Prime Minister and Treasurer Hon. James Marape has issued a directive to the Department of Labor and Employment, emphasising the urgent need to address the longstanding minimum wage issue.

The directive comes in the wake of a meeting between Prime Minister Marape and Labor and Employment Minister, Hon. Kessy Sawang, where discussions revolved around various challenges faced by the department.

“The minimum wage issue has been outstanding since 2014,” Prime Minister Marape stated.

“I have instructed Minister Sawang that the minimum wage of K3.50 per hour should be reviewed to align with the escalating cost of living and changes in the Consumer Price Index (CPI).

“A comprehensive report will be presented to me at the earliest opportunity, allowing us to determine a fair rate that considers the plight of our low-wage earners while ensuring the continued viability of our companies, particularly small businesses.
“We are committed to striking a fair balance between the welfare of employees and the sustainability of businesses.

“This initiative reflects Pangu Pati’s unwavering commitment to ensuring that everyone in the economy can navigate these challenging economic times successfully.”

Prime Minister Hon. James Marape recently underscored the government’s commitment to delivering development for the people of Papua New Guinea, emphasising the responsibility of the six newly-appointed ministers and those reshuffled.

The Prime Minister made the six new ministerial appointments and reshuffled Cabinet last Thursday.

“My government is now into its second year in office, and I want to remind the new ministers and those reshuffled that our job is to deliver development to our people,” Prime Minister Marape reiterated.

He further highlighted the strategic placement of ministers to ensure specific sectors are revitalised and operating at full capacity. “Those appointed are expected to step up and deliver in their respective roles,” he asserted.

Prime Minister Marape emphasised the equal importance of all ministries, stating, “There is no big minister or small ministry; all ministers are the same. In a house of equals, some were picked ahead of others, considering regional and political party balances in our government coalition. I also considered young leaders, taking into account that they are the future.”

The newly appointed ministers are as follows:

• Koroba-Kopiago MP Hon. William Bando (United Resources Party) as Coffee Minister;
• Nipa-Kutubu MP Hon. Dr William Joseph (Social Democratic Party) as Defence Minister;
• Popondetta MP Hon. Richard Masere (Greens Party) as Key Constitutional Offices Minister;
• Kundiawa-Gembogl MP Hon. Muguwa Dilu (Pangu Pati) as Mining Minister;
• Esa’ala MP Hon. Jimmy Maladina (Pangu Pati) as Petroleum Minister;
• Obura-Wonenara MP Hon. John Boito (Pangu Pati) as Agriculture Minister.

In notable changes, Defence Minister Hon. Win Daki (Pangu Pati) has been reassigned to Commerce and Industry, filling the vacancy left by the court ousting of former minister Henry Amuli. Coffee Minister Hon. Joe Kuli (United Resources Party) has been moved to Correctional Services.

Additionally, the Internal Security portfolio, encompassing Police and Correctional Services, has been divided, with Minister Hon. Peter Tsiamalili Jr (Pangu Pati) focusing exclusively on Police.

Prime Minister Marape also disclosed adjustments to major portfolios:

• Prime Minister Marape assumes the role of Treasury Minister, with Hon. Ian Ling-Stuckey providing support;
• Mining Minister Hon. Ano Pala (Pangu Pati) becomes Minister for National Planning, leading to the division of the Finance and National Planning portfolio. Hon. Rainbo Paita (Pangu Pati) remains as Minister for Finance;
• Moresby-South MP Hon. Justin Tkatchenko (Social Democratic Party) resumes the role of Foreign Affairs Minister;
• The Petroleum and Energy portfolio is split, with Esa’ala MP Hon. Jimmy Maladina (Pangu Pati) becoming Petroleum Minister, while Sinasina-Yongomugl MP Hon. Kerenga Kua (PNG National Party) continues as Energy Minister.

Prime Minister and Treasurer Hon. James Marape recently expressed his commitment to thoroughly investigate key issues affecting the country in his capacity as Treasurer. The Prime Minister officially assumed the role of Treasurer following a Cabinet reshuffle announced last Thursday, succeeding Hon. Ian Ling-Stuckey.

The Prime Minister looks forward to a comprehensive review that aligns with the government’s commitment to economic stability and the well-being of the people.

“I will look into major issues affecting the country such as foreign exchange, the Central Bank, national fuel security, how fiscal and monetary policy can work in tandem, and many others,” Prime Minister Marape affirmed.

Acknowledging the accomplishments of his predecessor, he stated, “I am not taking anything away from Hon. Ling-Stuckey, as during his term, he elevated the role of Treasurer over the four challenging years. He will be assisting me as we undertake a holistic review of Treasury, including its relationships with National Planning and Monitoring, Finance, and the Central Bank.”

Over the next three to four weeks, Prime Minister Marape outlined his plan to reposition Treasury, emphasising the importance of finding solutions for outstanding economic issues, particularly foreign exchange and the national fuel security issue involving Puma Energy.

Additionally, the Prime Minister emphasised the need to scrutinise the events at the end of the 2023 financial year to prepare the 2023 Final Budget Outcome (FBO) for Parliament by March 31, in accordance with legal requirements.

Looking at the broader economic landscape, Prime Minister Marape asserted, “I will also engage with the Internal Revenue Commission (IRC) to examine the best tax modalities, including personal income tax, corporate income tax, Goods and Services Tax (GST), and other associated taxes. The tax review aims to align with the Pangu Pati’s people-centered approach, exemplified by initiatives like the K20,000 tax threshold, a first in our country.”

Addressing concerns about the impact on the 13-year Fiscal Plan to achieve a debt-free country by 2033, the Prime Minister clarified, “The tax review will not compromise Hon Ling-Stuckey’s fiscal plan. It will encompass the earnings from key projects such as the Papua LNG Project, P’nyang LNG Project, Pasca LNG, the Wildebeest LNG prospect, Wafi-Golpu Mine, and the New Porgera Mine.”

Expressing his personal stance, Prime Minister Marape concluded, “I subscribe to the notion of lesser tax for our people as long as we ringfence the economy. To ensure efficiency in tax collection, we have increased funding to the IRC in the past year and this year.

“We have demonstrated, over the past four years, that increasing funding for capacity-building within the IRC has yielded heightened efficiency and a substantial increase in revenue collection.

“Our achievement lies in doubling tax collection by the IRC, not through a direct tax hike, but rather by enhancing operational efficiency.

“In the current fiscal year, we have earmarked over K80 million to bolster the IRC’s endeavors. Furthermore, we have extended our support to Customs, aiming to fortify the efficiency measures for greater revenue collection and to shield against the impact of the black market economy.

“Upon the successful implementation of these efficiency measures, I am committed to unveiling a new tax regime for Papua New Guinea. This initiative is poised to coincide with the 50th anniversary of our independence, marking a pivotal moment in our fiscal policies.”

Kumul Petroleum Holdings Limited through its training entity, the Kumul Petroleum Academy (KPA) is expanding its training capacity by building a new training facility next door to its Fabrication Facility, now under construction near the PNG LNG Project Plant site at Caution Bay. As part of its expansion plans, KPHL today signed a ‘Manage and Operate’ agreement with Site WorkReady Pty Ltd, a subsidiary of Site Group International Limited.

