PNGX Group, operator of Papua New Guinea’s national stock exchange, is pleased to announce that it has received advice from the Internal Revenue Commission (“IRC”) that, having looked into the taxation treatment of the various PNG residents impacted by the establishment of depository interests (“PDIs”), the IRC is satisfied that the existing tax treatment of dividend income will not be altered significantly. Similarly, the treatment of stamp duty will not be altered significantly.

The IRC has accepted that PDIs will be treated as a pass through arrangement for income tax purposes. This means that PDI holders will be taxed on any dividend distributions they receive on PDIs as though they were shareholders receiving the company dividends directly, subject to overseas withholding tax. PNG dividend withholding tax will not be applied.

PDIs will be subject to the same stamp duty arrangements as ordinary shares. That is, onmarket transfers of PDIs on PNGX will not be subject to stamp duty. Off-market transfers of PDIs not on PNGX may be subject to stamp duty as the transfer of a marketable security.

Newmont Corporation is the first company to be listed in PNG using PDIs. The IRC has acknowledged that the use of PDIs may be more common going forwards.

The IRC reserves the right to reconsider its position should new information come to light

“Without this positive advice from the IRC, PNG holders of PDIs would have faced complex taxation treatment of dividends from overseas companies listed on PNGX using PDIs. This complexity would have been to the disadvantage of both PNG investors and the PNG capital market” said PNGX General Manager, Ms Elizabeth Wamsa. “The advice from the IRC means that investors will receive dividends net of USA withholding taxes, and they will need to seek their own advice on the taxation of the dividends and their entitlement to a foreign tax credit”.

“We thank the IRC for its pragmatic considerations and its support for the development of the capital market,” she said.

Prime Minister and Treasurer Hon. James Marape has welcomed the positive update from New Porgera Ltd (NPL) regarding the Porgera mine’s reopening. He conveyed his satisfaction with the announcement that the restart of Porgera is well underway and on schedule, with the first gold production expected in the first quarter of 2024.

Expressing his appreciation for the concerted efforts of all parties involved, Prime Minister Marape stated,

“I want to assure Papua New Guinea that Porgera mine is fully operational now, with first gold production underway.

“This announcement by NPL not only signifies a pivotal phase in the Porgera mine’s reopening but also underscores the government’s resolve to ensure fair and substantial returns from natural resources for all stakeholders involved.”

He also commended Barrick Niugini Ltd for its exemplary leadership in reinstating the operational status of the mine, adding, “The mine being operational once more is testament to the negotiations between a world super major, Barrick Gold Corporation, and the National Government under the theme of ‘Taking Back More from Our Natural Resources’.”

Prime Minister Marape reflected on the past arrangement of the Special Mining Lease (SML) 1, retired in 2020, where Papua New Guinea held a minimal stake.

He detailed the enhanced terms of the new agreement, stating, “Today, under the new arrangement, landowners and the Enga Provincial Government will have 15 per cent equity, 3 per cent royalities, and there will be no tax holidays by the mine.”

He emphasised the improved distribution of the project’s benefits, with Papua New Guinea receiving 53 per cent and investor partners 47 per cent.

Highlighting the financial implications of the project, Prime Minister Marape noted the valuation of NPL and the potential for the State’s share to be repaid within a promising timeframe, due to favorable market conditions.

He underscored the strategy for financial contribution and recovery, explaining, “The State, through Kumul Minerals Holdings Ltd, contributed no cash for equity and will repay through earnings from its share.”

Prime Minister Marape reassured landowners of the government’s dedication to inclusive and constructive dialogue, as demonstrated by the planned Landowners Consultative Forum in Wabag.

He emphasised the commitment to addressing stakeholder concerns and equitable benefit distribution, stating, “All position papers that have been received will be packaged and we will come and meet the landowners – either in late February or early March – and we will start negotiations on the split in total benefits for all stakeholders.”

Treasury has recently approved the Manus Provincial Government Budget of K180,594,462, presented last week to Prime Minister Hon. James Marape.

Prime Minister Marape said the Manus provincial budget, and the budgets of Enga, New Ireland Province and the Autonomous Region of Bougainville have been approved.

Governor Hon. Charlie Benjamin presented the K180,594,462 money plan, including the Manus District Development Authority Budget and budgets for his 12 local level governments to the Prime Minister to comply with Section 105A of the Organic Law on Provincial and Local Level Government.

Governor Benjamin said he was thankful to the Prime Minister and the National Government for the 2024

Budget allocation of Service Improvement Program grants and Functional grants to his province, including infrastructure funding under the Connect PNG Program for the Manus highway.

Forty (40) percent of the budget is earmarked for the development of infrastructure and related programs as stimulus for economic growth of the island province.

Key expenditure is as follows: – Infrastructure – K54.4 million (30%), Economic – K17.2 million (10%), Education – K35.4 million (20%), Health – K5.5 million (3%) while Personnel Emolument and Administration together totaled just over K52 million.

For the 2024 PSIP plan, Education takes the biggest slice of K3million at 30 percent, Economic programs next at K2.7million or 27 percent, Infrastructure at K2million (20%) and Administration at K1 million (10%).

For the 2024 DSIP, Education again holds the lead at K6 million (60%), and everything else – Administration, Health, Law & Order, Church Projects – at K1million each (10% each).

The 2024 Special Support Grant break up is as follows: Economic K4million at 40 percent; Education and Transport each at K2 million (20%); and Infrastructure (Buildings) and Law & Order each at K1 million (10%).

Manus is placing emphasis on the development of its revenue sources and the creation of a Special Economic Zone as the main strategy to generating more revenue between now and 2030.

Prime Minister Marape acknowledged Governor Benjamin and MPG for being among the first province to present their budget, while affirming National Government commitments to assist fund shared responsibilities such as infrastructure, the provincial hospital and technical colleges.

Swire Shipping announced today that Westwood Shipping Lines (Westwood), a niche vessel operator specialising in the trade between the Pacific Northwest and Northeast Asia, will change its name to Swire Shipping effective 1 February 2024. Swire Shipping acquired Westwood in June 2022 as part of a growth strategy to expand its liner network in North America.

The rebranding builds on Westwood’s deep legacy in the Pacific Northwest and Northeast Asia, and enables a more seamless customer experience, leveraging synergies and capabilities in containers, networks, and projects across the global Swire Shipping network to better serve customers throughout North America, Japan, South Korea, and China.

