Kingston Resources Release Quarterly Report
by PNG Business News - July 28, 2022
Photo credit: Kingston Resources
Kingston Managing Director, Andrew Corbett, said: “The June quarter has been another period of significant activity, with the headline being the announcement of Misima’s much anticipated DFS results confirming the Project’s potential for a large-scale, long-life, low-cost gold mine. The DFS delivered total production of 2.4Mozs at an extremely low all-in sustaining cost of A$1,217/oz over a 20-year mine life, alongside a 28% increase in Reserve. I’m extremely proud of our Misima team for delivering such a highquality, comprehensive study, in a challenging operational environment.
“The DFS represents a tremendous milestone for Kingston, and these achievements reflect incredible work from our technical and operational teams who have exceeded project expectations. With all the necessary foundations now in place for a return to gold production at Misima, we look forward to advancing all the necessary approvals, strategic and funding options to bring the mine to production. I would like to thank our loyal shareholders for their ongoing support enabling us to deliver this milestone, and, very importantly, our Misima community who have strongly supported our progress.
“In addition, the Company has made considerable progress at the Mineral Hill Gold & Copper Mine during the quarter, delivering excellent initial diamond and RC drilling results at both the Pearse and SOZ deposits. With the conclusion of our highly successful initial drilling program, the team is now underway on a number of work programs to expedite mine production, these include Resource and Reserve updates, mine design work and plant refurbishment studies. This exciting progress forms part of the Company’s recently announced development pathway which comes as a result of the rapid advancements at the project. We look forward to another successful quarter ahead as we continue to rapidly advance both our Misima and Mineral Hill Projects.”
The full report can be found HERE
PNG Business News - June 07, 2021
Industry Expert: Resource Projects Should Continue
If Papua New Guinea wants to maintain its economy, resource projects should continue to come online, according to an industry expert. This was said by Chris Chambers, Santos PNG's general manager and a PNG Chamber of Mines and Petroleum council member, during the chamber's webinar series. He stressed the need for collaboration between the government and the industry in securing pipelines. “It is also important to see that sanctioning of large projects such as the PNG LNG gives a very quick economic fill up to the economy as getting taxes, (the different taxes) and increase in employment,” he said. The resource business accounts for 88 per cent of the country's overall export and 28 per cent of its gross domestic product (GDP) in 2019, according to a snapshot of a study from the PNG Extractive Industries Transparency Institute (PNG EITI). According to the World Bank, PNG is one of the top ten resource-dependent economies in the world. “It’s not necessarily a great thing, but it’s something we have to work within and try to maximise,” Chambers said. The following are some of the country's noteworthy resource projects: The gold mine Porgera in Enga, which is set to reopen later this year; The Wafi-Golpu project, worth US$5.4 billion (K154.91 billion), is located in Morobe's Huon Gulf and Wau-Bulolo districts. Harmony Gold Mining Ltd and Newcrest Mining Ltd have a 50/50 stake in this large-scale underground mining operation. The US$12 billion (K41.38 billion) Papua LNG project, which will be operated by Total E&P PNG Ltd; The US$9.2 billion (K31.67 billion) P'nyang gas project, which is jointly owned by ExxonMobil and Oil Search; The PASCA A Petroleum project in the Gulf; Others include the Frieda River copper and gold project in East and West Sepik, as well as GeoPacific Resources Ltd's K420 million Woodlark project in Milne Bay. Prime Minister James Marape stated that the government will continue to work on the Wafi-Golpu project as well as other outstanding resource projects. “We have already issued an environmental permit and we will progress Wafi-Golpu after Porgera is moved,” he said. “In the petroleum space, Pasca has been discussed. We thank ExxonMobil for reopening discussions on P’nyang, and we are remobilizing for Papua LNG. We have been active in business in the midst of Covid-19 as far as the mining and petroleum sector is concerned.” According to Marape, the government welcomes and will work with all investors in the nation since they are entitled to a high return on investment while also ensuring that locals get a fair part of the resources. Reference: Moi, Clarissa. The National (7 June 2021). “Bring in more projects: Expert”.
