THE mining and petroleum industryi s the biggest employer in Papua New Guinea in the past six years, The National reports.
The industry came close to doubling its workforce from 18,000 to 30,000
between 2003 and 2010.These figures were disclosed byMichael Uiari, the
Oil Search general manager in PNG in charge of commercial,
legal and stakeholder management. He was speaking last Friday to
journalists in Port Moresby about the industry’s benefit to PNG’s
economy. The main projects in the pipeline are the PNG LNG project,
Yandera, Ramu nickel, Wafi Golpu, Frieda River and Gulf LNG. There are a
number of grass roots exploration projects in both mining and petroleum
also employing a lot of workers in the fields. Projects commissioned
into production during this period are Simberi and Hidden Valley mines.
Uiari said a growing number were hired in the exploration phases, smallscale alluvial mines and contractors and joint ventures being set up.
He said the industry was an integrated industry made up of exploration,
evaluation, development and production, using a wide range of services
and support industries, indirectly giving jobs to more people. They were
mainly employed by aviation, drilling and drilling suppliers, seismic
contractors, analytical laboratories and technical services of all
types.
Others were involved in expediting and logistics, earthmoving and
trucking sales and contractors, shipping of all types, port services,
supply of motor vehicles and tyres, wholesaling and retailing of fuel,
general merchandise, white goods, equipment, tools, food supplies and
catering, maintenance and servicing contractors of all types,
accounting, legal, engineering, surveying and other professional
services, provision of accommodation including hotels, office and
private rental residences, technical and vocational training and
security.
“These groups benefit because our industry consumes goods and services from every aspect of our economy,” Uiari said.
The PNG LNG project alone currently employs 6,600 local workers compared to a maximum of 3500 projected before construction.
At the peak of construction in the second half of next year, total
employment is expected to jump to 15,000 people – local and foreign
combined.
The economy is expected to grow by a “low double-digit” this year which
is expected to translate to significant increases in employment in
contrast to 2009 when the economy grew by only 4.5% due mainly to the
global financial crisis.
Uiari said the financial and other benefits provided by the resource
projects were diverse and substantial including employment, royalty via
the state, taxes, dividends, tax credit schemes, education and training,
business and agricultural development, health programmes and services,
community facilities and other infrastructure.
He said an estimated K1.47 billion in taxes was paid to the government last year.
Uiari said royalties alone during the past five years had totalled K1.1
billion calculated at the rate of 2% each from the mining and the
petroleum sectors