In a significant development regarding the Porgera Mining Project, the State Team overseeing the Community Development Agreement (CDA) negotiations has provided an indefinite time-off to the concerned parties for them to review and offer feedback on the draft CDA document before the negotiations recommence.

The document contains various benefits for landowners and stakeholders stemming from the anticipated new Porgera Mine. It is a pivotal agreement as it is a process by which landowners and stakeholder can negotiate and distribute benefits.

The expected benefits from the State and New Porgera Limited (NPL) include royalties, equity, Infrastructure Development Grants (IDG), Special Support Grants (SSG) and business spin-off opportunities, among others.

The process follows the Mining Act of 1992 and various other laws that govern the CDA negotiations, and stakeholders must be mindful of the relevant laws when negotiating benefits.

A CDA is a legal agreement entered into by the company and affected mine communities and approved pursuant to these regulations. The state has previously met with the special mining lease landowners, Lease for Mining Purposes Minerals for Life landowners, the Enga Provincial Government and the Porgera Rural Local Level Government.

Key stakeholders in this negotiation process include the Special Mining Lease (SML) landowners, New Porgera Limited (NPL), Enga Provincial Government, the State, and the Porgera Rural Local Level Government.

Acknowledging the broader impact, non-SML landowners, including those holding Lease for Mining Purposes (LMP), Mining Easements (ME), Hides-Porgera Power Line landowners, and the Riverine impact communities, received the opportunity to scrutinize the draft document. Despite not being direct parties to the CDA, these non-SML landowners stand to benefit from the mining operations.

To ensure inclusivity and equitable distribution of benefits, Jerry Garry, the Managing Director of the Mineral Resources Authority (MRA), echoed the sentiments expressed by the Governor for Enga Province, Sir Peter Ipatas, urging SML landowners to consider the interests of non-SML landowners in the equity-sharing arrangements.

Mr. Garry emphasized that certain aspects of the draft document might warrant immediate decisions based on existing policies and laws, while others might necessitate deliberation at the National Executive Council (NEC) level.

Mr. Garry acclaimed it as the most advantageous arrangement in the nation's 49-year mining history. He lauded the leadership of Prime Minister Hon. James Marape MP and Governor Sir Ipatas for their pivotal roles in securing the deal, which endows the country with a 51% equity stake in the project.

In distributing the draft document to the parties, Mr Garry told them there would be certain things which the parties may want as part of their review, which that the state team can make decisions on immediately based on policy and law. However, other things may require the National Executive Council’s (NEC) decision.

The dissemination of the draft CDA document signifies a crucial juncture in the ongoing negotiations, underscoring the commitment towards fostering transparency, inclusivity, and equitable distribution of benefits among all stakeholders involved in the Porgera Mining Project.

Enga Province Governor Urges Swift Action on Porgera Mining Project CDA

Enga Province Governor, Hon Sir Peter Ipatas, convened the crucial CDA meeting on May 22 at the Enga Teachers’ College in Wabag, welcoming key stakeholders.

Governor Ipatas emphasized the importance of fairness, understanding, and consensus building among the parties to expedite the process of reaching mutual benefits.

He underscored the necessity for all stakeholders to agree and sign the CDA, which serves as the framework for negotiating and distributing benefits arising from the Porgera Mine operations.

Highlighting the urgency of the situation, Sir Ipatas warned that delays in finalizing the CDA could result in missed opportunities for landowners, including lucrative contracts and business spin-offs.

With the Porgera mine already operational, swift action is imperative to ensure that communities can begin to reap the benefits outlined in the agreement.

The Governor called upon the National Government to consider the interests of Lease for Mining Purposes (LMP) landowners and impact communities, stressing the importance of their inclusion in the negotiation process.

Hon. Ipatas urged all parties to prioritize the collective interest and refrain from prolonging the negotiation process.

The meeting concluded with a commitment from all stakeholders to work diligently towards a swift resolution, with the understanding that timely action is essential to realizing the socio-economic potential of the Porgera Mining Project for the benefit of all involved parties.

As negotiations continue, the Enga Province remains poised for progress, guided by the vision of equitable development and sustainable growth, the governor said.

State Explains PPCA

The State Team engaged in the Porgera Mining Project CDA in Wabag, Enga Province explained to the Porgera Landowners Association (PLOA) that by law, only parties to the Porgera Project Commencement Agreement (PPCA) and associated agreements could have copies of the agreements.

According to a press release provided by the Mineral Resources Authority in May 22, the Deputy State Solicitor Bonny Gelu said the law protected the agreements and that there were legal and financial implications surrounding access to these agreements.

“If you signed the agreement, you can have copies. If you didn’t the sign the agreements, you cannot have copies,” explained Mr Gelu. He asked the PLOA to inform the State if they had signed any of the agreements and if so, they should identify the particular agreements they had signed so that the State could locate and make copies available.

In addition, the State pointed out that the PLOA and the EPG are shareholders of Mineral Resources Enga, which means they own MRE. Since the MRE, is a party to the PPCA and associated agreements, the PLOA and EPG can easily get copies from their own entity that represents them as shareholders and owners.

Mr Gelu said New Porgera Limited (NPL) had circulated to all stakeholders of the CDA a summary of the benefits contained in the PPCA and associated agreements, which could be incorporated into the CDA template.

The PLOA also asked the State to identify who the parties to the CDA were. In response the State through Mr Gelu, explained that according to section 98 and 99 of the Organic Law on Provincial Government & Local Level Government, the parties are the Special Mining Lease (SML) landowners, the Porgera Rural Local Level Government and the Enga Provincial Government (EPG).

However, Mr Gelu explained that this did not mean that non-SML landowners like the Lease for Mining Purposes (LMP), Mining Easement (ME) and Riverine communities could not benefit. He said non SML landowners would still benefit from the project except that they could not become parties to the CDA.

Chairman of the CDA negotiations Winterford Eko, explained to all parties that section 5 of the Mining Act 1992, states that all minerals in the country is owned by the National Government.

He said this meant that the National Government as the owner of all minerals has the legal authority to negotiate deals with investors at the highest level. He said the PPCA was therefore negotiated at the National Government level, adding that that the CDA parties could only negotiate based on what had already been agreed at the State level.

The parties agreed to postpone the meeting to May 23, so that the State Team could have internal consultations to find ways forward to address the PLOA’s wish to have copies of the PPCA and other agreements.

The Mineral Resources Development Company Limited (MRDC) and Twinza recently announced they have executed agreements for MRDC to acquire an up to 50% Participating Interest in Twinza’s Pasca A Project, and for both parties to cooperate in the acquisition and development of future oil and gas opportunities in Papua New Guinea.

In a statement, MRDC, Twinza Oil Limited, and Twinza Oil (PNG) Limited said they have obtained all internal approvals and executed a series of binding agreements for MRDC to take an up to 50% Participating Interest in the Pasca A Development Project.

The Agreements, including a Joint Operating Agreement, will become fully effective upon, among other conditions, receipt of PNG Independent Consumer and Competition Commission (ICCC) approval and the execution of a satisfactory Gas Agreement for the Pasca-A Project.

MRDC may purchase up to a 50% Participating Interest in Twinza’s Pasca-A Assets, with Twinza remaining the Pasca-A Project Operator, the statement added.

Commenting on the announcement, Prime Minister Hon. James Marape said: “I welcome the transaction between MRDC and Twinza to develop the Pasca A asset and to work together on a number of other exciting opportunities in the Gulf of Papua region and the country.”

“Pasca is one of our government’s priority major energy projects in PNG and we look forward to seeing MRDC and Twinza work together to develop the project for the benefit of the people of PNG,” PM Marape added.

MRDC Managing Director Augustine Mano said: “I am very pleased to announce this significant transaction which represents another important stepping stone in MRDC’s evolution towards a more engaged and active asset owner and manager.”

“We are delighted to be working with the team at Twinza and look forward to progressing Pasca A and many other exciting opportunities in the months and years ahead.”

Twinza Executive Chairman Stephen Quantrill said: “I am very pleased to be able to announce execution of these Agreements to work and collaborate with MRDC in the development of oil and gas assets in PNG, starting with our fully appraised, ready-to-go Pasca A project in the Gulf of Papua.”

“We thank Prime Minster Marape and the government of PNG for their support and look forward to working with Augustine Mano, John Tuaim and their team at MRDC for the future success of the Pasca A Project and towards the development of other oil and gas assets in Papua New Guinea.”

