Ok Tedi Mining Limited (OTML) has signed two project agreements to commence Phase Two of the upgrading and sealing of the Kiunga-Tabubil Highway and the rehabilitation and sealing of the Daru Town Roads.

The agreement was signed on the 06th of July 2023 in Port Moresby between OTML and China Railway Construction Engineering Group Co. Limited for Phase Two of the Tabubil-Kiunga Road Sealing Project, and Leon Enterprise Limited for Daru Town Roads Rehabilitation Sealing and Upgrade. 

The projects are funded under the Government’s Infrastructure Tax Credit Scheme (ITCS) program.

Phase One of the Tabubil-Kiunga Highway sealing from Kiunga to Kilometre (KM) 26 is well underway, and Phase Two will commence soon. Phases 3 will follow once further funding is available through the ITCS. 

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, when speaking at the signing said Western Province will continue to see more changes before mine closure.

Mr Ilimbit said, “Since 1997 OTML has spent over PGK600 million on ITCS projects in Western Province and Telefomin District in Sandaun Province. These include high impact priority projects in Health, Education, Law and Justice and Transport Infrastructure and Utilities.” 

He further added that OTML is also eyeing potential projects in Daru as it is the provincial capital of Western Province where the provincial government headquarters is located.

He extended a word of appreciation to the National Government for increasing the Tax Credit Scheme (TCS) ceiling from 0.75% to 2% as announced in the 2022 National Budget that will boost the completion of current projects and also provide an opportunity for OTML to commence new projects in its impact communities. The new DNPM guidelines as 1% for WP and another 1% for other parts of PNG.

Other major projects being considered include the construction of a new District Court House in Kiunga, the General Hospital in Kiunga, a road link to Kiunga and Nomad, the construction of Atemkit/Kavorabip road and the construction of the road from Alice Pit to the PNG-Indonesian border. 

OTML is committed to deliver sustainable economic and social benefits to its communities and the people of PNG.

PNGFP NiuHomes already supply an extensive range of best value, high quality kit homes, but did you know they also produce prefabricated, modular kit-set buildings for the Education and Health Sectors? In fact, PNGFP have supplied over 1,000 School Buildings and hundreds of Education and Health Facilities throughout PNG. 

For Health, they supply rural aid posts, health clinics, 12 to 20 bed wards and rural health centres. If a larger health facility is required, sister company NiuBuild can do the design, construction and fit-out of hospitals and health centres, as they did for Bulolo, Mutzing, Laiagam and Umbe. 

PNGFP’s range of prefabricated school buildings include single and double-storey classrooms, administration blocks, science laboratories, dormitories, ablution blocks, staff quarters and headmaster’s residence. They also manufacture the furniture, from school desks to science benches and even blackboards. 

Engineered to PNG and Australian building codes, the quality and durability of these kit-set buildings are unique in this country due to PNGFP’s preservative pressure treatment, which fully protects the buildings from termites and rotting. 

Employing over 1,300 Papua New Guineans, PNG Forest Products is committed to building a better future through sustainable manufacturing practices. Their manufacturing facilities in Bulolo are powered by PNGFP’s own sustainable Hydro Power stations. All of their timber is sourced from renewable PNG pine plantations managed by the PNG Forest Authority. These buildings are not just PNG Made… they’re PNG Grown! 

So, when you invest in a prefabricated building from PNGFP, you are not only investing in the best value, highest quality kit-set buildings available in the country, you are also investing in 1,300 local jobs and supporting the PNG economy, while also supporting the environment… and that’s an investment in PNG’s future.

Mayur Resources Limited is pleased to formally announce the appointment of Mr John McBride as CEO of Mayur’s Central Lime Project. The appointment of Mr McBride follows the recent agreement with Sir Mick Davis’ Vison Blue Resources to invest US$40m in the Central Lime Project for a 49% equity stake.

Mr McBride has extensive experience in global materials companies with his background spanning technical, operational and commercial responsibilities. Mr McBride was the CEO of Sibelco’s Lime Division and most recently was President of APAC at Graymont, a global leader in lime and lime solutions.

