Photo credit:

Coffee has been one of the most important agricultural commodities that contributes to Papua New Guinea (PNG) economy. It contributes to the livelihoods of almost three million people in the country. However, since the closure of several plantations in PNG, coffee production has continued to decline. Though coffee production in the country is currently driven much by smallholder coffee growers they face several challenges.

National Research Institute (NRI) Spotlight Volume 15, Issue 7: Cooperative is the way forward for smallholder coffee growers in Papua New Guinea by Research Intern Joecy Kabiu, highlights how coffee cooperatives can be used to address some challenges faced by smallholder coffee growers.

Ms. Kabiu reported that “through cooperatives, smallholder coffee growers can be assured of higher production, better-quality coffee, and better returns”

Coffee cooperatives in PNG also face challenges that hinder their growth, which resulted in the demise of some cooperatives. The challenges can be addressed using holistic approach that involves all key stakeholders in the coffee industry.

Government at all levels should consider doing more to encourage smallholder coffee growers to establish effective and efficient cooperatives to move coffee industry forward to the next level.

Article courtesy of National Research Institute

To create an enabling environment including farm-to-market roads to support cocoa, vanilla and fisheries farmers in the Greater Sepik Region, the ILO under EU Funded UN Joint STREIT PNG Programme, has recently engaged three local contractors to commence rehabilitation and specific maintenance of four farm-to-market access roads totalling 52.1 km in the Sepik Region of Papua New Guinea.

The ILO signed the contracts with three local firms last week. The contracted firms are Hiawani Limited for the rehabilitation of 7.8 km Banak-Wautogik road in Wewak District, Midway Pacific Ltd for the Specific Maintenance of 12.8 km Balif-Araseli road in Maprik District, and Kaystar Construction Ltd for two (2) roads; Rehabilitation of a 6.5 km Munji-Haripmo road in Yangoru-Saussia District, and Specific Maintenance of 25 km Pasi-Krisa road in Vanimo-Green District, Sandaun Province.  These roads were selected based on high production of vanilla, cocoa and fisheries in the areas that are supported under the EU-STREIT PNG Programme.

The contract duration of these specific lots and packages are 12 months and the contractors have been given two weeks to mobilise their resources including machineries to commence road works by 15 July 2022. The ILO Engineer will conduct regular supervision, monitoring and monthly meetings to discuss work progress, challenges and way forward. “We will not only monitor, we will be satisfied to support you by providing technical training to the key personnel of the contractors for continuous capacity development and quality assurance of sub-projects,” explained Mr Shailendra Kumar Jha, ILO’s Infrastructure Specialist/Chief Technical Advisor under the EU-STREIT PNG.

“Given the delay caused by the COVID-19 pandemic which has put a strain on the progress, I’m pleased to announce that this is a milestone achievement for the road transport infrastructure component to ensure we assist the government in its efforts to bring markets closer to the unreached in our focus areas,” said Dr Xuebing Sun, EU-STREIT PNG Programme Coordinator.

The contractors were selected through the competitive bidding process using e-portal of United Nation Global Market Place (UNGM) to ensure principle of sustainable procurement of ILO. This is a totally new practice in the case of PNG where local contractors were trained on e-bidding and successfully submitted their bids using UNGM and ILO electronic Tendering System (eTS).

As part of EU-STREIT PNG’s mandate to support capacity development, all contractors including their personnel will undergo training in technical areas like contract management and administration, Supervision, Quality Assurance and Quality Control, Material Testing and Laboratory Practice, environmental and social safeguards, occupational safety and health at construction site, and modern survey techniques using GIS (geographic information system) and Total Station. This is to ensure delivery of quality road transport works for EU-STREIT Programme in the Sepik Region while also fulfil PNG government’s requirement to develop professional contractors in the country.

The contractors were excited and looking forward to complete sub-projects within allocated time frame of 12 months. Mr David Bannah of Midway Pacific Ltd said: “We’re very fortunate because we’re learning a lot of new things here, especially the UN ILO procurement process through e-bidding. As a local contractor I’m so proud to be associated with the Programme.” Mr Pious Hiawani of Hiawani Ltd added: “We know the ILO team will help us to become better contractors and many rural people will benefit here so I like to thank European Union (EU)-the donor agency and ILO under the STREIT Programme.”

Under road transport infrastructure component led by ILO, 15 rural roads in the Sepik totalling 264kms in length will be rehabilitated to support the market access initiative implemented by the EU-STREIT PNG for rural farming communities to boost agriculture production and agribusiness activities pertaining to the three targeted value chains for an improved income and cash flow for the rural sector. The roads will also support other agricultural, business, social and community activities and facilities like schools, aid posts and health centres that are in dire need of better accessible roads.