“The integration of Westwood Shipping Lines reflects our continued investment and expansion in the North Pacific. With our shared values of safety, operational excellence, sustainability, and reliability, we are poised to elevate our services and provide an even stronger value proposition for our customers,” said Ben Pike, Chief Operating Officer, Swire Shipping.

Swire Shipping will continue to operate its Puyallup, WA, office as the regional hub for its North America operations. Seven vessels from the Swire Shipping owned fleet will operate on the Westwood service within the expanded global network, with four vessels retaining their existing Westwood name and green hulls in a nod to its 130-year legacy.

Harry Stones, newly appointed President of Swire Shipping North America, said, “With its reputation for reliability and quality, Westwood has built a loyal following among customers and service partners in North America and North Asia. This marks the start of an exciting new chapter, as we look to expand our capabilities and further establish ourselves within the region as a leading provider of innovative global shipping and logistics solutions. The Westwood service will complement Swire Shipping’s other services in North America with the Sun Chief Express Ocean Service and the US West Coast – Pacific Islands service.”

In recognition of the strong ties with Japanese customers and their supply chains, as well as to strengthen its transpacific reach, Swire Shipping also announced the establishment of a new office in Tokyo, Japan, bringing representation in-house and enabling more direct engagement with customers.

Chris Robertson, General Manager, Asia and Northern Hemisphere, Swire Shipping, added, “Swire Shipping has a long-standing presence in Japan and South Korea. The rebranding of Westwood Shipping Lines further strengthens our position in these important markets. Moreover, in a move that sets us apart in the Japanese market, we have transferred our representation in Tokyo to our own branch office, reflecting our commitment to customers and our confidence in the region’s growth potential.”

This move allows Swire Shipping to consolidate its agency representations in Japan by bringing agency representations previously held by Ben Line Agencies (Japan) Ltd and Senwa Maritime Agency Ltd in-house. To maintain strong customer relationships and ensure continuity, staff from Ben Line Agencies and Senwa Maritime will be transferred to the new Swire Shipping branch office.

Minister for International Trade and Investment, Hon. Richard Maru urged his Department Head and Agency Heads to deliver results this year. Minister Maru made this statement in a meeting recently with the heads of Department of International Trade and Investment, National Trade Office, Special Economic Zone Authority, and the Securities Commission of Papua New Guinea to review their 2023 performance and to agree on their Key Performance Indicators (KPIs) for this year.

Some of the 2024 KPIs agreed on were delivering of four Special Economic Zones (SEZs) this year, launching of the Papua New Guinea (PNG) SEZ Foundation Policy, repealing of the Securities Commission Act and have a new Act called the Capital Market Act, Operationalizing the Trade Commission Service, preparations for PNG’s participation at the World Expo 2025 Osaka, building shipping links between Papua New Guinea and Indonesia, establishing a new Joint-Venture rice company to replace K900 million annual imports of rice, replacing imports, developing exports, downstream processing, growing trade, and establishing Free Trade Agreements with the Republic of China and the Republic of Indonesia.

Minister Maru said: “We must have stretched targets and deadlines of what we will deliver this year as a Ministry. Our targets must be what the Government wants and what will make a big difference to the people in the villages and towns and cities including the creation of thousands of new jobs which the country badly needs. I want to see results that will impact the country and will move the country forward, not little things to justify your existence.”

Minister Maru further stated: “Last year was a foundation year. This year everybody must deliver, and I will be very strict, in fact every quarter I will calling a meeting with you individually to go through your targets and to know where you are at. Time for trial and error and setting up the new Ministry and Department ended last year. Now we must set our targets, be clear on it, focus on them, put resources and energy towards achieving those targets, and we must deliver to Papua New Guinea.”

Minister also stressed that Departments and Agencies rose and fell on the leadership of their Heads.

“Leadership starts with you. Set the standards and demand these standards. Those who are chewing betel-nut and those who are continuously coming late should not be part of the staff; they need to be removed. We must have a disciplined and focused staff with the right attributes to serve the country. We need high-performing public servants and not liabilities. Discipline starts with you at the top,” said Minister Maru.

“Our Ministry is the face of the country to the investors- both local and international so we must set a very high standard in the way we dress, the way we carry ourselves, and the way we perform. We must be results-driven because people expect a lot from us,” added Minister Maru.

Mining Minister Honourable Muguwa Dilu, recently said delivering Porgera and Wafi Golpu projects, and progressing Freda River were amongst the government’s key priorities under his leadership.

The Minister outlined his priorities during the hand-over-take-over ceremony of the Mining Ministry between him and his predecessor Hon Sir Ano Pala.

He said other priorities were:

1. To explore more opportunities for downstream processing of the country’s mineral resources, such as the recent agreement between the Kumul Mineral Holdings Limited (KMHL) and Ramu Nickel Mine.
2. Ensure review of the mining act 1992 is progressed.
3. Ensure that the consent compensation agreement for Porgera is successfully concluded so that production could commence.
4. Look into production sharing regime
5. Look into the prospect of establishing a gold bullion bank that will address the country’s issues with foreign exchange.
6. Develop mine closure policy.
7. Develop policies to support and improve the alluvial mining sector.

He said the mining sector was an important sector to the government as it contributes 70% the total Gross Domestic Product (GDP) of the country annually, brings in foreign exchange, creates job opportunities for citizens and brings benefits for project landowners.

Hon Dilu said it was critical that all stakeholders of the mining sector worked together for everyone’s interest and benefit. He said as the Mining Minister he would support policies that benefit all stakeholders.

Out-going Mining Minister Honourable Sir Ano Pala, officially handed over the Mining Ministry to the new Mining Minister Honourable Muguwa Dilu recently, during a ‘hand-over-take-over’ ceremony.

Hon Dilu was appointed as the Mining Minister in a cabinet reshuffle last week, that saw his predecessor Sir Ano, appointed as the National Planning & Monitoring Minister.

The hand-over ceremony was attended by the Acting Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, the Secretary of the Department of Mineral Policy & Geohazards Management (DMPGM), Harry Kore, their respective staff members, MRA board representatives, and representatives from the mining industry.

