Photo credit: ABG

The 2022 Bougainville Trade and Investment Conference ended on a high note following intensive discussions over the last two days at the Sharp Memorial Youth Center in Arawa.

Over the course of the two days, experience-sharing and presentations were delivered by trade and economic experts on how Bougainville can narrow its fiscal gap and discussions held on creating and promoting sustainable trade and development for Bougainville.

ABG Vice President and Minister for Commerce, Trade and Economic Development Hon Patrick Nisira said that the Conference provided the required forum for stakeholders to come together and critically talk about Bougainville’s trade and investment opportunities.

“I believe these two days have been very informative and encouraging as our discussions create pathways for each of us as stakeholders to participate and support the economic growth and development of Bougainville,” Nisira said.

Minister Nisira provided a summary of the two-day Conference noting specific actions that the government will undertake to further build on key economic reforms and guiding future government planning. This includes understanding the cost of services for Bougainville which was discussed during a presentation from the National Economic Fiscal Commission (or NEFC).

“As a responsible government we see the critical importance of understanding the real cost of running a soon-to-be independent sovereign country. We must understand and know in very clear terms and figures, of how much we need on an annual basis to run Bougainville and deliver the services that our people deserve,” he said.

Minister Nisira said the government needed this data to guide government decision-making especially in the allocation of funds to sectors, while also assisting the government to work towards a sustainable fiscal arrangement for Bougainville and called on relevant government agencies in the Bougainville administration to immediately facilitate this exercise for Bougainville.

Discussions were also shared on the different models of fiscal self-sufficiency, which Minister Nisira noted that understanding the different scenarios to operate as a self-sufficient administration is crucial saying that it would set the focus for Bougainville’s future planning and development agenda.

“I am confident that this term of government has started out on the right path to securing Bougainville’s future, through the investments undertaken for instance, the Bougainville Water Bottling, the Manetai Limestone project and others. Within the next two to three years we will be reaping the benefits of these investments or these "gardens” as has been our ‘tok piksa’ in this two-day conference,” he said.

Discussions also covered environment and climate change, noting areas for policy development relating to resource development and mitigating environmental effects.

Minister Nisira said that all discussions in the Conference will be considered in the development of Bougainville’s economic roadmap.

“Roadmaps must be clear as this will give certainty to the investors and the people of Bougainville, it will make all stakeholders responsible and accountable for their actions. Furthermore, these roadmaps will support the legislative and policy framework in the Region.”

“The Bougainville Trade and Investment Conference has provided an important forum to help us as a government and you as our stakeholders to understand our strengths, the gaps that exist and how we can collectively work together to make Bougainville become prosperous,” Nisira said.

Article courtesy of ABG

Prime Minister Hon. James Marape has welcomed the news by Steamships Trading Company to diversify further through a partnership with his government in the downstream sector.

He made this known after meeting the company's Managing-Director Rupert Bray and General Manager Corporate Affairs Vele Rupa in Port Moresby this week.

The Port Moresby meeting is a follow-up of the earlier meeting in September when the Prime Minister met with John Swire & Sons, the shareholders of Steamships, in London after attending Queen Elizabeth's funeral.

The briefing to the Prime Minister by Steamships this week revealed an investment by the company worth almost K1.5 billion over the recent past.

Managing-Director Mr. Bray also informed the Prime Minister of the company's plans to open the first Marriot properties in the country in 2023 as it continues to work to deliver the Harbourside South Project.

Mr Bray said Steamships was now looking forward to working with the Department of Prime Minister to deliver the first purpose build business and manufacturing park in Portside, Motukea in the first quarter of 2023.

He said the company is anticipating to work with the Prime Minister’s Office, the Deputy Prime Minister and the Minister for International Trade & Investment to identify opportunities in the downstream processing and manufacturing.

Steamships has been operating in PNG continuously for 105 years with businesses in property, hotels and hospitality, ports, trucking, marine services and shipping.

Prime Minister Marape said of this: “It is heartening to hear Steamships is committed to developing Papua New Guinea.

"Projects such as Harbourside South, Motukea Industrial Park, Dobel in Mt Hagen, and expansions plan for Lae City are additions to what is already in place.

"I am very pleased to hear that Steamships, with its longevity in PNG, has immediately picked up on cue and partnering Government in the areas we want to expand and develop. That is what responsible corporate citizens do, and this company is Number 1, in so many ways.

“The Government stands ready to support Steamships as we look forward to seeing it expand further into the downstream sector.

"This is good timing for the company for a number of reasons.

"First is that, we have a positive outlook on the economy, which is expected to hit K200 billion by 2030.

"The next is that our Government has begun investing in enabling infrastructure to connect all regions of PNG which will also support investors. This is through our 'Connect PNG Programme', covering roads and bridges, wharves and jetties, airports and airstrips, power supply, and telecommunications.

"The Government is now working on unbundling the rest of the country through infrastructure development, agriculture, forestry, fisheries, and downstream processing.

"With Papua New Guinea’s close proximity to Southeast Asia, we are encouraging the setting up of Special Economic Zones focused on industry-led development.

“We are more than willing to work with companies that have stood the test of time with Papua New Guinea, companies like Steamships.

"I congratulate and commend them," PM Marape said.

Photo: Isi Henry Leonard

Tourism, Art and Culture Minister, Isi Henry Leonard has urged that Papua New Guinea must promote domestic tourism as a pathway forward in order to preserve, safeguard and promote the country’s culture.

“I wanted to see a simple tourism industry that is more people oriented,” he said. The minister stated this to participating students at the 16th University of Papua New Guinea Tourism Seminar at the main campus of the university during the seminar.

This was one of the main and important agendas that the Minister has been in pursuance of since taking office as the Minister appointed and responsible for Tourism, Art and Culture in 2020. Minister Leonard said that it was important that PNG promote domestic tourism by reviving, harnessing and encouraging national cultural festivals nationwide.

He further reiterated that “We are here at this seminar also to promote and help support our students who are keen in participating immensely to the promotion of domestic tourism”.