The EU-STREIT PNG, as a UN Joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. Being implemented in close cooperation with the National and provincial government institutions, research entities, civil society organizations, and private sector enterprises, the Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development. 

Photo:(L to R) Laboratory Technician Staff, Nivit Nihisi; Geologist, Damoi Gatama; and Logistic Assistant, Kabby Tabuim, cutting a cake to commemorate 11 Years LTI Free.

Ok Tedi Mining Limited’s (OTML) Geology and Exploration Department celebrated a milestone of 11 Years without a Lost Time Injury (LTI) on the 21st of June.

The last recorded LTI for the team was in March 2011.

Manager Geology and Exploration, Oala Rarua, said they are grateful to their staff and business partners on the milestone achievement.

“Our gratitude goes out to our team in the bush who are exposed to harsh weather conditions, all the helicopter risks with loading and unloading, and also our Resource team back in the mine pit, working in close vicinity to haul trucks and other heavy equipment. We also thank our laboratory team, who do a fantastic job in keeping safe while working with rotating equipment and chemicals,” said Mr Rarua.

“We also acknowledge our various business partners who contribute to our success as a department.”

Mr Rarua said his team will continue to maintain this excellent safety record.

“We will continue this trend going forward to ensure there is Zero Harm in our workplace so that we contribute in achieving OTML’s Vision 2025 which is to make Ok Tedi the safest mine in PNG.”

Deputy General Manager Mining, David Laulau, applauded the Department given the various risks the team is exposed to in the field.

“We congratulate the Geology and Exploration team for this milestone achievement. They cover a wide area of operation, the terrain they operate in is very rough and the weather is always a challenge. I commend Mr. Rarua and his team for the dedication and commitment to safety,” Mr Laulau said.

The OTML Safety Department team led by Manager Safety, Anna Ila congratulated the department on the milestone, saying it was an indication of the team’s commitment towards working safely.

“Such an outcome is mainly achieved when you have not only the management, but those on the shop floor committing to work safely.”

She also challenged the department to focus on preventing minor incidents such as near misses, minor injuries and equipment damage, and ensuring critical controls are being implemented to avoid serious incidents from occurring.

Article courtesy of Ok Tedi Mining

Richard Sinamoi, the chairman of Credit Corporation, says they intend to list on the Australian Securities Exchange Ltd. (ASX).

Sinamoi stated that it was in the plans for the upcoming three to five years during the company's annual general meeting last week.

“Of particular importance is that following the board’s strategic review in Full-year (FY21), we have reset our strategy with a new pathway and developed a revised plan for the next three to five years,” he said.

“This new strategic plan has set Credit Corporation on a transformational journey.

“This ambitious plan will see us building on our strong finance company businesses, simplifying the group and divesting some of our non-core assets, into becoming a niche commercial bank, and ultimately aiming to list on the ASX.

“To realise this strategic growth ambition requires a strong leadership team in place.

“I believe our new management team, led by CEO Danny Robinson, will improve the performance and value of the company as we commit to becoming a niche commercial bank in the future.”

The board had also declared a final dividend for FY21 of 13.4 toea per share, or K41.2 million, Sinamoi further informed the shareholders.

“This follows the interim dividend of 4.6 toea paid in the second half of FY21, making it a total full-year dividend of 18 toea per share, or K55.3 million,” he said.

“This represents a full-year payout ratio of 70 per cent of core operating profit, which is at the top-end of the group’s stated dividend policy range of 50 to 70 per cent of core operating profit.”

According to Sinamoi, it had a solid track record of paying out all dividends from investments.

“It highlights our ongoing commitment to delivering shareholder value,” he said.

Reference: The National (29 June 2022). “Credit Corp plans to be on ASX Ltd”.

Photo credit: Department of Agriculture and Livestock

The PNG Agriculture Commercialisation and Diversification Project will get US$40 million (K120 million) in financing from the World Bank.

The money will help 12 provinces that have been identified establish competitive and varied agricultural value chains for specific commodities like coffee, cocoa, coconut, spices, and small livestock.

Autonomous Region of Bougainville, New Ireland, East New Britain, West New Britain, Morobe, Madang, Eastern Highlands, Chimbu, Jiwaka, Western Highlands, Enga, and Southern Highlands are among the 12 provinces.

According to Jane Sprouster, the World Bank Support Country Manager for PNG, the bank is pleased to be extending their cooperation with the Department of Agriculture and Livestock through project implementation.

By supporting sector intuitions, enhancing industry, and supporting the improvement of key rural roads, she said, the activities under this new project seek to address three of the major challenges facing the performance of the agriculture sector. This will allow products to reach the market in good quality and a good time to achieve their prices.

“The heart of this project is to help smallholders increase productivity and quality of products and to get a higher income for their efforts,” Ms Sprouster said.