The scope of the Manage and Operate Agreement will see professionals with the experience to run the Academy provide industry oriented skills training in oil and gas,  mining, marine as well as in general infrastructure industry. This will all be done in a real-life training environment.  

Both organisations share the ultimate goal of implementing real-life training environments to create long-term sustainable employment and opportunities for Papua New Guineans. This is to ensure greater participation during construction and operations of our resource projects.  

Kumul Petroleum Holdings managing director, Wapu Sonk said, “We are passionate about investing in programs and projects that will upskill and develop our young Papua New Guineans so that they are ready for the projects that are coming online now. But more importantly, one day we can own, develop and operate our own resource development projects at lower operating costs than what we experience today, where capital and skills are imported at a huge cost to the country. 

“Once our training facility comes into operation, it will significantly increase the range and scale of our technical training activities. It will also see the launch of engineering work experience programs in the country,” Mr. Sonk said.

Site International Operation Managing Director, Vern Wills said, “The new development at Caution Bay will be operational in 2 years and the training offered there will include a number of Site’s unique `barrier to entry` training modules, including underground mine simulation, engineering and electrical services, shut down services, ‘Safe Live Process Environment’ based engineering and leadership programs.”

The new Kumul Petroleum Academy facility will have the capacity to train 350-400 trainees  while the current facility at Idubada can facilitate 80-100 trainees. Both training sites will be graduating 400-500 trainees per year, contributing to the upskilling of human capital for various industries in Papua New Guinea, as well as the export of skilled Papua New Guineans to positions outside the country. 

Prime Minister James Marape and Bougainville President Ishmael Toroama have agreed to convene a Joint Supervisory Body Meeting early this year in Bougainville.

The two leaders met recently in Port Moresby to discuss matters about the Ratification, Intergovernmental Funding arrangements, and other matters concerning the development and political future of Bougainville.

The President and Prime Minister were accompanied by the Bougainville Attorney General Ezekiel Masatt, Minister for Internal Security and Regional Member for Bougainville Peter Tsiamalili Jnr, Bougainville Affairs Minister Manasseh Makiba and the Minister for ICT and Member for South Bougainville Timothy Masiu.

On the matter of intergovernmental funding, President Toroama expressed to the Prime Minister that he was only interested in funding that was constitutionally guaranteed to Bougainville.

President Toroama made particular mention of the Restoration and Development Grant which is funding that is at the Bougainville government’s discretion and its outstanding arrears that were still owed to Bougainville.

The President told Prime Minister Marape that emphasis on intergovernmental funding for Bougainville should be on the Restoration and Development Grant and tax remittance from internal revenue as opposed to other funding that was outside of the ABG’s purview.

It has long been a tendency for Bougainville to receive only a fraction of its annual budget funds from the National Government annually despite the National Budget showing Bougainville having the largest budget out of all the provinces.

In 2023 the ABG Budget had a K100 million allocation for RDG funding and another K100 million for the Prime Minister’s annual K100 million Commitment for Bougainville.

In reality, Bougainville received only K28 million for the 2023 RDG (Funding that can be controlled by the ABG) in stark contrast to K50 million for the PM’s Commitment (funding that cannot be controlled by the ABG).

President Toroama told the Prime Minister that any funding for Bougainville that was being controlled by the National MP’s and state agencies should be catered for outside of the ABG’s Budget and procurement process.

He explained that this would give clarity on Bougainville’s actual funds that is supposed to be utilized by the National Government.

This year's two primary tasks for the Autonomous Bougainville Government are progressing Bougainville’s Independence Mission and reopening the Panguna Mine.

Bougainville President Ishmael Toroama said that 98 percent of Bougainvillean’s desire for an independent sovereign state of Bougainville is firmly established by the results of the 2019 Bougainville Referendum.

President Toroama added that while the Referendum Results spell out the desire for Bougainville sovereignty the government and the people must work together to empower Bougainville’s socioeconomic capacity to support its future as an independent nation.

“The Panguna Mine is a multi-billion-kina resource that has remained dormant for almost 40 years now,” President Toroama said.

“Its mineral resources have the potential to transform the lives of Bougainvilleans through high-impact infrastructure development projects and improve and increase the human resource capacity of our people,” President Toroama stated.

“The fate of the Panguna Mine became entwined with Bougainville’s quest for independence when the Bougainville revolution began in 1989. Our Late Revolutionary Leader Francis Ona incentivized the Mine as the key to funding Bougainville’s Independence when we took up arms against our oppressors,” President Toroama said.

President Toroama said that if the Panguna Mine could fund Papua New Guinea’s independence, it should rightfully fund Bougainville’s Independence and development.

The post-referendum consultations between the National Government and the Autonomous Bougainville Government is still progressing.

With the National Government failing to ratify the referendum results last year, this process will likely be taking place this year.

President Toroama also explained that while his government focuses on reopening the mine this does not mean it will ignore the development of other industries in the economic sector such as tourism, agriculture and even manufacturing. 

Prime Minister Hon. James Marape announced recently the historic appointment of Ms. Elizabeth Genia as the first woman Governor of the Bank of Papua New Guinea (BPNG). Ms. Genia, who has been serving as the Acting Governor of BPNG since January 2023, was officially appointed by the National Executive Council (NEC).

“I am pleased to announce the historical appointment of Ms. Elizabeth Genia as the first woman Governor of the Bank of Papua New Guinea,” said Prime Minister Marape.

“This signifies the confidence that my government places in the women of Papua New Guinea. Mrs Genia through her work has progressed up the rank of the bank the last 40 years for her to be picked as a qualified candidate”

Highlighting the government’s commitment to collaboration, Prime Minister Marape expressed anticipation for the cooperation between the government and the Bank of Papua New Guinea. He emphasised the focus on addressing persistent issues such as national fuel security, foreign exchange, and the proper organisation of the Credit Guarantee Corporation, launched in 2022, to sustain and boost the growth of the small to medium enterprise (SME) sector.

“The Government will respect the independence of Central Bank but use the monetary policy to support and grow the economy,” he said.

Prime Minister Marape also told Ms. Genia that BPNG must ensure a steady flow of funds from export revenue, especially from the PNG LNG Project and mines and other export items, to beef up the country’s foreign exchange which is now at K14 billion.

“This will ensure that importers have ready access to foreign exchange to import goods than wait for a long period of time,” he said.

“The bank should also be encouraging resource projects to keep their export earnings onshore.

“One of the country’s biggest problems over the last 10 years has been the foreign exchange issue.”

Prime Minister Marape also told Ms. Genia for BPNG to look at the possibility of using the Chinese ‘renminbi’ as an alternative to the US dollar, given China’s increasing trade with PNG.

“I want the bank to look at the possibility of using the Chinese currency, given our increasing trade with China,” he said.

Prime Minister Marape also wants BPNG to properly organise the Credit Guarantee Corporation, which was launched in 2022, to sustain and boost the growth of the SME sector.

“I want SMEs to be properly linked to the Credit Guarantee Corporation,” he said.

“The government will support with some funding for SMEs as our people want cheap, easy to obtain loans.

