Photo credit: Asian Development Bank

International flights will begin shortly at the new K28.8 million Vanimo Airport in West Sepik Province. This new facility was recently inaugurated.

The government and the Asian Development Bank are contributing K70.1 million to renovate the airport terminal, runway, and other infrastructure (ADB).

The new Vanimo terminal and its facilities anticipate hosting international flights in the future, with West Sepik Province being PNG's nearest gateway to Asia.

The major goal of the Vanimo airport improvement project, according to NAC managing director Rex Kiponge, is to assure safety and security compliance as well as operational certification to ICAO standards and recommended practises as well as the PNG Civil Aviation Safety Authority Rules Part 139.

“Today is special, because it marks the closing of a chapter and the beginning of a new one for Vanimo, the people of West Sepik Province and Papua New Guinea.

“For too long, the people of West Sepik and air traveling passengers, transitioning at Vanimo Airport were using a smaller terminal to process your flight check in, collect your boarding passes and then board your flight,” Mr Kiponge said.

He explained that the original Vanimo Airport had a runway strip length of 1660 metres, which was sufficient for smaller planes, but that as of November 2020, the new expanded runway length was increased to 1960 metres, allowing it to accommodate larger planes with additional seating capacity.

Mr Kiponge said the new terminal building at Vanimo Airport was built to NAC's standard Type B design, has more room than the previous one, and can handle up to 100 passengers at the same time.

“Unlike the previous old terminal building, the new terminal is modern looking, with facilities to give you are more comfortable experience as you enter.

“These include; departure and arrival lounges; counters for passenger Check-Ins; a conveyor belt for baggage at the arrival lounge; screening machines for baggage; toilet facilities; a kiosk, its fully air-conditioned and other services,” he said.

Mr Kiponge urged the inhabitants of West Sepik Province and the travelling public to look after the new terminal building and its facilities, as it is an asset for the province in terms of attracting additional development, considering Vanimo's proximity to the Indonesian border.

“Vanimo Airport is located as our border airport, sharing international border with Indonesia.

“Therefore, will continue to work with our border control authorities such as PNGDF, PNG Customs and related agencies with the focus on improving our border control efforts, international trade and compliance in the best interest of our people,” he said.

Reference: Kamus, Maxine. Post-Courier (7 June 2022). “New Airport Gateway To Asia”. 

Photo credit: Ok Tedi Mining

According to the company, Ok Tedi Mining Ltd (OTLM) will complete the shift from current lower grade ore to high grade ore sources, over the next 12 months.

Musje Werror, managing director and chief executive officer of OTML, and Roger Higgins, board chairman, said they had hoped to see the transition by the fourth quarter of 2022, but the impact of the Coronavirus (Covid-19) on material movement in the mine over the last 15 months had pushed it back to 2023.

Copper output was 21% lower than the previous year, owing to a 26% drop in the copper grade of ore processed, according to OTML.

Gold output was down 25% from the previous year due to a 32% decline in gold grade and effects from the process plant fire and the Covid-19.

Despite the decreased output, revenue remained within 6% of the previous year, according to the study.

“This was primarily due to the copper price strengthening in 2021,” Werror said.

“The gold price was largely unchanged.

“Total operating costs in 2021 were K190 million or seven per cent higher than the previous year.

“As a result, the 2021 profit after tax was K376 million, generating K331 million of free cash flow.

“This enabled the company to pay a K450 million dividend, retain K251 million of cash reserves and have no debt at year end.

“In addition, OTML contributed US$675 million (about K2.3 billion) in foreign reserves to the domestic market.”

Meanwhile, OTML achieved headway following the development of umbrella firms representing the interests of mining villages, impacted people, and the province as part of the local and regional suppliers initiative to maximise value for PNG.

“The intent is to develop companies with an operational capability and financial resilience that will exist beyond Ok Tedi,” Werror said.

“We are also looking to support initiatives that broaden the industry base beyond mining.”

Reference: The National (6 June 2022). “Ok Tedi to transition to high-grade ore production”.

Photo credit: Ok Tedi Mining

Ok Tedi Mining Limited (OTML) in conjunction with Mineral Resources Star Mountain Limited (MRSM) and the Landowners Royalty Trust Limited have launched the Star Mountain Museum Project with an official ground-breaking ceremony on May 25.

This project is estimated to cost between K6 million to K7 million and is expected to commence in January 2023.

This project is very significant for Ok Tedi given its contribution to the development of Papua New Guinea. It is only fitting that a museum is built to preserve and showcase the company’s history and that of the surrounding mine community for future generations to appreciate and be proud of.

OTML Managing Director & Chief Executive Officer Musje Werror said, “This project once completed will capture Ok Tedi’s rich history from discovery to production and will showcase prominent people including Government and Community leaders who have been behind the success of the company.”

“The museum will be shaped like a star which is synonymous to the Star Mountains where the Ok Tedi mine is situated,” he said.

MRSM Chairman David Kaiankim applauded the initiative saying it is timely that the landowners are working in unison with OTML and other respective stakeholders to implement the project.

“When we unite, we achieve greater things as opposed to working in isolation and I must commend everyone for this and pledge our utmost support to this project,” Mr Kaiankim said.

Kumul Minerals Ok Tedi Limited Chairman Bonnie Ninai said, “Ok Tedi is synonymous with the growth of PNG so the future generations need to know the path the Company took and its colourful history that contributed to building the nation.”

OTML Manager, Infrastructure Support Services, Akolo Kotange said they are excited to commence the project and encouraged all stakeholders to contribute where they are needed to ensure this project is completed successfully.

Article courtesy of Ok Tedi Mining

Photo credit: Ok Tedi Mining - Mr Musje Werror

The Coronavirus (Covid-19) pandemic hit OK Tedi Mining Ltd (OTML) hard in 2021, creating production losses and incurring significant costs, according to the company.

Despite this, according to OTML's annual report for 2021, the company remained profitable, debt-free, and paid a K450 million yearly dividend.

According to Managing Director and Chief Executive Officer Musje Werror and Board Chairman Roger Higgins, the most significant challenge in 2021 was the impact of Covid-19 pandemic.

“From the start of the pandemic our key priority has been to protect the health and wellbeing of our workforce, town residents and communities while minimising disruption to operations,” Werror said.