The three primary commodity-focused areas in PNG are dominated by smallholder farmers, according to Acting Secretary for Agriculture and Livestock Dr. Nelson Simbiken. However, this has been impacted by numerous market and productivity constraints.

The limitations include high transaction costs brought on by diseconomies of scale, a lack of information and technology brought on by subpar extension services, poor rural infrastructure, a lack of access to rural finance, and unstable landownership and tenure.

With the assistance of the World Bank, the department will now be able to address some of those issues related to ageing, according to Dr. Simbiken.

Reference: Wohi, Lorraine. Post-Courier (29 June 2022). “K120 Million For Agirculture Projects”. 

Photo credit: Laga Industries

Paradise Company Chairman, Mr. Anthony Smaré was in Lae to open the new Laga Industries Ltd. Administration offices during the Board of Directors meeting being held in Lae.

The purpose-built building accommodates all the Finance, HR and IT teams in a modern facility including visitor and meeting rooms. The previous administration area is being demolished to make way for more production space within the ice cream factory site.

Mr. Smaré acknowledged the main Contractors, Fabs PNG Ltd. for completing construction within the 9 month build period and within budget, primarily using Lae-based PNG-owned subcontractors. This new office construction incorporates the latest PNG building fire codes integrating steel framing making it in compliance with fire and building standards.

Mr. Smaré stated “This opening is very timely as we are about to embark on increasing our T-Shake and Laga Stik production capacity in time for Christmas. These 2 products are extremely popular across PNG with the ongoing demand giving the Board of Directors the confidence to invest in expanding the output of T-Shake and Laga Stik. The Gala ice cream facility is world class in making PNG’s favourite ice cream range from 3Pla Fleiva sold in Gala Palas and in supermarkets in 1 and 2 litre tubs to Sweet Heart and Hamamas sticklines”.

The opening was attended by the Board of Directors, Paradise Company CEO, Mr. Michael Penrose & the Executive Leadership Team, factory staff & the Contractors involved in creating the new office block with lunch served followed by Gala ice cream.

Article courtesy of Laga Industries

In addition to other topics, Papua New Guinea will speak at the second United Nations Oceans Conference in Lisbon, Portugal, about the recently authorised Global Climate Fund component.

Other issues PNG will bring up include the passing and implementation of maritime transportation legislation, particularly the usage of the Jomard Passage by large vessels in the province of Milne Bay.

As a step toward preserving the health of its oceans, PNG has also enacted a ban on single-use plastic bags.

Dr. Eric Kwa, the Secretary for the Department of Justice and Attorney-General, expressed his gratitude to Prime Minister James Marape for choosing him to serve as his special envoy and represent the nation at the important week-long worldwide seas event.

The PNG Country Statemen are anticipated to be presented by Special Envoy Kwa.

He said that in his capacity as the National Oceans Committee's Chairman, he is well-versed in both oceans-related issues and the Conference agendas that will have an impact on Papua New Guineans' quality of life.

At the numerous meetings they will attend, Dr. Kwa stated in their interactive conversations that he expects to present distinct yet intense and particular reports with the assistance of PNG's respective sector agencies and the wider ramifications of the difficulties the country's seas confront.

2017 saw the first UN Oceans Conference take place in New York.

The PNG Oceans Policy, however, was only adopted and put into effect in 2020.

PNG will speak about the Second Oceans Conference's recently authorised Global Climate Fund component, the passage and implementation of maritime transportation laws, and specifically the usage of the Jomard Passage in Milne Bay Province by large vessels.

As a step toward preserving the health of its oceans, PNG has also put the ban on single-use plastic bags into effect.

Meanwhile, according to Dr. Kwa, they will utilise this conference to persuade the UN to use the UN Sustainable Development Fund to empower SMEs, notably the local fisherman in Papua New Guinea.

He continued by saying that he would also concur that PNG is carrying out target 14 of the Sustainable Development Goals, which serves as the conference's overarching theme.

Reference:

Papua New Guinea Today (27 June 2022). “PM's Special Envoy to Portugal to Discuss PNG's Efforts to Protect Oceans.”

According to Reg Monagi, chairman of Nambawan Super Ltd (NSL), global inflation is increasing swiftly and rising living expenses.

It was one of the difficulties experienced this year, according to Monagi, who spoke at the NSL employers' conference in Port Moresby.

“The global market has been volatile as (it) reacts to the Ukraine-Russia conflict, resulting in (shortages of) fuel and now food,” he said.

“Global inflation is rising quickly, meaning (that) the cost of living is increasing as you may all be aware.

“Not long ago, you go to the shop to spend K300 to buy goods for one week.

“Now you have to spend something like K1,000.

