PNG Strengthens China Ties with New Juncao and Rice Project

Papua New Guinea is losing millions of kina in revenue due to large-scale alluvial gold smuggling and weak regulation, according to the Special Parliamentary Committee on Public Sector Reform and Service Delivery.

Committee Chairman and Oro Governor Gary Juffa revealed preliminary findings this week, describing the situation as a national economic emergency. He said official gold production has collapsed from 120,000 ounces to just 40,000, despite a visible rise in mining activity.

“The Committee has uncovered a crisis where the amount of gold being smuggled out of PNG is more than double the amount being legally declared,” Juffa said, calling the situation “a direct, substantial theft from our public services, our schools and our hospitals.”

He stressed that the problem is not just inefficiency but “sophisticated economic criminality” involving organized foreign syndicates exploiting local landowners. These agreements, he added, leave communities without long-term benefits.

Juffa said the committee is preparing a final report recommending structural reforms and stricter enforcement measures. Proposals include creating a high-impact audit and compliance task force, strengthening regulatory powers, and removing policy conflicts that hinder effective oversight.

He urged all stakeholders and government agencies to support urgent reforms to protect PNG’s resources and restore public confidence.

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PNG Strengthens China Ties with New Juncao and Rice Project