Department of Mineral and Energy Resources sets focus for 2023
by PNG Business News - March 08, 2023
Photo: Panguna Mine - Credit: Ilya Gridneff/AAP
The Department of Mineral and Energy Resources (DoMER) has set its strategic objectives for the next five years, according to Secretary Mr. Peter Kolotein.
These are being captured in the Bougainville Integrated Strategic Development Plan (BISDP) 2023-2027 and the DOMER Strategic Plan 2023-2027 to be launched this year.
Mr Kolotein said in 2022, the Department reviewed existing strategic directions around the departments three core functions which are; mineral resources development, energy resources development, and geohazards management.
The revised strategic directions include:
- Mineral and energy sector contribution to the Toroama-Nisira Governments Six-Point Strategy and vision for Economic Growth and Control.
- To provide sustainable development policy and regulatory frameworks with best practice social, environmental, technical and safety expectations.
- Building organizational and strategic capacity to acceptable standards.
- Promote good governance, accountability and transparency in administration of the sector.
- Strong popular support for the development of the mineral and energy sector.
- Ensure government and the resource owners effectively participate and benefit from the development of the mineral and energy resources.
- High quality, up to date geological information available at the department
- Establishment of geohazards management functions.
Mr Kolotein said the Department has redirected its focus towards delivering on the Toroama-Nisira government’s economic growth priorities.
“The strategies also show commitment to reviewing and developing our laws consistent with international best practice in the sector and there is commitment to enhancing the organizational capability of DOMER,” Secretary Kolotein said.
“The new strategies further provide the basis to improve on good governance, accountability and transparency and acknowledge the importance of local stakeholders and local content and revenue management considerations in fully realizing resource-sector derived social and economic development in Bougainville.”
“In 2019 we all voted 98% in favor of Independence, the economy needs to support this and a high impact economic development project is the required catalyst. Bougainville is blessed with natural resources including minerals, energy, agriculture, fisheries, to name a few. Each of the responsible ABG departments have been tasked with looking at their respective sectors for economic development opportunities to tap into for Bougainville’s benefit,” Kolotein added.
He said for the minerals sector, the most viable development potential lies in Panguna mine redevelopment. 2021 and 2022 have seen some positive progress on Panguna mine dialogue between the ABG and landowners. In 2023 there will be ongoing dialogue with landowners and other key stakeholders towards realizing this mineral sector development opportunity.
On small-scale mining, Mr Kolotein says the strategies are to enhance the economic benefits for those involved in the sector and to reduce the negative social and environmental impacts of small-scale mining.
He says ideally, it would be good to not have this activity in Bougainville at all, but the reality is that our people in those communities are involved in this activity, some depend on it even, so it an issue that needs to be addressed. The ABG is also pursuing strategies to ensure government is able to realize revenue from small-scale mining gold that leaves Bougainville.
Speaking on good governance, Secretary Kolotein appealed to mineral sector decision makers and stakeholders to respect the laws of Bougainville, especially Bougainville’s mining laws.
“Our laws set the standard and draw the line between what is acceptable and what is not acceptable in Bougainville. Investors who are not able to meet standards set by law will not be entertained.”
“I appeal to landowners and key local stakeholders to work with the Department to ensure Bougainville is established as a place with high standards so we can also attract credible investors and credible development,” he urged.
PNG Business News - March 19, 2021
Early Investments are Critical to Expanding Bougainville's Tax Base
According to a study by the National Research Institute (NRI), the investments needed to increase the tax base for the Autonomous Bougainville Government (ABG) require significant upfront investments. The report said that increasing revenues for the Bougainville Government, public expenditures also necessitate capacity to prepare, budget, execute, and track them: Bougainville is on the verge of collapsing. “And absent such large and lumpy investments early, Bougainville will not be able to acquire fiscal independence,” it said. “ABG will need foreign funds and expatriate expertise to create the conditions for a transition to economic independence. Bougainville will need visionary leadership and considered support from the PNG Government. There is hope on both these fronts. Bougainville is rich in natural resources and can use that to attract foreign investments for technology transfer, capital injection, employment generation, market access and exports. Several water fishing nations are already operating in Bougainville waters. Attracting a foreign investor to engage in onshore tuna processing, as undertaken in Wewak on the mainland and across in the Solomon Islands, has the potential to generate much needed formal sector employment. Richer still are the known mineral deposits that have the potential to attract foreign investment. But that would be tricky given the history of Bougainville Copper Ltd, and the issues of the compensation for the environmental damage done and compensation for the decade-long conflict. Leadership and planning is necessary to navigate these obstacles to restarting the mine, that could boost revenues for the budget and provide returns to the people who ultimately own the resources.” According to the report, Bougainville should concentrate on: Introducing land administration systems and town planning; Enhancing contract protection, including land titles, mining leases, and potential income from private investment; and Lowering sovereign risk with regard to investments in Bougainville in relation to the rest of PNG.
