In a significant move that could reshape Papua New Guinea’s mining landscape, Swedish companies are eyeing the Pacific nation’s market, drawn by its strategic Asia-Pacific location and rich mineral resources. This interest was formally conveyed by Sweden’s Ambassador to Indonesia, His Excellency Mr. Daniel Blockert, during a recent visit to PNG, where he met with Foreign Affairs Minister Justin Tkatchenko.
Ambassador Blockert highlighted Sweden’s unique position as one of the few European countries with a robust mining sector. “We are one of the few countries in Europe that is a big mining nation. Most of the European countries don’t do mining anymore,” he stated, underscoring the potential for Swedish expertise to make a substantial impact in PNG. The focus, he emphasized, is on sustainable mining practices, including advanced technology, digitalization, mechanization, and worker safety.
The ambassador’s remarks come at a time when PNG is grappling with outdated mining legislation. Minister Tkatchenko acknowledged the need for reform, stating, “The Mining Act is under review as it doesn’t attract companies to invest. We hope that the scenario will change once the review is completed.” This review could be a game-changer, potentially aligning PNG’s mining policies with global best practices and attracting more foreign investment.
Swedish companies are not just interested in mining but also in the health sector. Ambassador Blockert mentioned significant projects in Indonesia involving medical equipment, training programs for midwives, cancer treatment, and disease screening. This dual interest could lead to a more holistic approach to development in PNG, addressing both economic growth and public health.
However, the path to investment is not without challenges. Ambassador Blockert acknowledged issues such as high costs, energy supply, and land rights. “Land rights are also a concern for many companies because 97 percent of the land is customary owned, which makes it a challenge,” he noted. These challenges will need to be addressed to fully unlock the potential of Swedish investment in PNG.
Minister Tkatchenko welcomed the Swedish interest, emphasizing PNG’s openness to foreign investment. “We’ve got a lot to offer, it’s just getting it right and putting the correct message out there,” he said. This openness, coupled with the ongoing review of the Mining Act, could pave the way for a new era of sustainable mining and economic development in PNG.
The potential influx of Swedish technology and expertise could also address some of the sector’s long-standing issues, such as environmental degradation and worker safety. As Ambassador Blockert put it, “The first step is mining, we don’t have companies to run mines, but it’s for mining equipment, technology, digitalization, mechanization, including robots, methods of sustainable mining, and workers’ security.”
Moreover, the Swedish interest could strengthen PNG’s ties with Europe, moving beyond traditional trade in products like coffee. This shift could open up new avenues for economic cooperation and development.
As PNG and Sweden celebrate 50 years of diplomatic relations later this year, the stage is set for a deeper economic partnership. The visit of the Swedish Trade delegation in 2017, which resulted in increased trade volume, is a testament to the potential benefits of this relationship. With the right policies and investments, PNG could see significant advancements in its mining sector, contributing to sustainable economic growth and development. The coming months will be crucial in shaping this narrative, as stakeholders work towards creating an enabling environment for foreign investment.
