‘Economy Would Rebound Later This Year’
by PNG Business News - September 06, 2021
According to Steamships Trading Company Ltd, the national economy would rebound later this year and beyond 2022.
In its half-year report for the fiscal year 2021, the corporation indicated that recent government announcements on key resource development projects were encouraging.
The group's Coral Sea Hotels had a strong start to the year, aided by the quarantine requirement for visitors to PNG.
“The Ela Beach Hotel food and beverage offering improved considerably with a new restaurant, bar and takeaway outlets which opened early this year,” the company said. “Cost management remained a key focus.
“Demand is currently stable but any relaxation of quarantine requirements will have a negative impact on second-half performance.
“Steamships is adapting to meet the changing demand in the economy and positioning its businesses for a medium-term economic recovery.”
In the meantime, the group successfully secured the renewal of a portion of its existing funding arrangements with a major bank in PNG.
“Also, after the period ended, Steamships agreed to sell its wholly-owned subsidiary, Croesus Holdings Ltd, an indirectly wholly-owned subsidiary, Croesus Re PCC Ltd, both incorporated in the Isle of Man, to its majority shareholder John Swire & Sons Ltd at net book value.
“The valuation was supported by an independent accounting expert.
“The transaction was recommended by a sub-committee of the independent directors of the Steamships board and approved by the Steamships board.
“Completion of the transaction remains subject to approval from the Isle of Man Financial Services Authority.”
Reference: The National (1 September 2021). “‘Economy to recover this year’
PNG Business News - July 02, 2021
Aviation Industry Critical to PNG’s Tourism and Economic Development
According to Civil Aviation Minister Sekie Agisa and Transport Minister William Samb, the aviation industry is critical to the country's tourism and economic development. The aviation sector, according to Agisa, is a catalyst for social and economic activity by facilitating the flow of people and products. Aviation, he added, is critical to numerous businesses, including tourism and trade, as well as employment creation, productivity improvement, and a country's well-being. COVID-19, he said, had had a significant impact on aviation safety and security, and the aviation industry will continue to respond and recover from COVID with the goal of rebuilding the tourism and trade industries not only in PNG but also in other Pacific Island nations, with the help of other ministries and other Pacific Island ministers. Minister of Transport and Infrastructure William Samb also stated that the tourist sector has been severely impacted, and that aviation plays a significant role in strengthening the industry and contributing to economic growth. He explained that due to flight limitations, particularly foreign flights, which have resulted in a decrease in the flow of people into and out of the country, tourism and trade have suffered. The benefits that the aviation sector brings into the nation have been identified, according to Samb, and the aviation industry will be ready to contribute to PNG's economic recovery. Reference: Kamus, Maxime. Post-Courier (1 July 2021). ‘Aviation Vital to Tourism and Economic Building’.
PNG Business News - October 04, 2021
GDP Shrinks By 3.9 Percent
According to the World Bank, Papua New Guinea's GDP shrank by 3.9 per cent last year as a result of Coronavirus (Covid-19)-related limitations and lower demand. The fiscal deficit increased to 8.9% of GDP, according to the bank's recent East Asia and Pacific Economic Update report, with income underperformance rather than a dramatic increase in spending being the major cause. “Consequently, the debt-to-GDP ratio surged to an estimated 49.2 per cent. To address transitory budgetary imbalances created by the Covid-19 epidemic, the revised Fiscal Responsibility Act raised the public debt cap from 45 to 60% of GDP for a five-year period, with the goal of returning to below 40% of GDP within ten years. Falling gold and LNG output, as well as the reinstatement of Covid-19 limitations, have slowed economic recovery this year. The Lihir, Simberi, and Hidden Valley mines all produced less gold in the first half of this year, while the Porgera mine remained closed. Due to planned maintenance at the PNG LNG project, gas output was reduced. Meanwhile, fresh waves of Covid-19 infections (95 per cent of the 18,000 total cases have been reported since February), delayed vaccine roll-out (only 0.4 per cent of the population is completely vaccinated), and related restrictions have hampered travel, reducing non-resource economic activities. In mid-2021, inflation had slowed to 3.3% year on year. The Bank of Papua New Guinea maintained its 3% interest rate. According to three rounds of a World Bank mobile phone poll performed in June 2020, December 2020, and May 2021, the impact of Covid-19 on poor and vulnerable people' livelihoods was severe. by December. The agriculture industry saw the most job losses. Despite modest improvement in the second half of 2020, overall employment fell by 28% between January and December of that year. According to a preliminary analysis of the May poll, employment has been stable since the beginning of the year. While the majority of families in the May poll said their income had remained unchanged since January, moreover a quarter said it had decreased or ceased altogether. The majority of households were concerned about their financial situation in the coming month. Overall, the poll findings point to a slowdown in economic recovery. Reference: The National (29 September 2021). “Economy contracted by 3.9pc’