PNG Business News - June 23, 2021
Kainantu Resources Acquires May River Project
The May River project in West Sepik has been acquired by Kainantu Resources Ltd (KRL) under formal agreements. Chief executive officer Matthew Salthouse said, “The May River project is an exciting acquisition for KRL, given its location in an exceptionally prospective and proven district for significant copper-gold projects.” May River, according to Salthouse, will provide the Asia-Pacific gold mining business with access to a number of very promising copper-gold possibilities near the world-renowned Frieda River copper-gold project. “The deal also demonstrates KRL’s ability to execute value accretive acquisitions, in line with our broader strategy of developing a portfolio of high-quality gold and copper-gold projects in the Asia-Pacific and advancing these through the value curve. “The May River acquisitions fits KRL’s strategy and we are excited to access the ground and advance the existing data. “The KRL looks forward to continuing to work with the key stakeholders of Niuminco and Hardrock in developing both the May River project and KRL as an emerging mining company.” The May River project is located near the Frieda and Sepik rivers in West Sepik. It's less than 15 kilometres from PanAust's Frieda River project. The Project is situated on a large tenement area, with previous holders having carried out exploration and drilling that revealed considerable copper and gold prospectivity. The larger regional geology suggests that a number of highly promising zones exist across the Project. KRL entered into two agreements to buy the highly promising copper-gold mining concessions known as the May River project, indirectly through the acquisition of two holding companies. KRL will take full ownership and administration of the project once the purchases are completed. It will continue to engage with Niuminco and Hardrock management (as well as key stakeholders in PNG) to acquire the required regulatory approvals for the Acquisitions in order to complete and consolidate the Project. Under the Hardrock Agreement, KRL is presently performing the field work required for the Study. Initial fieldwork looks to be promising, and KRL will provide an update. Reference: Kero, Gynnie. The National (21 June 2021). Kainantu “Resources excited about project’s potential”. Kainanturesources.com. “Acquisition of Highly Prospective Copper-Gold Project”.
PNG Business News - May 13, 2021
Mayur Resources Close to Developing PNG's First Iron and Industrial Sands Project
Mayur Resources Ltd is nearing completion on the country's first iron and industrial sands project in Orokolo Bay, Gulf, with the Mineral Resources Authority (MRA) reviewing its mining lease proposal. Mayur Resource Ltd managing director Paul Mulder said the MRA had already received the company's K60 million project and evaluation proposal, which was submitted earlier this year. He said it was not a big undertaking, but the advantages to the region would include direct and indirect job growth, as well as the fact that it was a sustainable mining operation inland from the coast. Multiple mechanised sago operations will be introduced as a post-mining activity at the mining site, replicating facilities that the International Finance Corporation (IFC) and French energy company Total had already built further up the Purari River. “We are ensuring that prior to us beginning the mining, everyone must be clear on the direct and indirect benefits as well as sustainable ongoing benefits,” Mulder said. “We can’t say when the MRA will have the project assessed. “That is their internal processes. “But if you compare projects such as Wafi-Golpu, this project is well over 100 times bigger than what we are proposing in capital construction cost and is more complex and much larger in scale. “The initial benefits will last for 15 years with follow on sustainable mechanised sago plantations to continue well after this. “We feel that this could be assessed in an expedient manner as it will benefit many parties and is not complex, involves no chemicals and can be commenced in a much shorter time frame.” Mulder clarified that the project was not to be confused with beach sand mining since it was an ancient buried paleo-geological formation deposit inland, away from the coast, where standard mining methods can be used in accordance with the Mining Act.