He added that PNG is vulnerable to Law and Order issues including global pandemics such as Covid-19 and for PNG to remain optimistic in witnessing great participation from effective international tourism opportunities remains unfriendly.

Minister Leonard said, “We have to cultivate our own traditional cultures and promote domestic tourism as much as possible because the domestic tourism sector remains a sleeping giant”.

He further stated that the National Cultural Commission (NCC) is now being reshaped and with the commission’s newly launched Tourism Plan 2022-2026, the agenda of promoting domestic tourism remains a major priority of the industry. The provincial Governments must now partner with the NCC to revive and harness cultural festivals.

Minister Leonard also stressed that Enga and Milne Bay Provinces have already partnered with the commission and are doing well in organizing cultural festivals to promote domestic tourism.

The 16th University of Papua New Guinea Tourism Seminar was sponsored by the Papua New Guinea Tourism Promotion Authority (PNGTPA) and organized by 3rd year Tourism and Hospitality Management undergraduate and professional studies students.

He addressed the seminar that Papua New Guineans must be given the opportunity to participate and take ownership of their cultural heritage.

Photo credit: SME Corporation Facebook Page

A Corporate Audit Team had been recently launched and put in place by The Small and Medium Enterprise Corporation (SMEC) in Port Moresby. SMEC’s Director for Corporate Affairs, Rodney Sumale said the audit committee has been created purposely to help the Office of Internal Audits & Compliance in ensuring transparency and accountability in the corporation in terms of budgetary investments and utilization.

The launching was officiated and witnessed by Deputy Secretary for Finance and Support Services Mr. Samuel Penias, and Deputy Auditor General, Mr. Lemecki Ila who represented the Internal Audits & Compliance committee. Mr. Ila said that Internal Auditors’ roles encompasses on monitoring, assessing, and analyzing organizational risk and controls; as well as reviewing and confirming information and compliance with policies, procedures, and laws.

“Working in collaboration with SMEC management, the national internal auditors will provide the board, SMEC audit committee, and executive management assurance that risks are mitigated, and that the organization’s corporate governance is strong and effective and when there is room for improvement, we make recommendations for enhancing processes, policies, and procedure,” he said.

He added that financial reports and statement compilation are of high significance therefore, it must be substantiated and submitted on time so that all fiscal activities are well censored, and trust is maintained within functionality of the organization.

Mr. Ila said that the national audit committee has been established in 2005 to regulate and ensure that public funds are utilized with purpose so that service delivery reaches the people of Papua New Guinea. He also applauded the managing director of SME Corporation, Mr. Petrus Ralda for establishing an audit team within the corporation itself.

SMEC’s Director of Corporate affairs Mr. Sumale assured the office of Internal Audits and Compliance that SMEC is a work oriented Governmental organization and the inclusion of this audit committee is a bonus as SME Corporation continues to assist aspiring entrepreneurs in Papua New Guinea.

In relation to the to the Audit committee launching, The Public Sector Audit Program was also presented officially to the SME Corporation by the First assistant secretary for the Internal Audits & Compliance committee Mr. Tom Tiki.

Photo: John Rosso ​​​​​​. Credit: EMTV 

In response to a question asked by a reporter regarding the Government’s stance on the lock down of prime government buildings, Deputy Prime Minister and Minister for Lands and Physical Planning Hon. John Rosso stressed that the issue of unpaid rentals that the Government is currently facing were aggregated amounts of money that has accumulated over many years.

The concerned buildings were locked following issues with the landlord and the National Government. Vulupindi Haus, which housed the Treasury and Financial Departments had gone into lock down last Wednesday with chains tied to the main entrance doors by security guards as per instructions by the landlord, Nambawan Super Limited.

Following his response, Rosso said the Finance and Treasury Ministers are now working to solve the issue. He confirmed that the outstanding bills accumulated to over K100 million and the Government has already paid K53mil.

“From that K100mil that accumulated, we appropriated K53mil in the last two weeks in the concerned rental arrears,” Rosso said.

Prime Minister James Marape also addressed that the Government is working on building new offices. He said the buildings especially the IRC building (Revenue Haus) was once owned by the Government but was sold under the Mekere Government Privatization Policy in 2001.

“Someone taught PNG would go away and sold the Revenue Haus building at that time for about K30mil and was leased again. Today, the rental cost for a year is about K12mil and we again paid about K200mil to a building that we originally owned,” the PM explained.

“We are reviving all these things as we’ve been paying over K300mil to landlords in the country and because some of the landlords are businesses, they are operating in a business manner so we understand this. We will pay the outstanding.” He added.

The Prime Minister further stated and affirmed that the state is now looking at a build-operate-transfer arrangement to manage State rentals.

Photo: OTML Managing Director and CEO Musje Werror

With 10 years of mine life remaining, Ok Tedi Mining Limited (OTML) is committed to enabling a sustainable future for its 158 CMCA (Community Mine Continuation Agreement) communities post closure.

OTML Managing Director and CEO Musje Werror said this when he presented at the Community Affairs and Business Development workshop hosted by the PNG Chamber of Mines and Petroleum at the Hilton Hotel on Thursday 13th October in Port Moresby.

“Ok Tedi will be the first big mine to close and there will be many lessons that will be drawn from Ok Tedi’s experience, not only from the technical aspects of closure, but importantly from the social and sustainability aspects as well,” he said.

“We are developing our social and closure strategy which will address focus areas as identified in our Vision 2025. These include the transfer of public infrastructure assets, for example the maintenance of the Tabubil/Kiunga Highway to third parties prior to cessation of production, creating alternative income generating opportunities for the CMCA communities, sustaining community programs implemented by the Ok Tedi Development Foundation (OTDF), increase National and Local content in service contracts, and the nationalisation of leadership roles in OTML.”

He added that it will be challenging given the mine related dependencies built over time and the lack of commercial industries operating in the Western Province.

OTML funds and operates the mining township of Tabubil which include the Tabubil Hospital at an annual cost of about K150 Million, maintains the Kiunga-Tabubil Highway at K30 Million a year, and provides power, and water and sewerage services in Kiunga at a cost of about K30 Million per annum.