PNG Business News - December 02, 2021
Adyton Resources hits significant copper at Feni Island, Papua New Guinea
Photo credit: Adyton Resources Adyton Resources Corporation has reported significant copper assays at its 100% owned Feni Island Project (Feni) in Papua New Guinea following the completion of the company’s maiden drilling program of five diamond holes (1,982m) in September. The initial objectives of the program were to expand the gold resource as well as test various induced polarisation (IP) anomalies for the potential of a copper porphyry system. Multi-element assays have now been returned with significant copper intersections being recorded from hole ADK004 in two zones – a shallower disseminated zone of copper mineralisation followed by a zone of massive sulphide copper mineralisation: Disseminated Cu + Au: • 35.9m (70.7 to 106.6m) @ 0.3% Cu & 1.1g/t Au Massive sulphide Cu + Au: • 6.4m (149.7 to 156.1m) @ 5.1% Cu & 1.6g/t Au Incl 3.6m (151.5 to 155.1m) @ 6.9% Cu & 2.1g/t Au Incl 0.7m (154.4 to 155.1m) @ 14.5% Cu & 2.4g/t Au Adyton Resources President, Executive Chairman and CEO, Mr Frank Terranova, said the assay results demonstrated Feni’s significant copper potential. “The results confirm that Feni could contain zones of high-grade copper within the extensive gold mineralisation and this confirmation of massive sulphide copper in the system justifies more work which is currently being planned,” Mr Terranova said. “The recent drilling program has highlighted the potential for a significant discovery to be made in the 1.5km long Kabang structural corridor. The corridor is lightly drilled, and going north is covered by younger volcanic cover, which has hindered previous exploration efforts – a focus of the next program will be exploring under this younger cover.” Located in a Tier 1 region along a mineral belt containing the world class Simberi, Lihir, and Panguna gold and copper projects, Mr Terranova added that the model at Feni was for a “Lihir-style” epithermal gold overprint on a deeper porphyry copper system.
PNG Business News - November 30, 2021
Weir Minerals’ new Trio® TC84XR live-shaft cone crusher improves safety, functionality and reliability
Weir Minerals has upgraded its range of Trio® TC live-shaft cone crushers. The Trio® TC84XR features all the robust design elements that have made live-shaft crushers a fixture of the mining and sand and aggregate industries for generations, while also incorporating the latest technology to ensure it remains integral to flowsheets long into the future. ‘The Trio TC cone crushers’ live-shaft design has been proven to perform in heavy-duty secondary and tertiary crushing applications. We wanted to build on this strong foundation. My team followed a comprehensive design process – we’ve reviewed and tested every inch of this crusher. While the TC84XR may seem familiar on the outside, we’ve upgraded its design and control functionality. The motor is larger and it has a much higher crushing capacity compared to equivalent sized crushers,’ Mark Utecht, Weir Minerals’ Director of Comminution Engineering said. ‘The result: we now have an incredibly robust, powerful and technologically advanced crusher that is easy to operate, has a low wear rate and uses less energy, which ultimately lowers operating costs,’ he said. While many OEMs have made the decision to discontinue their live-shaft cone crushers, Weir Minerals has resisted this trend, believing that – because every mining and sand and aggregate operation is different – there can’t be a one-size-fits all approach. Instead, Weir Minerals partners with its customers and empowers them to choose the machine best suited to their crushing needs. There are some applications and situations where pedestal (fixed-shaft) style crushers may be the more appropriate solution, which is why Weir Minerals continues to manufacture the premium Trio® TP pedestal style machine. Weir Minerals is the only global equipment manufacturer that offers both the TC live shaft and TP fixed shaft style machines. ‘The combination of the Trio TP and TC fixed and live-shaft cone crushers ensures that Weir Minerals continue to offer their customers the right technology, regardless of their site structure, operating conditions or application,’ Mark Utecht, Weir Minerals’ Director of Comminution Engineering said. Trio® live- and fixed-shaft cone crushers are made for modern mines and quarries with advanced hydraulics, wear resistant material and the latest technology. ‘This is really exciting for our customers, as they now have a real choice. The combination of our TC and TP series allows us to have an honest conversation with our customers on the options available to them and make a technological recommendation which truly meets their needs,’ Ekkhart Matthies, Weir Minerals’ Global Application Director said. Replacing existing live-shaft style machines on site with the Trio® TC84XR crusher is now a straightforward process because it has very similar dimensions and is a comparable weight to its live-shaft predecessors. And because it produces the same product, downstream changes aren’t required, which isn’t the case when replacing a live-shaft style machine with a fixed-shaft style machine. In other words, there is no need to re-design existing circuits. Technology upgrades The recent technology upgrades in the Trio® TC84XR crusher have improved its safety, functionality and reliability. ‘At Weir Minerals, we understand and appreciate the important role live-shaft cone crushers play in today’s challenging crushing applications. Combining decades of experience and first-hand customer feedback with innovative designs, the highest quality materials and latest in control technology we believe that