“So I am sure you can feel that.”

The government-imposed market concentration charge on the BSP Financial Group, according to Monagi, was one of the biggest problems the NSL had to deal with. “After considering BSP’s price-to-earnings ratio, the result value erosion from the levy, it is estimated at in 2022 alone, the members crediting rate may be reduced,” he said.

“The NSL will continue to work with BSP and other stakeholders and industry players to see what the outcome can be.”

Some of the present issues, according to Paul Sayer, chief executive officer of NSL, revolve around the "current economic climate."

“What you are seeing is not only in PNG but around the world is high inflation,” he said.

Sayer gave as an example the cost of a can of Coke.

“It used to be K2. (It’s now) K2.50 – if you get it at a retail shop,” he said.

“I hate to think what they are charging on the streets.

“But that is almost 25 per cent inflation.”

Reference: The National (27 June 2022). “Inflation surging: Official”.

Photo: Minister John Simon

According to Minister John Simon, the Department of Agriculture and Livestock has the capacity to give the country economic independence within the next five to ten years.

He claimed that around 90% of those who reside in rural areas are actively engaged in agriculture. The goal of the government is to increase output and open up markets.

“The DAL will give economic independence to the country in the next five to 10 years because the Government has been supporting the department with funding to improve the market and export,” he said.

Simon claimed that he has been working to develop initiatives and price support schemes for agricultural and cash crop items to boost value and output.

According to him, the price campaign and instructions issued to exporters not to manipulate prices will result in an increase in the overall export of agricultural products.

“We (Government) knew the market prices so we told the exporters to pay the right price to the farmers and producers to increase production,” he said.

“We are paying better prices for coffee and cocoa so you can see the production started to increase.”

According to Simon, the nation used to earn between K350 million and K400 million from only exporting coffee.

This year, it will rise to K800 million.

“We are now encouraging the people to grow cocoa and coffee to benefit from the Government support programme,” he said.

Reference: The National (28 June 2022). “Potential in agriculture to drive economy”.

Photo credit: CPL Group - Mr. Navin Raju

For its 2021 financial year results, The City Pharmacy Group Limited recorded a trading profit of K23 million.

Despite fiercer competition, significant increases in the cost of goods, freight charges, and COVID-19, this represents a 6% gain over 2020.

A 4 toea per share full and final dividend has also been declared by the group.

Sales growth for CPL Group's nine core brands continued to decrease in the first quarter of 2022 as the trading environment returned to normal and NiuplaPasin requirements became part of the new normal across the country.

“The Board remains confident that despite the operational challenges and future growth prospects, CPL Group remains positive and will continue to promote opportunities for sustainable business in our day to say operations and advocacy through the CPL Foundation,” said Stan Joyce CSM, Chairman of CPL Group.

One of the year's major milestones was Mr. Navin Raju's promotion to Group CEO, succeeding Sir Mahesh Patel.

While the business was able to surpass the trading profit from the previous year while keeping the net gross profit margin in line with 2020, the total group sales were 0.3% lower than in 2020.

Key brands Hardware Haus and City Pharmacy successfully achieved sales growth of 4.2% and 12.3%, respectively, through the company's subsidiaries.

Despite a drop in sales, the supermarket chain Stop & Shop is still Port Moresby's favourite choice for shopping.

As we move into the upcoming year, CPL Group brands will continue to be the go-to destination for shopping by providing our communities, customers, suppliers, and team members with amazing value and exceptional customer service. We will also maintain our emphasis on maximising shareholder value.

Reference: Post-Courier (27 June 2022). “CPL Records K23 Million Profit”.

Photo credit: Papua New Guinea Today

The National Agriculture Quarantine and Inspection Authority has launched its 10-year biosecurity policy 2022-2032, the first for the authority and the country since Independence.

The policy will put an emphasis on easing trade inside the nation while also addressing the problems and difficulties the nation faces in preserving and conserving its distinctive biodiversity and allowing for the import of commodities.

The policy, according to Joel Alu, general director of NAQIA, is a springboard for NAQIA and the agricultural industry to mobilise and adopt regulations to protect agricultural products for international trade as well as to protect agricultural products from disease and pets in this country.

“From the policy, we are going to launch the bill, we will derive the bill from this policy, we will draft the law and that law will help guide how we want to conduct trade in this country.

“NAQIA does not have the tooth to bite and this policy allows us to develop that tooth to bite,” he said.

John Simon, the minister of agriculture and livestock, who was present for the policy's introduction, urged NAQIA to give the Biosecurity Act and its necessary rules more attention.

“A good policy is supported by legislation and a good set of regulations with the requirements, and financial resources,” he said.

The main goals of PNG's biosecurity policy are to develop a framework for safeguarding livelihoods, the environment, and agriculture, as well as to promote both internal and foreign trade.