“This is also very much of the government’s Medium-Term Development Plan IV where we aim to have jobs created from SMEs.”

Prime Minister Marape also told Ms. Genia that the BPNG must operate Central Bank with a PNG character and understanding of PNG people and banking requirements.

After over 20 years of failure, the Government of Papua New Guinea (PNG) has learnt from the mistakes of the past and is ready to kickoff Special Economic Zones (SEZs) in a big way starting this year, says the Minister for International Trade and Investment, Hon. Richard Maru.

“Our first two Special Economic Zones were Malahang in Morobe Province and Ulaveo in the East New Britain Province. These were followed by the Paga Hill Special Economic Zone and the Central Limestone Project. This year the Government is set to license the Rice Special Economic Zone, the Central Manufacturing Zone, the Sepik Plains Special Economic Zone, and the PMIZ,” said Minister Maru.

Minister Maru further stated: “We are keen to support more Special Economic Zones especially in the agriculture space. Papua New Guinea is still a net importer of bulk of our food including rice, chicken, beef, and lamb. Our Government is keen to ensure that we have all of that replaced. I thank Prime Minister, Hon. James Marape and the National Executive Council (NEC) for their support and with the approval of K150 million in the 2024 Budget for State Equity we are ready to announce more Special Economic Zones. Some Special Economic Zones will be owned by the Government, some will be owned by the private sector, and some will be jointly owned by the Government and the private sector.”

“Apart from the mining and petroleum projects, Special Economic Zones will be our major driver of sustainable and inclusive economic growth. We have learnt from the success of other countries like the Philippines, China, Thailand, and Indonesia and we are very keen on seeing more results this year for our country. With the high level of unemployment of our young people in Papua New Guinea, Special Economic Zones will be the greatest creator of jobs and we look forward to aggressively implement the Special Economic Zone agenda of our Government,” added Minister Maru.

Minister Maru also gave an update on the draft PNG SEZ Foundation Policy saying it was now ready for final revisions and for final stakeholder-consultations before it will be taken to Cabinet and launched together with the SEZ Masterplan.

“We are excited about the unlimited opportunities that Papua New Guinea has to tap into our economic growth aspirations using Special Economic Zones as a major driver for sustainable and inclusive economic growth. We look forward to a very busy and exciting year as we start 2024 and we look forward to working very closely with the Provincial Governments and the Districts, and investors and strategic partners to implement the Special Economic Zone agenda of our Government,” said Minister Maru.

The announcement of the partnership by Radisson Blu and Paga Hill development company today to build an international Radisson Blu branded hotel at Paga Hill Special Economic Zone (SEZ) marks the start of transformation of Paga Hill, says the Minister for International Trade and Investment, Hon. Richard Maru.

“Radisson Blu is the largest hotel chain in Europe and China and the second largest in the world. It is one of the largest and fastest growing global hotel groups with a strong reputation

and distribution across key source markets in China, India, the United States and Europe and their world-class investment in Port Moresby will be the apex of Paga Hill Special Economic Zone,” said Minister Maru.

Detailed designs have been prepared for a sprawling hotel precinct atop Paga Hill. In a landmark development that will re-establish Paga Hill’s former profile, the hotel precinct will feature a boutique hotel with 229 rooms, as well as 38 serviced apartments and 20 luxury villas that access premium hotel amenities of infinity pools, restaurants and bars, executive lounge, gym, and health spa. The development will also feature boutique retail outlets, a number of long-stay and permanent residential apartments, as well as Port Moresby’s largest conference and event facilities, leveraging spectacular panoramic views over the harbor and out to sea.

Minister Maru thanked the investors for the confidence in investing on this landmark K700 million hotel development in Port Moresby which will take 2 years to build starting in June 2024.

“You are not making a mistake to invest in Papua New Guinea. You are following on the back of some of the world’s global leaders in the mining and petroleum sector like Newmont, Exxon Mobil and Total. In the agriculture space we have Wilmar International Limited, one of the world’s leading agriculture companies, in fact the largest and most integrated leading agribusiness group in the Asia-Pacific Region who are already investing in Papua New Guinea and want to invest more in partnership with the Government of Papua New Guinea. You will also be joining an interesting family world leaders in the hotel and hospitality industry. We already have Coral Seas, Crown Plaza, Holiday Inn and Hilton. Radisson Blu will be an icing on the cake,” said Minister Maru.

Minister Maru said this was timely with Prime Minister, Hon. James Marape recently announcing the Government’s forecast for substantial economic growth, forecasting our GDP to grow to K120 billion in 2024 and a further surge to K200 billion by 2030, propelled by six major resource projects. These projects include the Porgera Mine, Wafi-Golpu Mine, Papua LNG, P’nyang LNG, Pasca LNG, and an exciting new gas field discovered by Exxon Mobil in the Eastern Papuan Fold Belt.

“This will mean sustained economic growth on an average of 5 per cent for over 20 to 30 years starting next year when Porgera Mine and Papua LNG commences, and the demand for hotels, apartments, and world-class accommodation will go through the roof,” said Minister Maru.

Minister Maru further stated: “This is a very exciting announcement at a very strategic time and a very exciting time in our nation’s history. This investment could not have come at a better time because the inaugural direct flight between Guangzhou and Port Moresby will arrive tomorrow. We are targeting Chinese tourists so we need hotels like this to cater for their taste and we must have products and services like the casino to attract them to come to Papua New Guinea. China has over 100 million tourists travelling around the world each year and Papua New Guinea does not enjoy a share of this market. With direct flights between Guangzhou and Port Moresby we will be able to start attracting tourists from China, but without such world-class facilities Radisson Hotel, casino, and other facilities and tourism products we cannot market Papua New Guinea as an attractive tourism destination. We need products and infrastructure that will cater for this growing market that we have not been able to tap into over the years.”

Minister Maru added that he was excited that this investment within the Paga Hill SEZ would play a central role in a PNG tourism resurgence.

“I hope that the announcement of partnership today and this investment will trigger other investments within and around the Paga Hill Special Economic Zone. We are also excited about the plan for a casino and other developments within the Paga Hill Special Economic Zone. The investors who invest in this zone will enjoy benefits like duty-free access for the construction materials, and tax holidays. We are not only looking at hotels and a casino, but we are also looking at shopping centres, private hospitals, and up to about four new Government offices to be developed within the Paga Hill Special Economic Zone,” said Minister Maru.

Minister Maru further added: “I am calling on Paga Hill development company to work with other investors to make our vision to transform the city through Paga Hill Special Economic Zone a reality. We want it to be a city within a city in the Paga Hill Special Economic Zone under our overall amazing Port Moresby concept. My ministry is partnering NCDC to transform Port Moresby and Paga Hill Special Economic Zone is the most logical place to transform our city like the Marina Bay Sands in the heart of Singapore.”