“Pasca A, when operational, is expected to generate more than K500 million per year to the PNG State, generate around 500 permanent jobs and bring significant US Dollars of foreign currency into the PNG economy. Twinza stands ready to proceed with Pasca Phase 1 FEED as soon as the Pasca Gas Agreement is executed and the Project Development Licence is awarded.”

The Pasca A Development Project is a large FEED-ready offshore project in the Gulf of Papua. Twinza, 100% owner of the Project, applied for the Petroleum Development Licence (PDL) in June 2015, has complied with all Government requests and has been steadily advancing the project while negotiating the Gas Agreement since 2020.

The Pasca A field is fully appraised with four wells having been drilled in the field, resources independently assessed by Gaffney, Cline & Associates, pre-FEED studies completed, and the project will enter FEED following the approval of the Pasca Gas Agreement.

Twinza has to-date invested over K400 million in the Project in anticipation of permitting and fiscal certainty and continues to work diligently on the Project.

In 2023 the company announced a 35% increase in total resource size (almost doubling the benefits of the project to the State) and validated Carbon Dioxide sequestration potential of 200 million tonnes of CO2 making it potentially the first carbon negative hydrocarbon project in PNG.

The project is expected to contribute over K30 Billion to Papua New Guinea’s economy and K15 Billion revenue to the country over its life.

Prime Minister Hon. James Marape has announced that the forestry sector has enacted two new laws to ensure the country gets maximum value from its forestry resources.

The laws, relating to the State Marketing Agency (SMA) and Purchase Option (PO), are among a number of initiatives that the PNG National Forestry Authority has undertaken during the last five years under the Marape Government.

These laws aim to ensure that the resource owners – the people who own the land on which the trees are being harvested for export – receive greater benefits from their resources while contributing more to the country’s revenue, particularly through downstream processing.

Prime Minister Marape highlighted these laws in a five-year anniversary report of his government presented to Parliament last week.

“In forestry, we have enacted laws that will establish the State Marketing Agency (SMA) and Purchase Option (PO) to buy logs from permitted operators. This cuts down on other unfair trade

practices, especially transfer pricing and tax evasion. Downstream processing is the end game out of all of this,” he said in the report.

Despite the forestry industry making an important contribution to PNG’s economy for many years, it has faced numerous criticisms, prompting the industry to take significant steps to improve its image for the benefit of the country.

Currently, the vast majority of timber produced in the country and exported is in the form of raw logs – a trend the Marape Government seeks to change by promoting downstream processing, thereby exporting finished products that fetch higher prices than raw materials, ultimately contributing to the country's overall economic improvement.

The Prime Minister acknowledged the economic challenges facing the people and assured them that his government is making every effort to turn the tide, including enacting laws in the forestry sector to ensure progress and positive changes in the economy, though major improvements will take time.

“What we have done is foundational. Its impact will come given time. We’re dealing with issues in totality, not haphazardly, so as to achieve one outcome,” Prime Minister Marape said.

“We’re laying down strong building blocks under difficult circumstances. We inherited an economy that was managed poorly.”

The Mineral Resources Authority (MRA) has announced that it would donate K200,000.00 worth of relief supplies to the people of Yambale Village who have been affected by the landslide.

Yambale village in the Maip-Mulitaka Rural Local Level Government in the Porgera-Paiela electorate, was affected out by landslide on May 24, 2024.

The MRA has already procured the supplies from a wholesale shop in Wabag, and will transport them (supplies) early next week to the disaster site, in collaboration with the Enga Provincial Disaster Committee.

The goods include 600 bags of rice, 400 cartons of tinned fish, 400 cartons of noodles, 200 bales of sugar, and 200 bottles of cooking oil among other basic goods.

A team of MRA officers led by the Project Coordinator for the Porgera Mining Project, Joe Kak Ryangao, went to Yambale village where he made the announcement and presented some of the goods. The announcement coincided with the visit to the village by the Prime Minister Hon James Marape, where he also announced the National Government's assistance of K20 million. The PM was accompanied by the Governor for the Enga Province, Hon Sir Peter IPatas and other regional leaders, who also made financial commitments towards helping the affected villages.

Mr Ryangao on behalf of the Managing Director of the MRA, Jerry Garry, conveyed the MRA's condolences to the families of the victims of the natural disaster. He said the Porgera- Paiela electorate is host to the giant Porgera mine, which is one of the government's priority projects. He said because of the mine, MRA officers frequently travel the highway, passing by Yambale village.

He said: “To see the very village that MRA officers pass by every other week completely wiped out in such a tragic manner was devastating.”

Mr Ryangao said the assistance was part of the MRA's Corporate Social Responsibility.

Meanwhile, Ward Councilor for Mulitaka Mangalo Jaman Yandam, so far eight bodies had been recovered from the rubble at the time of the presentation, with hundreds still missing.

The Minister for International Trade and Investment, Hon. Richard Maru visited the Cocoland Sugar Development Project in Abau, Central Province recently. He was received by the Chairman of the company- Yaosoeng Sugar and Cane Consultant Company, Mr. Prapat Jenlapwattanakul and his team, the landowners, leaders of the community, and the people of Cocolands. Minister Maru described his visit as ‘a very useful visit’.

After visiting the project site, Minister Maru said: “I do appreciate now that there is enough grassland for the project, there is enough State land to build the sugar mill, and the local people are very supportive of this project.”

Minister Maru stated: “The process that we now have to follow is firstly, my Ministry will be putting together a NEC Submission to bring to Cabinet to endorse this project as a project of national importance. The Cabinet will basically approve that the Government must support this project and it will be developed as an SEZ meaning the company will be given incentives to invest here including tax holiday and duty-free exemptions. This is subject to phase two which is negotiations between the company, the landowners, the DDA, the LLGs, the local MP, the Provincial Government, and the State, to agree to the elements of the project like benefits for landowners, new wharf, power supply, etc which will be captured in the Project Agreement. The Project Agreement will be signed subject to the negotiations. After the signing of the Project Agreement, the State can give the land title to the company. The company will need the title to have security of land tenure so they can go to the banks to raise capital to build the sugar mill and to start this project. The shareholders of this project can be the State through KCH, the Central Provincial Government, and other investors.”

Minister Maru said this project was one of the most important projects for the Government and the country.

“Nothing must get in the way of this project- not politics and not self-interest. We must all focus on delivering this project,” said Minister Maru.

Minister Maru said as the Minister responsible for International Trade and Investment, he will be giving this project his highest priority.

“Without any investment we cannot build the economy of our country, we cannot create jobs, and we cannot generate wealth for our people. We need investments. This project will develop a township, create over 20, 000 jobs and significant business opportunities for the landowners who will be planting sugarcanes as out-growers and supplying the sugar mill, and the project will also deliver a power project- 45 megawatts to be used for the mill and 20 megawatts to be sold to PNG Power Limited to provide cheap and reliable power in Abau District. This is a very capable company and a serious investor- I have seen their operations in Thailand with my own eyes. They will spend over a billion Kina to make it happen from planting to milling of sugar, and the power station. This is the kind of investment that we need especially in the rural areas where the bulk of our people live,” said Minister Maru.

To the leaders and the people of Cocolands Minister Maru said: “The bulk of the sugarcane will be planted on traditional land, not State land. The Government will not acquire more land from you. You must keep your land so you can develop it and make money from your own land and your own sweat. It is the company’s job to train you, plough your land, and provide tractor and the seedlings. Look after the investor because we need them to help us develop this project so we can all benefit from it. We have to make this project happen and I need all your support.”

Spokesperson of the Gabina Clan said: “We are ready to support this project so we can benefit from it to improve our livelihood.”

St Barbara Limited has provided an important update on its gold production outlook from the Simberi Operations for Q4 June FY24. The Company has also revised its full-year production guidance due to ongoing challenges with equipment, fuel supplies, and air transport services resulting from inadequate availability of foreign currency affecting Simberi’s in-country supply chain.

Q4 June FY24 Production Impact

Initially, Simberi’s gold production for Q4 June FY24 was expected to exceed 20,000 ounces, thanks to anticipated access to a higher-than-average grade ore zone in the Sorowar pit. However, the critical Sorowar ore zone will not be accessible until Q1 September FY25. Consequently, the processing plant will be limited to more typical ore grades of approximately 1.0 g/t Au for June, reducing the expected production to around 14,000 ounces for Q4 June FY24.

