PNG mining exports surge as gold and LNG earnings strengthen economy

 PNG mining exports surge as gold and LNG earnings strengthen economy

Papua New Guinea's resource sector generated stronger export earnings during the first four months of 2026, with gold and liquefied natural gas remaining the country's biggest foreign exchange earners despite shifting global commodity prices.

The June 2026 Westpac PNG Economic Update shows gold exports to Australia earned K6.51 billion between January and April, while LNG exports to Japan brought in K3.29 billion. The report says production across the mining industry remained steady even as international prices reacted to tensions in the Middle East.
Gold export revenue increased by K1.49 billion compared with K5.02 billion recorded during the corresponding period in 2025.

Westpac Senior Economist Shamal Chand said the stronger result reflected both increased export volumes and the higher gold prices seen earlier this year as geopolitical uncertainty encouraged investors to seek safe-haven assets.

He said gold producers also exceeded production expectations, with major mining operations recording stronger output, including gains following K92 Mining Limited's expansion completed last year.

According to the report, continued production growth at Kainantu Gold Mine together with consistent output from Ramu Nickel and other resource developments indicates the wider mining industry has been producing beyond earlier forecasts.

While gold has delivered strong returns so far this year, Chand said market conditions are beginning to change. He noted that rising interest rates and easing demand for safe-haven investments are expected to reduce support for gold prices during the second half of 2026.

PNG's LNG exports to Japan recorded only a marginal rise in value compared with the same period last year, increasing by about K40,000 despite a sharp increase in global LNG prices. The report says this reflects the country's long-term supply contracts rather than movements in spot market prices.

Chand said disruptions to shipping through the Strait of Hormuz and damage to energy infrastructure in the Middle East created a major supply shock early this year, tightening global LNG markets and driving prices higher.

"The supply shock has greatly supported PNG's export receipts despite modest volume gains."