During the occasion, Hon Sir Ano highlighted that the priority projects for the government were the Porgera and the Wafi Golpu projects.

He told Minister Dilu that most of the work on these two projects had been done.

The porgera project had been officially declared open with the compensation agreement almost complete. The Wafi Golpu project is at an advance permitting stage for development, pending conclusion of negotiations of the Mining Development Contract (MDC).

However, he said there were other projects around the country that would need his political leadership and guidance.

Minister Pala expressed confidence in Minister Dilu, adding that he was a young, dynamic and a competent leader, and would provide good leadership for the sector.

Hon Sir Ano assured Hon Dilu, that the Mineral Resources Authority (MRA) and the Department of Mineral Policy & Geohazards Management (DMPGM) were two of the best state agencies. He expressed confidence in staff members of these organisations, saying that they (staff) were highly trained and are professionals in their respective roles. He urged Minister Dilu to support them and provide the necessary political leadership.

Minister Pala said during his tenure as the Mining Minister, he allowed the MRA and DMPGM staff to perform their roles independently without his involvement in the internal affairs of the two organisations.

He said his job was to make decisions based on competent advice from the two organisations.

He congratulated Hon Dilu on his appointment and wished him well in the future.

New Porgera Limited (NPL) is pleased to announce that the restart of Porgera is progressing well and is on track. First gold production is expected to be achieved in Q1 2024, as planned, subject to the Highlands Highway continuing to remain open and no further vandalism of project infrastructure.  NPL General Manager, Chad Coulin, acknowledged the tremendous effort made by the NPL workforce and the support of the regulator, the Mineral Resources Authority, to restart the Porgera mine in compliance with the laws of Papua New Guinea (PNG).

Following completion under the Porgera Project Commencement Agreement (PPCA) on 22 December 2023, the NPL team has stepped up and delivered outstandingly towards getting back into full production in Q3 as required by the PPCA.  The critical path to full production is re-standing or replacing relevant towers along the Hides Transmission Line.

In 2024 for the Porgera mine operations, there will be a spend of  K2.7B (US$749m) (est.), which is divided between K1.6B (US$442m) of direct operating costs (including K613m (US$174m) that will be capitalized prior to restart) and K1.1B (US$308m) of capital. The expected export revenue from Porgera gold sales in 2024 is K1.8B (US$504m) which will assist in boosting PNG’s foreign exchange reserves.

Expenditure on PNG sourced goods and services is estimated to be over K600m during 2024. Over 3,000 Papua New Guineans will be employed by NPL by the end of 2024 with a payroll for the year of K150m (US$42.6m). Royalties, which will be paid to landowners and the Enga Provincial Government, and 0.5% production levy to Mineral Resources Authority will amount to K63.4m (US$18m). Withholding taxes and custom duties payable to the National Government are estimated to be K28.2m (US$8m) for 2024.

NPL has already commenced payment of K4.6m in outstanding compensation fees for the period that Porgera was in Care & Maintenance and will shortly commence negotiation of the long term compensation agreements with landholder agents. 

The sharing and division of project benefits such as equity and royalties among stakeholders, will be agreed at the Government managed Development Forum process and be recorded in a Porgera Project Community Development Agreement that NPL will be a party to.

Under the Community Development Agreement, NPL will contribute through the Tax Credit Scheme to relevant infrastructure projects in the areas of health, education, roads and law and order.

Law and order continues to be a challenge and NPL calls for all stakeholders to support restart operations by contributing to peace in the valley with no further vandalism of critical infrastructure. 

The Credit Guarantee Corporation Limited (CGC) is pleased to announce the signing of groundbreaking agreements with ten leading financial institutions in the country aimed at providing critical credit guarantees to support small and medium-sized enterprises (SMEs) in Papua New Guinea (PNG).

These landmark agreements reinforces CGC’s commitment to bolstering the growth and development of SMEs, which are the backbone of the PNG’s economy. By partnering with financial institutions, CGC aims to alleviate the obstacles faced by SMEs in accessing affordable credit to develop and grow their business and ultimately contributing to economic growth and job creation in the country.

Under the newly inked agreements with FinCorp, Financial & Private Sector Staff Savings & Loans Society Limited, Kina Bank, MiBank, Moni Plus, Nasfund Contributors Savings and Loan Society Limited, Nambawan Savings and Loan Society Limited, Peoples Microbank Limited, Resources & Investment Finance Limited and Womens Microbank, CGC will provide credit guarantees to the partnering financial institutions, enabling them to extend much-needed credit facilities to SMEs. Through this collaboration, SMEs will have improved access to financing, allowing them to expand their businesses, create employment opportunities, and contribute to the overall economic growth of PNG.

In a speech delivered for the Prime Minister by the Chief Secretary Mr. Ivan Pomeleu, he said, “Today marks a significant step forward in our collective and sustained efforts to foster economic growth, support small and medium-sized enterprises (SMEs), and create avenues for increased employment opportunities.”

Mrs. Elizabeth Genia, Governor of the Bank of PNG said, “CGC’s role is a strategic enabler and the signing of the agreements today is also the start of the long journey to achieving the various strategic objectives set by the Government, notably the SME Policy, the PNG Development Strategic Plan, Vision 2050, the Financial Inclusion Policy, the Green Finance Policy and the recently launched Medium Term development plan IV, amongst others.

Mr. Dominic Sikakau, CEO of CGC, expressed his enthusiasm about the agreements, stating, “These partnerships mark a significant milestone in our efforts to empower SMEs and drive economic growth in PNG. By providing credit guarantees to our partnering financial institutions, we are facilitating increased access to finance for SMEs, nurturing entrepreneurship, and encouraging growth across different sectors of our economy.”

Mr. John Cholai, Chairman of Nambawan Super Savings and Loans (NSLS) in his remarks said “CGC provide NSLS the confidence to enter the MSME space, a space that for a long time has been occupied by commercial banks. The support will allow us to grow our capacity and capability into expanding out more to the MSME space and off course the self-employed sector. 0ver 43% of our membership are females and the CGC offers us great opportunity to support women in business, while promoting ‘saving first culture’.”

The signing ceremony was attended by Chief Secretary on behalf of the Prime Minister, CEOs of various participating financial institutions, the Governor of Bank of PNG, representatives from various government departments and donor agencies, underscoring the collaborative and concerted effort to address the financing needs of SMEs in PNG.