Targeting imports and transit routes for the pre-border, border, and post-border stages to prevent the entry and spread of pests; defending and enhancing agricultural production and productivity in PNG; market access and export certification, which involves assisting export market opportunities for PNG agriculture products

The policy is further supported by cross-cutting blocks, which include components that apply to the complete biosecurity framework and cut across them, such as the infrastructure required to support the aforementioned pillars,

Reference: Wohi, Lorraine. Post-Courier (27 June 2022). “NAQIA Launches Biosecurity Policy”.

Photo credit: Hidden Valley Mine

Senior executives from Harmony’s offices in South Africa visited PNG last month to tour company assets and meet with Prime Minister James Marape to emphasise the company’s continued commitment to invest and grow in the country.

Harmony’s Financial Director, Boipelo Lekubo, and Senior Group Executive: Enterprise Risk and Investor Relations, Marian van der Walt, spoke of Harmony’s investment in PNG since 2004 and the company’s pursuit of multiple opportunities in the Morobe Province, of which the Wafi-Golpu Project is one.

“Harmony, through its subsidiary companies, owns the Hidden Valley Mine and 50% of the Wafi-Golpu Project, as well as extensive exploration interests in and around the Morobe Province,” Ms. Lekubo said.

“Significant capital works associated with the Hidden Valley Mine life extension are presently underway, and Harmony continues to assess further investment opportunities in PNG”, Ms. Lekubo added.

As of 31 December 2021, the Hidden Valley Mine had paid an aggregate PGK 179.4 million in royalties. However, as many industries are experiencing, “Our stakeholders increasingly wish to understand what Harmony is doing environmentally, socially and in terms of governance,” Ms. Lekubo said.

“‘Responsible Stewardship’ is a key pillar underpinning Harmony’s operating philosophy, which is mining with purpose. The principles of sustainable development are embedded in our business.

For example, we recognise, both in South Africa and PNG, that preferential procurement is a national imperative, and we are proud to be supporting PNG businesses, including landowner businesses. During the previous financial year, Harmony’s total procurement spend in PNG was PGK 517 million, including PGK 152 million spend with landowner companies.”

Article courtesy of Hidden Valley Mine

Epiroc has won a large order for mining equipment from Rio Tinto in Australia. 

Rio Tinto, one of the world’s largest mining companies, has ordered several Epiroc Pit Viper 271 drill rigs that will be retrofitted by Rio Tinto with autonomous capabilities, as well as SmartROC D65 drill rigs that also are loaded with intelligent features. They will be used in the Pilbara region of Western Australia, where Rio Tinto is operating a highly advanced integrated network of iron ore mines. 

The order exceeds MSEK 150 in value and was booked in the second quarter 2022. It follows a large order by Rio Tinto in the first quarter 2022 for Pit Viper 271s. Also, in 2021, Rio Tinto placed a large order for Pit Viper 271 and SmartROC D65 rigs, also for iron ore mines in Pilbara. 

“Epiroc and Rio Tinto have a long-standing partnership focused on optimizing safety and productivity through cutting-edge innovation,” says Epiroc President and CEO Helena Hedblom. 

The Pit Viper 271 and SmartROC D65 drill rigs, manufactured in Texas, United States, and Örebro, Sweden, respectively, are built to face the toughest conditions and will come installed with Epiroc’s Rig Control System, RCS, making them ready for automation and remote control. 

Congratulations to everyone involved!

Photo: Mr Lucas Alkan

The PNG economy stands to make a quick recovery and growth can pick up this year if the Government acts early to facilitate recovery in a fragile environment as the country slowly recovers from the Covid 19 challenges, according to the PNG EITI.

Head of the PNG Extractive Industry Industries Transparency Initiative Mr Lucas Alkan was commenting on a recent Word Bank Report, which projected  the PNG economy to grow by around 4 per cent this year- largely driven by growth in the extractive sector. The projection was  made in its  Economic Update for PNG released in March this year. The Bank’s projection stems from its estimate of the economy returning to positive growth of 1 per cent in 2021 after contracting by 3.5 per cent in 2020.

“The economy is currently in fragile state, particularly when it is emerging from the aftermath of the Covid 19 pandemic induced disruptions that had devastating impact across all sectors of the economy. The pandemic has created room for complacency and brought about new approaches to living and conducting business as we have been introduced to the ‘new normal’ way of living and doing business in recent times” Mr. Alkan commented.

He indicated that the Bank’s growth forecast is dependent on a number of risks factors that are at play relating to the extractive sector. He said some of these are external risks such as the rising fuel prices brought about by the Russian and Ukraine war which “we have little or no control over”. ”However, there are other risks that can be managed in the remaining months of this year” he observed.

