For over 120 years, Papua New Guinea (PNG) lacked legislation to protect its abundant mineral resources. Known as the largest island territory in the Pacific, PNG experienced extensive exploitation from gold rushes initiated by European and Australian alluvial miners since the 1850s.
Gold was first discovered on Misima Island in Milne Bay Province in 1889 and later on Woodlark Island, though these operations concluded by 1923. However, the Morobe gold fields flourished under the Australian administration, which had taken over from the German administration of the territory. Mining explorations began in the town of Wau, with small companies engaging in alluvial and dredging operations.
One significant enterprise, the Bulolo Gold Dredging Limited, achieved considerable commercial success with its extensive operations involving six large dredges along the Bulolo flats downstream of the Wau River. Although these operations halted during World War II in 1942, they resumed and continued into the 1960s due to the lucrative nature of the gold fields.
Similar trends were observed in copper and oil exploration, which didn’t find substantial success until the 1970s and ’80s with the discovery of the Panguna, Ok Tedi, and Kutubu Oil fields. The 1960s marked a pivotal era of political change as local leaders began advocating for fairer wealth distribution and representation, sparking discussions on nationhood.
PNG’s national Constitution, crafted with socialist Melanesian values, was heavily influenced by colonial English and Australian laws. The Panguna Mine, operated by Bougainville Copper Limited and owned by Conzinc Rio Tinto of Australia, commenced in 1972. Over 16 years, the mine accounted for 45% of PNG’s exports. While it brought significant economic benefits to both Bougainville and PNG, it also led to severe environmental damage and social issues, culminating in the Bougainville Crisis.
This crisis spurred legislative reforms, resulting in the Mining (Safety) Act of 1977 being updated to the Mining Act of 1992, which aimed for a fairer distribution of wealth. As stated by the PNG Mining Act 1992, these changes were crucial in evolving the legal framework to protect PNG’s mineral resources better and ensure more equitable benefits for its people. Has the legislation worked to better protect PNG’s mineral resources and its people?


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