“Production was impacted by ongoing labour shortages due to isolation and our strict quarantine control requirements.

“The suspension had a direct impact on 2021 revenue, as well as additional labour costs associated with funding wages for people in isolation or quarantine.

“This resulted in a direct costs associated with Covid-19 management protocols at K155 million.”

The OTML board of directors adopted a revised strategic business plan in August, which includes a mine life extension from 2029 to 2032.

“This extension was the culmination of several years of detailed strategic planning work and will see the company generate an additional K10 billion of revenue to the benefit of stakeholders,” Higgins said. “The extension of mine life, and delivery of value, is premised on the timely implementation of several strategic imperative projects costing approximately K1.779 billion over the next two years.

“These include the removal of 20 million tonnes (Mt) of debris from the centre pit to access high-grade ore from 2023, the construction of a 400Mt engineered waste rock dump to enable a larger pit shell, and the potential option of in-pit waste rock disposal, and the major refurbishment and upgrade of aging processing facilities.” 

Reference: The National (3 June 2022). “Ok Tedi paid out K450mil in dividend for 2021”.

Businesses of Papua New Guinea’s private sector have expressed mixed views regarding the country’s economic outlook.

The market prognosis, according to Kina Asset Management Ltd, remains unpredictable.

In the company's recently issued 2021 annual report, board chairman Sir Rabbie Namaliu emphasised this.

“In my last report to shareholders, I noted that the company was cautiously optimistic about the future,” he said. “In the US and parts of Europe, accommodative monetary and fiscal policies, high Covid-19 (Coronavirus) vaccination rates, and the relaxation of restrictions on economic activity have all combined to facilitate a strong economic recovery.

“In Australia, federal and state governments, who had (then) been successful in controlling the spread of the virus, were more cautious than their counterparts in the US and Europe in easing restrictions.

“In other parts of the world, notably India and some other developing countries, the pandemic had only just begun to seriously affect the population.

“At the time of writing, the outlook for markets is again uncertain.

“As many countries are removing restrictions on economic activity, outbreaks of the Omicron variant of the Covid-19 have added to supply chain disruptions, which have in turn added to rises in the prices of a wide range of commodities and goods.

“Inflation outcomes have been much higher, more persistent, and more broadly based, and central banks globally have begun to review monetary policy settings.

The conflict in Eastern Europe – in addition to the terrible human cost – has added to this uncertainty.”

Rio Fiocco, head of the Port Moresby Chamber of Commerce and Industry (POMCCI), agreed, saying the existing economic climate had no benefit.

Businesses were anticipated to wait for a final investment decision (FID) on the Papua LNG (liquefied natural gas) project to advance into the construction phase, according to Fiocco.

“It is likely to remain the same as it is now for at least the next 12 to 18 months,” he said. “Businesses don’t see any real upside until the final investment decision is made on the Papua LNG project and start construction phase which is likely to be around 2024.”

Fiocco went on to say that any new projects in Port Moresby were vital since they offered new job prospects during the building period and later on.

The country's economy, according to Nambawan Super Chairman Reginald Monagi, is poised to rebound following the obstacles posed by the Covid-19.

Reference: Luma, Dale and Mauludu, Shirley. The National (3 June 2022). “Economic future ‘uncertain’”.

Photo credit: K92 Mining

K92 Mining Inc. is pleased to announce results from the ongoing underground diamond drilling of the Kora and Judd deposits at the Kainantu gold mine in Papua New Guinea.

The results for the latest 116 diamond drill holes completed from underground into the Kora and Judd deposits are summarized in Table 1 and Table 2 below. The results continue to demonstrate the high-grade and continuity of Kora and Judd, with intersections largely focused on increasing drill density up-dip, down-dip, to the north and to the south, particularly at Judd. From the drilling results, all drill holes at Kora intersected mineralization, with 10 intersections exceeding 20 g/t AuEq, 25 intersections exceeding 10 g/t AuEq and 51 intersections exceeding 5 g/t AuEq. At Judd, all drill holes intersected mineralization, with 5 intersections exceeding 20 g/t AuEq, 19 intersections exceeding 10 g/t AuEq and 43 intersections exceeding 5 g/t AuEq intersections.

Kora Underground Drilling Results

At Kora, the results are highlighted by holes KMDD0402 recording multiple intersections including 4.20 m at 33.85 g/t Au, 100 g/t Ag and 1.41% Cu (37.38 g/t AuEq, 2.63 m true width) from the K2 Vein and 8.50 m at 24.77 g/t Au, 10 g/t Ag and 0.90% Cu (26.34 g/t AuEq, 5.02 m true width) from the K1 Vein; KMDD0364 recording multiple intersections including 4.92 m at 18.15 g/t Au, 39 g/t Ag and 2.81% Cu (23.16 g/t AuEq, 2.74 m true width) from the K2 Vein and 4.27 m at 20.55 g/t Au, 8 g/t Ag and 0.76% Cu (21.87 g/t AuEq, 2.21 m true width) from the K1 Vein; KMDD0400 recording multiple intersections including 10.05 m at 22.07 g/t Au, 16 g/t Ag and 0.57% Cu (23.18 g/t AuEq, 5.90 m true width) from the K1 Vein, and; KMDD0438 recording multiple intersections including 7.37 m at 21.76 g/t Au, 11 g/t Ag and 0.78% Cu (23.17 g/t AuEq, 3.68 m true width) from the K1 Vein. These holes extended high-grade mineralization up-dip and along strike at both the K1 and K2 veins. Hole KMDD0364 was incorporated into the October 31, 2021 Kora Resource Estimate.

Drilling to the south at Kora, continued to record and extend high-grade intersections, highlighted by hole KMDD0448 recording multiple intersections including 1.68 m at 9.78 g/t Au, 103 g/t Ag and 12.83% Cu (31.69 g/t AuEq, 0.74 m true width) from the K1 Vein and 2.15 m at 4.63 g/t Au, 47 g/t Ag and 3.42% Cu (10.71 g/t AuEq, 0.90 m true width) from the K2 Vein. On the K2 Vein, KMDD0348 recorded 8.70 m at 8.71 g/t Au, 176 g/t Ag and 8.94% Cu (25.28 g/t AuEq, 5.79 m true width); KMDD0426 recorded 3.00 m at 5.89 g/t Au, 180 g/t Ag and 5.93% Cu (17.67 g/t AuEq, 1.09 m true width), and; KMDD0430 0.85 m at 5.65 g/t Au, 101 g/t Ag and 5.36% Cu (15.53 g/t AuEq, 0.87 m true width). Hole KMDD0348 was incorporated into the October 31, 2021 Kora Resource Estimate.

