The size and dramatic impact of the large-scale mines of Melanesia make a useful case study of the effects of economic globalization on local communities, particularly in terms of poverty and inequality. In the context of debates concerning globalization and poverty, this article examines the processes around large-scale mining at both the national and local scales. It argues that the issue of scale is critical to discussions of the links between poverty and globalization, with no evidence that large-scale mining has reduced poverty at the national level in Papua New Guinea over the last thirty years. Evidence is given from the Porgera mine of the effects of mining development at the local scale, with absolute poverty down but inequality increasing. Ethnographic detail helps to situate these processes in the dynamics of the local society. It is these locally grounded attributes that account for the production of inequality far better than generalized accounts of the 'culture of globalization'.