exceeded 1 million ounces in 2004 and has a projected operation life of another 9 years based on currently known reserves. At Lihir, 2004 production amounted to a little over 600,000 ounces of gold. The Tolukuma is maintaining gold production at over 7,000 ounces per month.

Commencing production in 2006 is the Kainantu underground gold mine. Mine life is expected to be about 6 years with good potential to extend this. Also in construction is the Simberi with production of between 35,000 and 50,000 ounces per year to produce its first gold production in October 2007. The Hidden Valley has commenced construction to mine the Hamata resource.

Working to come to production in the years beyond 2005 is the Wafi gold prospect which, after the pre-feasibility stage, could production in 2008. New Guinea Gold Corporation which will bring three smaller gold mines into production over the next two to three years of which Sinivit has commencd producingin 2007. Others planned include, the Golpu copper project, the Ramu nickel project and the Frieda copper porphyry project.

The major representative of the Canadian involvement in Papua New Guinea's mining scene is major Placer Dome Inc., which has had a presence in Papua New Guinea since the 1920s. Placer Dome's 75% share of the Porgera mine added nearly 750,000 ounces of gold to the company's account in 2004 after depletion of reserves.

Porgera (75% owned): The Porgera mine, located in the Enga Province n the highlands of Papua New Guinea, is often considered one of the world's great gold mining operations. In 2004, Porgera was the largest contributor to Placer Dome's gold production and it is estimated that it will add another 350,000 ounces of gold in 2007.

Not so long ago, Placer appeared determined to pull out of Papua New Guinea, Now it is pointing that Porgera mine could still be mining new underground ore bodies well after the earlier proposed min closure in 2012. It has taken a leap into exploration of the ocean floor in the Bismarck sea, in a joint venture with a junior, Nautilus Mining. Company executives have suggested that with a bit of luck, Papua New Guinea could become the first country in the world to successfully mine mineral deposits on the ocean floor.

Placer Dome also deserves credits for being the perfect example of how a major mining operator handles its responsibility to the environment. After acquiring an interest in 1977, it has been producing more than 3.6 million ounces of gold and 18.3 million ounces of silver at its Misima Mine between 1989 and 2004. The mining order from the open pit was terminated in mid 2001 after which the production continued from stockpiled ore until early 2004. As Placer Dome states "Progressive rehabilitation of mines areas has been an ongoing aspect of the mining operation. The company's commitment to leave behind a better future has earned plaudits from local landowners, government officials and other stakeholders. Misima will continue to operate at the forefront of recognised best practices for environmental achievement and community development." That these are not only words, may be seen from the photographs below, which show the Misima mine open pit in August 1997 and again in October 2003 after the re-vegetation.