Papua New Guinea Police are probing an alleged case of smuggling involving a couple from China who attempted to export undeclared homemade gold bars worth approximately US$420,000 from Jackson International Airport in Port Moresby. Weighing about 1 kilogram each, these rudimentary gold bars were intercepted by the PNG Customs team at the airport’s departure lounge as part of a broader pattern of gold smuggling believed to be occurring frequently in the region.
Member for Ambunti-Drekikir, Johnson Wapunai, highlighted disturbing trends regarding gold being illicitly transported, claiming that a shortage of foreign exchange in PNG has led Chinese-owned enterprises to turn to cash purchases of gold for smuggling. Wapunai further stated that Hong Kong has become a preferred market due to its zero percent tax policy on imported gold, making such transactions highly lucrative for smugglers.
Concerns were also raised about potential collusion among airport officials, including those from National Airports Corporation (NAC), customs, and immigration staff, who may be facilitating these smuggling operations. Customs Chief Commissioner David Towe acknowledged the challenge of smuggling through accompanied cargo, revealing that their limited recent detections had only been triggered by specific tip-offs.
The context for these smuggling activities comes amid troubling reports pertaining to the decline of alluvial gold mining in PNG. The Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, expressed concerns regarding the plummeting production levels, which have decreased from around 80,000 ounces annually to approximately 36,200 ounces. He indicated that this decline is a serious issue as it corresponds to a loss of nearly K500 million in potential revenue for the country.
Local alluvial miners estimate that about 10-15 kg of gold may be smuggled out of PNG each week, highlighting the scale of the problem. They assert that foreign buyers, operating under different business pretenses, are purchasing gold without the necessary exporting licenses.
The repercussions of smuggling can be severe, including forfeiture of the goods, substantial fines, or imprisonment. However, there remains hope that increased enforcement and collaborative efforts can restore faith in the integrity of PNG’s gold market, ultimately benefiting local communities and the nation’s economy.
This situation underscores the importance of addressing governance and systemic issues in PNG’s mining sector to contend with smuggling, protect natural resources, and enhance lawful economic activity. Effective measures could ensure that the potential economic benefits of gold mining are realized while safeguarding the integrity of the industry.
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