The agreements signify a crucial step forward for CGC in supporting the growth and sustainability of SMEs, as well as the overall economic development of PNG. CGC remains dedicated to fostering an environment where SMEs can thrive, innovate, and contribute to the nation’s prosperity.

Bank South Pacific Chief Executive Officer, Mark Robinson, expressed his enthusiasm for the economic potential of Papua New Guinea over the next decade. During a meeting held on Tuesday, January 23, 2024, Robinson conveyed his confidence in the country’s trajectory to Prime Minister and Treasurer Hon. James Marape.

Prime Minister Marape highlighted the nation’s readiness for significant growth over the next 10 years, commencing in 2024, driven by the development of six major resource projects. Emphasising his expectations for a substantial economic surge, Prime Minister Marape foresees Papua New Guinea achieving a noteworthy milestone, reaching a K200 billion economy by the year 2030.

These pivotal projects include the reopening of the Porgera mine, the progression of the Wafi-Golpu mine, and the strategic development of Papua LNG, P’nyang LNG, Pasca LNG, along with the promising new Wildebeest gas discovery by ExxonMobil in the Eastern Papuan Fold Belt.

“We want you to grow higher over the next 10 exciting years coming up,” Prime Minister Marape conveyed to Mr. Robinson.

In response, Mr. Robinson expressed his excitement, stating, “I’m very excited, and there is a lot more we can do to serve the country and the region, and be more efficient.”

He further added, “The people of PNG benefit from our income as shareholders. About 85 per cent of the bank is owned by PNG. We’ve also got 10 per cent ownership from Pacific countries.”

The meeting between Prime Minister Marape and Mr. Robinson covered various important issues related to the PNG economy. The shared optimism and commitment to growth underscore the collaborative efforts to harness the economic opportunities that lie ahead.

In a significant diplomatic engagement, Prime Minister and Treasurer Hon. James Marape underscored the pivotal role of Malaysia as a “very important” bilateral partner for Papua New Guinea (PNG). The statement was made during the welcoming address to the new Malaysian High Commissioner, H.E. Hamizan Hashim, on Tuesday, January 23, 2024.

Prime Minister Marape expressed the crucial role played by Malaysian companies in PNG, stating, “Your country is a very important bilateral partner to Papua New Guinea.” He continued by acknowledging the substantial impact on the economy, revealing that over 800 Malaysian companies are registered in Papua New Guinea, generating more than 30,000 jobs.

“At the business level, we are working with investors to expand agriculture, downstream forestry, fisheries, and other areas of the economy,” affirmed Prime Minister Marape.

“As you take up your post, I welcome you and look forward to actively working with you. I want to entrench and elevate the relationship between our two nations – more people-to-people, more business-to-business, and more government-to-government.”

Highlighting Malaysia’s economic growth, Prime Minister Marape expressed admiration, describing Malaysia’s transformation from a developing country into an economic powerhouse as an “inspiration” for Papua New Guinea. The Prime Minister mentioned a recent meeting with Malaysian Prime Minister Hon. Anwar Ibrahim during APEC 2023 in San Francisco, where both leaders extended invitations for reciprocal visits.

Announcing plans for a bilateral meeting with Prime Minister Anwar Ibrahim later this year, Prime Minister Marape emphasiSed the importance of strengthening ties between the two nations. The exact date for the meeting will be determined in the coming months.

PNG Air regrets to advise our customers and the travelling public as of midnight, due to the implementation of restrictions by our jet aviation fuel supplier across the country, PNG Air scheduled flights are subject to late boarding and slight delays.

The disruption of flights will be ongoing until the supply restrictions on jet aviation fuel are uplifted.

At this juncture, upon evaluation of available fuel reserves, PNG Air will still maintain its current flight schedule and will update this in due course if deemed necessary.

Our Call Centre team will make its best efforts to be in contact with customers who have purchased tickets for onward travel who could be affected by these delays.

PNG Air sincerely apologises for any inconvenience this may cause, and appreciates your understanding during this time as the situation is outside of the airline’s control.

For more information, please contact our Call Centre on 16111 (Digicel toll free) or 7411 2644 (Bmobile and Telikom)

PNG Air wishes to advise passengers and the traveling public of the bomb threat email that was circulated this morning to certain stakeholders in the aviation industry.

As a third party recipient to this email, PNG Air does not compromise on safety and takes this threat seriously.

To mitigate this threat, across the PNG Air network, stringent security measures are in place to ensure the safety of our passengers, ground staff, operating crew and aircraft.

• Passengers will be subject to pat downs and bag searches as deemed appropriate by airline security personnel.
• The airport apron and ramp area are sterile areas and will require ASIC red passes in order to be accessible.
• Additional security personnel have been stationed at areas identified as high risk to monitor and evaluate the severity of this threat and de-escalate the situation should the need arise.

These measures will remain in place indefinitely until such time PNG Air can determine safe operations of its crew and aircraft and the threat reduced and cleared.

PNG Air sincerely apologises for any inconvenience this may cause and appreciates your understanding during this time.

St Barbara on Tuesday 23 January 2024 released a market announcement on the ASX regarding the progress of its drilling programs at the Simberi mine in New Ireland province.

The announcement highlights the following:

• St Barbara targeting an upgrade at Simberi of 1 Moz from Inferred Mineral Resource to Indicated Mineral Resource
  • 12 resource definition diamond holes completed so far for 2,348 metres.
  • Assay results received for the first two diamond holes support the interpreted ore zones between the main Pigiput and Sorowar pits.
• Completed 14-hole metallurgical diamond drill program for 1,856 metres.
  • Assay results returned for the first 10 holes and the first sample material was dispatched by air freight

“We are pleased to announce that excellent progress has been made with the Simberi metallurgical sample drilling and resource definition programs. Drilling has been progressing slightly ahead of internal schedules, while receipt of the assay results has been slower than anticipated,” said the Managing Director (MD) and Chief Operating Officer (CEO) of St Barbara Andrew Strelein.

The resource definition drilling campaign will support the work being carried out to convert a target of 1 Moz of the Inferred Mineral Resource to Indicated Mineral Resource. The results will be incorporated into an Updated Mineral Resource and Ore Reserve estimate at the end of FY24.