This shortfall is primarily due to lower-than-targeted total mining movement volumes, attributed to poor excavator availability. These issues have delayed the targeted face position for accessing the higher-grade Sorowar ore zone.

Revised FY24 Guidance

As a result of these operational challenges, St Barbara has adjusted its full-year production and cost guidance for FY24. The revised production target is now set at 52,000 to 56,000 ounces, down from the previous range of 60,000 to 70,000 ounces. The All-In Sustaining Cost (AISC) has been revised to A$3,700 to A$3,900 per ounce, compared to the earlier estimate of A$3,200 to A$3,400 per ounce.

Equipment and Supply Chain Challenges

Total material movement has been significantly impacted by the availability of the excavator fleet, a problem that persisted through Q3 March FY24. Restoration of usual performance has been hindered by delays in the arrival of repair components, driven by the insufficiency and unpredictability of foreign currency for Simberi’s supply chain. St Barbara has attempted to mitigate these constraints by using alternative suppliers and procuring parts directly from overseas, but these measures have added to logistical timelines.

Additionally, the availability of foreign currency continues to affect diesel fuel and jet aviation fuel supplies in Papua New Guinea. While alternative diesel fuel supply arrangements have limited disruptions to mining operations and power generation, Simberi’s air transport services have faced significant additional costs due to curtailed domestic flights across PNG.

Fleet Enhancements and Future Planning

Despite the challenges, the excavator fleet has now returned to target availability. In response to the recent issues, St Barbara plans to expedite the acquisition of an additional excavator initially scheduled for FY26, aiming to mitigate future impacts from supply chain disruptions. The trucking fleet is also performing at target levels following recent supplements, with further enhancements expected from the arrival of two larger 60-tonne Volvo articulated dump trucks. These trucks will be trialed ahead of selecting the most suitable fleet for the proposed sulphides mining expansion from FY28.

The purchase of a skid-mounted sizer, suitable for both oxide and future sulphide ore, is progressing well. This unit is expected to enhance protection for the overland conveyor and grinding mills, thereby reducing vulnerability to downtime.

The State Team involved in the Porgera Mining Project Community Development Agreement (CDA) negotiations, has given an indefinite time off to the parties to the CDA, to review and comment on the draft CDA document, before negotiations resume.

The draft CDA document contains the various landowner and stakeholder benefits that are expected out of the new Porgera Mine. The expected benefits from the State and New Porgera Limited (NPL) include royalties, equity, Infrastructure Development Grants (IDG), Special Support Grants (SSG) and business spin-off opportunities among others.

The parties to the CDA are the Special Mining Lease (SML) landowners, New Porgera Limited (NPL), Enga Provincial Government, the State and the Porgera Rural Local Level Government. The parties agreed to allow, non-SML landowners who are the Lease for Mining Purposes (LMP), Mining Easements (ME), Hides-Porgera Power Line landowners and the Riverine impact communities, to be given copies of the draft to review. Although non-SML landowners are not parties to the CDA, they will still receive benefits derived from the mine.

The Managing Director of the Mineral Resources Authority, (MRA), Jerry Garry, reiterated Enga Governor, Sir Peter Ipatas’ call and appealed to the SML landowners to consider non-SML landowners in equity sharing.

In distributing the draft document to the parties, Mr Garry told them (parties) that there would be certain things which the parties may want as part of their review, which the state team can make decisions on immediately based on policy and law. However, there would be other things that may require the National Executive Council’s (NEC) decision on.

Mr Garry said the Porgera Mine deal is the best deal ever, in the 49 years of the country’s mining history. He acknowledged the leadership of Prime Minister Hon James Marape MP and Governor Sir Ipatas in securing the deal, where the country has 51% equity in the project.

Prime Minister Hon. James Marape made a visit to the landslide-affected area of Maip-Mulitaka LLG in Porgera-Paiela, Enga, on Friday, May 31, 2024.

Accompanied by Enga Governor Hon. Sir Peter Ipatas, Defence Minister Hon. Billy Joseph, and Hela Governor Hon. Philip Undialu, the Prime Minister met and talked to people affected by the May 24 disaster in which an estimated 670 people lost their lives and over 7800 were displaced.

During his visit, Prime Minister Marape provided K20 million to the Enga Provincial Government to address immediate disaster needs. Additionally, the Hela and Southern Highlands provincial governments contributed K1 million each. Prime Minister Marape expressed gratitude to the international terminal operator ICTSI South Pacific for its K1 million support.

“I express my heartfelt sorrow to the people of Maip-Mulitaka who lost loved ones in the disaster,” Prime Minister Marape said.

“Although I may be late, the government, through relevant departments and agencies like National Disaster Centre and PNG Defence Force, acted promptly in attending to the disaster.

“I thank the Enga Provincial Government of Governor Sir Peter and Provincial Administration of Sandis Tsaka, who, even if the landslide had occurred at 3am on Friday, responded immediately and by 8am, disaster work was already in progress.

“I also thank, on behalf of the affected people and the country, all the global friends of Papua New Guinea for their kind words and support.

“I thank our partner countries including Australia, New Zealand, USA, Japan, China, United Kingdom, Indonesia, France, Israel, South Korea, Phillipines, Malaysia, Singapore, India, Czech Republic and many others,  United Nations, International Organisation for Migration and Pacific Islands Forum for responding very quickly to the disaster.

“I assure the people of Maip-Mulitaka, Porgera-Paiela, Enga, and Papua New Guinea that you are not alone in this difficult time.”

Prime Minister Marape assured the people of Maip-Mulitaka that the national government would work with the Enga Provincial Government in continuing relief and restoration work.

“Our focus should now be on relief, restoration, and reconstruction into the future,” he said.

“We will respect and follow whatever long-term plans of the Enga Provincial Government.”

Maritime veteran Gerard Kasnari has taken over the leadership of marine services market leader, Pacific Towing (PacTow).  Previously, PacTow’s Marine Operations Manager and ‘2IC’ for nearly a decade, Kasnari’s new role of ‘Manager Pacific Towing’ has him overseeing the day-to-day operations of the business.

With nearly 40 years’ experience in PNG’s maritime sector, Kasnari brings a wealth of expertise to the position. Importantly, he has played a critical role in many of the achievements and initiatives (e.g., workforce nationalisation, cadetship programmes, fleet upgrades, regional expansion, and new services) that underpin PacTow’s success. 

Kasnari’s first role with PacTow was as its HSSEQ Manager and Designated Person Ashore.  After being promoted to Marine Operations Manager in 2019 he continued to play a key role in enhancing PacTow’s safety systems, processes, and performance – including the company’s first 5-year LTI-free period.

Kasnari commenced his seafaring career in 1985 and became one of the country’s youngest ships master at just 24 years of age.   In addition to his maritime experience, Kasnari also has considerable mining logistics experience, including aircraft and trucking operations.  He held supervisor and manager roles with Ok Tedi mining for nearly 14 years, as well as a management position on the Frieda River Project. 

Steamships Managing Director, Rupert Bray, emphasised that Kasnari’s “considerable experience in combination with his dedication, commitment, and proven leadership skills make him the ideal candidate to take Pacific Towing forward and to continue to deliver exceptional service to its customers.”

Kasnari replaces Neil Papenfus, who after 17 years with Steamships, has taken up a position with PNG Ports Corporation. We extend our gratitude to Neil and wish him every success in his new role as CEO of PNG Ports.

To strengthen sustainable tourism development across the Pacific region, the South Pacific Tourism Organisation (SPTO) joined with the Papua New Guinea Tourism Promotion Authority (PNGTPA) for a pivotal collaboration.

The highlight of this partnership was a weeklong in-country workshop held May 13 to 17, focusing on data initiatives and the Digital Measurement and Benchmarking Dashboard under the Pacific Digital Transformation Project (PDTP).

The project focuses on collecting and analyzing tourism data to make informed decisions for sustainable tourism development.

The New Zealand Government-funded Pacific Tourism Data Initiative (PTDI) project supported this partnership.

The PTDI project supports evidence-based planning and decision-making. Its components include the creation of a bi-annual International Visitor Survey (IVS), an annual Business Confidence Index (BCI), and an annual Community Attitude Survey (CAS) report. These reports offer crucial insights into community awareness and attitudes toward tourism.

The workshop, held at the Citi Boutique Hotel in Port Moresby, drew the participation of 15 individuals equipped with the tools necessary to drive insightful research outcomes within PNG's tourism sector.