“Firstly, the Porgera Mine needed to be re-opened immediately to contribute to the growth projected. The prolonged delay in re-opening the Mine has resulted in significant revenue loss to the State and loss of employment and benefits to local communities. The shutdown of the Mine is having direct impact on the current foreign exchange shortage in constraining business operations domestically. Porgera Mine had been a good source of foreign exchange inflows and its continued shutdown is not assisting PNG to achieve the 4% growth projected by the World Bank,” Mr. Alkan said

Mr Alkan said the growth was projected almost 4 months ago, assuming that the Government would conclude negotiations and re-open the Mine before June, however this has not eventuated. Reopening the Mine anytime soon seems not feasible in light of the current national general elections that will take us up to August for a new government to be in place.

“If all in order the Mine can be re-opened but then the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back to its full operating capacity is a big challenge. Realistically, we may be looking at around October or November for the start-up but then it will be almost end of the year so for Porgera to contribute to the projected 4% economic growth seems unlikely”, Mr Alkan said.

“Secondly, the inherent political risk associated with the current national general election and the formation of a new government is likely to delay any efforts to start up new resource projects currently in the pipeline. The commencement of at least one or two of these projects at the earliest possible time will have positive impact on the economy, and in as far as contributing to the 4% growth projected. Unfortunately, election activities have generally stalled things until a new government arrives but this may not be too soon until around August or September for the new regime to pursue with outstanding negotiations to reach agreements to bring these projects on-line. These projects include; Wafi-Golpu, Frieda and the Papua LNG project that have the potential to contribute positively to the economy during their construction phases.

Thirdly, there is a real risk for the Covid-19 pandemic to surge again, disrupting economic activities in this very fragile environment, especially given the vaccination rate is very low. This is highly likely due to large gatherings taking place right across the country since political campaigns commenced following the issue of writs in May,” he said.

Mr Alkan indicated that some of the above risks and challenges could be minimized if the current or incoming government takes immediate actions within the remaining months. It is understood that the final agreement for Porgera reopening will be sanctioned soon by Mineral Resources Enga (MRE), the remaining party to sign the recommencement agreement.

‘We hope this agreement will be sealed at the earliest for the next phase which is the application of the Special Mining Lease (SML) to recommence the mine.

PNGEITI commends the transparent negotiation process that has taken substantial amount of time and effort to ensure the interests of all parties are reflected in those agreements. We believe the re-opening of Porgera Mine will live up to the expectations of institutions such as the World Bank that predicated PNG’s positive economic growth to be driven strongly by the extractive sector this year.

It would be very critical for the incoming government to also engage with the developers to bring the new projects already in the pipeline on-line at the earliest which will contribute positively to the economy.

We re-echo the World Bank’s sentiment that the PNG economy is navigating a fragile recovery period and if the Government does not act decisively and fast to re-open the Porgera Mine and bring on-line new projects in the pipeline in the next few months then it will be highly likely that the Bank’s projected growth for the extractive sector will not be achieved,” Mr. Alkan said.

Article courtesy of PNGEITI

In a bid to enable farmers to put into practice skills acquired during capacity-building trainings, the EU Funded UN Joint STREIT PNG Programme has started distributing tools and materials that will enable rural communities to improve their husbandry practices in cocoa and vanilla blocks.

This intervention which started in May has so far distributed to 52 cocoa farmer groups in East Sepik Province and 38 cocoa farmer groups in Sandaun Province with 900,000 polybags, 90 shade cloths, 180 telescopic pole pruners, 90 measuring tape and 90 boxes of budding tape. These inputs will help the farmers to rehabilitate their blocks to improve the production of high-quality cocoa beans for an increased income to support their livelihood and families.

These groups all have already received tailored training on cocoa bud grafting and block management organised by the Programme in collaboration with PNG Cocoa Board and Department of Agriculture and Livestock officers in the districts and LLGs . The skills acquired during these trainings assist the farmers to enhance their cultivation, farm management and harvesting practices.

The 90 registered cocoa groups of over 45,000 farmers have started propagation of cocoa bod borer (CPB) tolerant seedlings in their respective nurseries.  The Programme will continue to support them, whereby each group will have their seedlings purchased and distributed to their respective members or farmers including youths and women for free.

“I want to say thank you to STREIT PNG and the financiers of this Programme the European Union. The trainings we attended, we will now put into practice using these tools and materials,” said Mrs Maureen Mombi, whom with her husband Ben are organizing and supporting three farmer groups of 1500 members from Mushu Island, Hambraure Village (Wewak District) and Hambini Village (Ambunti-Drekikier District).