PNG Business News - March 19, 2021
NRI: Bougainville has Vast Mineral Potential
According to the National Research Institute, given Bougainville's position within the Pacific Rim of Fire, the possibilities for mining various minerals, especially gold and copper, are vast (NRI). Following the collapse of the Panguna mine, NRI noted in a recent report on Bougainville that regaining foreign investor trust in mining in Bougainville was proving difficult. “Even more difficult is the effective management of the revenues from the sale of public resources such as minerals, forestry and fishing, which has long been a challenging problem for developing countries,” the report highlighted. “The primary management problem has been with the effective expenditure of resource revenues. Therefore, a major issue for discussion in Bougainville should be on whether institutional arrangements can be devised that will ensure that the resource revenues collected by the ABG – from, say, fishing, forestry or mining – will be put to good use in developing the economy.” It continued, “We have argued for a management system where a share of mineral rents are directly paid to the public in the form of compensation for the sale of their asset. This has several advantages, including the fact that such transfers will bind the public across space and generations, concentrate attention on the returns from publicly owned assets, and create economic spillovers in the form of increased output and revenues for the budget. The model used in Alaska to manage the collection and distribution of its oil and gas revenues seems to be very worthy of consideration by Bougainville. This regime establishes a political constituency with an interest in protecting the revenues from corruption, waste, and so forth. If Bougainville is to adopt a policy of this kind, the nature of politics dictates that it should be done as soon as possible. Otherwise, if an alternative policy is adopted, it will be impossible to dismantle later as it will have formed its own constituency by then.”
PNG Business News - March 09, 2021
Grants Benefit Farmers and Women
The grants coursed through the Bougainville partnership commodity support facility will benefit cocoa farmers and women. An initiative of the Autonomous Bougainville Government supported by Australia through the PNG-Australia partnership, and the New Zealand government, the grants range between K300,000 and K500,000 benefitting. Some of those selected include Kukurina Business Group which will use the grant to improve crop quality and rehabilitate cocoa blocks, among others. Jonathan Kopas head this group, with support from treasurer Larry Augustine, secretary Hilda Kopa and vice-secretary Peninah James. Meanwhile, Australian High Commission’s counsellor for Bougainville Clayton Harrington said that obvious were the economic benefits of the programme. “Australia believes in the future of the Bougainville cocoa industry to improve livelihoods,” he said.
Paul Oeka - March 27, 2023
Papua LNG project to Minimise Economic Challenges
Photo: Petroleum Minister Kerenga Kua Petroleum Minister Kerenga Kua has recently stated that the Papua LNG project is critical in addressing some of the economic challenges that are currently faced in the country. He said about K75 billion will be generated over a 15 year period when the project is in progress. He added that the initial stages of the project has commenced with K500 million said to be inputted into PNGs foreign exchange capacity in 2023. During a press conference on Thursday the 9th of March, The Petroleum minister highlighted the progressive stages of the Papua LNG project and emphasized the importance and significance of the benefits that the project will provide. According to studies the project life is expected to operate over a 15 year period that will generate about K75 billion and significantly boost Papua New Guinea's struggling economy. "The K75 billion benefit is inclusive of what comes to the state directly as levies, to Kumul Petroleum, to the landowners as royalties and the provincial governments. All of us put together are going to be collecting and sharing that benefit in the next 15 to 20 years", Kua said. Minister Kua said that studies for the Papua LNG project began in 2004 following the discovery by Interoil, the resource estimate is in the range of 6 trillion cubic feet of gas and 98 to 100 million barrels of condensive oil. The benefit of this project is immense and a positive component is the national content which is expected to positively impact GDP, export earnings, forex, revenue to impacted levels of government, landowner benefits and Job opportunities. Minister Kua said the project developer Total Energies will inject K500 million into the PNG economy in 2023. "The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and will provide a significant impetus for our economy", "The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people, and improved contribution for our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver the project on time and on budget", Minister Kua said. Petroleum Secretary David Manau was also present at the conference, he highlighted that the petroleum department will work closely with impacted provincial governments and landowners as this is important in ensuring that all stakeholder grievances are discussed and addressed. In light of this, a development forum is expected in the third quarter of this year. Meanwhile, Kua also revealed a unique aspect of the upcoming project which will mitigate the project's carbon footprint and is set to make PNG in becoming the first country in the Asia Pacific region and only the second on the world to re-inject carbon dioxide back into the well pad in a LNG project. He said the re-inspection of carbon dioxide into the well pad is a significant step towards reducing the project's carbon footprint and will help mitigate the environmental impact of the project and contribute to Papua New Guinea's efforts to combat climate change. The Papua LNG project is a joint venture between the PNG government, TotalEnergies and Exxon Mobil. It is one of the largest investments in the country's history and is expected to generate significant revenue for PNG's economy. Total Energies holds 40.1 percent interest in Papua LNG, along with its joint venture partners Exxon Mobil (37.1 percent) and Santos(22.8 percent). The Papua New Guinea government may exercise a back-in right of up to 22.5 percent interest at the Final Investment Decision (FDI) planned by end of 2023 to early 2024 and production will be scheduled for four years later.