At the workshop, PNGTPA's Executive Manager for the Corporate Affairs Division, Claire Kupo, underscored the pivotal role of data and research in shaping informed decisions and public policies conducive to sustainable tourism development in the region.

PNGTPA’s CEO, Eric Mossman Uvovo, reiterated the significance of the collaboration with SPTO on initiatives like the Pacific Tourism Data Initiative (PTDI) project.

Mossman Uvovo said: "The recent week-long in-country workshop focused on data initiatives and the Digital Measurement and Benchmarking Dashboard shows the importance of collecting and analyzing tourism data for informed decision-making.”

“By working together with SPTO and other stakeholders, we are committed to using data-driven insights to drive sustainable tourism development in Papua New Guinea and across the Pacific region. Through initiatives like the PTDI project, we aim to enhance our understanding of visitor behavior, preferences, and trends, ultimately shaping a vibrant future for tourism in our country and the region," he added.

SPTO Chief Executive Officer, Christopher Cocker, also stressed the importance of weaving together the power of data to contribute to informed decision-making and shape a sustainable and vibrant future for tourism in the Pacific.

“SPTO has been very fortunate to conduct an in-country visit to PNG to enhance the proficiency of research officers in utilising statistical analysis software (Survey Monkey, SPSS & NVIVO) through funding from the New Zealand government,” Mr. Cocker said.

“The workshop is pivotal for driving insightful research outcomes within the PNG tourism sector and data collaboration is key within the Tourism Industry Stakeholders in the implementation of the Digital Measurement and Benchmarking Dashboard.”

A participant, PNGTPA Research and Statistics Officer Abigail Pangwinyen, lauded the four-day workshop for enhancing her skills in data analysis within the travel and tourism industry.

Through conducting workshops and fostering collaborations with local partners, SPTO reaffirms its dedication to advancing sustainable tourism development in both PNG and the broader Pacific region.

The PTDI project, funded by the New Zealand Government, encompasses ten countries -- PNG including Niue, Cook Islands, Samoa, Solomon Islands, Vanuatu, Tonga, Kiribati, Timor Leste, and FSM-Yap.

It aims to collect and analyze tourism data crucial for evidence-based planning and decision-making, thus shaping a vibrant future for tourism in the Pacific.

The SPTO is the mandated organisation representing Tourism in the region, established in 1983 as the Tourism Council of the South Pacific.  

It has 21 Government members -- American Samoa, Cook Islands, Federated States of Micronesia, Fiji, French Polynesia, Kiribati, Nauru, Marshall Islands, New Caledonia, Niue, Papua New Guinea, Rapa Nui, Samoa, Solomon Islands, Timor Leste, Tokelau, Tonga, Tuvalu, Vanuatu, Wallis and Futuna, and the People’s Republic of China.

In addition to government members, the SPTO has a broad private-sector membership base.

The Papua New Guinea Tourism Promotion Authority (TPA) recently highlighted PNG tourism at the South Pacific Tourism Exchange (SPTE) held from May 4 to 5 in Nadi, Fiji.

With a team of eight TPA representatives in attendance, the event aimed to support tourism connections and spotlight PNG's diverse attractions to a global audience.

Organised by the Pacific Tourism Organisation (PTO), formerly the South Pacific Tourism Organisation (SPTO), SPTE stands as a pivotal trade showcase for Pacific Island nations’ tourism offerings to international buyers from key markets.

SPTE markets, promotes, and develops tourism in the Pacific Region. It provides a significant opportunity for PNG’s local tour operators, hoteliers, airlines and travel logistics to engage directly with international buyers, building their networking and conducting business.

TPA's robust presence underscored PNG's commitment to the PTO and its tourism-related objectives.

Eric Mossman Uvovo, TPA’s Chief Executive Officer, emphasized the significance of active participation, citing SPTE as a premier avenue to spotlight PNG's natural beauty, cultural richness, and unique experiences to potential visitors.

Mr Uvovo said: "Active participation in the South Pacific Tourism Exchange, organized by PTO, serves as a premier platform to showcase our nation's tourism attractions to international buyers from key markets.”

“The face-to-face meetings facilitated at SPTE will allow us to effectively promote PNG as an iconic tourist destination, renowned for our pristine landscapes, rich cultural heritage, and unique experiences. It's a chance for us to showcase the best of what our country has to offer.”

TPA’s involvement aligned with its overarching goal of cultivating partnerships within the tourism and hospitality sector. Uvovo reiterated the importance of PNG's presence at global tourism events in enhancing the country's reputation as a top-tier tourism destination.

"Through initiatives like SPTE, we continue to position ourselves as a leading destination for travellers seeking authentic experiences in the South Pacific.”

“Events like SPTE solidify our position as a premier destination for travelers seeking authentic experiences in the South Pacific,” he added.

With a focus on building lasting relationships and exploring avenues for future growth, TPA's active involvement in SPTE signals a concerted effort to elevate PNG's tourism industry on the global stage.

Joint Venture Port Services (JVPS) is proud to announce it has been awarded the ‘Employer of Apprentices’ certificate by the National Apprenticeship and Trade Testing Board (NATTB).

This notable certificate signifies JVPS’s commitment to developing the next generation of skilled professionals within the critical heavy machinery and equipment industry. The certification allows JVPS to hire and train apprentices in four key trade areas:

• Heavy Equipment Fitting
• Auto Electrical
• Motor Vehicle Mechanic
• Metal Fabrication and Welding

“We are thrilled to receive the Employer of Apprentices accreditation from the NATTB,” said Greg Kettleton, General Manager, JVPS. “This certification allows us to invest directly in the future of PNG’s workforce by providing young Papua New Guineans with valuable on-the-job training and nationally recognized qualifications. This will ensure a continuous pipeline of highly skilled tradespeople to support our ongoing operations and contribute to the future needs of PNG.”

To obtain the Employer of Apprentices certification, JVPS underwent a rigorous process established by the NATTB. This included a comprehensive site inspection to ensure the company possesses the necessary tools, machinery, and qualified personnel to deliver effective training in the designated trade areas.

“We commend JVPS for achieving this important milestone,” said Arthur Geno, Assistant Director for NATTB, during a recent certificate presentation ceremony. “Their commitment to meeting our stringent requirements, including successful completion of a site inspection, demonstrates their dedication to providing a high-quality apprenticeship program. This program will serve as a valuable pathway for young Papua New Guineans to gain the technical skills and knowledge needed to thrive in these essential trades.”

JVPS is actively developing its apprenticeship program and anticipates implementation later this year. The program will provide structured training opportunities for apprentices, combining classroom learning with practical experience under the guidance of experienced JVPS tradespeople.

JVPS is a leading provider of stevedoring and cargo handling services across Papua New Guinea. Through joint ventures with local landowner groups, JVPS offers a comprehensive range of services at key ports throughout the country. The company is committed to safety, efficiency, and environmental responsibility, while also supporting the development of local communities and the PNG workforce. JVPS is part of the broader Steamships Logistics Division, an intermodal logistics provider solely owned by Steamships Trading Company.

Kumul Petroleum Holdings has organised more shipments of fuel, including vital Jet A1 to alleviate the current shortages experienced by the country.

Kumul Petroleum managing director, Wapu Sonk, advised,” We are aware that current fuel importers are unable to meet the demand for fuel, particularly the Jet A1 used by the aviation industry, and once again we have stepped in to address this shortage.”

During April this year Kumul Petroleum organised a tanker of fuel that averted a previous fuel supply crisis brought about by Puma’s withdrawal in supplying fuel to the country. As a follow up to this initiative. Kumul Petroleum is stepping in for the second time to bring fuel into the country, and two shipments have been organised.

“The first of approximately 38 million litres of diesel and 8 million Litres Jet A1 has been purchased from Puma in Singapore. This will be sold to Puma in PNG, and is arriving on the tanker Nord Miyabi, which is expected to discharge its cargo in Port Moresby on or about 21^st May.”

“The second shipment of 8 million litres of Jet A1 has been purchased from ExxonMobil and this is expected to arrive in the country on the 1^st or 2^nd of June.” The total import should be enough to cover market demand for at least two months.

“We are aware that until the country’s fuel supply chain arrangements stabilise, KPHL will be actively involved in the import and marketing of fuel for as long as it takes to ensure that there is a reliable and constant supply to the country to ensure continuity of fuel supply to essential businesses, industry and the public.”