For the vanilla value chain, the Programme has distributed 120 sets of vanilla cultivation, husbandry and processing tools including shovels/spade, gumboots, pruning baskets, harvesting knife, cooking pot, cooler box, strainer, thick clot, digital thermometer, kraft/wax paper, plastic canvas, and cardboard box to the farmers in 11 villages of Wewak District and 4 villages of Aitape/Lumi District. 6 Vanilla vines treatment shed with a 10,000 vines capacity has been established. The vanilla kits and sheds in total so far is supporting more than 4000 men, women and youths in rural Sepik.

“The transfer of knowledge and skills to farmers and their families is an important extension activity that must be supported with tools and materials. Under the Programme we distributing these items as well with new technology to improve their practice,” explained Programme Coordinator Dr Xuebing Sun. “Tools and materials are vital link in adoption of technologies for sustainable farming systems which is being encouraged under the Programme,” added Dr Sun.

Among the recipients were 1000 plus farmers from four remote communities of inland Turubu area in Wewak District, East Sepik Province. On behalf of youths and women in the village who will also benefit from this intervention, Brigitte Kamiresa, a mother at Mundangai Village, said: “I want to thank European Union. We mothers didn’t attend big schools so our youths or kids will help train us to use these tools and materials to improve our practices.”

The national technical officers of cocoa and vanilla value chain have also explained on the local radios the distribution of tools and materials for farmer groups/clusters that have already been formalised and are supported under the rural agriculture development programme. “If you have transport, please come to the office at Wharf Road. For those in hard-to-reach areas, we will come to you,” said Mr Michael Lames, National Cocoa Value Chain Officer.

The distribution of quality inputs by the Programme will continue to cover other farmer groups in the Programme’s implementation sites in East Sepik and Sandaun provinces. The EU-STREIT PNG, as a UN Joint Programme (FAO as leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. Being implemented in close cooperation with the National and provincial government institutions, research entities, civil society organizations, and private sector enterprises, the Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla and fishery value chains while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development.

Photo: The Wantok Shop - Crowne Plaza Residences Port Moresby

The ‘Grim Jordan’ paintings on exhibition at the Crowne Plaza Residences Port Moresby, are on display both within the hotel and at the Port Terrace Restaurant & Bar. The unique art pieces showcase a mixture of local traditional culture intrinsically woven into a contemporary and quite detailed impression of various characters.

There are five pieces on display, and they vary in size from 60cm (w) x 120cm (h) to 100cm (w) x 150cm (h). Each painting has a unique tale based on the personal experiences and memories of the artist Jordan Morris’ life in Papua New Guinea. General Manager, Kahlia O’Shea said, “We are thrilled to provide a platform for young Papua New Guinean talent to showcase artwork. Our surrounds make a great backdrop for Jordan’s beautiful art.”

The Crowne Plaza brand entails provision for an offering outside the traditional hotel experience. The paintings will exhibit at Crowne Plaza Residences Port Moresby for 12 months, interested buyers can view the pieces and collect the painter’s contact details at the Port Terrace Restaurant & Bar.

In addition, the hotel has also recently opened its very own convenience store, The Wantok Shop. Crowne Plaza Residences Port Moresby staff submitted ideas for names and a vote was cast. When asked about the name, General Manager, Kahlia O’Shea said, “The Wantok Shop is quite fitting as it caters to tenants and guests within the compound and surrounding area. It’s a nod to the reciprocal relationship of favours between kin and community members.”

The convenience store is open seven days a week from 7am to 7pm and offers groceries, hot food and convenience items for guests checking in for business. The hotel is looking at sourcing products that are difficult to find in Papua New Guinea and will post updates on their social media accounts as they stock items.

Article courtesy of Crowne Plaza Residences Port Moresby

Photo credit: Newcrest Mining

According to Dr. John Kuwimb, managing director of Kumul Minerals Holdings Ltd (KMHL), the government plans to exercise its option to acquire up to the full 30% equity in the K18.5 billion Wafi-Golpu project in Morobe.

Kuwimb stated that KMHL was looking forward to taking part in upcoming projects, particularly those involving the mining of rare earth minerals, gold, and copper, where prices are rising and are likely to continue doing so due to increased demand for these minerals due to the climate change agenda, ongoing geopolitical conflicts, and realignments.

“If we secure 30 per cent in Wafi, then it is likely that some percentage will go to the Morobe government and the Special Mining Lease (SML) area landowners and so we will be left with the balance to keep for the rest of Papua New Guinea,” he said.

“Under government policy, the National Government has the option to take up to 30 per cent equity in large mining projects, and so, in the Wafi project, the Government wants to exercise that option to take the full 30 per cent.”

“The future plan is to concentrate especially on gold and copper projects and buy into existing exploration licenses.

“Our future is bright.