A significant amount of drilling to the north and northern portion of the deposit was completed as part of systematically executing our drill program and although the northern portion is generally lower grade, drilling delivered solid results. Highlights include: KMDD0470 recording multiple intersections including 7.10 m at 20.00 g/t Au, 4 g/t Ag and 0.08% Cu (20.18 g/t AuEq, 3.16 m true width) from the K1 Vein; KMDD0380 recording multiple intersections including 6.10 m at 29.32 g/t Au, 3 g/t Ag and 0.03% Cu (29.41 g/t AuEq, 3.49 m true width) from the K1 Vein, and; KMDD0396 recording multiple intersections including 6.71 m at 15.24 g/t Au, 6 g/t Ag and 0.07% Cu (15.43 g/t AuEq, 3.35 m true width) from the K1 Vein. The results continue to demonstrate the potential for higher-grade mineralization extending to the North, particularly at the K1 Vein. As the twin incline development advances towards the Kora Resource, there will be increased capability to target Kora Deeps and a potential northern strike extension to depth in the second half of 2022.

Judd Underground Drilling Results

At Judd, drilling continues to demonstrate high-grade and expansion potential with the known deposit open along strike in both directions, up-dip and down-dip. To date, four known veins have been recorded at Judd, with similar vein orientation and quartz-sulphide Au-Cu-Ag mineralization as Kora. The veins remain open at depth, to surface, and only a fraction of the over 2,500m strike length has been drilled.

The results are highlighted by holes JDD0051 recording multiple intersections including 8.80 m at 59.52 g/t Au, 37 g/t Ag and 0.74% Cu (61.17 g/t AuEq, 8.80 m true width) from the J1 Vein; JDD0084 recording multiple intersections including 1.09 m at 30.50 g/t Au, 73 g/t Ag and 4.07% Cu (37.96 g/t AuEq, 0.91 m true width) from the J1 Hanging Wall, and; JDD0039 recording multiple intersections including 2.93 m at 19.76 g/t Au, 3 g/t Ag and 0.05% Cu (19.88 g/t AuEq, 1.26 m true width) from the J1 Vein. Hole JDD0039 was incorporated into the December 31, 2021 Maiden Judd Resource Estimate.

Drilling up-dip of existing development encountered multiple high-grade intersections with highlights including: JDD0043 recording multiple intersections including 4.62 m at 19.57 g/t Au, 5 g/t Ag and 0.43% Cu (20.33 g/t AuEq, 2.86 m true width) from the J1 Vein; JDD0071 recording multiple intersections including 6.05 m at 12.68 g/t Au, 31 g/t Ag and 0.68% Cu (14.17 g/t AuEq, 5.20 m true width) from the J1 Vein; JDD0073 recording multiple intersections including 8.60 m at 11.57 g/t Au, 24 g/t Ag and 0.60% Cu (12.83 g/t AuEq, 6.23 m true width) from the J1 Vein, and; JDD0074 recording multiple intersections including 7.70 m at 17.97 g/t Au, 20 g/t Ag and 0.38% Cu (18.83 g/t AuEq, 5.17 m true width) from the J1 Vein. Hole JDD0043 was incorporated into the December 31, 2021 Maiden Judd Resource Estimate.

Long sections of K1, K2 and J1 showing the location of the latest drill holes are provided in figures 1, 2 and 3, respectively. A long section showing Kora drilling to date is provided in figure 4. A long section showing Judd drilling to date is provided in figure 5. A core photograph of drill hole KMDD0402 is provided in figure 6 and a core photograph of drill hole JDD0051 is provided in figure 7.

John Lewins, K92 Chief Executive Officer and Director, stated, “The latest underground drilling results at Kora and Judd continue to demonstrate high grades, solid thickness and continuity. The hit rate once again was very strong, with all holes intersecting mineralization, 15 intersections exceeding 20 g/t AuEq and 44 intersections exceeding 10 g/t AuEq, and featured multiple highlight intersections at both Kora and Judd, with JDD0051 recording multiple intersections including 8.80 m at 61.17 g/t AuEq on the J1 Vein and KMDD0402 recording multiple intersections including 4.20 m at 37.38 g/t AuEq on the K2 Vein and 8.50 m at 26.34 g/t AuEq on the K1 Vein.

The drill results also highlighted that both Kora and Judd have significant expansion potential - open along strike in both directions and down dip, with Judd also open up-dip towards surface. From underground, we continue to focus on expanding the extents of Kora and Judd in multiple directions and note that with the advancement of the twin incline in the second half of the year we plan to commence exploration of Kora deeps and a potential northern extension to Kora. Drilling at Kora South and Judd South is a major focus and rapidly expanding. From underground, we have recently commenced our first step-out drill program at Judd and Kora South from our most southerly drill cuddy. On surface, Kora South and Judd South now have three drill rigs operating, from one at the beginning of the year, and a fourth drill rig is expected to arrive near term. Field mapping and sampling is also advancing at Kora South and Judd South towards the A1 Porphyry to support these programs. Lastly the results of the airborne advanced geophysics have identified multiple highly prospective epithermal and porphyry targets within our approximately 830 km 2 land package. It certainly is a very exciting time for exploration at Kainantu.”

Article courtesy of K92 Mining

Prime Minister Hon. James Marape says his Government has paid off K400 million to complete the Yalu Bridge-Nadzab section of the Highlands Highway, paid off outstanding debts to contractors on the 9-Mile to Yalu Bridge section, and paid off the outstanding Papua New Guinea counterpart funding of the Nadzab International Airport.

Roadworks come under the Marape Government’s signature ‘Connect PNG Programme’ for which K2.4 billion has been expended over the last three years on roads throughout the country: K1 billion over last two years and K1.4 billion this year.

The Marape Government, through Deputy Prime Minister and Lands Minister Hon. John Rosso, has also set in motion plans for the building of Nadzab Satellite City to complement the major developments that will take place in Morobe over the next couple of years.

“The first section of the Lae-Nadzab Road from Bugandi to 9-Mile was dogged with controversy of inflated prices about 10 years ago,” he said.