“We need to identify new owners that can assume and operate these services well before mine closure so these services can be sustained. Finding the right owners is not easy let alone the ongoing funding to maintain the services post closure,” he said.

Despite these challenges, the province is privileged to have major development partners such as the Government, OTDF, Sustainable Development Program Ltd, Incentive Fund, and Innovative Agro Industry who are already implementing sustainable development programs in the province.

Mr Werror said OTML will continue to have discussions with these partners including the Fly River Provincial Government to address these challenges.

He concluded his presentation by saying that it is time to ensure the people of the Western Province, more so the CMCA communities are better off into the future for they have given their land and waterways to support the development of this country since the commencement of mine production in 1984.

Photo credit: Pixabay

The amount of gross foreign exchange reserves at the end of June this year, according to acting Bank of Papua New Guinea governor Benny Popoitai, was US$3.2 billion (about K11.6 billion).

At the end of December of last year, there were US$3.2 billion (about K11.3 billion) available.

In the bank's March 2022 Quarterly Economic Bulletin, Popoitai stated that this was enough to fund non-mineral imports for 16.3 months.

Gross foreign exchange reserves climbed to US$3.3 billion (approximately K11.6 billion) as of September 30 as a result of high mineral and petroleum taxes, mostly owing to tax collections from liquefied natural gas (LNG).

“The outbreak of the Russia-Ukraine war in February started to impact the global economy and raised concerns of a slowdown,” Popoitai said. The supply disruptions on oil and gas, and food (wheat) have resulted in high international commodity prices and inflation, hence affecting domestic prices and activity.

“The higher prices and production of export commodities have resulted in a significant increase in export receipts and a higher surplus in the current account balance.

“The exchange rate remained stable against the US dollar but appreciated against other major currencies.

“Data from the Bank’s business liaison survey show that the total nominal value of sales in the formal private sector increased by 7.6 per cent in the March quarter of 2022, compared to an increase of 19.1 per cent in the December quarter of 2021.

“The weighted average kina price of Papua New Guinea’s exports, excluding LNG, increased by 38.9 percent in the March quarter of 2022, from the corresponding quarter of 2021 reflecting higher international commodity prices.

“There was an increase of 17.7 percent in the weighted average kina price of mineral exports, accounted for by higher kina prices of all mineral commodities, except copper.”

Reference: The National (13 October 2022). “Foreign reserves at K11.6 billion, says Bank of PNG governor”. 

To promote private investments in Papua New Guinea's energy industry, the US government, through the US Agency for International Development (USAID), published an investor guide for the sector.

The handbook was released in Port Moresby by USAID and the Investment Promotion Authority (IPA) in conjunction with the USAID-PNG Electrification Partnership (PEP) Activity.

The handbook offers prospective investors step-by-step instructions for the creation and execution of energy projects as well as an overview of the country's economy, political environment, regulatory framework, investment climate, and energy sector dynamics.

It contains information on energy projects as well as a checklist of demands from pertinent government entities.

“This is the first energy-specific sector guide for PNG, and USAID-PEP is pleased to be in partnership with IPA in this collaboration,” USAID-PEP senior PPP and project finance adviser Julinette Bayking said. “It serves as an information tool for investors to follow for development and implementation of energy projects.”

Leonila Gutierrez, a USAID energy policy specialist from the Philippines mission, and IPA managing director Clarence Hoot were also there to witness the launch.

As seen by the collaboration on this guide, Gutierrez stated that USAID looked forward to working with IPA in building partnerships as a strategy to help the government enhance electrification throughout PNG.

Reference: The National (10 October 2022). “US agency launches guide for energy investors.”

According to Australia's consul general Mark Fox, the country is contributing more than K1 billion to the development of Morobe's port and road infrastructure.

According to Fox, investment in the industries was essential to propel the economy because of the province's contribution to PNG's economic growth.

Australia is dedicated to providing high-quality infrastructure to support enterprises in the province, he said during a breakfast meeting with Lae's business community.

According to Fox, K56 million has been allocated for the Wau Highway's long-term upkeep in order to cut down on travel time and costs for nearby enterprises.

Sections one and two of the trans-national highway will be supported with the help of another A$300 million (or K690 million) from the Australian Infrastructure Financing Facility for the Pacific.

“That’s from the Nine-mile junction, through to the Bulolo turn off, and then on to Poiyu junction in Aseki,” he said.

“This is a key priority of the PNG government as part of the connect PNG strategy, and in time will connect Lae to Port Moresby.”

Fox said Australia was also picking up a presence in PNG’s maritime sector, with a more visible presence in Morobe through the K470 million upgrade of the Lae Tidal Basin.

“This upgrade includes lengthening of the wharf, additional container yard space, enabling the port to handle more and larger vessels,” he said.

“As the port of Lae already handles over 60 percent of PNG’s international and coastal trade, this improvement will position Lae to become the trading shipment hub for the region.

“Our investments have a strong focus on quality, value for money, and local content; and as part of the K1.5 billion contract signed between our countries earlier this year for the infrastructure investment programme.”

In order to enhance the efficiency of the supply networks connecting the highlands to the ports in Lae and Madang, PNG Ports is also attempting to construct an inland town.

Reference: Bauai, Gloria. The National (10 October 2022).”Aust invests over K1bil in Morobe”

Photo: Markham Valley, Morobe. Credit: PNG Facts

According to Australian consul-general Mark Fox, the Australia-Papua New Guinea collaboration would concentrate on developing PNG's non-resource sector through a variety of initiatives.

“While we know that growth in the resources sector in 2022 is expected to be strong at 2.6 per cent, the non-resources sector is said to lag behind,” he said when discussing Australia’s commitment in agriculture, education, health and human resources.

“We know that agriculture is a big business in Morobe and represents the majority of PNG’s informal population, and we’re committed to unlocking that potential and the economic corridor between the Markham and Ramu valleys.”

Fox stated that a study by the International Finance Corporation, sponsored by Australia and New Zealand to spur private sector growth in this region of the nation, was being examined by the Australia-PNG Economic Partnership. “Meantime, Grow PNG is in talks to implement government mechanisms across this economic corridor to help make private and public investments,” he said.