“We have reached agreement with Puma to acquire fuel from them and for them to buy and use their infrastructure to distribute to the country for the near term. This arrangement will ensure fuel and energy security for the country, especially with regard to Jet A1, for the foreseeable future.” Mr Sonk ended by saying,” KPHL is also working on a medium to long term fuel supply solution as requested by the NEC and our legislated mandate to ensure a fair and level playing field for the energy industry as well as reduce the demands for US dollars for fuel in the country.” 

Prime Minister Hon. James Marape on Friday, May 24, 2024, launched the Madang Provincial Integrated Development Plan 2023-2027 in Madang Province. This marks the first drafted and approved development plan for Madang Province in over 20 years.

Madang Governor, Hon. Ramsy Pariwa, made the announcement at a significant ceremony held at Bates Oval in Madang Town. He informed attendees that the plan would serve as a compass for the province’s development. Governor Pariwa commended the Marape-Rosso Government for developing the Medium-Term Development Plan IV (MTDP IV), which allows provincial governments to access public funds by aligning their programs with national initiatives.

Governor Pariwa also called on the Prime Minister to collaborate with his Provincial Government to resolve the ongoing court proceedings hindering the appointment of a Provincial Administrator and to address the completion of key infrastructure projects committed by the government. These projects include the Baiyer-Madang Road, a four-lane road from Madang Airport to Madang Town, the Madang Airport Terminal, the development of the Pacific Maritime Industrial Zone (PMIZ), and the rehabilitation of cocoa, coffee, copra, and vanilla plantations in Madang. Additionally, he highlighted the need for better collection of levies and royalties from major projects, especially the Ramu Nickel Project.

He also appealed to the government to consider permanently resettling the people of Manam. Furthermore, the Governor pledged to work with the government to initiate the downstream processing sector of Papua New Guinea in Madang Province.

Prime Minister Marape expressed his pleasure at launching the Madang Provincial Integrated Development Plan 2023-2027. He acknowledged Madang’s significant contribution to the economy of Papua New Guinea and welcomed the Governor’s remarks on the lack of development and support from the National Government for provincial projects.

The Prime Minister committed K10 million to the Madang Airport to Gav Store Road, K10 million to the Divine Word University to Modilon Road project, and another K10 million for the rehabilitation of the agriculture sector and plantations in Madang Province.

He noted that portions of the road construction are currently subject to court proceedings, but assured that work would begin on the unaffected sections while seeking legal advice on how to proceed with the disputed areas.

Prime Minister Marape reiterated his vision for the people of Papua New Guinea to have robust economic infrastructure and achieve economic independence. He emphasized the need for collective effort from both the government and the citizens to ensure the success of development programs and projects. He stressed the importance of improving law and order and ensuring that allocated funds are used effectively.

During the event, Prime Minister Marape also launched the District Development Plan 2023-2027 for Usino-Bundi, completed by the late Jimmy Uguro and now set to be implemented by the Madang Provincial Government.

Prime Minister James Marape has announced an K18 million funding from the National Government to the Middle-Ramu District to construct the missing link Madang-Baiyer Road.

The road will connect Madang and Baiyer in the Western Highlands Province and will serve as a short and alternate route to connecting the seven Highlands provinces.

Prime Minister Marape announced the funding when launching the Madang-Baiyer Road project and the Middle-Ramu District’s Five-Year District Development Plan 2023-2027 at Sagapi Village in the Kovon Local Level Government area today.

He said not only Middle-Ramu but many other remote areas like Kaintiba in Gulf Province, Telefomin in Sandaun, Menyamya, and others who have been left out and are not yet connected will be connected through the Connect PNG programme.

“I have come here today because I see your Middle-Ramu Member Hon. Kansol Kamdara has you people in his heart by doing the right thing to connect the district. Therefore, the National Government will fully support the district plan and ensure funding of K100 million will be disbursed to the district in the next five years,” Prime Minister Marape said.

“I have been growing up and attended school in remote areas of the country during my childhood years and know what life is like in areas like Middle-Ramu and I am emotionally taken back.

“I wish we had enough money to fix everything we need to do with money. However, we do not have enough resources, but I urge every one of you not to give up hope. I have to say that one day a machine will come to your area to construct your roads. I appreciate the work your local Member and Madang Governor Hon. Ramcey Pariwa are doing to build the Madang-Baiyer Road and have put aside a funding of K18 million. The National Government will also match that and add another K18 million towards that road project.”.

He said that the National Government has the kina-for-kina policy where the government will add the same amount a district or province comes up with on any programme or project that has high economic value and benefits the majority of the people.

Prime Minister Marape said he was pleased to see Middle-Ramu as the first district in Madang Province to come up with a district development plan. The National Government will support the Middle-Ramu District plan and will commit K20 million a year and urged the district to use the resources wisely.

Prime Minister Marape also challenged the people of Middle-Ramu not to claim any form of compensation or demand money from the contractors who will be working on the Madang- Baiyer Road so the road can be constructed without any hassle.

He urged the people to show a good example to other districts and parts of the country.

“When they are constructing the road, do not claim compensation. I want you to make a commitment and say no to compensation. My good people of Middle-Ramu, do not put claims for monetary gain for your trees being cut, stone and gravels being taken or used on the road, and unnecessary claims The contractors and the Department of Works and Highways know and will assist you as and when they construct the road.

“The National Government does not want to hear this issue of money and compensation first before any roads or project is constructed, especially in the development of this Madang-Baiyer Road. The road is a vital economic link and lifeline that will last generations, but the money you get will be wasted in days,’’ he said.

Prime Minister Marape said the government does not have enough money to pay for compensation and at the same time build roads.

He said roads will unbundle rural PNG and districts like rural Baiyer, rural Middle-Ramu, and the rest of the country.

Prime Minister Marape also commended the local MP Kansol Kamdara for his efforts and for coming up with the District Plan, which the government will support The National Government also noted the district’s ambition to connect its people with other parts of the country with the Madang-Baiyer Road.

Prime Minister Marape and Minister for Works and Highways Solan Mirisim, who accompanied the Prime Minister, told the people of Middle-Ramu that the National Government has seen and heard the people’s plight and will fund the road project and the district’s five-year development plan.

Hela Province Governor Philip Undialu has congratulated the Mineral Resources Development Company (MRDC) and Department of Petroleum for facilitating the opening of Hides Petroleum Development License 1 (PDL1) Bank Accounts Opening in Hela Province, Papua New Guinea.

Governor Undialu commended this monumental achievement, saying: "I am pleased to see landowners started opening accounts with BSP at Juni, Hides. This is a historic moment we all have been waiting for."

MRDC, DPE and Bank South Pacific (BSP) collaborated successfully to eventuate the project in the resource-rich province despite challenges, he added.

The initiative saw the participation of 97 out of 120 clans in electing their executives, with 23 clans currently in mediation. However, the JP Karai Block remains embroiled in a court dispute, highlighting ongoing challenges in the region's resource governance.

The culmination of Clan Executive mediations paves the way for the final step in the entitlement process – the election of Block Leadership. These elected leaders will subsequently form two Gas Resources Companies in accordance with the Hides PDL1 License-based Benefits Sharing Agreement (LBSA), ensuring fair and transparent distribution of benefits.

Governor Undialu extended his appreciation to MRDC and BSP for their pivotal roles in resolving this longstanding issue. "I am happy with MRDC and congratulate the team led by Managing Director Mr. Augustine Mano for resolving this long-standing issue," he said.

The Mineral Resources Development Company (MRDC) spearheaded the launch and facilitation of the Petroleum Development License 1 (PDL1) Clan Bank Account Opening for the landowning communities of the PNG LNG project in Hides, Nogoli, Hela Province on May 21.

This account opening process enables the clans to access their rightful royalty and equity entitlements through their bank accounts.

Prime Minister Hon. James Marape presided over the occasion in Hides, accompanied by distinguished guests, stakeholders and representatives from project partners.

MRDC Managing Director Mr. Augustine Sanga Mano lauded the efforts of MRDC, the Department of Petroleum and Energy (DPE), and BSP bank staff who, over the past two months, have worked closely with the landowners for this event.

"I am pleased to announce that 90 of the 121 clans have fulfilled the compliance requirements and are now poised to open their bank accounts," Mr. Mano remarked. "This marks a notable milestone, and I extend my gratitude to the landowners and their leaders for their collaborative efforts thus far."

He reiterated the MRDC and the Department of Petroleum's commitment to assist the remaining clans in addressing any outstanding issues in the days ahead.