“We are very excited to now be able to focus both diamond rigs on the completion of the resource definition drilling program. We are targeting the conversion of 1 Moz of Inferred Mineral Resource to Indicated Mineral Resource."

"The completion of the metallurgical drilling is an important milestone for the 2023/24 campaign. The first batch of sample material was dispatched this week to the selected laboratory in Canada,” confirmed Andrew Strelein.

The resource definition drilling is targeting an upgrade at Simberi of 1 million ounces from Inferred Mineral Resource to Indicated Mineral Resource. This 1-million-ounce target is not new “ore”, but rather is an upgrade (or increase in the level of certainty) of the mineralisation. It allows an increased amount of ore to be included in the study work on the Sulphide expansion project.

"To date we have completed 12 of the 24 resource definition drill holes, with assay results received for the first two holes supporting the interpreted ore zones between the largest open pits, Pigiput and Sorowar pits," said Andrew.

St Barbara also completed the 14-hole metallurgical drill program, with the sample material being sent to Canada for test work on different aspects of the ore required for the Sulphide expansion project.

The focus over the next few months will be on the completion of the remaining resource definition drill holes, followed by the deep exploration holes.

Mayur Resources Limited is pleased to advise that it has finalised the funding structure with its partners on the Orokolo Bay Mineral Sands project in Gulf Province of PNG having executed a series of legally binding contractual agreements with PT SEA First Nickel Industry (PTSFNI). The executed contractual agreements cover the full funding of the Orokolo Bay project, entailing the construction and operation by PTSFNI of the Orokolo Bay Mineral Sands project. In return PTSFNI shall be provided a 51% equity stake in the project.

PTSFNI is a Nickel, Ferrous, Non-Ferrous and New Energy Materials Development Company with its activities primarily based in Indonesia. The shareholders of PTSFNI and its parent company are involved and responsible for the transformation of Indonesia’s downstream processing smelting operations in ferro Nickel and Stainless Steel operations.

PTSFNI have agreed to fully fund the development of the Orokolo Bay project through to annual nameplate capacity output of 400,000 tonnes of Vanadium Titano Magnetite (VTM) concentrate, 100,000 tonnes of Dense Medium Separation material, 1,000,000 tonnes of construction sand and 10,000 tonnes of Zircon concentrate (these nameplate capacities having been contractually agreed).*

PTSFNI shall provide all required capital, construction, and operational works ensuring the project is fully funded through to first cashflows. In the event that the development of the Orokolo Bay project to nameplate capacity exceeds A$25 million, PTSFNI will provide the additional funding to MIPP and receive a priority repayment of that additional amount above A$25 million.

PTSFNI shall be provided Class B shares in the Company’s 100% owned subsidiary Mayur Iron PNG Pte Ltd (MIPP), whilst it fulfils its contractual development and funding obligations. Upon satisfactory completion of such obligations and the project successfully achieving 2 successive shipments of VTM (circa 50,000 tonnes per shipment), such Class B Shares shall convert into Class A Shares in MIPP.

PTSFNI also has the exclusive right to earn a 51% equity ownership stake in the four other mineral sands projects that the Company currently possesses (Western, Gulf South, Malalaua and Amazon Bay), subject to further agreement at that time, with such terms intended to be broadly consistent with that adopted for the Orokolo Bay project. The exclusive right is a “right of first refusal” under which PTSFNI has the right but not the obligation to partner on Mayur’s four other project areas, with such right to be exercised by PTSFNI not later than 12 months from the date of commercial production from the Orokolo Bay project.

Mayur has also agreed for PTSFNI to become a significant shareholder in the listed parent Company via an offmarket placement (within placement capacity under ASX Listing Rules 7.1 and 7.1A), acquiring 9.9% of the Company at a 15% premium to the 30 day VWAP (being A$0.1912971) prior to the announcement of this Transaction. The metrics of the placement are 33,274,018 shares issued at a price of approximately 22 cents per share (being a 15% premium) for a consideration of AU$7,320,000. PTSFNI has agreed to make available such funds 30 days from this announcement and have also agreed to hold its Mayur Shareholding in voluntary escrow should funding from the placement proceeds be loaned to MIPP for working capital purposes and such loan remains outstanding.

KEY HIGHLIGHTS OF THE EXECUTED AGREEMENTS

• PTSFNI commits via legally binding Shareholder and Subscription Agreements (Agreements) to fully fund the development of the Orokolo Bay project for a 51% equity stake in MIPP. For development costs that exceed A$25 million, PTSFNI will receive priority repayments for those surplus amounts out of the Project’s cash flow.
• PTSFNI shall earn Class B shares in MIPP that shall transfer into Class A shares (Class A shares being issued and fully paid ordinary shares) in MIPP upon meeting predefined milestones, none of which are convertible into Shares in Mayur. The Class B shares are equivalent in all material respects to the Class A shares, other than that they rank in second priority to the Class A shares, and are not able to be converted into Class A shares until the predefined milestones are achieved. Mayur presently holds 100% of the Class A Shares on issue in MIPP.
• PTSFNI rights of being provided Class B and Class A shares for achieving milestones stated in the Agreements are secured by Security Deeds across the MIPP Portfolio (including its subsidiaries). The Security Deeds provide a general security over 51% of the assets and undertakings of each of MIPP and its subsidiary companies, Ortus Resources Ltd, and Mayur Iron PNG Ltd.
• PTSFNI shall be responsible for appointing an arms-length Engineering Procurement and Construction (EPC) contractor to build the mineral processing plant.
• PTSFNI shall give consideration to the engagement of a PNG based contract miner and construction subcontractor to complete mining and civil components of the capital construction requirements.
• MIPP may loan working capital from the Company subject to PTSFNI escrowing its shares until such borrowed funds are repaid in full. If funds are not repaid within a mutually agreed prescribed timeframe such escrowed shares may be cancelled. The cancellation of Mayur shares is subject to compliance with the Companies Act (in Singapore, being Mayur’s domicile) including obtaining necessary shareholder and/or class approvals.
• Working capital expenditure for the provision of expertise by both the Company and PTSFNI shall be allocated via mutually agreed service level agreements.
• All produced Hi Titanium mineral sand material (not allocated in any annual production volumes or forecast economics to date) shall be exclusively provided to PTSFNI for sale or further down stream processing.
• PTSFNI shall provide all required capital, construction, operational works ensuring the project is fully funded through to cashflow sales without any dilution of Mayur Shareholders at the Holding Company level post this Transaction being completed. In the event that the development of the Orokolo Bay project to nameplate capacity exceeds A$25 million, PTSFNI will provide the additional funding to MIPP and receive a priority repayment of that additional amount above A$25 million.
• Both Mayur and PTSFNI are to be paid back pro rata their audited capital expenditure in the development of the project, with surplus proceeds being split 51% PTSFNI and 49% Mayur. Mayur otherwise retains 49% of all future profits while PTSFNI receives 51% of all profits.
• PTSFNI to be given opportunity to roll out this development model to the other mineral sands licences in the MIPP portfolio as well as other available projects in the Mayur portfolio i.e. clinker/cement and solar.
• Reflecting the collaborative approach and alignment of interests in the Orokolo Bay Project, both Mayur and the Investor will each appoint two Directors to the Board of MIPP, ensuring balanced representation. The Board of MIPP will consist of no more than four Directors, facilitating efficient decision-making and strategic oversight.
• The Agreements with PTSFNI are governed by the laws of Singapore, being MIPP and Mayur’s place of incorporation.