“We want to follow a future that is sustainable and prosperous by dominating the mining industry in this country.” The developers of the mining project are Newcrest and Harmony under the Wafi-Golpu Joint Venture.

Reference: The National (23 June 2022). Govt keen on taking 30pc equity”. 

Photo credit: Kumul Mineral Holdings

According to a representative, a new company will be established as soon as Mineral Resources Enga (MRE) signs the shareholders' agreement for the new Porgera mine.

Kumul Mineral Holdings Ltd (KMHL) managing director Dr. John Kuwimb said: “The moment they sign it, we will move to the next stage (which is) the incorporation of the new Porgera company.

“The company will have eight directors – four from Barrick Niugini Ltd and four from PNG.

“The next agreement is the Mining Development Contract, after which we can have the development forum.

“The operatorship agreement is a private commercial arrangement between Barrick as the operator of the mine, and the new Porgera project company as the owner of the mining lease.

“The mining lease-holder is like the owner of a land title.”

Kuwimb gave the example of an agreement between a landowner and a carpenter told to build a house on the land.

The carpenter does not own the land in that situation, he claimed. Only the house is constructed there.

“We call it operatorship because Barrick will operate the mine,” he said. “The project company holds the special mining licence, and Barrick has the knowledge and skills to operate the mine.

“The landowners want the mine to re-open as soon as possible.

“They have been telling us (that) for a long time.

“What we are concerned about now is the care and maintenance cost that Barrick is paying at the moment to keep the mine in a maintainable form.”

Reference: The National (23 June 2022). “Plans for new company”.

Local contractors of Porgera Joint Venture (PJV) and others benefitting from the Porgera mine lost around K110 million since the mine closed two years ago, an official says.

According to Nickson Pakea, head of the Porgera Chamber of Commerce and Industry, there were about 700 small-to-medium-sized businesses (SMEs) and 176 contractors affected.

“Most of the contractors went through difficult situations (when) banks recouped (vehicles) on lease or loan,” he said.

Pakea requested "relief funding to salvage the business losses" from the government. The K100 million Business Development Grant announced by the government should be given as emergency support to SMEs affected by the mining closure, he added.

“We want the State to set aside this funding for SMEs.

“We also appeal to the Mineral Resource Enga to sign the (outstanding) shareholding agreement (to allow the reopening of the mine) as soon as possible.”

Contractors, mine workers, and residents of the Porgera Paiela, according to Pakea, required help.

Reference: The National (14 June 2022). “K110mil lost after closure”.

The rise of flights into particular provinces and the influx of people into the province are projected to boost domestic tourism in the coming months.

According to Eric Uvovo, Chief Executive Officer of the PNG Tourism Promotion Authority (TPA),

Domestic travel, he said, is projected to see a significant spike in domestic tourism now that the National General Elections have begun.

Mr. Uvovo explained that this will result in a direct infusion of kina into the purses of individuals working in the service industry, such as taxis, hotels, lodges, restaurants, street markets, and arts and crafts.

“Some of PNG TPA’s plans include product enhancement and quality which we will focus more on Kokoda.

“PNG TPA will step up efforts on advertising and promotions of tours and travel packages and our first Travel and Tourism Magazine will be published in July,” Mr. Uvovo said.

He stated that the TPA's focus is now on aggressively promoting the established travel packages now offered by PNG Air and that their communication is going well, with the addition of Air Niugini Limited as a partner with the PNG TPA and Tourism Operators.

“Interested tourism industry members will be invited to partner with TPA to develop tour and travel packages as well to boost the domestic tourism industry.”

Reference: Kamus, Maxine. Post-Courier (21 June 2022). “Domestic Tourism Expected To Increase”. 

The PNG Extractive Industries Transparency Initiative has praised the Mineral Resources Authority's and mine operators' efforts in developing a digital platform that would give real-time mineral data from all of the country's main mines.

According to Lucas Alkan, the National Secretary of the PNG Extractive Industries Transparency Initiative (PNGEITI).

Live data, according to Mr. Alkan, will contain numbers reflecting production value, export value, and related information, which will be live-streamed from a data source of the respective mine operators.

After engineers finish their work, he said, Ok Tedi Mine would be the first to stream live data to the MRA website for public access, and other mines will follow soon after.

“The cooperation between the mine regulator and the extractive companies to make live data available for public viewing is an excellent undertaking to garner investor-public trust and confidence in the way the mining industry is regulated and progressing. PNGEITI highly commends these efforts,” Mr. Alkan said.

Mr. Alkan stated that PNGEITI applauds the leadership of the Mineral Resources Authority (MRA) under managing director Jerry Garry since this initiative will complement and enhance EITI reporting in the country.

Reference: Poat-Courier (21 June 2022). “Live Mining Data, An Excellent Tool For Transparency”.