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PNG Business News - August 12, 2022
Going Green: FAO-led EU-STREIT PNG Programme provides green-powered facility to local agricultural authorities to effectively service rural farmers
EU Funded UN Joint STREIT Programme in Papua New Guinea establishes a renewable energy-powered facility to support local government authorities in East Sepik Province, in delivering effective services to rural farmers and entrepreneurs. With generous support of the European Union, the FAO-led EU STREIT Programme officially opened a new 3 cluster office building on 10 August 2022, to host the Programme along with the East Sepik provincial divisions of Agriculture and Livestock, Cocoa Board and the National Agriculture Quarantine & Inspection Authority. The new-look office building is powered by 189 solar panels, which significantly reduce greenhouse gas emissions and reduces the collective dependence on fossil fuel. The solar panels supply the building with 90 KW of energy, relieving the resident agencies and authorities from relying on fossil-generated electricity for their needs, including lighting, ICT, water pumping, and temperature control. This zero-carbon-emission facility has the capacity to accommodate around 90 experts, technicians and extension service officers. Equipped with 120 batteries, the building can support staff’s operation for 36 hours in case of experiencing high cloud cover. The building, currently co-resided by the Programme and provincial agricultural bodies, will be transferred over to the East Sepik Provincial Administration at the end of the Programme and will continue to provide a sustainable base for sustainable support to agriculture-related services in the Province. Officiating the opening ceremony, His Excellency Ambassador Jernej Videtič, Head of the European Union Delegation to PNG, in his address, said: “I am happy to be here and to see that things are moving in the right direction to bring sustainable benefits to the people of East Sepik” Ambassador Videtič further highlighted that “with resources from the citizens of Europe to fund the EU-STREIT Programme in providing training, tools and support, the quantity and quality of cocoa, vanilla and fisheries products will increase. The objective is also to protect these quality products in international markets under the EU-STREIT introduced initiative of Geographical Indication.” The East Sepik Acting Deputy Provincial Administrator, Mr James Baloiloi, in his speech expressed his appreciation to the EU for funding the EU-STREIT Programme and the interventions that the Programme is doing in East Sepik and Sandaun provinces. “The STREIT Programme has gone ahead to introduce a culture of agribusiness that now enables the people of this Province and the people of Sandaun Province to have cash income that can sustain their livelihoods.” Mr Baloiloi added, “this infrastructure and building supports us and facilitates the service delivery to our people in this Province as well as Sandaun Province.” Thanking the EU for its generous funding support, Dr Xuebing Sun, the EU-STREIT Programme Coordinator, said: “the Programme has generated substantial impacts at beneficiary, local institutions and enabling business environment levels. This would not be possible with good partnership, increased ownerships and leaderships of the governments and implementing partners.” “This co-residing and close co-operation among UN agencies and their national partners in this integrated space reflect the partnership approach taken by the Programme to sustainably develop agri-enterprise activities in the region,” added Dr Xuebing Sun, adding “the new climate-friendly facility, which is fully powered by solar energy, also provides a space to welcome, advise and serve the farmers, including interested women and youth, who play very important roles along agri-food value chains”. “This kind of ‘green investment’ enables a shift to a more green economy for local institutions and infrastructure to meet cocoa, vanilla and fishery value chains stakeholders” advised Anthony Bennett, the FAO Lead Technical Officer of the EU-STREIT PNG Programme. United Nations’ implementing partners supporting the FAO-led EU-STREIT PNG present in the office include the International Labour Organization (ILO), International Telecommunication Union (ITU), United Nations Capital Development Fund (UNCDF) and United Nations Development Programme (UNDP). The EU-STREIT PNG is being implemented as a UN Joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as implementing partners), is the largest grant-funded Programme of the European Union in the Country and the Pacific region. It focuses on increasing sustainable and inclusive economic development of rural areas through increasing the economic returns and opportunities from cocoa, vanilla and fishery value chains and strengthening and improving the efficiency of value chain enablers, including the business environment and supporting sustainable, climate-proof transport and energy infrastructure development.
