Alluvial gold mining set to deliver K355 million to landowners this year

alluvial miners at work

Alluvial miners at work on Bougainville

Alluvial gold price looks promising says MRA

Post Courier | October 24,2016

ALLUVIAL gold production and revenue levels between 2014 and 2016 have naturally responded to the fluctuating gold prices on the world market.

This is according to the managing director of the Mineral Resources Authority Philip Samar who said in 2016, MRA expects a further decline, with just 90 ounces being produced.

In a statement released yesterday Mr Samar said, production had dropped from a historic high in 2014 of 120 ounces (oz) of gold which had netted K373.3million to 113 oz in 2015, generating K356.3million.

However, he said because gold prices had increased substantially earlier in the year to an average US$1340/oz, (K 4,247.27) and remained stable at that for almost six months (only dropping below US$1200/oz), (K 3,804) the revenue side had been holding against the 2015 figures of K356.3million.

According to the statement revenue to date is K266.7million as at the end of Quarter-3 and MRA projects around K355.6million for the full year.

On the upside, in the past 12 months there has been considerable interest in tenement applications within this sector especially for alluvial mining leases (AML) and associated joint venture arrangements.

According to Mr Samar while some previously approved deals had collapsed, MRA remained confident that the future of the sector especially the ability to generate greater production and significant revenue, lies in mechanisation.

Hence, the theme it is promoting at the upcoming Alluvial Mining Convention which will be held in Goroka on November 3-4, 2016.

The entity had also noted an increase in gold smelting and refining opportunities in PNG from overseas investors.

The conference is open to all and MRA is urging all to attend to not just learn about the sector but establish contacts as well.

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4 Comments

Filed under Financial returns, Papua New Guinea

4 responses to “Alluvial gold mining set to deliver K355 million to landowners this year

  1. Kenneth Unamba

    Your figures in regards to the revenue generated per alluvial gold produced in 2014 and 2015 does not add up. You are saying that in 2014, gold was being sold at K3,110,833.33 per ounce and in 2015, was sold for K3,153,097.35 per ounce which is totally untrue. Average gold prices on the world market in 2014 was about US$1250/oz and in 2015 was about US$1050/oz (Kitco.com) so if the kina was 0.30 cents to the dollar for both these years then, the gold prices at world market prices in Kina per ounce would be much much more less then what you are reporting here.

  2. Peter Poro

    Some very weird figures in this article …..

  3. Vanoy

    Post Courier really needs to do basic arithmetic….There are three (3) zeros missing from the ounces quoted. 9o ounces should actually be 90,000 ounces!! (90,000 x K3804 = K342.4million).

  4. Matthew Aia

    I am an aspiring youth who is interested in small scale mining but lack capital and equipment to work my land. As per Niuminco geological survey my land and almost all the riverine systems are streaming of gold. We collected 11 grams of gold sample last month and I was surprised i could sell it for K1300. Am amazed and want go further into mechanization program but lack capital. Any bright ideas???

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