Minister Maru welcomed the Radisson Blu and said: “This project is of highest priority for the Marape-Rosso Government and as the Minister responsible for International Trade and Investment I want to assure Radisson Blu of our Government’s full support and that of all our State agencies including our Special Economic Zone Authority. We want to go past the announcement today to see the start of the construction of this very high profit investment that will change the outlook of our city and create the much-needed jobs and encourage more investments in the Paga Hill Special Economic Zone. I thank all the investor partners in this exciting project and look forward to the construction phase to commence. I also want to reassure you of the total support of the Marape-Rosso Government led by our Prime Minister, Hon. James Marape for this project and offer the investor partners our best wishes for the success of this project.”

Ok Tedi Mining Limited (OTML) has surpassed its annual sediment dredge target of 10 Million Cubic Meters (Mm3) and its rehabilitation target of 35 hectares for 2023 at its Bige Operations, located 125km from the mine.

The Bige Operations dredged 10.3 Mm3 of river sediments and rehabilitated 40 hectares (ha) of sand stockpile in 2023.

This achievement highlights the company’s dedication to managing the sediment loads in the Ok Tedi and Fly River systems, thereby preventing adverse environmental and social impacts.

Although, the Bige Operations Team had set an annual sediment dredge target at 10Mm3 and 35ha of stockpile rehabilitation for 2023, they have exceeded those figures through hard work, perseverance and commitment despite a few challenges, including the dry weather.

Manager Bige Operations Naimen Kepan, said achieving these targets is important to OTML as it contributes to maintaining the company’s social license to operate while mitigating the impacts of riverine sediments on the environment and the associated implications on local communities.

“This is a crucial aspect of responsible mining and is in line with our Ok Tedi Environment Management Act (OTEMA) guidelines and requirements,” Mr Kepan said.

“Achieving our target in rehabilitation brings us a step closer to rehabilitating our (East Bank) stockpile in line with OTML’s Mine Area Rehabilitation Plan (MARP) requirements and Closure Plan to leave a self-sustainable environment for the local community post mine closure,” Mr Kepan said.

The collaboration between different OTML teams and the dredging contractor Dredeco, demonstrates an inclusive and integrated approach to safely achieving the set targets without major incidents.

Approximately 10 Mm3 (~17Mt) of sand is removed from the river each year and placed in engineered stockpiles for rehabilitation works.

OTML has dredged approximately 436Mt of sand from the river since 1998 and will continue to meet its annual dredging and rehabilitation targets.

Any major government policy reforms in the mineral resources and energy space in Papua New Guinea, will be done in consultation with industry.

This was the assurance by Minister for Petroleum & Energy, Hon. Kerenga Kua, when presenting at the recent 2023 PNG Resources & Industry Investment Conference. Minister Kua reassured those present that the Marape-Rosso government remained committed to maintaining a clear channel of discussions with industry, especially on major policy changes including exempting the mining industry from the proposed production sharing regime.

“We do listen a lot to our stakeholders, that I can assure you. By listening, we have changed the form and content of it a number of times. This present version will exclude minerals, we just stick to petroleum,” the Minister said in relation to the proposed Production Sharing Agreement arrangement.

According to Minister Kua, more research is needed to be done on the financial and economic feasibility of adopting a Production Sharing Agreement option.

“The legal aspects of the proposed PSA changes were okay, however, there needed to be more research done to incorporate financial and economic aspects, to ascertain the impact this would have on industry and returns on investment by government. The conclusion of the legal drafting is, therefore, pending until the outcomes of the financial and economic studies are completed.”

Minister Kua’s announcement was welcomed by industry, with many applauding government for maintaining contact with stakeholders through the consultation process.

K92 Mining Inc. is pleased to announce record quarterly production results for the fourth quarter (“ Q4 ”) of 2023 at its Kainantu Gold Mine in Papua New Guinea, of 39,101 oz AuEq or 33,309 oz gold, 2,728,623 lbs copper and 56,502 oz silver. Sales during the quarter were 31,931 oz gold, 2,995,585 lbs copper and 61,712 oz silver. Annual production achieved 117,607 oz AuEq or 100,533 oz gold, 7,690,477 lbs copper and 160,628 oz silver, exceeding the updated production guidance range of 111,000 to 116,000 oz AuEq. Annual sales were 96,013 oz gold, 7,446,581 lbs copper and 157,613 oz silver.

During the fourth quarter, the process plant delivered yet another quarterly ore tonnes processed record of 151,908 tonnes or 1,651 tpd, an increase of 25% from Q4 2022 and 25% from Q3 2023, and 21% greater than the Stage 2A Expansion plant design of 1,370 tpd or 500,000 tpa. On an annual basis, a record 503,484 tonnes of ore was processed, increasing 12% from 2022. Importantly, during the quarter, multiple throughput records were achieved (see Figure 2), with the latest daily throughput record achieved on November 19 th , of 2,320 tonnes processed ( 2 ) (69% higher than the Stage 2 Expansion design) and a 7-day throughput record achieved in November averaging 2,136 tpd ( 2 ) (56% higher than the Stage 2A Expansion plant design). The plant performance records demonstrate a meaningful immediate opportunity in terms of the operation having significantly greater plant capacity than expected. Importantly, as the Stage 2A and Stage 3 Process Plant Expansion design throughputs utilize the same conservative design parameters, these records demonstrate that the design of the Stage 3 Expansion process plant currently under construction has the potential for significantly greater capacity than its 1.2 million tpa design.

Concurrent with the record throughput rates, during the fourth quarter, the process plant delivered strong metallurgical recoveries of 91.7% for gold and 93.6% for copper. Head grades during the quarter averaged 8.7 g/t AuEq or 7.4 g/t gold, 0.87 % copper and 13.9 g/t silver.

In the fourth quarter, the mine delivered yet another material movement record, with 155,062 tonnes of ore mined (increase of 39% from Q4 2022) and 347,529 tonnes of total mined material (ore plus waste), increasing 21% from Q4 2022. During the quarter, 10 levels were mined, with mining on Kora conducted on the 910, 1110, 1150, 1170, 1285, 1305 and 1325 levels, and Judd on the 840, 1325, and 1345 levels. Long hole open stoping performed to design.

Overall mine development achieved a record totaling 2,649 metres, an increase of 19% from Q4 2022 and 19% from Q3 2023. The large increase in development advance during the quarter was driven predominantly through continuous improvement initiatives and importantly, ahead of the significant gains that we expect as new equipment arrives and major underground infrastructure projects are progressively completed through 2024. The twin incline also recorded significant advancement in Q4, with incline #2 (6m x 6.5m) advanced to 2,863 metres and #3 (5m x 5.5m) advanced to 2,838 metres as of December 31, 2023. The twin incline is over 98% complete of its 2.9 km design.

John Lewins, K92 Chief Executive Officer and Director, stated, 

“The fourth quarter represented another significant step forward for the Kainantu Gold Mine, delivering record quarterly production of 39,101 oz AuEq and delivering annual production of 117,607 oz AuEq that exceeded the top end of our production guidance range of 111,000 to 116,000 oz AuEq. Notably, the record quarterly production was underpinned by strong operational fundamentals, with record ore tonnes processed, record ore tonnes mined, record total mined material (ore plus waste) and record development advance achieved – many of these were also significantly higher than previous records (See Fig 1-2).