During his time with Graymont and Sibelco Lime, Mr McBride:

• Delivered Graymont's organisational vision to become a global player by spearheading entry into the broader Asia Pacific region and accelerated business growth by reconfiguring manufacturing networks and supply chains through a ten-year strategic plan; 
• Established additional revenue and market growth in Sibelco’s Lime supply chain networks through innovative initiatives and the commissioning of greenfield startups in Indonesia and the Philippines; 
• Established Graymont’s global procurement function through the development of categorical and transactional teams, influencing the global organisation and stakeholders on cost control measures; and 
• Partnered with the global leadership to evaluate decarbonisation strategies and initiated the switch to renewable energy asset investments.

Mr McBride is a proven and experienced business leader whose track record demonstrates his ability to thrive in complex environments, generate value by improving organisational capabilities, deliver projects, increase revenue and operational scale, and implement business plans and strategies to grow. 

Mr McBride will formally commence his role as CEO in early November 2023. 

Mayur’s Managing Director, Mr Paul Mulder, said: 

"We are excited to have attracted talent of the calibre of John to lead our Central Lime Project. John’s industry, developmental and operational skills are world class, and he will be a major contributor to the successful development and commencement of commercial operations at our Central Lime Project.”

 

“Establishing a world class board and execution team is vital in ensuring the ‘base case’ of the first 2 kilns of Quicklime production capacity is achieved (400,000 tonne per annum). The true value of this import displacement and export-oriented manufacturing facility will be realised, however, by more fully utilising the 197 million tonne high grade limestone JORC resource on the Kido peninsula* where the 2 kiln base case only estimates utilising less than 15% of such JORC resource inventory. There remains large scale upside potential of producing circa 4 times the productive output of the 2 kiln base case, being 1.6 million tonnes of Quicklime per annum (8 kilns), with exceptionally low estimated incremental expansion capital costs. Economics are expected to materially improve on the US$25m per annum EBITDA reported for the initial 2 kilns of productive output (where the capital costs of US$100m for this 2 kiln operation also includes the establishment of Wharf, Roads, Bridges, Power, Water, Quarry, Camp, Workshops, etc)**. Expansions beyond the 2 kiln base case will not incur such deep greenfield capital establishment costs and EBITDA margins are expected to materially improve for each additional kiln added.

 

We have therefore ensured that John has been incentivised to achieve such a bold expansion goal. With an expected ongoing regional supply deficit, the realisation of this expanded outcome would be a significant benefit to the local Landowners, PNG stakeholders, Mayur Shareholders, its Partners and put PNG on the map as a major Quicklime producer in the APAC region.”

Mr John McBride added:

“The Central Lime Project provides the unique opportunity to support the global energy transition to renewables and contribute to nation-building at world-class ESG and sustainability standards. The fundamentals of the project are compelling, both in the quality of resources, technology and location to established and emerging markets. The financial benefits and business cases are unparalleled. I am excited to join Mayur Resources and partner with the Board, our equity partner Vision Blue Resources and broader stakeholders to deliver the initial phase of 400ktpa of Lime production and future expansions.”

The Central Lime Project's strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Central Lime Project to become a regional lime industry leader. Construction commenced in June 2023 and high-grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility producing early cashflows in 2024.

Prime Minister Hon. James Marape convened a crucial meeting on Friday, August 18, 2023, with Hela leaders to tackle pressing matters concerning the supply of electricity from the PNG LNG Project at Hides to the New Porgera Mine. The discussions also encompassed the crucial matter of land ownership in relation to the power pylons erected along the route.

Highlighting the urgency of these issues, Prime Minister Marape emphasised the need for immediate resolution before the anticipated reopening of the New Porgera Mine.

Prominent Hela leaders present during the meeting included Governor Hon. Philip Undialu, Koroba-Kopiago MP Hon. William Bando, and Komo-Hulia MP Hon. Daniel Tindipu. The meeting was also attended by key government figures such as Petroleum and Energy Minister Minister Hon. Kerenga Kua, Mining Minister Hon. Sir Ano Pala, National Planning and Monitoring Minister Hon. Rainbo Paita, Vice-Minister Assisting the Prime Minister on State Negotiation Hon. Jimmy Maladina, as well as representatives from relevant government departments and agencies.

Addressing the context of the discussions, the Hela stakeholders, acting through the Hela Provincial Government, submitted a comprehensive documentation in September 2021 regarding the New Porgera Mine, outlining 16 demands, of which eight were identified as non-negotiable.