“After the Bugandi to 9-Mile section was completed, work on the next section from 9-Mile to Yalu Bridge was on an ad hoc basis, which saw the road deteriorate to such an extent that it became a national disgrace.

“It was only after my Government came into office, in May 2019, that we were able to retire all outstanding debts to contractors for the 9-Mile to Yalu Bridge section to be completed.

“Cabinet in January this year approved awarding of more than K1.4 billion of new road contracts throughout Papua New Guinea.

“Among these is K400 million for the Yalu Bridge-Nadzab four-lane highway.

“For more than 10 years, the people of Lae, Morobe and PNG have been complaining about the bad roads between Lae and Nadzab.

“I am well aware of your cries as I, on my many visits to Lae over the years, have driven through the mud and potholes.

“I can assure you that you will have one of the best roads in the country when the Yalu Bridge-Nadzab section is completed.

“People will be able to travel in comfort from Lae to Nadzab, and then get on an international flight, once the new international airport is completed.

“This is the same story with the Japanese-funded Nadzab International Airport: The project was signed for in 2015 but never got off the ground because the O’Neill regime never provided the required counterpart funding.

“It was only after my Government came into office in May 2019 that we provided the necessary funding for work to start on the airport.”

PM Marape said Nadzab, Lae and Morobe would boom with sealing of Yalu Bridge-Nadzab Section of the Highlands Highway, opening of Nadzab International Airport and building of Nadzab Satellite City.

The new-look airport, funded by the Japanese Government in partnership with the PNG Government, is nearing completion.

PM Marape said the new satellite city, an initiative of the National Government and Morobe Provincial Government, would transform Lae and Morobe.

He commended DPM Rosso for being in the forefront of this exciting project for Lae, Morobe and PNG.

“It is a timely intervention with the giant Wafi-Golpu Mine soon to come on stream,” he said.

“I welcome this satellite city development, where the private sector and super funds, will be major drivers in partnership with the State.

“Once completed, it will complement Nadzab International Airport, and will be timely with Wafi-Golpu and the major agri-business developments in the Markham Valley of Morobe and Ramu Valley of Madang.

“It will also provide home ownership for hundreds of Papua New Guineans.”

Photo: Nasfund GM MES - Anne Wilson

The National Superannuation Fund, Nasfund, is encouraging its members to utilize all Fund touch points, for all their superannuation queries. These touch points are 17 branch offices around the country, an online member portal and a dedicated call center on phone 1588 that allows convenient access of their choosing.

Especially during this busy election period, the Fund notes that there may be disruptions to its operations, especially in areas where there are security issues.

Nasfund General Manager Member & Employer Services Services Anne Wilson is encouraging all members to access these services at their convenience-without the need to fly to Port Moresby.

“In 2022, collectively our branch network has served a total of 125,000 members. The majority of these members have been served at our Boroko service centre in NCD, and our Lae Service Centre in Morobe Province.

Of these 125,000 members served, just under 30% are members who are requesting for a Nasfund balance statement. 19% are members who are after general enquiries, and 15% are members following-up on their withdrawal applications.

Much of the information requested by members can be sourced via our electronic channels.

Our electronic channels have been established to make it easier for members to access our services without the need to spend time and money travelling to visit a Nasfund branch office.

To assist members access our services without physically visiting a Nasfund branch, the following channels should be utilised; 

• The Fund’s Call Centre on Phone 1588, email help@nasfund.com.pg 
• The Member Online Portal (MOL) on the Fund’s website www.nasfund.com.pg , 
• The Fund’s electronic withdrawal application service e-withdrawals@nasfund.com.pg , and 
• The Fund’s social media pages; o Facebook: www.facebook.cp,/nasfundPNG / LinkedIn: www.linkedin.com/company/nasfund / Twitter: @nasfund_png / Instagram: @nasfund_png

As the country’s largest superannuation provider by membership size, we are providing the platforms for our contributing employers to access superannuation services easily.

Our Call Centre and helpdesk operates 8am to 4pm Monday to Friday, and from 9am to 12midday Saturday to attend to member queries.

The MOL is our way of ensuring that members take ownership of ensuring that their personal details, and beneficiary listings, are updated regularly. Members can also view their housing advance eligibility, and keep track of their contributions via the MOL

Our e-withdrawal option, introduced in 2020, allows members to send their withdrawal application via email, without having to physically lodge their application at a Nasfund branch.

Our social media channels (Facebook, LinkedIn, Twitter, and Instagram) also provide an added avenue for members to interact with our staff on a daily basis. Members can interact with our staff via their social media accounts.

We are committed to these options, so that our members can access our services from the safety and comfort from wherever they are.

We are here to assist you while you work, so that you are ready for retirement.”

Photo credit: PNG Chamber of Mines and Petroleum

Twenty employees from St Barbara Limited’s Simberi Operations observed the World Environment Day by planting more than 200 mangrove shoots (young trees) at Pikinur along the airport runway at Simberi, New Ireland Province.

Led by the General Manager, Randy McMahon and the Environment team, the employees were transferred by shuttle buses to the planting site at 6am on Sunday 5 June. After a briefing on the process involved and a message from Randy, they dispersed throughout the 0.5-hectare area and began planting.

The activity continued yesterday on Monday 6 June - this time with students from Simberi Primary School, taking some time out of classes to plant another 100 shoots. The session was also facilitated by the company’s Environment team.

Randy and Acting Environment Manager, Faith Angoro acknowledged the effort by the employees to honour St Barbara’s (Simberi’s operator) commitment of respecting the environment through the activity while emphasising the important role of mangroves in the ocean’s ecosystem.

“Mangroves aren’t just trees; they are the nursery for the ocean. Planting a mangrove is putting a nursery in the ground. It benefits the ocean and the land,” said Randy.

Environment assistant and Bekou villager Jacinta Peter re-enforced the GM’s message saying, “mangroves are important to the marine ecosystem of Simberi, Tatau and Big Tabar. They prevent land erosion and absorb storm surges during extreme weather. They also provide a rich source of food.”

Some employees intend to monitor the shoots they planted yesterday to see how well they grow in the coming months and years. The shoots can reach up to a metre within two years if they get adequate nutrients.