The performance of the process plant since the final commissioning of the Stage 2A Expansion in May 2023 continues to be a major positive and has significantly exceeded our expectations. In Q4, yet another quarterly throughput record was achieved, averaging 1,651 tpd, 21% greater than the Stage 2A Process Plant Expansion design throughput of 1,370 tpd. In addition to the quarterly throughput record, a new daily record of 2,320 tonnes processed was achieved on November 19 th and a 7-day throughput record averaging 2,136 tpd was achieved in November, 69% and 56% greater than the Stage 2A design, respectively (2 ) . It is important to highlight that the strong Stage 2A plant performance has significant potential positive implications for the Stage 3 plant under construction. The Stage 2A and Stage 3 Process Plant Expansion designs utilized the same conservative throughput parameters, indicating the potential for the ultimate throughput rate to be materially higher than the 1.2 million tonnes per annum design for the Stage 3 Expansion.

Mine performance was also very strong, delivering record ore tonnes mined of 155,062 tonnes, record total mined material (ore and waste) of 347,529 tonnes and record development advance of 2,649 m, increasing 39%, 21% and 19% from Q4 2022, respectively. We are particularly pleased with our increase in development advance, increasing by 16% or 371 metres of advance from the prior quarterly record set in Q1 2023. Importantly, a notable component of the increase in development advance has been driven by continuous improvement initiatives, ahead of the significant gains that we expect as our underground mine infrastructure projects are completed and new equipment arrives progressively through 2024.

We are very pleased with how 2023 concluded and look to take yet another major step forward in 2024.”

K92 Mining Inc. is pleased to announce the promotions of David Medilek to the position of President & Chief Operating Officer and Chris Kinver to the position of Vice President Projects & Engineering.

Mr. Medilek is a mining professional with over 16 years of mining capital markets, corporate strategy and technical operating experience. Mr. Medilek joined K92 in 2019, most recently holding the position of President, and prior to that was its Vice President Business Development and Investor Relations. Previously, Mr. Medilek was an equity research analyst covering precious metals companies, with Macquarie Group Limited; a mining investment banker with Cormark Securities Inc.; and a mining engineer with Barrick Gold Corporation in Western Australia. Mr. Medilek holds a Bachelor of Applied Science in Mining Engineering with Distinction from the University of British Columbia, a Professional Engineer designation in the Province of British Columbia, and is a CFA ® charterholder*.

Mr. Kinver is a Mining Engineer with approximately 20 years of experience in the mining industry, predominantly in senior management roles in underground operations and mine development with senior, intermediate and junior mining companies in Australia, Papua New Guinea, South America, Africa and the United Kingdom. Mr. Kinver joined K92 in 2019, and most recently held the position as the Company’s Project Director, Kora Expansion. Prior to that, Mr. Kinver held the positions of K92’s Mining Manager and also Evaluation and Studies Manager. Before joining K92, Mr. Kinver was with OceanaGold Corporation as the Project Manager for the Didipio Underground Mine for approximately 3 years, successfully transitioning the operation from an open pit to a 1.6 mtpa long hole stoping underground operation. Other senior management roles include: Underground Mine Manager with BHP Billiton at the Perseverance Nickel Mine, one of the largest underground operations in Western Australia; Underground Mine Manager with Barrick Gold Corporation at the Plutonic Gold Mine in Western Australia; and Principal Engineer at mining consulting firm Wardell Armstrong LLP. Mr. Kinver holds a Bachelor of Engineering in Mining and Mineral Engineering with Honours from Camborne School of Mines and a First Class Western Australian Mine Managers’ Certificate. He holds registrations with the Institute of Engineers Australia, The Engineering Institution of Zambia, and Registered Engineers of Tanzania.

The promotion of David Medilek and Chris Kinver are part of an organizational restructure which is designed to enhance the operational, technical and project execution capacity of the Company. This has already seen Peter du Plessis promoted from General Manager to Executive General Manager of the Kainantu operation and Fergus Hart appointed as General Manager of the Kainantu Gold Mine. In their new roles David and Chris will report directly to the Chief Executive Officer.

The Company is also announcing the departure of Mr. Warren Uyen as Chief Operating Officer. We thank Warren for his contributions over the past 5 years, particularly during the COVID-19 pandemic environment where the Kainantu Gold Mine not only continuously operated during this period but also delivered significant growth. We wish him well in his future endeavors.

John Lewins, K92 Chief Executive Officer and Director, stated, 

“Over the past several years, David and Chris have made considerable contributions to the success of the Company. They have demonstrated a strong commitment to the business, resourcefulness, plus a high level of capacity and potential to assume greater levels of responsibility. Congratulations David and Chris on your promotions – we look forward to your continued contributions.

These promotions are part of several steps the Company has taken in its progression to become a Tier 1 mid-tier producer with the commissioning of the Stage 3 Expansion scheduled to commence by the end of Q1 2025. At the Kainantu Gold Mine, the team has been notably strengthened, including the creation of a second level of General Manager in Q3 2023, with the appointment of Fergus Hart as General Manager and Peter Du Plessis being promoted from General Manager to Executive General Manager. Corporately, K92 established a regional office in Q2 2023 in Brisbane providing support for the operation in multiple areas.

We see a very exciting period ahead for the Company and look forward to the continued contribution to the success of K92 by David and Chris in their expanded roles.

I would also like to record my thanks, and that of the Company, to Warren Uyen for his contributions to the success of the K92 over the last five years and wish him all the very best for the future."

In a major announcement made recently, Prime Minister Hon. James Marape revealed his ambitious plan to transform Jiwaka, the home of the great Wahgi Valley, into the “agriculture powerhouse” of Papua New Guinea by 2025—the year marking the country’s 50th anniversary of independence.

Addressing a massive crowd of thousands at the launch of the North Wahgi District Five-Year Development Plan in Banz, North Wahgi, Prime Minister Marape pledged K10 million to the Jiwaka Provincial Government. This substantial financial support aims to breathe new life into deteriorating coffee plantations, including the renowned Wahgi Mek, and provide price support to farmers, ensuring a steady price of K6 per kg.

The announcement signifies a crucial step towards revitalising the coffee industry in the Wahgi Valley, known for producing some of Papua New Guinea’s finest coffee.

Prime Minister Marape emphasised his commitment to the agricultural resurgence, stating, “By 2025, when we celebrate 50 years of independence, I want Jiwaka to become the ‘agriculture powerhouse’ of our country.”

Encouraging the local population, he added, “If you work, we will assist you. If you can’t find a job in the formal sector, there is so much money to be made from our land. Kaukau (sweet potato) is money, broccoli is money, tomato is money, cabbage is money, coffee is money.”

Outlining the allocation of the K10 million, Prime Minister Marape explained, “Of the K10 million, K5 million will be dedicated to rehabilitating rundown coffee plantations, while K5 million will be allocated for price support.”

He expressed dissatisfaction with past attempts, noting, “Three years ago, I announced this coffee price support; however, public servants in Waigani did not set up a correct structure. This time around, I will bypass them and come straight to the province so that the K6 per kg price can go straight to our people in the villages.”

Prime Minister Marape said, “The price of coffee should not come below K6 per kg, and the Jiwaka Provincial Government should ensure that this is carried out, through an established structure.”