PNG Business News - March 27, 2023
WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea
Wan PNG is a platform and community dedicated to expanding opportunities for local Papua New Guineans. Its goal is to increase the development and sustainable employment of local PNG talent, so everyone in our great nation can share in newfound resources and growing prosperity. With the goal of empowering individuals and businesses with the skills and people they need to succeed in the 21st century world, the Wan PNG platform spans three core areas for job seekers: Employment opportunities: Gain experience with internships, start earning with entry positions, or upgrade your career with the next big job. Career advice: Advance your career with expert advice and professional resources, and stay up-to-date on the latest news. Education and training: Expand your employment prospects by upgrading your knowledge, skills, and competencies through courses. For employers it provides: Free access to upload jobs and find the best talent. Smart matching between jobs and candidates. Diversity promoting candidate suggestions reaching a wide pool of talent. The platform's primary objective is to promote lifelong learning and employment and simultaneously bridge the skills gap in Papua New Guinea by providing accessible training opportunities to all its citizens. WanPNG believes that by investing in the development of its people, Papua New Guinea can unlock its full potential and become a more prosperous nation. WanPNG is now available for job seekers and employers. Visit the website now at www.wanpng.com to learn more.
PNG Business News - March 27, 2023
St John Ambulance First Aid Training for Workplace
The St John ambulance service responded to over 21,000 emergencies across Papua New Guinea in 2022. In addition to being Papua New Guinea’s main emergency ambulance service, St John is the nation’s leading first aid training provider equipping thousands of workers with essential first aid skills and knowledge. With just one day of training, St John’s expert first aid trainers can equip your workers with the basic skills to handle all kinds of first aid emergencies. Workplace accidents and injuries are a common occurrence and it is essential for employers to have a competent workforce that can respond effectively to emergencies. St John’s workplace first aid courses ensure your workforce is equipped with the first aid training to assist a sick or injured person. It also helps organizations comply with legal requirements, reduce workplace injuries and fatalities and promote a culture of safety and preparedness. The Papua New Guinea St John Ambulance provides training routinely in Port Moresby and Lae, and can facilitate training at any location in PNG, which makes it easy for workers to gain or maintain their first aid qualifications. St John’s first aid trainers come from a variety of backgrounds, enabling them to contribute real-life experiences to the training environment. Each course, based on St John Ambulance Australia’s training resources, goesthrough rigorous appraisal by training and health specialists including St John’s Papua New Guinea’s medical expert advisory panel - made up of some of the industry’s leading physicians and health professionals, who ultimately endorse the clinical training content components of the first aid courses. St John CEO Matt Cannon said, “this rigorous appraisal process gives clients the confidence of St John’s commitment to delivering the highest quality in training content and delivery in Papua New Guinea.” Workplace first aid courses cover a broad range of topics, including basic life support, wound care, bandaging, splinting, CPR and using an AED. Participants learn how to identify and manage different medical emergencies such as heart attacks, strokes, burns, fractures, and poisoning. Each training program is designed to be flexible and can be delivered on-site or at one of our training centres. If you want to ensure that your workplace is prepared to respond to emergencies, contact St John today to learn more about our workplace first aid training.