Mangroves are home to fish species like barramundi, mangrove jack and mud crabs, which employees from Simberi enjoy regularly for dinner.

Article courtesy of the PNG Chamber of Mines and Petroleum

Photo credit: Loop PNG - Clarence Hoot 

In the fourth edition of the Investment Promotion Authority's opportunity newsletter, published in April, managing director Clarence Hoot stated that it is a comfort to see that international borders have reopened.

“As we start receiving international visitors into the country whether it be in tourism, business, or even fellow citizens returning home, IPA would like to warmly welcome them.”

He stated that IPA has worked to improve the regulatory environment in order to guarantee that the economy is favourable to corporate growth and foreign direct investment.

“In this regard, I am happy to announce that the Parliament had passed two Bills submitted by the IPA.

“The Bills include the Companies (Amendment) Act 2021 and the Business Groups (Amendment) Act 2021. The proposed Investment Promotion (Amendment) Act and the new Association Incorporation Bill are yet to be passed.

The Investment Promotion Act of 1992 regulates the operation of the Investment Promotion Authority and the review is aimed at achieving the Government’s policy objective of protecting local MSMEs,” he said.

The proposed modifications, according to Mr Hoot, attempt to find a compromise between allowing PNG to stay open to foreign investment while also improving mechanisms for evaluating the cottage business activities list, which is a reserved activities list.

As part of the proposed revisions, he added, a new list dubbed prohibited activities would be implemented.

Reference: Post-Courier (1 June 2022). “IPA Relieved To See International Borders Opening”.

Photo:

Santos is in a strong position with the announcement of the next tranche of backfill gas to maintain PNG LNG production and the final investment decision on the Angore Development project.

According to Brett Darley, Santos President Upstream Oil and Gas, who spoke at the recent Australia PNG Business Forum in Brisbane, the first gas from Angore is expected in 2024, and Santos' share of capital expenditure would be around US$135 million (K475.3m).

On the tail of a worldwide epidemic, he added, these drilling efforts will be a huge boost for the sector and economy, as Santos looks to expand its resource portfolio.

“In addition to progress being made on the Angore Development project, we have seen strong performance from the Agogo and Moran fields.

“A coiled tubing campaign commenced in the fourth quarter of last year in those fields, which will deliver incremental production in 2022,” he said.

“Papua LNG, a project that has the potential to be nation shaping for decades to come, continues to progress technical and commercial, regulatory, social, and environmental activities.

“These pre-FEED activities remain on track in support of a FEED-entry decision that is targeted to be made by the end of this year.”

Mr. Darley stated that, given the present supply shortage in the global LNG market, initiatives like Papua LNG are becoming increasingly important for global energy security and affordability.

“We are continuing to work hard with our joint venture partners to progress this project which will create local jobs in Papua New Guinea, drive economic development, and create revenues for the government.

“The other growth project that we are working hard on is P’nyang, with the P’nyang Gas Agreement being successfully executed between the PRL3 joint venture partners and the PNG government earlier this year,” he said.

“We are working hard on the integration of the Oil Search business, on delivering on our commitments, and on ensuring the growth project and opportunities that are so important to PNG to continue on schedule and on budget.”

Reference: Post-Courier (1 June 2022). “Angore Development A Plus For PNG, Says Santos Boss”.

Prime Minister Hon. James Marape has become one of the first world leaders to have a meeting with new Australian Prime Minister Hon. Anthony Albanese recently.

PM Marape in Port Moresby had a 15-minute zoom meeting with PM Albanese in Canberra on his first day in office since the Australian Labour Party (ALP) won the national elections in Australia on May 21.

This follows on from a meeting between PM Marape and a representative of PM Alabanese, on the sidelines of the Australia-Papua New Guinea Business Forum in Brisbane last Tuesday, while he was attending another meeting in Japan.

The ALP has been a strong supporter of PNG over the years, and through then Prime Minister Gough Whitlam in 1975, granted Independence to PNG. PM Alabanese’s Deputy Prime Minister, Hon. Richard Marles, is a good friend of PNG.

PM Marape invited PM Albanese to visit PNG after the elections and the Australian Prime Minister reciprocated by inviting him to visit Australia.

He thanked Australia for its continued support of PNG over the years, and pledged his support to PM Albanese in the Pacific Islands Forum.

PM Albanese assured PM Marape that Australia would continue to be “a long-term friend of PNG”.

“Let me thank you for Australia’s support to us thus far, not only since 1975, but more importantly over the last two years,” PM Marape told PM Albanese.

“Your predecessor (Hon. Scott Morrison), the Government and people of Australia have given us good support since COVID-19 came in and affected our economy.

“When we were trying to restructure our budgeting, on infrastructure needs, there was a lot of help from Australia.”

“We don’t take this help for granted: You have your own needs but you reached out to us in times of need.

“We sincerely appreciate this help.”

PM Marape thanked PM Albanese for Australia’s support of the 2022 General Election by way of printing ballot papers, and much-needed air logistics support through the Australian Defence Force.

PM Abanese said: “Democracy can be difficult but it is the best system in the world.

“I wish you all the best and I look forward to further developing our relationship.

“Australia, of course, can be relied upon to be a long-term friend of Papua New Guinea.”

Article courtesy of PM JAMES MARAPE News Page

According to the Internal Revenue Commission, all workers earning at least K673 per fortnight would have their tax bills lowered by K42 per fortnight starting tomorrow (IRC).

Commissioner-general Sam Koim stated in a public notice that the Government recently authorized an amendment to the Income Tax (Salary or Wages Tax) (Rates) Act, temporarily raising the tax-free threshold for salary and wages tax (SWT) from K12,500 to K17,500.

Workers earning more than K12,500 per year will no longer be required to pay 22 toea for each kina over K12,500 but less than K17,500.

Because of the increased threshold, the 22t per kina tax is only paid after the yearly income surpasses K17,500. In fortnightly terms, this means that all workers earning at least K673 per fortnight will see a K42 reduction in their tax payment.

The dividend of K42 per fortnight is estimated to help more than 200,000 workers.

An additional 20,000 workers earning between K480 and K673 per fortnight will be exempt from paying income tax during this time.

People earning less than K480 per week pay no income tax, thus their tax obligations cannot be decreased.

The rise in the tax-free threshold is only in effect from tomorrow until December 31, 2022.

The tax-free threshold will reset to K12,500 on January 1, 2023.