Prime Minister Hon. James Marape has called on all public servants to take inspiration from the Medium-Term Development Plan (MTDP) IV 2023-2027 to contribute to Papua New Guinea’s path to greatness.

Addressing thousands of public servants on Friday, January 5, 2024, at the Sir John Guise Indoor Stadium and via livestream, Prime Minister Marape emphasised the country’s potential to achieve significant milestones with the record K27 billion 2024 Budget, aligning with the upcoming 50th anniversary of independence in 2025.

Challenging the 133,802 public servants nationwide, who received K4.7 billion in payments last year, constituting about 20 per cent of the National Budget, Prime Minister Marape urged them to rise to the challenge of nation-building.

The MTDP IV 2023-2027 serves as the ‘road map’ for the Marape Government in the pursuit of its ambitious development agenda. This plan outlines strategic policies with three key developmental objectives:

1. Growing the economy to K200 billion by 2030
2. Creating one million additional jobs
3. Improving the quality of life for all citizens

The plan also identifies 12 key Strategic Priority Areas (SPAs), including Strategic Economic Investments, Connect PNG Infrastructure, Quality and Affordable Health Care, Quality Education and Skilled Human Capital, Rule of Law and Restorative Justice, National Security, National Revenue and Public Finance Management, Digital Government, National Statistics and Public Service Governance, Research, Science and Technology, Climate Change and Natural Environment Protection, Population, Youth and Gender Development, and Strategic Partnership.

“All departmental heads must find their place in MTDP IV,” emphasised Prime Minister Marape.

“Public servants must pick a task designated to them, linked to MTDP IV. It is there to uplift our country over the next four years, preparing us for a better future in the next decade. I ask all: Find a place in MTDP IV.”

Prime Minister Marape also highlighted major events in 2024, including the National Census, mobilisation of school leavers, and the Local Level Government Election, urging public servants to be well-prepared. He emphasised that the Department of Personnel Management should ensure that up to 80 per cent of public servants work in rural areas, with only 20 per cent in national and provincial offices this year.

Additionally, Prime Minister Marape stressed the need for clear delineation of the functions of national, provincial, and district governments in the coming year.

Prime Minister Hon. James Marape expressed his satisfaction recently at the signing of a groundbreaking agreement between Chinese company Ramu Nico Management Ltd and Kumul Minerals Holdings Ltd. The Memorandum of Understanding (MOU) signifies a significant step forward in fostering mutual trust and cooperation between China and Papua New Guinea, particularly in the realm of downstream processing of nickel and cobalt.

The MOU, signed by Ramu Nico Management Ltd Chairman Wang Zhou and Kumul Minerals Holdings Ltd Managing Director Sarimu Kanu, solidifies the collaboration to engage in the downstream processing of nickel and cobalt within Papua New Guinea. Ramu Nico Management Ltd, as the majority partner in the world-class US$1.2 billion (K4.12 billion) Ramu nickel-cobalt mine near Madang, is at the forefront of this transformative venture.

Prime Minister Marape, who witnessed the signing alongside Chinese Ambassador H.E. Zeng Fanhua, emphasised the historical significance of this development. He recalled his State visit to China last October, during which he met with President Xi Jinping, and highlighted the commitment made during those discussions to encourage Chinese involvement in downstream processing in Papua New Guinea.

“Our government has been resolute in its desire to transition from being a raw produce exporter to an exporter of finished products,” Prime Minister Marape stated.

“I am pleased to see this vision materialise through the swift response and commitment shown by Ramu Nico Management Ltd, following instructions from the Chinese Government.”

During his meeting with President Xi Jinping, Prime Minister Marape received assurances that China takes seriously the practical needs of Pacific island countries, affirming that “China does not make empty promises”. He expressed gratitude for China’s prompt response and underscored the country’s readiness to engage in downstream processing across various sectors, including agriculture, fisheries, and forestry.

Prime Minister Marape extended his appreciation to Ambassador Fanhua and Chairman Wang, considering this agreement as the starting point for Papua New Guinea’s journey towards becoming a downstream processor of its raw produce. He urged more Chinese companies to join hands in this transformative endeavor.

“I thank the Chinese Government and Chinese companies for recognising the imperative for Papua New Guinea to build a robust and diversified economy through downstream processing,” Prime Minister Marape said.

“I extend an invitation to more Chinese companies to come and partner with us in the downstream processing space.”

In the aftermath of widespread rioting and looting in Port Moresby, Prime Minister Marape announced a 14-day State-of-Emergency (SoE) in the National Capital District. The announcement came as a response to the unrest, and four high-ranking officials—Police Commissioner David Manning, Finance Secretary Sam Penias, Treasury Secretary Andrew Oaeke, and Personnel Management Secretary Taies Sansan—have been suspended pending a thorough investigation into the events leading to the disturbances.

This SoE, invoked under Section 226 of the Constitution, aims to ensure the safety and security of the National Capital District and address the underlying issues that led to the recent disturbances.

Prime Minister Marape, flanked by National Executive Council (NEC) members and Government MPs, made the declaration following a day of extensive meetings with the National Security Advisory Committee, National Security Council, and NEC.

Deputy Police Commissioner Special Operations, Donald Yamasombi, has been appointed Controller of the State-of-Emergency and will serve as Acting Police Commissioner during this period. Additionally, Assistant Police Commissioner Samson Kua has been appointed Acting Deputy Police Commissioner Special Operations.

The investigation into the payroll issue will be led by Chief Secretary Ivan Pomaleu and Secretary for Justice and Attorney-General Dr. Eric Kwa. Simultaneously, police criminal investigations will be conducted into the police stopwork and the ensuing rioting and looting.

Prime Minister Marape emphasised the need to address the organised nature of the unrest and identified individuals orchestrating the chaos.

“We have over 1,000 members of the PNG Defence Force already on standby to come and work under State-of-Emergency laws. They will step in, wherever necessary, to contain any situations that may arise going forward into the future,” Prime Minister Marape stated.

Acknowledging concerns within the disciplined forces, particularly regarding the payroll issue, Prime Minister Marape stressed that the rioting and looting must not be repeated. Over the next 14 days, an administrative review will be conducted across the Police, Treasury, Finance, and Personnel Management sectors to prevent a recurrence of such incidents.

“We want to secure democracy, the rule of law, and good administration of public service organisations, including the disciplined forces. Enough is enough, and I am mobilising Grade 12 school leavers to be trained to take your place in the disciplined forces if you step out of line,” Prime Minister Marape said.

In the aftermath of riots and looting in Port Moresby, Prime Minister Hon. James Marape has issued a heartfelt appeal to all Papua New Guineans, urging them to prioritise peace and normalcy. The Prime Minister expressed his deep concern for the unnecessary incidents that occurred.

During a press conference held at Sir Manasupe Haus in Port Moresby, Prime Minister Marape conveyed his sympathies and apologies to the businesses that fell victim to destruction and looting. He assured that the government would provide assistance wherever possible.

Prime Minister Marape addressed the root cause of the unrest, emphasising, “Pay issues of members of the Royal Papua New Guinea Constabulary and other public servants were brought to the attention of the Government. As a result, the absence of police presence led to riots and looting in certain parts of our city.”