“We also know that human capital is a critical enabler of sustainable economic growth and we’re investing through a range of products, including health, education, nutrition, and livelihood.”

Fox claimed that Australia was also giving the University of Technology approximately K15 million through incentive funding to build a 138-room women's dormitory, which would enhance the number of female applicants, particularly in the fields of science, technology, engineering, and mathematics.

He claimed that 90% of local labour was used on the Angau Hospital renovation, the largest Australian aid project to PNG since independence.

Fox confirmed Australia's dedication to providing money to the improvement of Lae's major market.

Reference: Bauai, Gloria. The National (11 October 2022). “Focus on non-resource sector”.

Photo: James Marape

Prime Minister Hon. James Marape recently (October 11, 2022) welcomed the latest World Bank report on Papua New Guinea.

The latest World Bank Economic Update released last month says the economy in PNG is forecast to expand by 4 per cent in 2022, up from 1 per cent in the previous year.

This return to growth following a sharp contraction of -3.5 per cent in 2020 was mostly driven by strong performance in the non-extractive sector, with agriculture being among the key contributors to economic recovery.

The report, ‘Benefiting from High Commodity Prices’ looks at recent key developments in PNG’s economy, and places these in the longer-term global and regional context where growth is decelerating, and inflation is surging in many countries due to rising food and energy prices, largely caused by disruptions in the supply chain triggered by the Russia-Ukraine war.

Despite the challenging external environment, the economic outlook in PNG remains positive, underpinned by a projected recovery in the extractive sector, higher commodity prices, and gradual recovery in economic activity. On top of this, the easing of COVID-19 policies by local authorities is increasing domestic economic activity.

Agriculture played a key role in the economic recovery beginning in 2021 driven by higher export volumes of tea, palm oil, and copra. The extractive sector did not rebound in 2021 also due to disruptions to mining operations. Nonetheless, elevated prices for commodities – in particular natural gas – will likely provide the country with additional revenue this year.

“The report shows that economic growth is expected to be 4 per cent this year, indicating significant economic rebound for Papua New Guineans,” PM Marape said.

“It is very pleasing to see that our reform policies are bearing fruit, despite the difficult conditions across the word caused by COVID-19, and now the Russia-Ukraine war, which limited growth to 1 per cent last year.

“Most importantly, PNG’s economic Gross Domestic Product (GDP) growth has been generated primarily from the non-mining or non -extractive sector: in 2021 4.2 per cent and in 2022 3.5 per cent.

“The biggest beneficiaries of this will be the people in rural areas working in agriculture, forestry and fishing and its associated sectors.

“The report advocates the Pangu Pati-led Government’s emphasis on the non-resource sector, in particular the funding it received during 2020 and 2021 as a COVID-19 emergency response package.”

In its Mid-Year Economic and Fiscal Outlook, Treasury forecasts an increase in revenue from K13.67 billion in 2021 to K17.07 billion in 2022 – a 23.1 percent rise. Not only was the ambitious Budget revenue target of K16.19 billion surpassed, it was exceeded by K875.8 million.

PM Marape said: “Coupled with our efforts to boost the non-resources sector, we have also successfully developed a long list of resources projects that are at various stages of agreement and development.

“This more balanced approach to national development – a people-first approach that gives priority to and encourages our human resources – is the foundation for the success so far of our reform programME.

“And there is more to come – this World Bank report gives credence to my prediction that by 2027, the Budget will be in surplus, and by the mid-2030s PNG will have paid off all its sovereign debt on the way to becoming a K200-billion economy.”

As part of showcasing business opportunities in Papua New Guinea and what local business has to offer , two local woman entrepreneurs were given the opportunity to present their Small to Medium Enterprise and they included "Apo Meri" and "Devine Management Services" at the European- PNG Business, Trade, and Investment Conference from the 11-12 of October. 

Apo Meri is a community development initiative and business through selling of hand woven bilum or otherwise referred simply as the traditional style fashion made handbags for woman and woven baskets .

Present at the conference to give the presentation was the Managing Director for Apo Meri , Ms Evelyn Mopafi who gave a practical hands down experience on how she had an idea to help women in Eastern Highlands provinces sell their bilum products to earn a living who mostly are based in the village.

So far, she stated that she has 500-woman bilum weavers working for her and has recently made a total of k50, 000 in over 6 Months and mostly uses social media tools such as Facebook and whatsapp to individuals and organizations. 

Another initiative by Apo Meri is working with Queenpads PNG by every k10 from the sales of each bilum goes towards the purchase of disposable pads by Queenpads Png to promote healthy menstrual hiegyne for woman.

The other presenter from Devine Management Services Ms. Dorothy Luanda,  the founder shared her experience in collaborating with local farmers in East New Britain Province. So far, she has a total of 1000 farmers that she supports in buying their Galip for k15 per kilo .

"Farmers must earn a good living and I try my very best to give them money in a reasonable price to sustain their living".

These were her words in giving her inspirational presentation.

She further elaborated that so far, they do not have a high turnover but are working sustainably.

Their products of galip nut have reached the supermarkets of Papua New Guinea and are an example of downstream agriculture product in PNG. 

Photo: Mr. Chey Scovel from the Manufacturers Council of PNG speaking in front of the others panelists.

Panelists at the Third European-PNG Business, Trade and Investment Conference on the 10th of October, 2022 at Apec Haus Port Moresby, speaking on the topic of "Navigating the business environment - the impact of the regulatory framework for business, trade and investment," mainly expressed their desire for more improvements to the regulatory framework and regulations in PNG and for these to take place effectively and more efficiently.

Mr. Peter Burnie, Partner for Price Waterhouse Coopers, said stakeholder engagement was "difficult" amid implementation of conflicting laws and priorities to set up business in Papua New Guinea.  

The same sentiment was also shared by Mr. Chey Scovel, from the Manufacturers Council of PNG. He emphasized the aspect of delivering policies from the government.