Reference: The National (11 May 2022). “Govt raises tax threshold”.

Photo: Chinese Foreign Minister Wang Yi and PM Marape

Prime Minister Hon. James Marape says Papua New Guinea is focused on strengthening economic relationships with China, particularly in downstream processing of raw materials for export.

He said this on Friday (June 3 2022) after a meeting with Chinese Foreign Minister, His Excellency Wang Yi, the third-highest person in the Chinese Cabinet who was on an eight-nation tour of the Pacific including PNG.

The Chinese Foreign Minister had earlier met with PNG Foreign Minister, Hon. Soroi Eoe, where a number of agreements were signed and a plaque unveiled.

Officials from both countries are now in the process of putting together China-PNG free trade arrangements.

PM Marape said China was one of the biggest importers of PNG produce with PNG’s exports to China being bigger than China’s exports to PNG.

“We export more to China that we import from China,” he said.

“That cannot be ignored and we have to give acknowledgement where it is due, for them to pick up more of our exports, especially primary produce.

“My meeting with the Chinese Foreign Minister was more focused on economic relationships between our two countries.

“I gave him an assurance that our relationship is static and fixed, but I want to expand, especially in our economic relationship.”

PM Marape said PNG wanted to move strongly in the area of downstream processing.

“We want to add value to the produce of our country, create more jobs in that space,” he said.

“This is exactly the same message I gave when I went to Brisbane a week ago and invited Australian businesses to partner us in the downstream sector.

“We want to export processed coffee, processed cocoa, processed coconut, processed timber, processed oil and gas, processed mineral products – that’s the way my generation of leaders is shifting to move the country for the next 10 years.

“I told the Chinese Foreign Minister that PNG, over the next 10 years, is shifting towards downstream processing of our natural resources.

“Just like I informed the Australian marketplace, and Australian businesses, I asked the Chinese Foreign Minister to inform Chinese businesses about our focus on downstream processing.

“This is so that serious Chinese investors can come and partner local businesses in fisheries, timber, agriculture and others so that our finished products can be exported to the Chinese market.”

Article courtesy of PM JAMES MARAPE News Page

Photo: Chinese Foreign Minister Wang Yi meeting with PM Marape on Friday

Prime Minister Hon. James Marape says China-Papua New Guinea relations remain “solid and strong” since in 1976 when diplomatic relations between the two countries were forged.

He said this on Friday (June 3 2022) after a meeting with State Councilor and Foreign Minister Wang Yi in Port Moresby.

PM Marape said PNG was privileged to have received Minister Wang Yi, one of the highest-ranking Ministers in China.

“Today, as we speak, China-PNG relationship is as solid and strong as ever since 1976,” he said.

“We’ve always upheld the One China Policy long before the present geo-politics that is taking place.

“In 1975-1976, through the wisdom of the fathers of our country, our foreign policy has always been ‘friends to all, enemies to none’.

“In respect to our bilateral relations with China, we’ve always upheld the One China Policy outlook, something that I reechoed to the Chinese Foreign Minister during our meeting.

“Our foreign policy has not changed and will not change into the future.”

PM Marape said China-PNG relations could not be compromised or sabotaged “as it is a very-important relationship”.

He said Minister Wang Yi had extended an invitation to him to visit China, and added that the invitation would be taken up, after formation of the new government in August.

PM Marape said it was unfortunate that leaders, such as former prime minister Peter O’Neill, felt that he should not be meeting the Chinese Foreign Minister.

“Contrary to what O’Neill is saying, this country is still functional, and there is an Executive Government in place,” he said.

“The work of the Executive Government continues and we continue to promote our national interest.”

PM Marape said PNG was very fortunate to have good relations with world economic powerhouses such as the US, China, Japan and others.

“Papua New Guinea’s foreign relationships will be no more about politics, and security, as we will move big time into the economic space,” he said.

“Other nations who want to have a good, vibrant relationship with us should pick the agenda of downstream processing of our natural resources.”

PM Marape welcomed Minister Wang Yi’s visit and recalled his visit to China in February this year to attend the opening ceremony of the Olympic Winter Games Beijing 2022 on behalf of Pacific Island Countries and his fruitful and friendly exchanges with Chinese leaders.

He said PNG admired the remarkable achievements China had made in its development and appreciated that China had accomplished its goal of poverty alleviation as scheduled and enabled its people to live a better life.

PM Marape thanked China for its great support to PNG in accelerating development, especially in infrastructure construction.

He said the important consensus reached by the two sides was becoming a reality, and the two countries had established strong political relations and close economic and trade ties.

The two sides agreed to enhance people-to-people and cultural exchanges and people-to-people connectivity.

Article courtesy of PM JAMES MARAPE News Page 

Prime Minister Hon. James Marape has welcomed the outcome of talks between Chinese State Councillor and Foreign Minister His Excellency Wang Yi and Papua New Guinea Foreign Affairs Minister Hon. Soroi Eoe in Port Moresby on Friday (June 3 2022).

The talks follow on from the visit by PM Marape to China in February this year where he held discussions with his Chinese counterpart His Excellency Li Keqiang.

“This expanded on from my understanding with the Chinese Prime Minister when I was in China,” PM Marape said.

“For instance, in our fisheries, we’ve signed an MOU with China to enable our fisheries products to have access to the Chinese market.

“All our agriculture produce can have access to the Chinese market.

“It’s a big market – which is where my emphasis is.

“We also have other exchanges, where we have PNG students going to China, and Chinese technical people coming to assist us.”

The two Foreign Ministers on Friday agreed to seek greater synergy between the Belt and Road Initiative and the Connect PNG Infrastructure Development Program 2020-2040, complete the feasibility study of the free trade agreement at an early date, and strengthen experience-sharing on the development of special economic zones.

The two sides agreed to deepen cooperation in energy, fisheries, communications, health and other fields, and continue to well implement the China-Aided JUNCAO Technology and Upland Rice Technology Cooperation Project.

The two sides will tap the potential of cooperation in fields such as law enforcement and at sub-national levels. Efforts will be made to strengthen downstream processing cooperation in agriculture, forestry and fisheries to help PNG speed up industrialization and enhance its capacity for self-driven development.

After the talks, the two sides attended the signing ceremony of cooperation documents on pandemic response, disaster prevention and mitigation, and green development, among others.

