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I wanted to find out what resources PNG had and was going to ask here but I decided to join the fun!
| quote: | ECONOMY
Papua New Guinea is rich in natural resources, including minerals, timber, and fish, and produces a variety of commercial agricultural products. The economy generally can be separated into subsistence and market sectors, although the distinction is blurred by smallholder cash cropping of coffee, cocoa, and copra. About 75% of the country's population relies primarily on the subsistence economy. The minerals, timber, and fish sectors are dominated by foreign investors.
Manufacturing is limited, and the formal labor sector consequently also is limited. High commodity prices in 2005 continued to lift both sectors after several years of declines.
Mineral Resources
Papua New Guinea is richly endowed with gold, copper, oil, natural gas, and other minerals. In 2005 mineral export receipts accounted for 49.7% of GDP. Government revenues and foreign exchange earnings depend heavily on mineral exports. Indigenous landowners in areas affected by minerals projects also receive royalties from those operations. Copper and gold mines are currently in production at Porgera, Ok Tedi, Misima, and Lihir. A consortium led by Exxon/Mobil hopes to begin the commercialization of the country's estimated 22.5 trillion cubic feet of natural gas reserves through the construction of a liquefied natural gas (LNG) production facility. Interoil, an American-owned firm, opened Papua New Guinea’s first oil refinery in 2004. It has the capacity to produce 30,000 barrels of product a day.
Agriculture, Timber, and Fish
Papua New Guinea also produces and exports valuable agricultural, timber, and marine products. Agriculture currently accounts for 30.4% of GDP and supports more than 85% of the population. Cash crops ranked by value are coffee, oil, cocoa, copra, tea, rubber, and sugar. About 40% of the country is covered with exploitable trees, but a domestic woodworking industry has been slow to develop. A number of Southeast Asian companies are active in the timber industry, but World Bank and other donors have withdrawn support from the sector over concern for unregulated deforestation and environmental damage. Recently enacted forestry legislation has exacerbated those concerns. Papua New Guinea has an active tuna industry, but much of the catch is made by boats of other nations fishing in Papua New Guinea waters under license. Papua New Guinea is a signatory to the South Pacific Tuna Treaty (SPTT), under which U.S. purse seiners fish for tuna in the exclusive economic zones (EEZs) of the Pacific Island parties. Locally produced fish exports are confined primarily to shrimp.
Industry
In general, the Papua New Guinea economy is highly dependent on imports for manufactured goods. Its industrial sector--exclusive of mining--accounts for only 9% of GDP and contributes little to exports. Small-scale industries produce beer, soap, concrete products, clothing, paper products, matches, ice cream, canned meat, fruit juices, furniture, plywood, and paint. The small domestic market, relatively high wages, and high transport costs are constraints to industrial development.
Trade and Investment
Australia, Singapore, and Japan are the principal exporters to Papua New Guinea. Petroleum and mining machinery and aircraft have been the strongest U.S. exports to Papua New Guinea.
Australia is Papua New Guinea's most important export market, followed by Japan and the European Union. The U.S. imports modest amounts of gold, copper ore, cocoa, coffee, and other agricultural products from Papua New Guinea. Most of those exports take place through third countries.
With the 2003 withdrawal of Chevron/Texaco, Australian companies are the most active in developing Papua New Guinea's mining and petroleum sectors. Exxon/Mobil retains a major share of natural gas reserves and is currently exploring the feasibility of building a liquefied natural gas processing facility. Interoil, an American-owned firm backed by an Overseas Private Investment Corporation (OPIC) loan, operates an oil refinery in Port Moresby. China is increasing its investment in Papua New Guinea, including development of the $1 billion Ramu nickel mine.
Papua New Guinea became a participating economy in the Asia-Pacific Economic Cooperation (APEC) Forum in 1993. It joined the World Trade Organization (WTO) in 1996. It is an observer at ASEAN and a member of the ASEAN Regional Forum.
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This is surprises me bacause as stated above their unemployment rate is close to 80% in urban areas! Job creation must be the governments priority!
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