He noted that its target "should be met, and there should be accountability if nothing has been achieved in terms of meeting key policies and its deliverable targets that will create opportunities for the country," adding that and at the moment "this is currently stagnant."

An example, Mr. Scovel noted, is the inbound calls when calling from Australia to Papua New Guinea. "It is quite expensive compared to other countries, which is cheaper in comparison to Papua New Guinea. That is a regulatory problem and needs to be looked at, especially with the National information Communication Technology Authority (NICTA) and its other regulatory organizations," he said. 

Mr. Collin Stone, the CEO of Digicel PNG Limited, said there needs to be a good regulatory system in place in Papua New Guinea that is "stable, equitable, fearful and independent."

"One of the impeding factors in PNG is engagement and dialogue between different regulatory bodies operating individually, and there's no communication between themselves, there need to be more consultation between government and private sector," he added.

Mr. Kamis Yalakun, the Manager for Investment Promotion Authority, spoke on the roles of IPA and how they are currently working with the European Union to establish business development within Papua New Guinea. 

The last speaker, Mr. Nelson Kapo from PNG Customs Services, gave a brief view on how the regulatory organization operates in Papua New Guinea. He emphasized that the PNG Customs Services welcome investors in the country to operate in a more flexible role, and said there are areas as a country for them to work in collaboration with stakeholders to welcome effective development. 

The theme of the conference is "Strengthening sustainable business, trade and investment ties between the EU,  PNG and the Pacific". 

Photo credit: PNG Chamber of Mines and Petroleum

The full board of Newcrest Mining led by Chairman Peter Tomsett and accompanied by Managing Director and CEO Sandeep Biswas are visiting Papua New Guinea this week, meeting key stakeholders and visiting the Newcrest Lihir mine in New Ireland. Their visit started in Port Moresby on Monday, 10 October involving Prime Minister James Marape, government ministers, members of parliament, senior officials, industry peers and business leaders.

Mr Tomsett assured the PNG Government and key stakeholders that Newcrest is committed to delivering real and tangible positive outcomes for Papua New Guineans. “Thank you for your ongoing support as we strive together to build a stronger PNG through responsible mining,” he said.

“Continuing our existing mining operations at Lihir and creating a new mine at Wafi Golpu will help grow a strong resource sector. This will support a stronger economy and create high-skill, secure long-term jobs for Papua New Guineans.”

Mr Biswas told guests at a reception on Monday evening that Newcrest worked closely with the authorities in PNG from the onset of the COVID-19 pandemic to upgrade medical facilities, procure medical supplies and support vaccination. “It is this commitment that led us to play a greater role during the COVID-19 pandemic in supporting those around us,” said Mr Biswas. “These successful projects and the positive response from the communities in which we operate inspired Newcrest to create a new investment fund called the Newcrest Sustainability Fund, to continue contributing to the resilience of these communities.”

The first two projects supported anywhere in the world under the new fund will be in New Ireland Province, with an initial investment of K4.7 million in the first year and will support critical education and health outcomes.

The first project will focus on introducing early childhood education to New Ireland and retraining teachers to accommodate the inclusion of children from the age of four into the PNG formal school structure.

The second project will aim to create a stronger health system in New Ireland by improving access to quality health care services across rural areas through a co-delivery model between Australia Doctors International and the New Ireland Provincial Health Authority. Mr Biswas said Newcrest is proud of what it has helped to achieve for a stronger PNG and is committed to growing its presence in the country.

Photo: Papua New Guinea Prime Minister James Marape poses with Barrick Gold Chief Executive Mark Bristow in the capital of Port Moresby, Papua New Guinea, October 15, 2020. Credit: Papua New Guinea Prime Minister's Media Office

Prime Minister Hon. James Marape has welcomed Barrick Gold President and CEO Mark Bristow and Newcrest Mining Ltd Managing-Director and CEO Sandeep Biswas who are here to work with the Government on progressing Porgera and Wafi-Golpu mining projects.

PM Marape said the Barrick team led by Bristow, and the Government team led by Mining Minister Hon. Ano Pala and Porgera MP Hon. Maso Karipe, travelled to Porgera today (Monday, October 10, 2022) for a security forum as well as check on the restart progress made to date.

He also announced that he would attend to the delayed Wafi-Golpu himself to bring it to conclusion as a matter of urgency.

“My Government has shown support for both Porgera and Wafi-Golpu by approving over K900 million each as Infrastructure and Business Development funds for both project area land owners and provincial governments,” PM Marape said.

“We will go to our landowners and provincial governments as soon as headline agreements and other legal requirements are progressed.”

PORGERA

“Barrick, as the operator of the joint-venture company, has already recruited over 1500 Papua New Guineans and we are now moving into the final stages of ticking off all regulatory requirements with Mineral Resources Authority and Mining Department,” PM Marape said.

“The New Porgera is historic for PNG because this operation will be the first time PNG companies – representing Landowners and Government – will hold a combined 51 per cent equity while investors will hold the 49 per cent balance.

“I thank Mr Bristow and Barrick Gold – which appreciated our Government’s policy to hold 51 per cent share in the New Porgera.

“It is unprecedented in our country for a super major gold company, currently the second-biggest in the world, to allow itself through negotiations with Government to own less than PNG parties and at the same time operate the mine.”

PM Marape said Papua New Guineans and investors must note that 15 per cent of the equity would not be paid by PNG.

“This means that we pay only 36 per cent of the 51 per cent,” he explained.

“Both Barrick and the National Government have agreed that the 15 per cent is to be passed to Enga people and the landowners, who have held the mine in the first 30 years of operation.

“The State will contribute 36 per cent but Barrick will raise the capital with no interest charged.

“I commend Barrick for this ground-breaking partnership with PNG in benefit sharing of a major resource project.

“I assure all investors that negotiations with all of them will respect our operating legal and regulatory environment, and also the rate of return on their investments, just like we did with Barrick for the new Porgera.

WAFI-GOLPU

PM Marape assured the people of Morobe and PNG that he would attend to Wafi-Golpu himself to ensure it started as soon as possible.

“Wafi-Golpu is a new green field project and cannot be compared to Porgera, however, I will use the same bargaining principles,” he said.