The two sides also witnessed the inauguration of the China-aided Center of Minimally Invasive Surgery in Port Moresby General Hospital, and jointly met the press and answered questions.

Article courtesy of PM JAMES MARAPE News Page 

Photo: PNG Air 35th Anniversary Launching

One of Papua New Guinea’s Leading Airlines PNG Air has marked and is celebrating 2022 as its 35th anniversary year.  PNG Air has been taking Papua New Guinea and Papua New Guineans to their destinations since its initial beginnings as Milne Bay Airlines (MBA) right through to the airlines transition to PNG Air for 35 years.

The Airline’s history dates back to the late 80’s in the beautiful Island Province of Milne bay.  The company was established and started operations on June 30th 1987 as Milne Bay Airlines (MBA) by founder Sir John Wild who was a naturalized citizen of Papua New Guinea and an architect. Sir John Wild was also an avid and passionate aviator who owned an Amphibian aircraft which he was asked to provide a service to fly to and from the remotest and far-fetched parts of the islands in the Milne Bay province.

Now as the Airline Company looks ahead and celebrates 35 years of service to Papua New Guineans it also reflects on the tale of how a humble airline company which started off with an amphibious aircraft in Milne Bay Province became a fully-fledged national carrier flying over 500,000 passengers a year.

It’s a story of innovation – 35 years ago PNG Air began its Journey when some of their first flights flew around the scattered Islands of Milne Bay under the Milne bay Airlines (MBA) Brand to operating as one of PNG's leading Airline carrier today.

In the years that followed after MBA's establishment the airline underwent its first major rebrand from Milne Bay Airlines to Milne Bay Airlines of PNG to focus on new opportunities which also included chartered flights for the Country's resource sector.

In 2001 the Airline was renamed to Airlines PNG boasting a fleet of 26 Aircrafts signifying a new era for the company's future as it grew to be regarded as the people's airline, providing affordable and value airfares. Within that period PNG Air also transitioned into a public company when entering the Port Moresby stock exchange. Since then it has been governed by seasoned and experienced Board of Directors.

Eventually after 14 years as a fully-fledged commuter Airline the company signed a contract to acquire seven ATR 72-600 series aircrafts which gave way to the rebranding and launch of the company to PNG Air on November 5th 2015.

As PNG Air embarks on the beginning of its next endeavors in conjunction with the anniversary the company's Chief Commercial Officer Mr. Simon C Pitt said, “To commemorate this Milestone we've commissioned a special 35th anniversary Logo that will set the benchmark for all the activities we plan to do this year. The Logo is a representation of all the distinct elements of our livery, represented through the bird of Paradise".

Over the past three and a half decades, PNG Air has grown from a small airline company to one that has thrust its way out across the whole of Papua New Guinea. Throughout it all, PNG Air’s enduring purpose has been to connect customers to the people, places, and experiences they love the most.

Photo: Chinese Foreign Minister H. E Wang Yi.

Prime Minister Hon. James Marape says Papua New Guinea remains “friends to all and enemies to none” and this has been its stance since Independence in 1975 under first Prime Minister and founder of Pangu Pati Sir Michael Somare.

He said this today (June 2 2022) when welcoming Chinese Foreign Minister, His Excellency Wang Yi, the third-highest person in the Chinese Cabinet, who is on an eight-nation tour of the Pacific.

“PNG is ‘friends to all and enemies to none’ , as espoused in our foundational foreign policy outlook in 1975 under the Pangu Pati-led Government of Sir Michael Somare,” PM Marape said.

“In 1976, Pangu, under the wisdom of Sir Michael, declared a One-China Policy long before the geo-politics of today.

“The present PNG leadership will maintain this policy discourse.

“China is the major buyer of our produce, and we will engage with them more in commerce and trade, as well as other aspects of our bilateral relationship going into the future.”

PM Marape said China was the second-largest economy in the world and had always been a “very strategic and important bilateral partner with PNG”.

“For the Chinese Foreign Minister to visit us is affirmation of the warm relationship and friendship between our two countries,” he said.

“Papua New Guinea recognises China as a very-important bilateral partner in not just matters to government-to-government relationships, but more importantly, people-to-people relationships and business-to-business relationships.

“China buys over 50 per cent of all the gas produced in our country, through PNG LNG, and have given an undertaking to buy additional gas that we produce from Papua LNG and possibly P’nyang.

“China also imports most of our raw materials, and with PNG moving more into downstream processing, I look forward to them also buying our processed produce.

“I look forward to meeting with the Chinese Foreign Minister tomorrow (June 3 2022).

“For him to visit us at this point in time is a reflection and gesture of his belief that PNG is an important country in the Indo-Pacific Region.

“I welcome His Excellency, Wang Yi, back into the country as he has been here before.”

Meanwhile, PM Marape said for Ialibu-Pangia MP Peter O’Neill to question the visit of the Chinese Foreign Minister, was very unbecoming of a former prime minister.

“The former prime minister knows very well not to play politics with the visit of an international leader to our country,” he said.

“The Chinese Foreign Minister is a leader of a very-important country.

“For O’Neill to go against the visit is, in my view, childish and playing politics.

“Instead of supporting the visit by the third most-powerful man in China, O’Neill continues to belittle Papua New Guinea’s international relationships, which is very bad.

“The visit by the Chinese Foreign Minister has got nothing to do with politics, as he has visited other Pacific countries before PNG, and we appreciate the visit – however short it may be.

“The Chinese Foreign Minister could have chosen not to visit PNG, however, he choose to visit us.

“I, on behalf of all the people of PNG, am grateful for the visit and welcome him into the country.”

Photo: 

EU-STREIT PNG Programme, in its ongoing efforts to build the capacity of rural entrepreneurs and business activities and to create linkages of value chain actors with the public and private sector in the Sepik Region, supports the formation of a Greater Sepik Secretariat Forum.

With the backing of the EU Funded UN Joint STREIT PNG Programme, the Greater Sepik Secretariat Forum (GSSF) has been formalised and is set to promote and strengthen agribusiness activities in the Greater Sepik region of Papua New Guinea.

Officiating the inaugural meeting, the FAO Gender and Youth Leading Expert, Ms Patu Shang, called for inclusive participation and genuine representation. Addressing the participants, including the five interim executives of the Greater Sepik Secretariat Forum, Ms Shang underscored: “you are key players in the sector and in a group like this, we can work together by bringing out the issues, and learn from each other. I am also happy to see 50/50 women participation, and this is how it should work.”

