1. ACHIEVING STANDARD ZERO in Papua New Guinea
CASM – Ulaanbaatar, Mongolia

2. Papua New Guinea

3. Mining Projects

4. Overview of Small Scale Mining Sector
Estimated 50,000 miners countrywide
4.5 tonnes (145,000 oz) gold produced each year
Kina 180 million (US$ 60 million)
Average income per miner is K3600 (US$1080)
PNG average income is K994 (US$300)
Mining improves income - reduces poverty
Approx. 400,000 benefit (PNG multiplier=8)

5. PNG unique. It does not face many of the issues in many other countries
97% of land is still owned by indigenous people. 3% by Government.
75% population are rural
Small scale mining is well regulated as a consequence of the country’s mining history, development of its mining law and very strong customary ownership rights to land.

6. STANDARD ZERO 5 COMPONENTS Social Development Economic Development
Labour Development
Environment Development
Trading

7. SOCIAL DEVELOPMENT
Fair Trade is well developed in the Coffee Industry (organic). Delivers exception value to growers
ASM is individual or family groups
Concept of Community Mining is unknown
Legislative frameworks exist for a producer organisation e.g. Association, Cooperative or company
Organisation Constitution defines the rules.

8. ECONOMIC DEVELOMENT
Organisation must have professional management reporting to and directed by Board
Capacity is generally weak – Training is required
Various programs (JSDF) improving productivity and environmental performance

9. LABOUR DEVELOPMENT PNG does not have slave or child labour
Mining is conducted as a family business
PNG has 850 different languages and almost as many different cultures. The treatment of women varies between tribal groups.
The views of women are increasing being heard

10. LABOUR DEVELOPMENT ASM has high incident accidents and deaths
Training and awareness programs on OH& S
Formal Social Security do not exist
Cultural support systems looks after everyone in the Community

11. ENVIRONMENTAL
JSDF has developed a set of Environmental Guidelines for ASM
Techniques are being introduced to reduce the environmental impacts. Generally impact is small
Local cultural values restrict impacts

12. TRADING Gold trading is essentially unregulated
Free market prevails – many gold buyers
Free to sell gold to who offers the best price
Central Banks generally set country rules
Changing the rules will be the greatest help for ASM

13. TRADING
Gold price is fixed in London AM and PM for London Good Delivery Bars
Local prices are discounted for refining costs and cost of delivery to London (Loco price) and then the % of contained gold
Premium (?) or better price will only be achieved by collectively selling larger lots to refiners or jewelers

14. The Future PNG is well advanced in achieving Standard Zero
The challenge is to have the miners recognize that a collective organisation will delivery additional benefits and better prices.
PNG is in the position to implement a pilot project to sort out these issues.

17. Faces of PNG