“Through negotiations, if I can win extra for PNG, I will do so.

“The sector State Negotiation Team (SNT) has exhausted its negotiations with the developers and it is now the national SNT that will bring Wafi-Golpu to conclusion assisted by Morobe Provincial Government.

“Both investors in Wafi-Golpu – Newcrest and Harmony Gold Mining Company Ltd – aren’t new to PNG.

“They operate Lihir in New Ireland, the fourth-biggest mine in the world and Hidden Valley in Morobe, so it shouldn’t be long before we agree on the numbers for benefit sharing.”

Article courtesy of PM James Marape News Page

Photo credit: PNGEITI - Porgera Mine

Barrick Chief Executive Mark Bristow, in PNG for quarterly operational reviews, said that the incorporation of New Porgera Limited (NPL) on 22nd September, following execution of the New Porgera Shareholders Agreement by Barrick (Niugini) Limited, Kumul Mineral Holdings Limited and Mineral Resources Enga, marked an important step towards the longdelayed restart of the Porgera mine. Once certain conditions are fulfilled, the company intends to apply for a new Special Mining Lease (SML) in coming weeks.

Bristow said that New Porgera will work with the State and the Mineral Resources Authority (MRA) to ensure that the SML application process proceeds without delay and in accordance with the Mining Act and the Porgera Project Commencement Agreement (PPCA).

“The application and early approval of a new SML is the goal that all Porgera stakeholders should be striving for. The mine has sat idly for far too long – almost two and a half years – depriving landowners and the communities of Porgera of employment and other essential benefits that the mine delivered successfully for 30 years,” said Bristow.

Together with Barrick’s executives, Bristow arrived last night in PNG and today travelled to Porgera to kick-off the security forum alongside the Mining Minister Sir Ano Pala, Porgera MP Maso Karipe, SML and LMP landowners, community, women groups and business leaders. Also in attendance was Enga Provincial Police Commander and representatives of the Enga Provincial Government, Porgera District and PNG Defense Force.

“We had a constructive kick-off meeting in Porgera and everyone agreed that law and order is crucial to the restart of Porgera mine and the long term future of Porgera District. The Parties will continue to meet and collaborate on law and order initiatives and their implementation. All landowner and community leaders acknowledged the urgent need for leadership at ground level to complement the work being done by security forces. There was a call from the landowners for a signing of a Peace Agreement and the need for a Government endorsed Police Operation to address the current lawlessness in Porgera” said Bristow.

As a sign of Barrick’s commitment to restart, we are building a dedicated team, comprised of a majority of Papua New Guineans, to get the mine up and running so that the people of Porgera can finally see the ‘white smoke’ they have been waiting for. To date, Barrick and Zijin have funded USD 391 Million (approximately 1.37 billion kina) solely for Care and Maintenance.

Bristow and Barrick executives are expected to meet with Prime Minister James Marape, the State Negotiation Team led by Dari Vele, Kumul Mineral Holdings Limited and attend the inaugural board meeting of New Porgera Limited.

Article courtes of Porgera JV

Photo: Children at Baruni Dump, Port Moresby

Key priority areas to be overviewed by Education Department

Papua New Guinea’s Education system has suffered from a number of policy shifts, drastic changes in curriculum and under resourcing over the years. The free education policy has succeeded in increasing the number of students attending schools, however quantity outcomes have been prioritized over quality outcomes and has imposed a significant strain on teachers accommodating very large classes.

Consecutive governments have not ensured the availability of sufficient number of qualified teachers to respond to the increased demand for quality education in schools.

More than 85 percent of Papua New Guinea’s population live in rural areas, this includes students right from the southern end of Milne Bay, Central, and Gulf up the Mountains to the Agricultural Heartlands of the Highlands region all the way further to the Northern end of West and East Sepik right across the sea to the New Guinea Islands.

The challenges they face at home often spill over to school.  Challenges such as Absenteeism, Travelling distance, lack of basic needs and limited access to technology. Trying to find solutions to those problems are teachers, principals and the everyday local community.

For instance, Provinces such as Central, Eastern Highlands, East Sepik, Morobe and East New Britain had been some of the top provinces with high achievements in the education sector but that has not been the reality lately as the system is slowly deteriorating.

These provinces are home to some of the oldest National High Schools in PNG which are Sogeri, Aiyura, Passam, Wawin and Kerevat, this schools have produced some of the nation’s best academics and professionals.

Two of Papua New Guinea’s Premier Universities the University of Technology (Morobe) and the University of Goroka are also located in the Heart of two of these Provinces; Graduates from these Universities have gone into leadership positions in the government, the private sector, and in civil society. But there are still a lot of challenges that face the education system in these provinces.

The Education system has encountered its fair share of Mishaps; schools in the country have been facing problems in key areas such as infrastructure, insufficient equipment, overcrowding and limited libraries. Teacher absenteeism is also a main issue in schools throughout the country due to teachers not getting paid. Teaching and learning in schools were not properly assessed and scrutinized and this system carried on without direction. A major shortcoming had been a lack of communication between schools and the education department of the country.   

The PM is adamant in changing the education system of the country and setting it in order. In achieving this, he plans to create an effective education board that reports directly to the Education Ministry.

The Marape-Rosso government’s goal is to provide quality education for the people and in achieving that they aim to improve access to schools and improve equity to schooling throughout the country. Currently there has been an increase in the registering and expanding of new and old schools in all districts and provinces so that schools can be accessible to all able-bodied Papua New Guinean children in towns and in remote areas where schools are inaccessible.

There has already been the inception of new junior high schools registered in certain provinces and districts to accommodate primary school students to continue on to high school. The reason for these Junior High Schools is to eliminate the problem of space limitation that a lot of high schools have been facing over the years.

To improve the education standard and academic performance of the country, The PM is working closely with the Education Department to supply materials for infrastructure to upgrade classrooms, teacher’s houses and other school buildings to improve access to schools; this will also include curriculum materials to improve the quality of education.

