Papua New Guinea’s extractive sector has shown a marked recovery in 2024, with subnational benefits and social expenditure lifting strongly as the country prepares for a critical international transparency audit next year.
The Papua New Guinea Chamber of Resources & Energy (PNG CORE) has formally commended the PNG Extractive Industries Transparency Initiative (PNG EITI) following the launch of its FY2024 Annual Report. The launch took place during the Multi-Stakeholder Group (MSG) Quarter 1 meeting at Tuna Bay last Thursday.
The timing of the report is significant, serving as a baseline for PNG’s upcoming EITI Validation scheduled to begin in April 2026.
PNG CORE Senior Vice President, Mr. Kassman, OBE, said the report provides critical insights into the performance of the mining, oil, and gas industries, particularly regarding beneficial ownership and equitable resource management.
“The PNG EITI report clearly illustrates the continued importance of the mining and petroleum sector, and highlights the sector’s contribution to government revenue, exports, jobs and community benefits, while reinforcing the need for transparency and accountability,” Kassman said.
Data within the report reveals that while the sector’s share of GDP dipped to 27.4% in 2023, it climbed back to 28.3% in 2024. This recovery was supported by improved operations across the board, including the reopening of the Porgera mine.
Export contributions remained a key milestone of the national economy, holding a stable and dominant share of 88.3% in 2024. Direct government revenue has also remained consistently high, staying above the K4 billion mark for the last three years.
Mr. Kassman stated that the 2024 figures reflect a resilient sector.
“Between 2022 and 2024, the PNG EITI reports reaffirm the contribution of this sector central to the economy. While there was a slight dip in 2023, the sector recovered in 2024, with export contributions staying strong and government revenues consistently above K4 billion,” he said.
One of the most notable trends highlighted in the data is the surge in benefits flowing directly to local levels. Subnational benefits rose from K953.7 million in 2022 to over K1.46 billion in 2024.
Similarly, total social expenditure saw a significant jump to K649.7 million last year, up from K564.5 million the year prior.
PNG CORE is now urging civil society, government agencies, and resource owners to scrutinize the findings. The full report has been made available on the PNG EITI and PNG CORE websites.