Independent observers oversaw the meticulous clan meetings over the preceding two weeks, during which representatives from the Department of Petroleum and Energy received the meeting minutes and resolutions to uphold transparency.

“The people are ready. An impressive 96 out of 121 clans have fully complied with the process. This week Bank South Pacific will open their clan bank accounts through which they will receive their royalty and equity benefits,” Mr. Mano said.

Despite a report of a minor incident, Mr. Mano was pleased that most of the clans came out to welcome the BSP and MRDC officials for the opening of their respective clan bank accounts.

“The PDL1 beneficiaries have waited patiently since 2014. They must not wait any longer. This is a momentous occasion, and they should feel happy and look forward to receiving what is rightfully theirs,” he said.

Mr. Mano said that MRDC, DPE and other stakeholders would ensure that the remaining 19 clans complete their account opening compliance process.

The next step after the account opening is the election of directors, which the Electoral Commission will facilitate in June to elect new directors to represent the landowners' interests.

Independent observers are on the ground overseeing the account opening process, ensuring its integrity and transparency, the MRDC said.

“This additional measure, initiated by MRDC, underscores our commitment to a fair and transparent implementation of the program,” said Mr. Mano.

Mining Minister Hon. Muguwa Dilu has inaugurated the Community Development Agreement (CDA) negotiations for the Porgera Mining Project in Porgera, Enga Province.

The CDA process, which commenced on May 20 in Wabag, marks a pivotal juncture where landowners and stakeholders will deliberate on the benefits stemming from the Porgera Project.

Minister Dilu underscored the government's commitment to this process, emphasizing adherence to pertinent legislation governing such negotiations.

He told the landowners that the Marape-Rosso Government was committed to the CDA process and would ensure that the relevant government agencies would avail the necessary resources towards the staging of the meeting.

Minister Dilu said, “The Marape-Rosso Government, is the people’s government and you all know that. Whatever big decisions we make, we must make according to close consultation with the people and stakeholders.”

He said everyone involved in the process was equally important, as they all would sacrifice their resources so that the project could operate.

Acknowledging the indispensable role of all stakeholders, Minister Dilu emphasized the collective effort required for project success. He illustrated the interconnectedness of various stakeholders, highlighting the pivotal role of landowners in facilitating essential infrastructure like power lines.

For instance, if the power line landowners of Hela did not avail their land for power lines to run through, there would not be power supply to the mine, hence the mine would not operate.

He gave credit to all landowners of the project for their patience and commitment over the last four years when the government and Barrick were in negotiations.

"This is a crucial government process outlined under the Mining Act 1992 and various other laws," Minister Dilu affirmed, urging stakeholders to negotiate within the legal framework.

He reassured the community of the government's unwavering support, vowing to allocate necessary resources for the negotiations.

The Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, echoed Minister Dilu's sentiments, urging unity among the populace to facilitate smooth project operations.

James McTiernan, General Manager of New Porgera Limited (NPL), expressed optimism regarding the CDA negotiations, emphasizing its potential to secure benefits for current and future generations.

Treasurer of the Porgera Landowners Association, Nickson Mangape, expressed his community's anticipation for the CDA process, especially in terms of economic opportunities and contracts. He said his people had been waiting for the CDA process for the last 4 years.

He said his people had been waiting for the CDA process for the last 4 years as they were looking forward to benefiting from the project, especially in terms of business-spin offs and contracts.

The launch of the CDA negotiations follows months of consultative meetings with all project stakeholders, culminating in the CDA ceremony.

Present at the occasion were Mr. Garry, Secretaries for the Departments of Treasury and Provincial & Local Level Government, alongside representatives from various landowning entities.

Key parties involved in the negotiations include the Enga Provincial Government, Special Mining Lease (SML) Landowners, New Porgera Limited (NPL), and Porgera Rural Local Level Government, alongside other tenement landowners.

As Porgera embarks on this critical phase of negotiation, stakeholders are poised to shape a mutually beneficial agreement, ensuring sustainable development and prosperity for the region for years to come.

The MRA's Managing Director Jerry Garry, urged the people to stop fighting amongst each other and live peacefully, so that the project could operate without impediments.

Mr. McTiernan said the NPL was pleased to witness the launch of the CDA negotiations, adding that the CDA was a good opportunity for landowners of Porgera, to negotiate their benefits and that of their future generations.

The NPL hoped that the launching is a step towards the general success of the mine’s operations for the next 20 years and beyond, as Mr. McTiernan said it wished to see benefits distributed fairly and to ensure a long term social license across the company’s project footprint.

BSP Life PNG Limited has placed utmost importance on its people development and empowerment, since its inception in 2018. In a recent celebration of excellence and outstanding achievements, BSP Life honored its top-performing Insurance Advisors for 2023.

Maryanne Loia, Sandra Kase, and Malele Silikara, representing the Boroko Sales Unit, stood among the top awardees, lauded for their exceptional performance at the National Sales Awards Night in Port Moresby on 10 May 2024. Additionally, Nagi Towedori from the Lae Sales Unit, Robert Toiveguwa from the Boroko Sales Unit, and Marzena Koikupa, Lois Doa, and Nemillah Maki from the Mt. Hagen Sales Unit were recognized for their significant contributions. Special accolades were bestowed upon Nagi Towedori from Lae and Moses Tomon from the Kokopo Sales Unit.

Sandra Kase, one of the awardees, emphasized the importance of training and upskilling in sales, especially in a field like life insurance where understanding and awareness are crucial. "Life insurance is an intangible product that requires a lot of awareness to understand how important it is for financial security," she stated.

Another awardee, Malele Silikara, expressed gratitude for the recognition, highlighting its role in boosting team confidence and motivation. "Knowing that our policyholders will have multiple benefits for themselves and their families motivates us to deliver better results," she shared.

BSP Life Country Manager, Nilson Singh said, “Life insurance is a challenging product to sell, as losing a family member or planning for the future, without yourself in the picture, can be an intimidating thought. However, our robust advisor distribution channel, comprising well-trained and certified insurance advisors commit to support customers on their life journey.”

Mr Singh congratulated all awardees and added that the event recognized and celebrated our Insurance Advisors who show resilience, determination and unwavering commitment to our policyholders.

“These advisors, offer personalized guidance and support, ensuring that our customers are equipped with the knowledge and resources to make informed decisions about their financial futures.” Mr. Singh added. He attributed, outstanding results to the dedication and commitment of the network of Insurance Advisors, supported by a dynamic leadership cohort. BSP Life ensures the care and development of its employees through comprehensive training programs.

BSP Group CEO, Mark Robinson, who attended the event, commended the BSP Life PNG Team for their strong performance in 2023. He reiterated the importance of customer service for the long-term success of the business. Also in attendance were BSP Group CFO, Mr. Ronesh Dayal, BSP Life PNG Chairman, Mr. Rabbie Namaliu Jnr, and BSP Life PNG Directors, Dr. Cecilia Nembou and Ms. Serena Sasingian.

In 2023, BSP Life signed 3,891 Wantok Delite policies with Annual Premium of K8.0m compared to only 1,617 policies with Annual Premium of K3.6m in 2022. This was 141% above on policy count and 121% above on Annual Premium basis compared to 2022, which is an outstanding result.

Our inforce position on policy count as at 31 Dec 2023 was 5,644 policies with Annual Premium of K12.2m, a staggering 110% increase on policy count and Annual Premium basis.

Despite economic challenges reflected in the increased lapse rate, BSP Life remains committed to diversifying its product portfolio to meet customer needs. Products such as Wantok Consumer Credit Insurance, Wantok Group Term Life Insurance, and Wantok Delite Life Insurance, launched in 2018, 2019, and 2020 respectively, exemplify BSP Life's commitment to providing comprehensive protection and savings benefits to our customers.

As BSP Life continues to innovate and excel, it remains steadfast in its commitment to empowering Papua New Guineans towards a secure and prosperous future. With a focus on integrity, professionalism, and customer-centricity, BSP Life is poised to redefine insurance standards and shape the future of the life insurance industry in Papua New Guinea.

PNG already has a gold refinery, national mint and national bank says Anthony Smaré, President of PNG Chamber of Resources & Energy (PNGCORE) so PNG does not need to go to a tiny Singaporean company Refinery Holdings Pte Ltd to replace them in a deal which could render catastrophic damage to the PNG economy and financial system.