The improvement of each provincial academic performance is also of outmost importance to the Marape- Rosso Government. The current regime plans to establish Provincial Academic Boards in each province to organize and coordinate academic programs throughout the country.

The Provincial Academic Boards will be put in place to gather information and analyze examination results of Grades 8s, 10s and 12s to be able to see the performance of schools throughout each province. This will also enable them to monitor if school principals and their teachers are performing their duties.

During a recent presentation at Wawin National High School, Secretary for the Department of Education stated that PNG cannot continue to become a consumer only. Kombra said it was important to produce innovators and creators who would put the country on the world map with their brilliant and innovative creations.

“In order to achieve that we must first create concepts in the country’s education system that would promote and encourage brilliance in the minds of students and STEM (Science, Technology, Engineering and Mathematics) education is one way of achieving that” he said.

Kombra added that through STEM the government intended to ensure that students will benefit by improving their learning capacity and produce the next generation of manpower that will be fit to adopt the latest technology innovations in order to create systems to drive the productivity and efficiency of the country’s growing economy.

PNG is currently going through a curriculum reform in which they are abolishing the old system of outcome base curriculum to the standard base curriculum. The Education department is effectively implementing these systems for Teachers and Administrators to have stability and support to deliver better education to the growing number of children attending schools throughout the country.

The government wants students to be competent at all levels in the future and this can only be achieved by transforming education through innovation and unity.

Also, in a separate press statement Secretary for Education Dr Uke Kombra, called on participants attending the recent 31st Senior Education Officers Conference in Kavieng, New Ireland Province to revisit and restrategise on Government priorities on Education in the country.

“When giving an overview of key priorities aimed at addressing equity there are two important and critical goals that need attention, this are to ensure that every child receives 13 years of education, and that education must come with quality”.

The Papua New Guinea Trade Union Congress (PNGTUC) and its affiliated women members have made a call to the Government to continue to remain intact to protect and promote the same solidarity and consistency shown during the unopposed election of Prime Minister James Marape and Speaker of Parliament Job Pomat when the 11th parliament rose to elect these two MPs.

For the second time, the two respective Members of Parliament were reelected unopposed by MPs who were present at parliament which also included the support of members from the opposition benches.

The National President of PNG Banks and Financial Institutions Workers Union, Ms. Killi Sapa expressed her sentiments towards the unity shown in parliament during the resumption of the first sitting of the 11th parliament and stressed that the solidarity and consistency shown must continue to be visible throughout the term of the 11th Parliament for the next five years.

“We call on the Government to maintain the same solidarity to have the people at heart when making decisions as we are living in high trying times with economic issues such as inflation, almost nil labour market growth, overcrowded classrooms, frustrated teaches and so many underlying issues that the country is currently facing. We need change, we need this country to be united and we need our leaders to believe in the same”. Said Sapa.

She further appealed to the citizens that now that they have elected their leaders, it is also time that their leaders must be held accountable. Leaders must be liable in terms of service delivery and basic services must become accessible especially to people in rural areas of the country.

Meanwhile, PNGTUC National Women’s Representative, Wilma Kosi appealed to the Marape-Rosso Government to truly represent the best interest of the people in their decision while representing them in office for the next five years.

“The current Government must bring economic growth through investment, reduce tax on workers and fix the current system” she said.

Photo credit: K92 Mining

K92 has announced a strong production result for the third quarter of 2022.

John Lewins, K92 Chief Executive Officer and Director, stated, “In the third quarter, Kainantu delivered one of our most complete quarters to date and marked another important step forward in expanding operations with near-record production and multiple operational records achieved.

In the processing plant, 3Q delivered record mill throughput of 1,282 tpd, significantly greater than the Stage 2 Expansion of 1,100 tpd and increasing 35% from Q3 2021. A new daily record was achieved on July 14, of 1,642 tonnes, September delivered our second highest monthly average throughput to date and August recording our highest ever, averaging 1,373 tpd. This is especially significant as the mill has effectively achieved Stage 2A Expansion levels, ahead of schedule and ahead of the last major plant upgrade, the installation of the flotation expansion. The flotation expansion is expected to not only provide a boost to metallurgical recoveries but also increase plant throughput flexibility further, with the potential to ultimately exceed the Stage 2A Expansion run-rate.

In the mine, record ore mined was realized, increasing 37% from Q3 2021. Mining exceeded milling during the quarter, resulting in our largest mill ore stockpile at quarter end since late 2020, providing an additional boost to operating flexibility. A key contributor to the strong mining rates has been the additions of new equipment combined with improving operating productivities, and I am pleased to report that on October 2, 2022, we delivered yet another record, with 1,833 tonnes ore mined in a single day via tele-remote loaders from stopes.

3Q delivered our second highest overall development on record, with the twin incline also progressing well, advancing 33% more than budgeted. Increasing the development rate remains a focus, a new jumbo arrived in Q3 and multiple pieces of mobile equipment are expected to arrive over the coming months.

The strong performance to date and a fourth quarter that is expected to also be strong well-positions K92 to meet our annual production guidance of 115,000 oz to 140,000 oz AuEq.

On exploration, there are 10 drill rigs currently operating, focusing on resource growth and drilling multiple target areas concurrently, including Kora South and Judd South from surface, in addition to Kora, Judd, Kora South, Judd South and Kora Northern Deeps from underground. With our financial position the strongest it has ever been, we expect to continue to increase our exploration activities.”

Photo credit: China Daily

According to an official, the governments of China and Papua New Guinea are collaborating on a feasibility assessment for a prospective bilateral free trade agreement (FTA).

According to a representative for the Chinese embassy, the FTA may help to increase bilateral commerce, particularly in the food and agriculture sectors.

“China is a large market where opportunities are still there for more imports,” he said.

“There is enormous potential for agricultural cooperation between China and PNG.

“During Prime Minister James Marape’s visit to China earlier this year, the two sides revised an existing protocol to expand the scope of frozen marine products allowed to be exported to China and signed a new protocol to allow marine products to enter the Chinese market.

“The two governments also signed a memorandum of understanding on agricultural cooperation.

