PNG Government Warns of Rising Illegal Gold Trade in Alluvial Mining
Deputy Prime Minister John Rosso has raised alarm in Parliament over suspected illegal gold exports and increasing foreign participation in Papua New Guinea’s alluvial mining industry.
Rosso was responding to Northern Governor Gary Juffa’s concerns about expatriates engaging in activities reserved for PNG citizens in provinces such as Northern, Wau, and Bulolo. Rosso said although gold prices were high and alluvial activity had increased, official exports had declined, suggesting gold was being smuggled out of the country.
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| PNG Government Warns of Rising Illegal Gold Trade in Alluvial Mining |
He added that while licences were issued exclusively to Papua New Guineans, many were partnering with foreigners who introduced heavy-duty equipment, raising further concerns about illegal operations and lack of accountability.
MRA Managing Director Jerry Garry confirmed a significant drop in recorded alluvial gold production—from 120,000 ounces to 80,000 ounces over three years—and said the cause could be illegal trading or reduced output. “Nobody has a definitive answer,” he said.
Garry said the MRA had conducted surveillance and made arrests in relation to gold smuggling, but regulating the sector remains difficult. “We will try to implement systems to reduce illegal exports, but the open borders and terrain make it challenging.”
He explained that alluvial mining is uniquely complex because it allows landowners to extract gold without licences. “Unlike hard rock mining, we don’t have the capacity to monitor every pan or shovel nationwide,” he said.
The MRA noted that the situation is a concern for everyone and acknowledged the limitations of their current regulatory framework to fully oversee the widespread informal mining activities.
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