One of the pivotal non-negotiable demands involves the review of the Hides Gas-to-Electricity Memorandum-of-Agreement for PDL 1. This review is integral to ensuring an uninterrupted power supply to the New Porgera Mine. Another key issue addressed is Clause 9.6 of the PDL 1 PNG License-based Benefit Sharing Agreement (LBBSA). Subject to a National Executive Council Decision, this clause involves the potential transfer of ownership of the Hides power plant to the Hela Provincial Government and the respective landowner clans. The unbroken power supply from Hides to the New Porgera Mine is not just a facet of ongoing mine operations but also a strategic necessity for the broader facilities.

Prime Minister Marape reassured the assembled Hela leaders that the landowners of the area where power pylons are erected between Hides and the New Porgera Mine would not be excluded from the benefits. He underscored that the Porgera Mine has historically been powered by a significant 70 megawatts of electricity from the Hides facility.

"The Hela Provincial Government has raised valid concerns regarding the lack of substantial review concerning landowner matters in relation to power generation," Prime Minister Marape stated following the meeting.

He further announced that the task of examining power-generation perspectives has been entrusted to Minister Kua and his team.

“An agreement has been reached to organise a dedicated development forum in Tari to comprehensively address the updated landowner issues specifically linked to the New Porgera startup, ensuring that these concerns are adequately communicated to the government,” Prime Minister Marape said,

“This meeting signifies a concerted effort by the government and Hela leaders to collaboratively address these critical energy supply and land ownership concerns, underscoring the commitment to efficient and equitable resource management in Papua New Guinea.”

Prime Minister Hon. James Marape has stated that corruption within the public service will no longer be tolerated. The occasion took place today in Port Moresby, where the Prime Minister launched the groundbreaking Anti-Fraud Anti-Corruption and Whistleblower Protection Policy of the Department of Prime Minister and National Executive Council. This policy is set to establish a framework for other Government departments and agencies in their collective fight against the rampant issue of corruption.

In attendance were key figures including Chief Secretary Ivan Pomaleu, Police Commissioner David Manning, representatives from the Independent Commission Against Corruption (ICAC), and departmental staff.

Prime Minister Marape, highlighting the grave impact of corruption on Papua New Guinea’s development, asserted, “Corruption is not solely a social concern, but a significant economic issue as well.”

He expressed gratitude towards Chief Secretary Pomaleu for leading the Department of Prime Minister and National Executive Council in pioneering this critical anti-corruption initiative.

Prime Marape’s determination to safeguard the nation’s resources from exploitation is evident in his resolve: “Papua New Guinea must no longer tolerate corruption.”

Prime Minister Marape underscored the direct connection between corruption and the economy, stating, “Our relentless efforts to harness our resources effectively will remain futile if our financial integrity is compromised.”

He further illustrated that even a mere 10 percent loss due to corruption, equivalent to K2.4 billion from the K24 billion 2023 Budget, can yield staggering consequences.

“Losing K2.5 billion to corruption is a luxury our country cannot afford. This sum could fund provincial hospitals and infrastructural development that the nation direly needs.”

The Prime Minister traced the establishment of the ICAC back to his tenure, emphasising its significance: “ICAC’s enactment in November 2020 was a pivotal step towards shaping our nation’s future.” He urged collective responsibility, urging all citizens to uphold integrity and report corruption cases promptly.

“Those who perceive ICAC and the Anti-Fraud Anti-Corruption and Whistleblower Protection Policy as threats are those with hidden agendas,” Prime Minister Marape asserted.

He called upon the Department of Prime Minister and National Executive Council, along with all government bodies and the public, to engage proactively in exposing corruption.

Prime Minister Marape’s vision extends to the empowerment of judiciary bodies and law enforcement agencies, revealing a 40 percent increase in the 2023 Budget allocation to the Law and Justice Sector.

 He affirms, “We are channeling our resources into initiatives that promote transparency and accountability.”

The Prime Minister’s unwavering commitment to eradicating corruption culminated with a resounding call to action: “Let us cultivate a stronger, more prosperous nation for future generations, free from the grip of corruption. The steps we take today shape the future we desire.”

Prime Minister and Foreign Affairs Minister, Hon. James Marape, is spearheading a proactive approach to leverage the burgeoning partnership between Papua New Guinea and Indonesia, focusing on initiatives such as affordable electricity along the shared border and collaborative road networks.