He continued, “What happened in Port Moresby should not allow people in other centers to do likewise. I appeal to all citizens right across our country that we were placed under unnecessary stress and duress yesterday in Port Moresby.”

Acknowledging the ripple effect of the events in the capital, Prime Minister Marape stated, “It is unfortunate that other centers are trying to copy what happened in Port Moresby yesterday. I appeal to people in these centers to realise that this is our country, and we have to take care and ownership of it.”

Emphasising the importance of upholding the law, Prime Minister Marape stressed, “We must remember that breaking laws does not achieve anything. Violence begets violence, lawlessness causes lawlessness.”

In an effort to rebuild and support those affected, Prime Minister Marape expressed his empathy towards the business houses. “Your government will look into some relief measures to help business houses after the losses they suffered. Some of them have been in the country for many years, and the attack on them was totally uncalled for and unjustified. We will look at how best we can help companies affected.”

As the government works to restore control with the assistance of the Police and PNG Defence Force soldiers, Prime Minister Marape said, “I urge all citizens to step up today and respect your country. Let us build our nation together rather than destroy it.”

The Papua New Guinea Investment Promotion Authority (IPA) as the investment promotion arm of Government and business regulator, has condemned the senseless attacks on business houses in Port Moresby and other centers around the country following the looting and burning down of shops and warehouses by the public whilst taking advantage of the stand down by the PNG disciplined forces over salary tax grievances and wanting answers from the Government. 

Managing Director of the IPA Mr. Clarence Hoot and the Board were deeply concerned about the incident saying that such actions reflected badly on the IPA’s efforts to promote PNG as a preferred investment destination. “One of our key programs over the years has been to facilitate investments in the country while at the same time promoting PNG as an attractive country given its natural resources endowments and diverse industry potentials. One of our key setbacks continues to be the law and order concerns. Even though such problems are common throughout the world, and occur just occasionally, security is one of the costs that investors unfortunately have to incur as part of their operational costs to ensure that their businesses are protected and secured. The IPA would like to convey its utmost regret and sympathies to the companies affected and at the same time assure you that we will work with you in terms of compliance requirements if required to ease some of the pain.”

With the recent incident, it will take a lot of efforts and resources to rebuild the eroded investor confidence built over time and especially, on the eve of the country’s next economic boom.

He mentioned that the losses unexpectedly forced upon business by way of lost stocks from the looting doubled with the huge costs of rebuilding burnt down shopping properties and warehouses would be in millions of Kina and something that could have easily been avoided. He further stated that to rebuild a shopping centre, as those burnt, will take a long time and financial resources which unfortunately, affected businesses will have to source from somewhere as these were not part of their operational plans for the year.

In addition, large numbers of PNG citizens have been forced into unemployment and there will be huge losses of revenue both for the affected companies and the Government from various taxes which will be lost.

He issued a warning to the public that vandalizing of properties was a crime and people who partake in these illegal activities must face the full force of the law.

The IPA also fell victim to the looting and arson where its rented warehouses at Konedobu were burnt with some records totally destroyed on Wednesday evening. A fire truck was onsite and managed to contain the fire from spreading and completely burning all the files. They were able to save the files which were stored in compactus shelves.

However, Mr. Hoot has assured the business community and Government that the IPA’s entity records are safely stored on cloud and files kept in the warehouses were hard copies of business information that are currently available on its online registry system.

Business entities that have any issues are urged to contact the Registrar Of Companies (ROC) for assistance.

“Let me assure the business community, the Government of the day and the general public that all companies and other entity records are available online and there is no need to panic and cause unnecessary doubts, as being published on social media. Records filed for entities registered before and after 2013 when the registry system went online are safe and secure on cloud. These includes files for the Intellectual Property Rights applications.”

The records maintained by the IPA at the warehouses are merely secondary records and companies are obligated to maintain original records of filings made to the ROC at their registered office. By law majority of the record that were destroyed were time bound as they were more than 10 years old. It is therefore not in anyways, a loss to companies and does not in any ways, affect the records and filing system of businesses in the country. However, this is a huge loss to the country as IPA took pride in maintaining historical hardcopy records of every single business entity registered in the country and for the convenience of the business community.

“Business entities that have any issues are urged to contact the ROC for assistance. Pursuant to Section 397 of the Companies Act, the ROC can reregister a lost document if evidence is presented showing that they were previously registered with IPA, reiterated Mr. Hoot.”

The IPA Offices in Port Moresby, Lae and Kokopo have been disrupted because of the riots and were forced to close operations for a couple of days for the priority safety of our staff and clients.

In issuing the statement Mr. Hoot has given his confidence to relevant heads of government agencies involved in restoring normalcy, saying that although this incident is a massive setback, the companies in general and Papua New Guineans are resilient and there is always hope to recover and continue doing business as usual into the future.

Ok Tedi Mining Limited (OTML) announced a final dividend payment of PGK350 Million to its shareholders on 28th December 2023, bringing the total dividend to K450 Million for the year.

The Company had declared an initial interim dividend payment of PGK100 Million on 26th October citing a positive outlook for a final dividend payment in December 2023.

OTML Board Chairman, Jeffrey Innes, thanked employees, contract partners and the mine impacted communities for their support throughout 2023.

He said that 2023 was a restore and reset year for OTML marked by the appointment and restructure of a new senior leadership team.

Mr Innes said the need for this change in leadership was to bring forth a comprehensive overhaul of restoring, resetting, and reinvigorating the entire business while focusing strategic emphasis on business improvement, cost efficiencies and liquidity, stakeholder engagement, long-term planning and implementation of Tax Credit Projects aligned with the National Government Development Strategy 2050.”

With the OTML Board approval of the Mine Life Extension up to 2050, Mr Innes said the Company envisions sustainable growth up to 2050, with a particular focus on energy transition.

Mr Innes said Key strategic Growth 2050 projects are in place and progressing well based on the Company’s current Strategic Business Plan and is expected to generate K30 billion (US$8 billion) in cash flow.

He added that the “El Nino onset also affected the OTML operations for a while in November however the Company has implemented its Dry Weather Management Plan to see it through the challenges and is pleased to declare that Ok Tedi remains profitable and continues to deliver to our shareholders”.

Ok Tedi Mining Limited’s (OTML) Safety Manager, Anna Ila was the proud recipient of the Leader of the Year Award at the ‘Women in Safety’ Awards in Sydney, Australia on November 27th.

Women in Safety is a network of women who are safety professionals in Australia and the Asia Pacific region. This network leads discussions on health and safety issues, challenges and improvements, with the aim to make a positive impact resulting in improved outcomes for its members and workplaces.

Scooping this award is a big deal as it is the first for OTML and goes a long way to highlight the importance of the Company’s safety initiatives at the workplace while also showcasing the Company’s commitment to gender diversity and inclusion in all aspects of its operations.

“The recognition that I gained from this award shows the incredible work women are doing in their roles to create change in the safety space to ensure workplaces are safer today than they were yesterday, particularly in mining where the nature of our business is such that our workforce is exposed to risks that can impact their safety and long-term wellbeing,” Ms Ila said.