Five of the executives are officers of the East Sepik and Sandaun Provincial Administrations, while two are from the private sector.

The Secretariat Forum will act as a platform for all key stakeholders and value chain actors to exchange views and discuss real-time experiences on best practices, challenges and partnership opportunities for the targeted value chains of cocoa, vanilla and fisheries that are supported under the Programme in the Sepik Region, explained the FAO Value Chain & Small Medium Enterprise (SME) Officer, Mr Alwyn Badui.

“At the end of the EU Funded UN Joint EU STREIT PNG Programme, this forum will continue to facilitate the promotion of rural agribusiness through partnership to strengthen each other and also for sourcing outside support in terms of marketing,” explained Mr Badui.

The participants, who are key businessmen and women representing SMEs, cooperatives, women and youth groups, were very supportive of this initiative that will act as a platform to support their farming and business activities in the two Sepiks.

A female vanilla exporter, Nancy Fale said: “This is a good initiative that will help us to discuss and learn from each other on our failures, our strengths and weaknesses, so that after EU-STREIT, we can stand on our own with the support of this forum to take us to the next level.”

For James Dohmun, a cooperative representative from the hinterland of Drekikier in East Sepik, he described the meeting as a learning as well as a business opportunity and said: “If I didn’t attend, I would not learn something new about inland fish farming today.”

The gathering pulled together 46 participants, including youths and women from the public and private sectors who also shared best practices, key challenges and partnership opportunities available in cocoa, vanilla and fisheries value chains that can be utilised to support and promote their business activities, growth, income, cash flow and employment for the rural communities.

Highlighting the importance of the Geographical Indication (GI) initiative that the EU-STREIT PNG Programme is pursuing with the Investment Promotion Authority, the FAO SME Officer, Mr Badui, said that the use of GI will leverage market competitiveness which will contribute to meeting the aspirations of this forum in transforming the economy in the Sepik Region and PNG as a whole. GI is a globally recognised trademark on products and crafts that has a geographical origin and possesses qualities or recognition.

EU-STREIT PNG, being implemented as a United Nations Joint Programme (FAO as leading agency/administrative agent, and ILO, ITU, UNCDF, and UNDP as implementing partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. 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.

Article courtesy of EU-STREIT PNG

Photo credit: ABG

Recently, the Autonomous Bougainville Government concluded a three-day Leaders Symposium at the Sharpe Memorial Youth Center in Arawa.

Running under the theme of “Moving a resilient and responsible Bougainville towards Independence”, the Symposium provided the space for leaders to reflect on progress so far under the Bougainville Strategic Development Plan 2018-2022, and craft out independence-readiness priorities for the next five years.

ABG President Hon. Ishmael Toroama, in his address to the Leaders Symposium, said that Bougainville is still in its transition phase and while he is in his second year of his Presidency, there are many notable changes already in motion.

“As you all know, it is not just a political journey, but a social and economic one as well,” he said.

“Most significant are the political consultations with PNG and the Constitutional Planning work that has taken Bougainville by storm.”

The Symposium featured presentations from ABG Ministers in the Governance, Economic, Law and Justice, Infrastructure and Social sectors, reflecting progress achieved so far under the Bougainville Strategic Development Plan (2018-2022), and sharing plans developed towards independence-readiness for Bougainville.

A highlight of the Symposium was the tabling of the long-term Bougainville Vision and Strategic Development Plan 2052 Framework that will set the direction for the Bougainville Independence Strategic Development Plan 2023-2027.

“Whilst this government is engaged in the Bougainville Independence Mission we must also prepare a long term plan for the future. A future for an Independent Bougainville where peace prevails and our people are educated, healthy and have a high income (Gross National Product per capita),” Toroama said.

“Through these ideals we must have a plan that encapsulates our development priorities from each sector. The Bougainville Vision and Strategic Development Plan 2052 is the pathway that we will utilize to achieving tangible development in each sector and improve the quality of life for our people.”

President Toroama called on his Cabinet to continue to work together through their Ministries and Departments as Bougainville steps into a new chapter in its journey.

“We are at a transitionary phase from autonomy to independence where we are creating a new chapter for Bougainville.

“This requires us to be innovative and absolute in our commitment to Bougainville as we introduce new ideas, new ways of doing things and a new mindset that is focused on political independence that is complemented by socioeconomic growth,” he added.

The Bougainville Vision and Strategic Development Plan 2052 will undergo further consultations with the people of Bougainville and other relevant stakeholders before it is launched in the final quarter of this year. 

Article courtesy of ABG

Prime Minister James Marape claims that undeveloped resource projects will deliver roughly K200 billion into the country's GDP.

As a result, he urged investors to keep investing in the nation.

Marape said this in Brisbane at the 37th Australia-Papua New Guinea Business Forum and Trade Expo.

“I want to assure you all that despite our diversity of cultures, opinions, politics, etc…, our strong Christian and democratic values have kept our country functional to date and we will remain a robust democracy going into the future,” the Prime Minister told the forum.

“PNG remains a good place for doing business.

“Yes, I admit we have our fair share of problems, but we leaders of today are being responsible and are working to fix those weaknesses and deficiencies.

“For instance, my Government passed the Independent Commission Against Corruption (Icac), the Whistleblowers Act and the Undisclosed Wealth Bill to assist the fight against corruption in our endeavour to build a stronger law-abiding economy.

“If one LNG project construction and production can double the size of our economy from 2011 to 2018, think about what the other projects will do to my country Papua New Guinea?

“We are working with Barrick and landowners to reopen the Porgera gold mine this year.

“We have already signed an agreement with ExxonMobil to sequence P’nyang LNG construction after Papua LNG construction is complete around 2028, which will see eight consecutive years of construction dollar inflows from 2023 to 2032.

“This will give PNG a four-train LNG production capacity up to the year 2060.

“The mega gold and copper Wafi-Golpu project is almost near project negotiations.

“We also have the smaller gas and mining fields that are being worked on as we speak.

“These will all tilt the economic pendulum past the K200 billion mark within this decade.”

Reference: The National (26 May 2022). “Resource projects to bring K200bil, says Marape”.