PNG has had its own gold refinery, Metals Refinery Operations (MRO), in Port Moresby for over 30 years. It is also 100% PNG-owned by the Pacific Balance Fund, which is in turn owned by PNG shareholders such as Mineral Resource Development Company (MRDC), Nasfund and thousands of ordinary Papua New Guineans. Additionally, PNG’s own State-owned mining company, Kumul Minerals Holding Limited which is worth over K8 billion, easily has the financial and technical capacity to build a new 3-million-ounce capacity gold refinery for K60 million in Port Moresby or Lae.

“If the National Government was consistent with its Take Back PNG philosophy, it should be either supporting Pacific Balance Fund, MRDC and Nasfund to upgrade and reopen MRO or allow Kumul Minerals to set up a new refinery. There is no need for the Government to give a monopoly over gold refining and other monopoly rights to this tiny unknown Singaporean company Refinery Holdings Pte Ltd, which doesn’t have any record in gold refining. Monopolies and a Gold Bill in favour of a foreign company is not required - let a PNG-owned gold refinery operate in a free market”.

“PNG already has its own mint - the role of producing PNG currency and coins is the exclusive role of the Bank of PNG, and it exercises this role as part of its broader independent sovereign function to manage monetary policy and it has played this role very successfully since 19 April 1975 with the inception of Kina and Toea. Bank of PNG also holds the country’s forex and cash reserves and can hold gold as the sovereign bullion bank. Bank of PNG is a State institution and is not foreign owned. These are important sovereign functions critical to the running of our economy and the safeguarding of the participation of Papua New Guineans in the economy. It makes no sense to give these sovereign roles to tiny unknown Refinery Holdings from Singapore who do not have any track record in issuing currency or managing gold reserves.”

“MRO has already put its hand up to work with Government as a PNG owned business to be considered over the alternate to refine gold. We also know that Kumul Minerals has already done its studies on building a refinery. We support the ambitions of MRO and Kumul Minerals and urge the Government to consider these PNG parties as part of its Take Back PNG mantra. There is no need to go to tiny companies overseas who have no track record or name in these industries.”

The Papua New Guinea Chamber of Resources and Energy (PNG CORE) has reiterated its stand in support of building a refinery in the country that the state must build through Kumul Minerals Holdings Limited.

Kumul Minerals has the financial and technical capacity to undertake gold refining in PNG, the Chamber said in a statement.

Anthony Smaré, PNG CORE President, highlighted the financial and technical capabilities of Kumul Minerals during an information briefing to the business community on May 9 at the University of Papua New Guinea in Port Moresby.

He questioned the preference given to Refinery Holdings Limited of Singapore, citing the firm’s lack of financial resources, gold industry experience, and technical capacity.

Referring to a report obtained by PNG CORE, Smaré pointed out that Refinery Holdings' last financial results, filed in June 2023, indicated a company worth approximately $20 million.

He questioned why a company with no track record in gold refining and negative financial standing would be favored over PNG’s own Kumul Minerals Holdings Limited, which boasts significant investments and expertise in the gold industry.

With existing investments in gold through Ok Tedi and Porgera and a net worth exceeding 8 billion Kina, Kumul Minerals is also staffed by Papua New Guinean professionals with extensive experience in the sector, Smare noted.

The company is also engaged in feasibility studies with Ramu Nico for the development of a base metals smelter, aligning with its mandate to enhance the country's mining capabilities.

Smaré emphasized that a new gold refinery, with a capacity to process 3 million ounces of gold, could be constructed in either Lae or Port Moresby for an estimated cost of K60 million, well within Kumul Minerals' financial capacity.

Despite the traditionally thin margins in the gold refining business, Smaré expressed confidence in Kumul Minerals' ability to make the venture successful.

“The PNG mining industry has no objection to a new gold refinery being built, but it does not need to be done under any special new laws or under an environment of a regulated gold monopoly. If a gold refinery is to be created, it can be done by existing operators in PNG such as Kumul Minerals,” he said.

“A new gold refinery with capacity to process 3 million ounces of gold can be built in either Lae or Port Moresby for an estimate of K60 million. This is well within the financial capacity of Kumul Minerals. Although the gold refinery business traditionally has very thin margins, it is our view that Kumul Minerals has the capacity and capability to make it work,” the PNG CORE leader said.

Moreover, Smaré advocated for the establishment of a 100% PNG-owned gold refinery by Kumul Minerals, emphasizing that it can be achieved without the need for special new laws or a regulated gold monopoly.

He highlighted that Kumul Minerals could undertake the project without compromising the independence of the Bank of PNG or impacting existing mining agreements and laws crucial to the country's governance.

“Better yet, Kumul Minerals can build a 100% PNG-owned gold refinery without an NGC Bill, without a gold monopoly, without a gold police, without any attacks on the independence of the Bank of PNG, without overriding all the project agreements of existing mines, and without overriding 26 important PNG laws, and impacting the work of the other important government agencies and departments that serve the PNG people,” Smare said.

Kumul Minerals has expressed readiness to take on the challenge of gold refining in PNG, urging stakeholders to reconsider the decision to favor foreign entities over local expertise and capacity.

In light of PNG CORE’s briefing to the business community, a consultation workshop was organized by the Ministry of Mining on May 15th in Port Moresby, purposely for the stakeholder’s consultation workshop on the National Gold Corporation Bill 2024.

PM Marape Addresses Stakeholders Consultation

Prime Minister Hon. James Marape in his opening remarks during the stakeholders’ consultation, pledges support for the gold refinery establishment.

He reaffirmed the government's unwavering commitment to establish a gold refinery, underlining the necessity of reducing reliance on foreign processing of natural resources, particularly gold, which often results in importation of finished products.

He emphasized the transformative potential of local downstream processing, citing examples such as the Porgera project, as pivotal steps towards economic self-sufficiency.

"Establishing a gold refinery locally will enable us to better manage our resources, bolster our economy, and foster sustainable growth domestically," stated Prime Minister Marape.

He highlighted the significance of leveraging internal resources for economic prosperity, citing examples of successful developmental models adopted by other nations.

Mr. . Marape clarified to the consultation participants, including industry professionals, representatives from various sectors of government and the private sector, and ordinary citizens that his government is committed to improving the country's future through effective legal and policy reforms.

He assured that the National Gold Corporation Bill 2024 is designed to benefit PNG without negatively impacting existing mining businesses or their contracts.

“This Bill in no way intends to disarm mining businesses of their contracts, or deter investors on them return upon investment. In fact, this Government wants to add value to the mining industry of the country. We will give you an option to refine your golds locally and if you so wish sell your gold at world market price locally,” the Prime Minister clarified.

Mr. . Marape assured stakeholders that the bill aims to enhance the country's economic landscape without jeopardizing existing mining operations or investor agreements.

He clarified that the bill aims to add value to the mining industry by providing options for local refinement and sale of gold at international market prices.

Encouraging constructive engagement, the Prime Minister invited feedback from industry experts, government representatives, and citizens alike, emphasizing the government's receptiveness to diverse perspectives. He reiterated the importance of transparency and collaboration in shaping legislation for the nation's benefit.

“We are open to views and advice from industry professionals or the general public on this Bill, and that is why we are having this consultation. We have made our stance and intention on the Bill clear for the benefit of Papua New Guinea. But if you have other views on this, you are free to tell us where we can improve things so that this Bill is properly presented in Parliament, where everyone knows what it will bring about into the future," he said

Stakeholders Consultation Workshop

The stakeholder’s consultation workshop included:

• Comment session by stakeholders and the public
• Presentation of Amendments to Mining Act 1992 by the Secretary of Mining Secretary, Mr. . Harry Kore
• Presentation of Amendments to Mine Safety Act 19977 by the Deputy Secretary Mining, Mr. . Winterford Eko

The panel of experts were from relevant state agencies and industry participants.

The Managing Director for the Mineral Resources Authority (MR. A), Mr.  Jerry Garry, commended all participants in the consultation and urged all stakeholders to submit written proposals to the working committee.

The Minister of Mining Hon. Muguwa Dilu, MP, during the stakeholder consultation made a commitment to see that a business modality was created and presented to stakeholders and business.

He stated that it is his responsibility to write to the Prime Minister to increase the consultation process on the National Gold Corporation Bill to 6 months.

The Bank of Papua New Guinea (BPNG) welcomed a distinguished ministerial delegation from New Zealand to discuss the progress and initiatives of the Green Finance Centre (GFC) in the context of climate resilience in Papua New Guinea.

The meeting, held on May 13, 2024, underscored the pivotal role of green finance in addressing climate change challenges facing the island nation.