Paul Oeka - August 12, 2022
CPAPNG annual meet to discuss global changes
Certified Practicing Accountants of Papua New Guinea will be hosting their 23rd annual conference with about 400 participants nationwide expected to attend the two day conference organized by CPA PNG in Lae Morobe Province from August 18 to19, 2022 CPAPNG was established in 1974 and has come a long way with a lot of achievements along the way. Over the years its membership grew from mere numbers to just below 2000 which includes 40% locals and 60% non-citizens. . The CPA PNG conference is one of CPAs three significant annual events on their calendar with this year's conference theme; Is PNG prepared for the recession?" The conference will see certain key leaders in executive management roles from both the public and private sector delivering presentations in line with the conference theme. CPA PNG's Executive Director Mr. Yuwak Tau said the theme of the conference was selected because there was a decline in the global economy and the general so when that eventuates small economies tend to be affected. He added that they have basically selected the theme that was current and appropriate so that members would find relevance during the course of the conference. “The meeting is to create intellectual and interactive discussions with seasoned business leaders to present and share their ideas and experiences to find probable outcomes within their business environment and industries in times of economic uncertainty”. Some of the topics to be presented by consultants are current significant issues such as crypto currency, transport pricing, bit coin block chain technology and stress management. This were some topics that people have heard about but have not really ventured into. Mr. Tau added that it would be quite hard to measure the benefits immediately but the participants will be able to look at insights shared during the conference that would be appropriate in the areas of employment, accounting, finance, auditing and others. The conference will create an environment where participants can also share information so That they can take points to apply in their work place and industries. In relation the Kumul petroleum Holdings had also presented a cheque of K50, 000 to support the coming event at their head office. The cheque was presented by KPHL's executive General Manager Corporate Affairs, Luke Liria and was received by CPA PNG Chairman Richard Kuna. Mr. Liria said KPHL has appreciated the effort put in by CPA PNG to ensure that its members in State owned enterprises and the private sector were given appropriate level of training and as part of KPHL's corporate social responsibility and commitment they hope that their support will continue to help the organization facilitate and make sure the accounting practices is of international standards. CPA PNG's Chairman, Richard Kuna acknowledged KPHL for their support and stated that he was looking forward to seeing KPHL being a big part of the upcoming conference.
Paul Oeka - August 12, 2022
BSP: Small to Medium Enterprises Loans reaches 60% rate.
Bank South Pacific's Financial Group Ltd Chief executive officer Mr. Robin Fleming has recently announced that the bank has granted more than K200 million as loans to small to medium enterprises under its credit scheme facility that the then Marape government had released to the bank to support Small to Medium Enterprise (SME) and local businesses during the peak of the COVID-19 pandemic. Mr. Fleming said about 1523 customer loans have been approved, that is about 60% of loan approval rates since 2019. Prior to this announcement BSP and the Department of Commerce and Industry (DCI) had agreed to increase the maximum loan under the small-to-medium enterprise (SME) credit enhancement facility to K5 million. The previous limit was K3 million when the Government first released K100 million as security to the bank under its K200 million SME allocation for BSP to rollout the loan facility last year. Fleming stated that even though they have exhausted and rolled out the bulk of the governments relief funds for SME's they will still be running the SME loan program under its credit facility scheme “At this stage, BSP has not received the funding planned for this year but that is not preventing BSP from giving loans under the facility”. “There remains significant capacity for BSP to continue to assess, approve and funds loans under the facility”. “The agreement with the Government did provide for momentum in the SME facility to be maintained while allowing for the Government budget and funding process to be adhered to”. As part of the government SME relief funding, Commercial Banks were allocated K200 million with BSP Financial Group receiving K100 million, NDB K80 million and another K20 million was allocated to the department of Commerce and Industry BSP could not comment on how the National Development Bank (NDB) is dealing with the K80 million it received, but the intent, when discussions were initiated, was that BSP would be lending to more mature SMEs and NDB to startup ventures. In addition to enabling SMEs to access lower cost of funds through the facility with BSP, the bank has also made it a responsibility to ensure that Government funding is preserved by not approving loans that have a higher risk of default.