Mayur Chairman, Mr Richard Pegum, commented:

“I am excited in realising the vision of Mayur’s Management after a decade of hard work being the 1st of our 5 mineral sands licences we have been developing. The arrangement is such that landowners and local communities will receive material employment directly coupled with the establishment of additional support service businesses. While the agreement minimises the dilution of Mayur Shareholders, it provides PTSFNI with an aligned parent company strategic stake across all of Mayur’s divisions being Minerals Sands, Limestone, Quicklime, Clinker/Cement, Power Generation, Renewable Energy, Special Economic Zone, Carbon Credits and Copper Gold.

“PTSFNI will also at the subsidiary level receive a 51% equity stake in the future economics of the Orokolo Bay project and the much larger portfolio of additional mineral sands projects the company has been developing over the last decade. PTSFN having a proven, large-scale track record in Indonesia, just next door to PNG (also in a total greenfield remote environment at an eye watering scale far bigger than the Orokolo Bay project), gave me immense comfort when recently visiting such facilities.

“PNG with the right proven and experienced development partners could also grow into a major down stream processing manufacturing hub. I wish to sincerely thank the local landowners and the PNG Government and Provincial administration for their ongoing support where we can now deliver the infrastructure and social projects we have committed to.”

President PTSFNI James Chen PHD, said:

“We have been looking at PNG for several years and have waited to partner with a group that has a proven track record and an advanced but sustainable bulk commodity portfolio of projects. Mayur have demonstrated their capability to originate and bring greenfield projects through the development cycle to the construction ready stage where we can now get involved in a significant way. We feel Mayur and its key management are highly aligned and wish to put our name alongside them as partners and shareholders.

“Our objective is to commence with the Iron and mineral sands portfolio, where value add downstream processing of a comprehensive recovery of iron, titanium and vanadium is one of our strengths. We ultimately see access to domestic steel, a key ingredient for a developing nation such as PNG, as important as, committing to a project where the landscape lends itself to ‘long term sustainable post mining industries’. Orokolo Bay has a unique landscape, where post mining land use such as corn plantation, rice plantation and fish farming as well as other agriculture opportunities are immense. These industries shall be established in partnership with landowners and respective local, provincial and state government agencies and shall set the economic foundation of the area, well after mining has ceased.

“Part of the rationale of PTSFNI taking a material position at the parent company of Mayur Resources is they have complementary advanced building material projects in Cement and Lime. In combination with our Iron/Mineral Sands investment the Company will have established essential and critical nation building ingredients of iron and cement that is needed to build and sustain any nation on planet earth, especially PNG as a developing country.

“Our attraction to be involved in PNG’s downstream processing building blocks commodity drive, is to replicate the success Indonesia has achieved, transforming its nation with downstream processing and industrial parks. PNG now has the same opportunity with SEZ’s, export & manufacture of its own products, replacing imports and generating jobs and wealth internally, rather than draining foreign currency reserves and still importing the most basic of building materials of cement and steel when all the raw materials reside in abundance within PNG.

“Knowing the Company’s Board had already made a Financial Investment Decision on the Orokolo Bay project and announced optimisation of a financing arrangement, we feel our mutual commitment to building high quality impactful projects in PNG can now be realised through this partnership. We look forward this year to being in the construction phase of the Orokolo Bay project with the endeavour of being ready to commission our first ore production.”

The Company notes that it is an issuer of CDIs and accordingly references to Shares in Mayur Resources Limited in this announcement refer to an issue of CDIs interchangeably.

Further information on PTSFNI

PTSFNI is an Indonesian company, registered in 2017 under the law of Indonesia. Mayur and PTSFNI have been in confidential discussions as to this transaction since October 2023 and both parties have undertaken extensive mutual due diligence as to the Orokolo Bay project which have included on-site meetings between Mayur senior executives and PTSFNI in both PNG and Indonesia over the last three months. Although PTSFNI is a private company incorporated in Indonesia, Mayur has confidentially assessed and validated PTSFNI’s financial, technical, and operational capability to complete its present and future obligations to Mayur and MIPP.

* The Company notes that the “nameplate capacity” referred to above is a contractually agreed requirement for PTSFNI to develop and commission a mining operation that is capable of achieving such state of performance. The Company notes that the nameplate capacities are derived from the DFS last updated in April 2022, a summary of which is also being released to market on 23 January 2024. All material assumptions underlying these production targets and forecasts continue to apply and have not materially changed.

For the Central Province, agriculture is at the heart of the economy. Governor Rufina Peter has a background in this field and is well-placed to understand the impact that it can have in the province.

This has moved Governor Peter to fund and support two major agriculture impact projects in the Central Province, and funding for them was presented at the Governor's Office on the 18th of January.

These are the Yaugala Cattle Farming Project, conducted under the Varagadi Land Group Inc. at Brown River and given funding support of K200,000, and the Bulb Onion training and demonstration plots, to be conducted under the Highlands Potato Connections at Laloki in the Hiri Koiari District.

Another 14 Mile project just outside of Port Moresby was supported with K100,000 also coming from the Central Provincial Government.