“The PNG Government is committed to growing more agricultural produces and developing downstream processing to satisfy domestic needs and for further export, and the Chinese side is ready to tap into the potential and strengthen cooperation in those areas with PNG.”

The embassy said that several Chinese companies have expressed interest in making investments in a range of PNG industry areas, including but not limited to energy, mining, and agriculture.

According to the spokeswoman, many prospective investors think that PNG has a promising economy with significant room for growth.

“The Chinese government encourages more Chinese companies to invest and start operating in PNG on the basis of mutual benefit and market principles, to join and contribute to PNG’s industrialisation drive and capacity building for sustainable development.

“China always supports PNG’s efforts to achieve independent development and prosperity for the country.”

Reference: Esila, Peter. The National (5 October 2022). “Trade to focus on agri”.

Photo: (L-R) Deputy Controller National Pandemic Response Dr. Daoni Esorom, Minister for Tourism Arts & Culture Hon. Isi Henry Leonard, PNGTPA CEO Mr. Eric Mossman Uvovo. Credit: PNGTPA

Tourism Promotion Authority has announced the re-opening of Cruise Tourism into the country. Chief executive officer Eric Mossman Uvovo said that the cruise tourism sector before COVID-19 contributed US$20 million (K70.4 million) to the economy.

Following the loosening of travel restrictions in PNG for commercial vessels, he said one of their main agenda items for the year was cruise tourism.

“Cruise tourism as we know it today can be traced back to the beginning of the 1960s coinciding with the decline of transoceanic ship travel and introduction of the first nonstop air travel between USA and Europe,” Mr. Uvovo said.

“This is according to its history, however, PNG cruise tourism is an essential part of our tourism program where visitors from all over the world can come and cruise around our beautiful islands and enjoy the breathtaking scenarios, including our blue seas, the lagoons, river ways, reef and many other beautiful sites we have across our islands.”

As of August 4, 2022, the controller published new measures, and those measures call for the ports to be opened, which will now enable commercial ships, commerce, and most crucially cruise ships to enter the nation, according to Deputy Controller National Pandemic Response Dr. Daoni Esorom.

He claimed that because most ports and borders were closed during the epidemic, residents had a difficult time. Now that the ports have reopened, he claimed that many people will profit from the companies that cruise ships offer when they arrive at ports.

Cruise tourism is a significant economic driver, thus Isi Henry Leonard, minister of tourism, arts, and culture, is glad that the ports are now reopening to welcome cruise ships back into the nation.

Reference: Kamus, Maxine. Post-Courier (6 October 2022). “TPA Announces Re-Opening Of Cruise Tourism Sector”.

Photo credit: Paga Hill

For the country to produce more cocoa, there has to be more cooperation between the provincial administrations and the local cocoa farmers.

The partnership is the only way to forward the work, according to Albert Nukuitu, chairman of the Papua New Guinea Cocoa Board.

He stated that the PNG Cocoa Board is committed to such collaboration and that the management and board now have the responsibility of making the necessary arrangements.

The popularity of cocoa in Mamose and the New Guinea Islands region is well recognised.

In addition to the other Southern area provinces and the Highlands, Central Province is now focusing on cultivating cocoa; nevertheless, the lack of market and resource partnerships is hurting the farmers' dedication to the industry.

A memorandum of understanding between provincial governments and their Department of Primary Industry (DPI) personnel, according to Mr. Nukuitu, is essential at this point in order to support the Cocoa Board.

He said that because the Cocoa Board lacks the ability, this arrangement will enable its regional office staff to collaborate with each province government to support the nation's cocoa farmers.

“We have people who can drive initiative like this but we need the support of different stakeholders in the industry to enhance the work to increase the output,” he said.

The government's priority, according to Anthony Vigil, interim chief executive officer of the Cocoa Board of Papua New Guinea, is to increase the economy by K200 million by 2030.

According to him, only cocoa will produce 300 million tonnes of cocoa a year and contribute more to the national economy.

“The challenge is on us the management and the board, and the government is working closely with the board to ensure we produce enough volume.”

Mr. Vigil said that there are already existing Memorandums of Understanding (MOUs) for cocoa with provinces in the Southern area, including the Gulf, but they did not materialise due to the lack of resources required.

The board urges farmers to start cocoa farms because it is prepared to help them, especially in Central Province's new development zones.

Reference: Wohi, Lorraine. Post-Courier (03 October 2022). “Partnership To Increase Cocoa Production”.

A potential large-scale rice farming company in the Philippines will be sending a delegation to Papua New Guinea in November this year to evaluate the country’s potential for large-scale rice farming in Central Province.

Richard Maru, the minister for international trade and investment, emphasised this as one of his accomplishment goals during a recent visit to the Philippines.

They were asked by Minister Maru to travel to Papua New Guinea to consider starting a commercial rice farm.

“PNG needs to identify up to 90,000 hectares of land to grow rice in order to produce the rice initially to feed our own population and to export the surplus back to the Philippines,” he said.

“We will be working very closely with the Central Governor and the leaders from the Central Province to assist us in identifying land in Central Province to grow rice on a large scale.

“It would also be a great opportunity for the landowners when we are talking about a K800 million per year rice import replacement opportunity.”

Despite having a long-standing connection, PNG and the Philippines have not yet signed a trade agreement or an economic partnership agreement.

The long-pending double tax treaty, the free trade agreement, and technical assistance from the Philippines to PNG for the development of Special Economic Zones and downstream processing support, particularly in commercial rice farming, were also agreed upon by the two nations. They also agreed to hold their first trade meeting.

Mr. Maru stated that until more progress is made in the bilateral trade and investment relationship, trade discussions between the two nations are anticipated to be held every six months.

Concerningly, while PNG does not offer an on-arrival visa, the Philippine government does for Papua New Guineans entering the Philippines.

According to Mr. Maru, the PNG government should investigate the possibility of offering on-arrival visas to Filipino visitors to PNG in order to increase cross-border interactions.

Following confirmation from the government of the Philippines, the first trade meeting is scheduled to take place during the first week of November.

Reference: Post-Courier (3 October 2022). “Investor Keen On Rice Farming”.