Papua New Guinea’s burgeoning mining industry presents a great opportunity for Australian mining equipment, technology and services (METS) companies. The country is close to Australia and offers high potential for further large-scale developments.
Earlier this year, Austrade and Austmine hosted a delegation of 7 Australian METS companies to Papua New Guinea. During their time in market, the delegation attended PNG Resources Week, organised by the Papua New Guinea Chamber of Resources & Energy (PNGCORE). They also attended the PNG Industrial and Mining Resources Exhibition and Conference.
It was a valuable experience for the delegation to see new possibilities for business growth and take part in networking opportunities at both events. Key takeaways for the delegation included market insights and discussions with miners on:
- technology needs
- adoption trends in the industry
- operational challenges
- cultural understanding
- building relationships.
Implications of PNG’s National Content policy
Papua New Guinea’s National Content policy was top of mind for resources and local companies.
Introduced by the Papua New Guinea Government, the National Content policy focuses on 5 key areas, including:
- procurement of goods and services domestically
- supplier development (buying of products and services within Papua New Guinea by resources companies)
- employment opportunities for Papua New Guineans
- skilled workforce development
- sustainable development investments.
At its core, the National Content policy aims to enhance local participation in key industries. The policy encourages international businesses to prioritise local suppliers and work towards national benefits from resource projects.
This will ensure Papua New Guinean involvement across supply chains and the supply of goods and services for key projects. This policy was designed in response to past projects, which lacked clear guidelines on national content. This consequently resulted in the loss of potential gains for the domestic economy and private sector.
The Australian delegation learned about opportunities to supply METS to Papua New Guinea’s mining sector at key trade events
Partnership opportunities for Australian businesses
There are numerous partnerships opportunities available, particularly with local landowner companies in the regions of the country rich with resources. Local landowner companies have the means to fund the development of resource projects on their property. However, they require international capability and knowledge to progress key projects.
Australian METS companies are well positioned to provide solutions and technologies to these projects. Partnering not only provides supply opportunities, it is also a chance to train and develop local capabilities, improve business services, and build and maintain relationships to establish a presence in the market.
One successful example of such a partnership in the oil and gas sector is Trans Wonderland Limited Group and Pentagon Freight Services. The two companies formed a joint venture to support Santos’ PNG operation. The joint venture will deliver international freight forwarding, road transport and warehousing services to Santos.
Similar Australian partnerships like this in the mining sector can align with the aims of the National Content policy. Partnerships will also bolster the continued development of Papua New Guinea’s mineral output and export capacity, and help improve the livelihoods of Papua New Guineans.
Explore opportunities at the PNG Investment Conference
The PNG Investment Conference (8–11 December 2024) in Sydney is an optimal opportunity to explore potential partnerships in Papua New Guinea. Of particular interest is the PNG International Suppliers Forum on 8 December.
This event will be attended by operators, supply chain and procurement experts, investors, and other stakeholders in the mining and resources sector. It will provide an opportunity to interact, share knowledge and foster collaboration. Austrade and Austmine will be co-developing a workshop at this event for Australian METS companies to meet key Papua New Guinean resources companies.
To learn more about the emerging opportunities in Papua New Guinea, please contact Kembol Kaikipae, Senior Business Development Manager, Austrade.
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