“My Land, My Work”: Business Development and Large-Scale Mining in Papua New Guinea

Abstract

Purpose – This chapter analyzes landowner business development and economic sustainability in the context of large-scale mining in Papua New Guinea with a focus on the Lihir gold mine. It pays particular attention to the social implications of success or failure of business development in mining contexts.Methodology/approach – This chapter is based upon ethnographic research and social impact monitoring studies conducted by the authors in Lihir between 1994 and 2012, as consultants and employees of the Lihir mining operation and as independent researchers. This chapter is also based upon broader research and consulting work undertaken by the authors at other mining locations throughout Papua New Guinea. The research is intended to explore the social changes generated by large-scale mining and related forms of business development, and the factors and strategies which constrain or enable landowners to get what they want from capitalism.Findings – Business development in resource extraction enclaves is structurally different from other nonresource development contexts and produces a more dependent and client-based approach to capitalism. In Lihir, research and ethnographic observations indicate that landowner business development is highly territorialized, which is captured by the landowner catch cry “My land, my work.” Ultimately, mining has provided significant economic opportunities for the local community, but these economic changes, especially through the distribution of mine-derived benefits and opportunities for business development, have involved processes that have divided people and entrenched inequalities.Practical implications – In Papua New Guinea, the close relationship between property ownership, landed interests, and capitalist engagement creates steep challenges for sustainable business development in resource enclaves. This research provides a strong foundation for exploring alternative strategies for economic development.Originality/value – Provides detailed insights into the social, economic, and political factors which influence sustainable business development in Papua New Guinean mining enclaves.