7 Jan 2015

Despite lower commodity prices, PNG remains confident

12:29 pm on 7 January 2015

Papua New Guinea's government remains confident that mineral and commodity prices will pick up in coming months, despite significant drops in world markets.

LNG Project facility, Central Province, Papua New Guinea.

LNG Project facility, Central Province, Papua New Guinea. Photo: RNZI / Johnny Blades

The finance minister James Marape says the Treasury is monitoring the current downturn in global prices, and is expecting a quick turnaround.

The opposition leader, Don Polye, who was last year sacked as Finance Minister by Prime Minister Peter O'Neill, has been vocal in his criticism of the government's financial plans in the wake of the recent falls in world prices.

But the Post Courier reports Mr Marape as saying PNG sold 52 cargo-loads of gas from its massive Highlands LNG project last year that were not factored into forecasts.

He says there also remains a possibility of an increase in gold and nickel prices in 2015.