Building on the recent momentous visit of Indonesia's President, H.E. Joko Widodo, last month, the two nations are now forging ahead with plans to provide electricity to the town of Vanimo.

During a productive meeting today with Indonesian Ambassador to Papua New Guinea, H.E. Andriana Supandy, Prime Minister Marape received a comprehensive update on the ongoing progress of the electricity supply project from Jayapura to Vanimo.

"Embracing the economic opportunities facilitated by Indonesia is a call to action for the people of Papua New Guinea," emphasised Prime Minister Marape.

"Our joint endeavors encompass a range of strategic initiatives, including enhancing access to affordable electricity along the border and collaborating on essential road infrastructure."

Prime Minister Marape underscored the potential of the border region, stating, "While the Indonesia-Papua New Guinea border historically represented a political divide, our commitment is now geared towards its transformation into a thriving economic hub.

"Through a united effort, Indonesia's surplus electricity stands to uplift communities in northern towns like Vanimo and Wewak, extending its impact to Kiunga and Daru in the south.

“Furthermore, our shared road links from north to south will foster connectivity along the border.”

Prime Minister Marape highlighted the cooperative approach being pursued, mirroring the successful models of countries like Singapore and Malaysia. He emphasised that sovereignty can coexist harmoniously with collaborative resource-sharing.

With these visionary initiatives, Prime Minister Marape envisions a future characterised by mutual prosperity and strong collaboration between Papua New Guinea and Indonesia.

"The proactive measures taken by both nations are poised to reshape regional dynamics, charting a course towards robust economic growth and shared development," Prime Minister Marape affirmed.

With less than two weeks to go before the start of the inaugural Community Affairs and National Content Conference and Expo (CANCONEX), activities in the host city of Lae, Morobe Province have ramped up feverishly in anticipation of the landmark conference. 

With more than 700 business delegates expected to descend upon the city for the conference, the demand in the host city has increased significantly, with many leading hotel and accommodation, transport and service providers already booked out for the duration of this event. This has been a massive positive for PNG's second city which is usually overlooked for national business events.

In providing an update on preparations for CANCONEX, President of PNG Chamber of Mines and Petroleum, Anthony Smaré spoke of opportunities for businesses in Lae city, with this influx of people who will be attending this event.

“Since the announcement of CANCONEX, the Chamber has been assisting our member delegates, both project operators, and landowners, to source flights, accommodation, and transport requirements for their duration of stay in Lae. Although we expected significant demand in a national content conference, even we were taken by surprise by how well the business community has responded and how quickly the main Lae hotels were booked out!"

"Given the immense demand for the dates around our event, this has led to a shortage of accommodation options, with many leading accommodation providers reporting that they may be unable to provide for the increase in numbers in Lae. Similarly for vehicles, as well as air travel options into Lae for the conference and expo dates."

The Chamber is therefore seeking to provide alternative options for delegates, and is in discussions with a few providers, to ensure that these additional options are provided to those who will be attending this important event.

This includes a discount with the PNG Air for flights into Lae, discounted accommodation rates for selected accommodation providers, as well as organizing shuttle services for delegates to the official conference venue on the days of the event.

We thank the Lae business community, who have provided the support in ensuring that delegates to CANCONEX are being given priority for services during CANCONEX.

We look forward to welcoming all our delegates to Lae, for CANCONEX 2023.”

Registration for CANCONEX is still open, with a special 50% discount off the registration price available to landowner representatives from project areas, who are endorsed by their respective project Community Affairs teams.

A total of one hundred persons will be part of the first batch of Papua New Guineans to be sent to Australia as part of the Central Seasonal Workers Labor mobilization program under the initiative of Rufina Peter,  Governor for Central Province, and Central’s Manpower Recruitment Ltd. (CMRL).

Screening is currently underway at the 5-Mile United Church in the National Capital District.

Bina Leana, the Managing Director for CMRL, has called on interested persons from Central who want to be part of the group to ensure their papers are in order before visiting the 5-Mile United Church to drop off their applications for screening.

“We are here at the church every Monday, Wednesday, and Friday, so far eighty-seven (87) applications are with me for screening we are encouraging more applications to come in," stated Ms. Leana

For those that are interested in being part of the program, the requirements are to have a NID card, birth certificate, passport along with photos, police clearance for Visa, vaccine green card and vaccine yellow card, and TB medical check clearance.