The round table discussion facilitated an exchange of insights among officials from the New Zealand Ministerial Delegation, BPNG, the Climate Change Development Authority (CCDA), and the Global Green Growth Institute (GGGI).

Led by the New Zealand Minister of Climate Change, Hon. Simon Watt, MP, the NZ delegation commended the BPNG for its leadership in establishing foundational structures for green finance in PNG noting that the Central Bank can be can be proud of this.

Hon. Watts emphasized that climate change is fundamentally an economic issue. He added that New Zealand, which is also advancing its Green Taxonomy, is eager to assist the Green Finance Centre in harmonizing its Inclusive Green Taxonomy.

"The New Zealand Government is impressed with the Bank of Papua New Guinea’s approach to creating a resilient and stable financial system," Hon. Watts stated.

He expressed New Zealand's interest in collaborating with like-minded countries in the green finance sector, noting that both countries experience the impact of climate events with similar intensity, thereby presenting mutual opportunities for assistance in adaptation and mitigation efforts.

PNG, being an island nation, faces heightened vulnerability to climate crisis such as floods, droughts, rising sea levels, and strong winds. The collaboration between the New Zealand government and BPNG aims to address these challenges by integrating green finance policies into the country's financial ecosystem.

Mrs. Elizabeth Genia, Governor of the BPNG, conveyed through Deputy Governor Mr. Jeffrey Yabom, a message to the Ministerial delegation emphasizing BPNG's mission to serve the people of PNG.

This mission involves implementing effective monetary policy and maintaining a sound and inclusive financial system, she noted, highlighting the systemic implications of climate-related events and policy changes on financial markets and underscoring the need for proactive measures to address climate-related risks.

In response to climate change-related issues, the BPNG is dedicated to playing a pivotal role in safeguarding market stability by proactively addressing climate-related risks and strengthening resilience.

Bank of PNG, Assistant Governor, Mr George Awab, who is also the Chair of the Steering Committee for the Green Finance Centre, stressed a focus on normalizing required finance not only at the international level but also domestically. 

Getting the support from the New Zealand government is to develop the Green Climate Center, which is the key Agency, he said.

The establishment of the Green Finance Centre, supported by the Global Green Growth Institute (GGGI) and the Centre for Excellence in Financial Inclusion (CEFI), marks a significant milestone in promoting green growth and economic diversification in Papua New Guinea.

Funded by the New Zealand Ministry of Foreign Affairs and Trade (MFAT) under the Low Emission Climate Resilient Development (LECRD) program, the GFC aims to integrate inclusive green finance policies into lending operations, fostering financial inclusion and sustainable investment activities.

In partnership with the Centre for Excellence in Financial Inclusion (CEFI), GGGI developed the Inclusive Green Finance Policy (IGFP) in 2023.

This initiative, funded by the New Zealand Ministry of Foreign Affairs and Trade (MFAT) with a grant of USD 670,000 under the Low Emission Climate Resilient Development (LECRD) program, led to the establishment of the GFC.

The GFC is mandated to implement the IGFP and Roadmap and oversee other green finance initiatives in the country aimed at mitigating climate-related risks, promoting green finance, and catalyzing investments towards a more sustainable future.

The primary goal of the project is to develop and integrate the Inclusive Green Finance Policy (IGFP) into the lending operations of financial institutions. This integration aims to create a financial ecosystem conducive to financial inclusion, green growth in investment activities, and economic diversification, which in turn will lead to an increase in green jobs.

Hon. Watts reiterated New Zealand's commitment to advancing green finance initiatives and expressed eagerness to collaborate with Papua New Guinea on harmonizing green taxonomies.

He emphasized the economic dimensions of climate change, stating, "The way we address today's pressing climate issues will shape our future."

The significant roundtable meeting was attended by, New Zealand Delegation; Hon. Simon, Watts, Minister of Climate Change, Hon. Dr Shane Reti, Minister of Health, and Minister for Pacific People.

New Zealand MPs Hon. Tim van de Molen, MP and Chair of the Foreign Affairs, Defense and Trade Committee, and Hon. David Parker, an MP for the Labour Party (not current in Government) and opposition spokesperson for Foreign Affairs, were present.

Gerardine Clifford, Chief Executive, Ministry for Pacific Peoples, Charlie Gillard, Deputy High Commissioner, New Zealand High Commission and Laura Holder, First Secretary, New Zealand High Commission were also with the delegation.

Accompanying the NZ delegates were Jessica Rowe, Private Secretary, Minister of Climate Change; Nelson Tiatia, Private Secretary to Minister Reti; Charlotte Gendall, Press Secretary to Minister Reti; Ramphaey Gime, Development Programme Coordinator; and Cynthia Duoribi, Policy Adviser.

PNG delegation attendees included Mr Jeffrey Yabom, Deputy Governor BPNG; Mr George Awap, Asst. Governor BPNG and Chair Steering Committee GFC; Ms. Debra Sungi, Acting Managing Director, Climate Change and Development Authority;

Mr. Mohinesh Prasad, Head of Green Finance Centre; Mr. Saliya Ranasinghe, Executive Director CEFI; Mr. Peter Samuel, Deputy Executive Director, CEFI; Mr. Peniamina  Leavai, Deputy Country Rep, GGGI PNG; and Mr. Angus Moina, SCA GFC.

During the roundtable discussion, BPNG Assistant Governor Mr. Awap, who also serves as Chairperson of the Steering Committee for the Green Finance Centre, thanked the New Zealand Government for its regional leadership on climate change.

Mr. Awap highlighted the critical role of the Green Finance Centre in fostering a sustainable financial ecosystem in PNG.

Mr. Prasad, Head of the Green Finance Centre, updated the delegation on the significant progress the GFC has made and its forthcoming initiatives aimed at greening PNG’s financial system.

Through leadership, guidance, and support, the Centre will mitigate climate-related risks, promote green finance, and catalyze investments toward a more sustainable future for PNG, he said.

Key outcomes from the discussion include New Zealand's continued support for the Green Finance Centre's mandate and intentions to collaborate with Papua New Guinea on carbon markets. The collaborative efforts between the two nations reflect a shared commitment to building resilient and sustainable financial systems in the face of climate change challenges.

Papua New Guinea DataCo and Oracle have signed a memorandum of understanding to advance the country’s critical digital infrastructure and to introduce world-class cloud infrastructure through the Oracle Alloy product.

The MOU was signed on May 10th in Port Moresby as Information and Communication technology Minister Timothy Masiu welcomed Oracle Corporation into PNG to support the government's digital transformation agenda.

Mr.  Masiu congratulated DataCo for this initiative and welcomed the signing of the MOU. He said the world re-known company Oracle, specializing in cloud technology has offered to invest in critical digital infrastructure in Papua New Guinea.

"I met with PNG Dataco and Oracle officials this week and am impressed with what they can bring in including training and capacity building and to work with PNG DataCo to strengthen and expand their digital infrastructure to support the overall government digital transformation agenda."

Mr.  Masiu encouraged PNG DataCo and Oracle to continue working in partnership with the Department of Information and Communication Technology as the department under the Digital Government Act 2022 is managing a "whole-of-government" approach to delivering cloud technology services.

The Department has advanced design and development of various critical e-government services including single sign-on to digital services and the eGovernment Portal, he said.

Mr.  Masiu urged government entities to work with DICT, DataCo and Oracle to make this partnership feasible through providing required information and data to plan, tailor and customize their infrastructure and technical skills and build rollout plans in line with DICTt s framework and road map.

"Our people desperately need digital services made simple, fast, and easy. With our geography and terrain, services are hard to reach our people but there are certain services that can be offered digitally and this is what the government envisions through the Digital Transformation Policy. We are ambitious in this endeavor as we head towards our silver jubilee in 2025."

PNG DataCo Limited are keen for Papua New Guinea’s communications infrastructure and the future of connectivity.

PNG DataCo Limited CEO, Paul Komboi, GCL, OBE, made a presentation on Papua New Guinea’s communications infrastructure and the future of connectivity in the region at the Innovation PNG 2023, held at APEC Haus, Port Moresby on 10 November 2023.

He discussed the PNG Communications Market Snapshot, Supporting PNG’s Digital Ecosystem, DataCo Digital Infrastructure Plan, alignment with GoPNG’s MTDP-IV, Key Programs, and other innovative programs.

This is the next step Dataco is taking in supporting PNG’s future in digital connectivity.