“The extent of the impact will depend on the both of you, on how you run your farm business, given that the bulb onion guy has the experience and you raising cattle it's your first time. You have support from my office with Michael Atuai, who is the Agriculture Projects officer in my office, and there are livestock officers I know we can utilize,” Governor Peter told the recipients.

The funding was given in the presence of Hiri Koiari MP Keith Iduhu, who reached out to both recipients, urging them to align their projects with his. The two projects will tap unemployed youths in the province; already, the Yaugala Cattle Farming Manager, Elliot Mark Yamuje, confirmed that six youths have been employed to assist, with more to be engaged.

“Cattle farming died out in the Central Province. Being part of the landowner group I want to bring that back, and already we have started with 30 heads of cattle that we bought from our funds from Rumion Farm in Lae. They are grazing on 40 hectares of prime land. Now with your funding support, we can extend a little and now bring in two to three male bulls, and ultimately we are looking at being the main distributor in the province supplying beef to the Papua LNG Project,” Yamuje said.

The other project set to make a major impact is the bulb onion training and demonstration plots conducted under the Highlands Potato Connections, which will be a model and demonstration farm at Laloki and 14 Mile respectively.

Joshua Lumbalumba from Goroka is the man behind the bulb onion, having his beginnings in the Highlands growing the crop and relocating to the Central Province.

Mr. Lumbalumba claims that Central Province has the best climate to produce world-class bulb onions that can replace the imported variety found in the shops and markets in Port Moresby.

“I am a farmer of different vegetables, but initially I was discovered by the Fresh Produce Development Agency (FPDA), they discovered me growing my onion as I was the first to plant bulb onion up in Daulo, and hired me to be the village extension worker for FPDA. This is where I shared my knowledge on bulb onion, to train villages in Gembog, and that’s how Gembog onion is all over the market," he said.

"I have my farm and over the years I developed my knowledge on how to grow marketable sizes of bulb onions. The onions from Gembog contain a lot of moisture compared to the ones at Daulo from where I’m from because there is heat, but I believe Central Province will have the best because the climate is perfect,” Lumbalumba stated.

The Governor's initial plan is for the Laloki and 14 Mile bulb onion plots to be training and demonstration models, where those interested can learn about how to grow onion and take it back to their various districts in the province and teach others.

Ok Tedi Mining Limited (OTML) generated a record K684 million (USD$184 million) for the month of December in 2023, the highest recorded monthly revenue for the year.

This result comes off the back of increased production and favourable metals prices, which were above budget for the month. Other factors contributing to the record revenue include strategic business improvements, operational efficiency, cost management, and uninterrupted copper shipments to buyers.

OTML produced Copper Concentrate of 45Kdmt to push up sales in December generating USD$107 million (K398 million). Additionally gold generated USD$75 million (K278 million) and Silver generated USD$2.4 million (K8.9 million).

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, said “We saw productivity improvements throughout the entire production chain from mine to mill and port. In addition, improved uptime and reliability on our crushing and processing plants compounded with exceptional operational efficiencies in the mine saw more quality ore being processed during the month.”

He said, “Support functions in the business including supply, logistics and power systems all worked in sync with the production team to deliver this exceptional performance. Effective cost controls were put in place by the Dry Weather Incident Management Team (IMT) including fuel conservation, contractor management, and rationalisation of critical supplies.”

Mr Ilimbit emphasised that this result underscores the success of the 'restore, reset, and reinvigorate' strategy implemented in 2023 to overhaul the business.

“We are continuously looking at transformational strategies to improve overall production efficiency whilst being cost effective. With these foundations, OTML will continue to generate revenue, remain profitable, and deliver to its shareholders and the rest of Papua New Guinea.”

Additionally, OTML continues to meet its environmental, legal, and social obligations.

“Maintaining a positive relationship with the mine impacted communities who give OTML the social license to operate, provides the company with the stability necessary to prioritise production and deliver benefits to its shareholders,” said Mr Ilimbit.

OTML recently declared a final dividend of K350 million to its shareholders, bringing the total dividend for the year 2023 to K450 million. This builds on the initial interim dividend payment of K100 million made earlier in the year.

With the Board's approval for the Mine Life Extension up to 2050, OTML envisions sustainable growth well into the future. The company is actively pursuing strategic growth projects, aligned with the current Strategic Business Plan, which are progressing successfully and anticipated to generate an impressive K30 billion (US$8 billion) in social benefits which include taxes, royalties, and dividend payments, over the next 27 years.

Steamships Trading Company Limited, through its property division, Pacific Palms Property (PPP), confirms that three of its properties were tragically set on fire last Wednesday.

The buildings that house the Stop & Shop North Waigani store and Stop & Shop Rainbow Gerehu have been completely lost in the fires, while the Badili site sustained severe damage to its western end which housed 2FastMotors and M&H Bookmakers.  These tenants have lost everything, and we extend our deepest sympathy to them.  The eastern end, housing Badili Stop & Shop, remains intact, and our PPP team is working tirelessly to secure the sites and expedite the reopening of the Stop & Shop store. The Company’s primary concern is for the safety and continuity of operations.

The immediate losses to Steamships are currently estimated at PGK86 million, with consequential losses expected to bring the total to just under PGK100 million.

 “As we navigate the complexities of the insurance process, our commitment is to commence rebuilding efforts as swiftly as possible. We stand in solidarity with those affected and advocate for the expedited prosecution of those responsible for these criminal acts. Steamships categorically condemns any form of property destruction.” Said Steamships Managing Director, Rupert Bray.

“In our role as a property and logistics operator, Steamships has extended its support to those impacted. The Company have proactively offered free laydown area at our new Portside Business Park to major stores affected by this incident.”

The PNG Business Council and the peak bodies have estimated that the cost for restocking and rebuilding is approximately PGK1bn. This unfortunate event diverts resources from new projects that could have significantly contributed to economic growth and employment opportunities.

Steamships acknowledges the recent meetings between the business councils, the peak bodies, and government officials. In light of these discussions, we urge the government to consider:

• Immediate capital support for the affected businesses to facilitate rebuilding and safeguard employment. In particular, we recommend immediate wage support for the staff of those whose businesses have been so badly affected. Having failed to prevent last Wednesday’s unrest, the government now has a duty to protect employment during these tough economic times.
• Prompt availability of foreign exchange for affected businesses to enable restocking and rebuilding.
• Expedited building approval processes to allow for swift reconstruction of our capital city.