Ms Ila’s award submission showcased key aspects from the OTML 2023 safety plan including building an inclusive working relationship with OTML’s Business Partners, having a targeted risk based and “strategic” approach in managing safety risk, and a focus on major hazards and behavioural safety.

“I would like to thank the OTML management for the recognition and support that ensures I perform my role and lead my team to make OTML a safe workplace for its employees and business partners,” she said.

“Congratulations Anna and we look forward to seeing more women at OTML excel in their respective roles, and especially so in the safety and occupational health arena. Ms Ila is well placed to lead the Team in the implementation of Ok Tedi’s plans to continue to improve our safety performance,” said OTML General Manager, People and Culture, Mark Stone.

The award event was staged to recognize aspiring women in the field of Safety. Out of almost 100 outstanding nominations, 24 finalists made it through the selection process.

Steamships Trading Company Limited’s Managing Director, Rupert Bray, and Isikeli Taureka, Chief Executive Officer of Laba Holdings Limited, executed a Memorandum of Understanding that will lead to the creation of a new joint-venture company, Hebamo Transport. Hebamo Transport will focus specifically on logistical support to the resource industry.

By combining Laba’s local presence at the PNG LNG gas site with EastWest Transport extensive experience in land logistics services, the joint venture establishes a Papua New Guinean majorityowned specialist in LNG logistical support. Hebamo Transport seeks to provide unparalleled logistics services tailored to the needs of the energy and mining sectors, specifically catering to the downstream requirements of the Papua LNG project.

"Today marks a significant milestone as we celebrate the signing of the MOU between Steamships and Laba Holdings creating our joint venture, Hebamo Transport. This collaboration reflects both companies deep commitment to not only foster economic growth but also to ensure that the benefits of resource extraction are rightfully filtered back to the landowners” said Steamships’ Managing Director, Rupert Bray.

“At Steamships, we are proud to be the partner of choice in this venture, standing as a testament to our ongoing efforts to create impactful and inclusive business models that positively impact communities and drive meaningful progress."

Both companies look forward to working closely together to finalise the incorporation of the joint venture and are excited about the positive impact this collaboration will have on the local Papa Lealea economy and the broader Papua New Guinean community.

Santos is helping improve food security, quality of life and income opportunities for local farmers in its project impact areas through sustainable farming.

In a partnership with Fresh Produce Development Agency (FPDA) and PNG Mining & Petroleum Hospitality Services (PNGMPHS), Santos Sustainable Development and Community Affairs teams work with families, women, and youth, teaching them skills and knowledge on sustainable agricultural practices that aim to protect the soil and produce organic fresh vegetables while increasing and maintaining a profitable farm income that will improve their lives.

Once such community is Daga 2 in Pimaga. Over sixty youths have come together to form the Daga Youth Group which also comprises of their mothers and fathers.

FPDA worked with and trained the young farmers and their families to increase their capacity to produce high quality organic vegetables. The training included soil preparation, composting, natural pesticides and how to grow, transplant and main healthy crops.

After the training, the farmers started working on their farm transplanting some of their crops with the aim to harvest early next year.

Elsie Mongoru, Santos Senior Sustainable Development Manager applauded the community for participating in this project which will be of benefit to them and their families.

“It’s a community-driven project which involves our youths, mothers, and fathers. At Daga 2, we have this communal farm where it allows all the community members that are part of this farming group to come together, learn about the farming techniques and replicate these in their own family farms.

“The farmers provided labour to build the demonstration farm and water storage tanks base. They utilise the infrastructures for their training and other farming related meetings,” Ms Mongoru said.

During a recent visit to the farm by Santos and FPDA, the team witnessed the collaboration between the farmers and saw firsthand the work the farmers are putting into their nursery, comprising carrots, capsicum, watermelon, and a variety of other cabbages including Chinese cabbages which are being transplanted after four weeks from the nursery to the neatly prepared garden plots for harvest early in the new year.

Village Councillor Timothy Dosabo thanked Santos for driving this ongoing initiative in the community and in providing support where necessary to help the people earn a living from what they plant on their land.

The main diet for communities within this region is sago and so the training in sustainable farming will help with food security.“Our young people here are eager to learn the new farming techniques to plant our vegetables and manage our farms to produce quality foods that will meet the market demands. We learnt many new things from the training provided by Santos through FPDA. This is a breakthrough for us, especially learning to use compost, watering our vegetables, and digging the soil to make it porous and to improve the drainage system around our plots,” Mr Dosabu said.

“Our parents didn’t teach us any of these farming techniques as we were basically living off what the land and bush provided us with. But our children are now fortunate as we will be teaching them these farming methods and they too will teach their children. This will be pass on from generation to generation.”

Youth Group Leader Waseba Wassy Wayabo was filled with emotion as he expressed his gratitude to the community and Santos Sustainability team for supporting him to lead the program.

“I thank our Councillor and our members for believing in me and entrusting me to lead our young people. We have widows and orphans who are part of our group and I truly appreciate the Santos team for engaging us. We will all work together for a better future for our community,” Mr Wayabo said.

Similar farmer training has been set up in five other locations in the Kutubu area and will gradually move to the Hekari region so all communities can be able to learn and use these modern farming techniques.

FPDA will provide extension services until harvesting and PNGMPHS will train the farmers on how to clean and store the vegetables to be able to meet commercial standards.

A solar mini grid will soon be lighting up classrooms, dormitories, and teachers’ housing in Pimaga.

Access to the electricity provided through this mini grid will transform the educational experience of young people and teachers at the Pimaga Vocational Education and Training (VET) centre.

“For the first time we will have access to power, to support our learning needs, provide a better environment for those students and teachers that live on campus and create a safer environment for everyone particularly women and girls”, says Warubi Masahimu, Manager of the Pimaga VET.

The Santos Foundation and SLB (Schlumberger) have entered an exciting new partnership to support the Pimaga VET with a solar mini grid to power the centre. This PGK1.8 million investment is part of the Santos Foundation’s Youth Opportunities Program focussed on delivering greater outcomes for young people in Kutubu.

“Education, training and employment opportunities are core to this program, and we are excited about our partnership with both SLB and the VET centre”, said the Senior Projects Manager, Anthony Uechtritz.

The new investment will mean the students will now have the opportunity to use modern equipment as part of their trade training “to gain hands- on experience and training they would not be able to get otherwise. It means they will be job ready in a competitive market” adds Matt Loth of SLB.

Energy poverty is a critical development issue and finding a renewable energy solution for a remote setting is life changing. It will mean better opportunities previously impossible in this community.

The Asian Development Bank Energy Sector summary states that PNG has one of the lowest electrification rates in the Pacific, with only 13% of the population having access to electricity. Lack of access to affordable and reliable power, limits economic growth in urban areas, constrains growth in smaller urban centres and contributes to poverty in rural areas (Sector Assessment (Summary): Energy (adb.org)).

The Santos Foundation is proud to be partnering with SLB and the Pimaga VET centre on this project and believes the contribution will make a lasting impact on the local community that access the VET centre and look forward to seeing the benefits of this project in the years to come.