our new Trio TC84XR cone crusher is the most reliable and robust live-shaft cone in the market today’ Ekkhart Matthies, Weir Minerals Global Application Director said. Engineered to perform in the most extreme applications, the Trio® TC84XR crusher is robust and easy to maintain and operate. It reliably delivers high crushing force and high horsepower in primary, crushed ore and quarry rock applications. The ability of the TC84XR crusher to handle variable feed and crush pebbles is also partly a result of its large motor; it’s been designed with higher power capability than comparable cone crushers. Ultimately, this translates to a higher potential crushing force and therefore increase in production. Another feature that allows it to handle variable feed, as well as deal with tramp material safely, is the fully-automated tramp-release and setting recovery system. The tramp release hydraulics can also be used to safely clear the crushing chamber should a sudden disruption in plant power cause a shut-down of the cone crusher. The socket assembly has been redesigned to improve sealing, which has optimised functionality and manufacturability by reducing the machining setups of the socket and seal rings. The Weir Minerals comminution team has also redesigned the countershaft assembly to remove welding and machining, while simultaneously improving venting and the dust seal. The Trio® TC84XR crusher, like the range of TP series cone crushers, can be fitted with ESCO® wear parts, designed with superior ESCO® alloys, they can be custom designed based on your specific requirements. With over 100 years of casting expertise and in-house engineering and metallurgy, ESCO transforms what was already a robust machine into one that, in the toughest conditions, is unsurpassed. All Trio® equipment is supported by the Weir Minerals unmatched global service centre network – with over 160 facilities worldwide. Further information can be found at https://info.global.weir/trio
PNG Business News - November 26, 2021
PM Marape welcomes K22 billion Budget
Photo credit: PM James Marape News Page - Treasurer Ling-Stuckey tabling the 2022 Budget Prime Minister Hon. James Marape has welcomed the tabling of the record K22.175 billion 2022 Budget by Treasurer Ian Ling-Stuckey in Parliament. He said it would help Papua New Guinea on the path to economic recovery as well as support successful delivery of the 2022 National General Election. “The total Budget of K22.175 billion is 9.3 per cent higher than the 2021 Supplementary Budget, with a revenue envelope of K16.190 billion which is 18.4 per cent higher than the 2021 Supplementary Budget,” PM Marape said. “The fiscal deficit for 2022 is K5.895 billion, which is 5.9 per cent of the 2022 Gross Domestic Product (GDP). Compare this deficit to K6. 6 billion or 7 per cent of GDP in 2021. “In 2022, the PNG economy is projected to grow strongly by 5.4 per cent, from K93 billion in 2021` to K102 billion. “The 2022 Budget will continue the budget repair and economic recovery path, with strong focus on non-resource sector growth, and at the same time support families and businesses. “There will be increased development and capital funding to high priority programmes and sufficient funding for key social sectors to stimulate economic growth. “The delivery of my Government’s third Budget today, despite the many challenges and obstacles, shows clearly the work that we have been doing. “It points to the fact that our path to economic recovery is correct, and with critical analysis by all multilateral Budget partners like Asian Development Bank, International Monetary Fund and World Bank, our positive trajectories show an increase in GDP for next year and beyond as well as a declining budget deficit trend. “The handing down of the Budget is the single most-important parliamentary occasion of any government. “With hangovers and effects of a slowed economy due to COVID-19, your Government has used the last three years of National Budget to ensure our domestic economy was functional and alive, and our crucial services were maintained. “I want to assure our people and all stakeholders in our economy that we are responsible and prudent to ensure expected outcomes of our Budget are achieved.” PM Marape said since his Government took office in May 2019, it had used the Budget to support schools, hospitals, COVID-19 programmes, road construction, SME funds, retiring old debts and contractual obligations, paying outstanding industrial awards, and many others. “Our 2022 Budget embraces our national outcomes including opening up all parts of our country; intervening in sustainable economy; starting up Porgera, Papua LNG and Wafi-Golpu for our economy; paying for our children’s education in 2022 and beyond; building new hospitals; ramping up support to Bougainville; clearing up projects like new Supreme Court Building and ensuring the 2022 General Election is fully funded,” he said. “All the above we are doing whilst maintaining strict discipline in sticking to our money plan, with our development partners observing our discipline to reforms. “Key in our reforms is to borrow low-cost US dollar denominated borrowings like the Australian $400-million dollar and the Japanese Government US$280million 0.01 per cent five-year grace period lending, which all came directly into our economy by way of Budget support. “I just want to assure our people and our economic stake holders that we are going through tough times, but we will use the Budget policies wisely to share the load of burden and also ensure key infrastructure like the 1900 kilometres of road we built the last two years all over rural PNG through our flagship ‘Connect PNG’ programme are continued.” Article courtesy of PM James Marape News Page