It is disheartening to witness how the actions of a few individuals can negatively escalate to create disorder and impact the livelihoods of many hardworking Papua New Guineans in Port Moresby and other centres who experienced similar fate.

This is not who we are as Papua New Guineans.

Restoring investor confidence is imperative. We must ensure such incidents do not recur, as they undermine stability and progress. Steamships, with over a century of investment in PNG, is committed to rebuilding and leading recovery efforts. However, this requires collaborative support from the government and the citizens of Port Moresby.

Papua New Guinea is further extending the Visa on Arrival (VOA) facility to passport holders from Micronesian and Polynesian States and Territories to strengthen its relations with Pacific Island States and the Pacific Forum countries, the Chief Migration Officer, Stanis Hulahau has announced recently.

This means that passport holders from all Pacific Island States in Polynesia, Micronesia and Melanesia are now eligible for VOA at all authorized ports of entry in PNG, specifically Jacksons International Airport and Wutung land border post.

“I am pleased to announce that passport holders from all Pacific Island States and territories can now get visa on arrival," said the CMO Mr Hulahau. “They no longer need to apply for visa before their departure and we will communicate the same to all operating airlines and relevant international bodies on this new inclusion.”

Effective immediately, VOA is accessible to nationals from American Samoa, Federated States of Micronesia (FSM), Kiribati, Marshall Islands, Nauru, Palau, Samoa, Tonga, Tuvalu and the French Territories of French Polynesia (Tahiti), Wallis and Futuna and New Zealand passport holding countries and territories including Cook Islands, Niue, Tokelau and the United States territories of Guam and Northern Mariana Islands.

The inclusion of this island states now adds to the existing list of Melanesian countries including Solomon Islands, Vanuatu, Fiji and New Caledonia.

The CMO explained that Pacific islanders who travel to PNG must have an authentic passport at least six (6) months of validity and must produce a return ticket and the completed arrival card at an immigration officer on arrival as requirements for VOA. He said Pacific Islanders who meet the entry requirements will be issued with an Easy Visitor Visa for 60 days per visit.

The Chief Migration Officer is confident that the inclusion of all Pacific Island States to access this facility would encourage more movements and facilitation of trade and services, and tourism in the region.

Apart from the Pacific Island States, Papua New Guinea is also issuing VOA to Diplomatic, Official and Service passport holders from the People’s Republic of China, Japan, State of Israel and the Republic of Indonesia based on bilateral visa exemption agreements on reciprocal basis. Chinese tourists who hold ordinary passports and travels on organized group tours with a PNG registered tour operation are also eligible for VOA for a specific short stay only.

The people of Halia and Haku constituencies in North Bougainville can look forward to transformational change following the launch of the Rural Electrification Program today in Buka.

The Program was officially launched today by ABG Vice President and Member for Halia Hon. Patrick Nisira and National Member for North Bougainville Hon. Francesca Semoso, in the presence of ABG Member for Haku Constituency Hon. Patrick Koles, ABG Member for Veterans North Bougainville Hon. Callen Matuna, ABG Caretaker Chief Secretary Esther Usurup and other senior public servants.

ABG Vice President Hon. Patrick Nisira said that the Rural Electrification Program was significant because it is now being launched under ABG-owned company, Bougainville Power and Water Limited, who will lead this major development work.

The Rural Electrification Program for Bougainville was first launched in 2009 during the term of the first house of the ABG and had started in Tsitalato Constituency and gradually progressed on into Hagogohe Constituency.

“Through this Program now, lives will be transformed. It will help businesses to grow and other development will continue to happen. It will also compliment the road development that we already have,” he said.

Vice President Nisira emphasized to his constituents that during the initial rollout of this program, an understanding was reached with local chiefs that there should not be any compensation for clearance of land or food crops for this vital development, and appealed to his people that this same understanding must remain in order to access this service at the village level.

National Member for North Bougainville Hon. Francesca Semoso in her remarks, made a commitment of K1million towards the program, reaffirming her support to the development of North Bougainville.

“This is your money,” Semoso said, while pledging her support to see the Program continue on into Haku Constituency.

Hon. Semoso also announced that during her term, she is committed to seeing through major projects such as the completion of the sealing of the Buka Ring Road, including the highway on mainland North Bougainville.

Vice President Nisira thanked Member Semoso for her commitment, saying that over the years, despite commitments made by former national Bougainville members, they never lived up to their words to support the rural electrification program. However, he said that with this commitment made now by the National Member for North Bougainville, it will change the way things have been done in the past.

Nisira reiterated the ABG’s commitment to continue supporting real development for the people of Bougainville and the region’s collective preparedness for independence-readiness.

Australia has embarked on a collaborative effort with Papua New Guinea to enhance the nation’s access to reliable renewable energy sources, addressing the growing demand for electrification.

According to recent updates from the Australian High Commission in PNG, the partnership involves strategic initiatives aimed at bolstering PNG’s electrification requirements. One key initiative involves substantial repairs at the Ramu 1 hydropower station in Kainantu, Eastern Highlands Province. This operation has successfully unlocked an additional 17 megawatts of generation capacity for the Ramu grid, significantly improving the power supply reliability in major centers such as Madang, Morobe, and the Highlands region.

Australia’s commitment extends to the Port Moresby grid, where the focus is on installing new capacitor banks and transformers at crucial substations. These interventions are designed to strengthen power stability, mitigating instances of power outages within the region.

Significant strides have been made through refurbishment efforts, notably at the Rouna hydropower stations in Sogeri, Central Province. The completion of improvement works at these stations aims to enhance both the reliability and generation capacity of the grid. Further improvements are anticipated in early 2024, marking a pivotal moment in PNG’s journey toward a more robust and sustainable energy infrastructure.

The collaborative initiatives between Australia and PNG underscore a shared commitment to fortify access and reliability of renewa

ble energy. This partnership signifies substantial progress in meeting PNG’s escalating electrification needs, emphasising the importance of international cooperation in addressing the energy challenges faced by developing nations.

Australia is PNG’s largest trading and commercial partner, with bilateral trade worth AU$ 6.7 billion in 2018.