According to PNG Customs officials, the attempted smuggling was intercepted in the airport’s departure lounge. The seized gold bars, if successfully transported, could have fetched an estimated US$420,000 (K1.75 million) on the international market.
Investigations are underway as police and customs authorities probe what appears to be a broader pattern of illegal gold trafficking, believed to be linked to ongoing foreign exchange challenges in Papua New Guinea. Reports suggest some foreign-owned enterprises — particularly Chinese — are resorting to gold smuggling to bypass transfer restrictions and acquire foreign currency for overseas purchases.
Member for Ambunti-Drekikir, Johnson Wapunai, raised alarm over repeated reports of alluvial gold being trafficked out of PNG as accompanied baggage, particularly through Jacksons Airport.
“Because of the forex shortage, Chinese-owned businesses are allegedly purchasing gold in cash and smuggling it to Hong Kong, which offers a tax-free import policy, making it a highly attractive market,” Wapunai said. He also alleged systemic corruption, citing claims of collusion involving staff from the National Airports Corporation (NAC), PNG Customs, Immigration, and Air Niugini.
“These insiders allegedly help smuggle gold during the boarding process. In some cases, gold is handed directly to passengers by airport staff moments before boarding,” he said.
Customs Chief Commissioner David Towe confirmed the seriousness of the situation, acknowledging limitations in monitoring certain outbound zones due to NAC-controlled access. “Only two outbound detections have been made recently, both from tip-offs — one involving cocaine and the other involving gold,” Towe said. “Investigations are ongoing, and we are pursuing prosecution.”
The arrest comes amid a worrying decline in the alluvial gold sector, once a major revenue source for the country. According to the Mineral Resources Authority (MRA), annual production has dropped from over 80,000 ounces to just 36,200 ounces in 2024, equating to a loss of nearly K500 million in potential export revenue.
“This sudden decline raises serious red flags,” MRA Managing Director Jerry Garry said. “We’re investigating how much of this missing gold is being illegally exported.”
Industry stakeholders say PNG’s alluvial gold mining sector, if properly managed, could generate up to K37 billion annually, employ over 1 million people, and address the country’s unemployment crisis. However, illegal smuggling is draining potential national wealth and depriving local miners of fair economic opportunities.
Local alluvial miners estimate 10–15 kilograms of gold are smuggled out of PNG weekly by a sophisticated syndicate involving foreign nationals posing as business operators. These individuals often operate without valid export licences from the Bank of Papua New Guinea.
Penalties for smuggling gold include fines, forfeiture of assets, and imprisonment under PNG law.
Authorities are urging members of the public to report suspicious gold trading or airport activities as part of a national effort to crack down on the black-market gold trade.
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