Once these documents are all put together, individuals are encouraged to go to the 5-mile United Church on the allocated days throughout the week. CMRL MD Leana also revealed that the company name will be changed to Central Province Seasonal Workers in the coming months.

During questions without notice on the 9th of August, 2023 Rufina Peter, the Governor for Central Province, in a two-part question asked the Minister for Petroleum and Energy, Kerenga Kua, if a firm determination of gas reserve volume from the Elk/Antelope fields had been fixed and confirmed for future revenue, planning, and budgetary purposes.

“Papua LNG partners recently lodged application for Petroleum Development License to the Department of Petroleum and Energy ahead of its final investment decision, which I believe is scheduled for the end of this year 2023," Peter said.

"In the Papua LNG Gas Project Agreement signed between the State and Project partners, the foundation gas volume to be provided from the Elk/Antelope fields is projected to be at 10.3 Trillion Cubic Feet (TCF), initially following the discovery and tests by the former operator, the Interoil FCI, the gas volume was estimated to be 11.3 TCF," she added. 

"More recently, Total Energies as the new operator for the Petroleum Retention License PRL15 was carrying 6.7 TCF after drilling two more wells." 

"It is very important to all stakeholders in Papua LNG Project, including the independent State of PNG and its entities, that a firm gas reserve volume is determined and confirmed for future revenue, planning, and budgetary purposes. Therefore, can the Honorable Minister pursue this matter with project developers to resolve the gas reserve volume if it has not been determined?” Peter asked Kua.

In her second question, Governor Peter referred to the Liquid Production and Sales from the Elk/Antelope fields and asked Minister Kua who will be the owners and beneficiaries from the revenue and sales from of the liquid production and sales, which she believes was not addressed in the Project agreement.

“The Elk/Antelope Gas field is a wet gas field, meaning that when the gas is brought to the surface from the reservoir, the liquid drop out from the gas, which is light oil and Liquefied Petroleum Gas (LPG), the Papua LNG Project will build a separate 10-inch pipeline to transport the liquid from the field to the LNG Plant at Caution Bay. My question is who will own and benefit from the revenue sales from the Liquid?”

In his response Minister Responsible Kerenga Kua in relation to the first question on gas reserves stated.

“The 10.3 trillion cubic feet (TCF) of Gas is the foundation volume for the purpose of Resource Contracts Fiscal Stabilization Act 2000. Our law requires the state to provide fiscal guarantee to mega resource project with a fixed time frame or a fixed amount or volume of resource to be extracted under that specific fiscal guarantee for that specific project in this cast the Papua LNG.”

Minister Kua went on to highlight that the 10.3 TCF is the highest estimate that JV Partners can provide of what the Elk/Antelope fields may hold and this volume is contracted under the Papua LNG Gas Agreement, to be produced and sold from the project fields.

“Mr. Speaker, Interoil in the past have conducted drilling and well tests and there have been varying degrees of results from what has been stated by the Governor of Central which is 11.3 TCF, the structure and composition of Elk/Antelope fields pose major challenges to drilling programs in the past and results have had wide margins of differences. However since Total Energies took ownership of the PRL 15 License work towards ascertaining reserves has become clearer.”

Kua revealed that his department has had very detailed technical consultation and workshops with Total Energies and the JV partners since 2022 on the sub-surface technical matters, and 6.7 TCF 2P reserves is "very responsible" at this stage on the volume of the gas.

“As I have mentioned earlier in this Parliament ADPL has been launched, application for a Development Petroleum License has been lodged and detailed technical reviews are been undertaken by my department, which will lead to reserve certification, as I have been advised the department is satisfied with 6.2 TCF 2P reserves at this stage.”

In relation to the Central Governor's question on liquid production and sales, the Minister responded that the Elk/Antelope fields have a combined resource estimate in the range of 6.7 TCF gas 2P reserves, including 98 to 120 million barrels of condensate, so both of these have been estimated separately. 

“The liquids are part of gas reserves in the ground, and when produced they can be separated. The title or ownership of petroleum produced from the PDL passes to JV participants in proportion to their participating interests at the well head,” Kua said.

The Minister said that the APDL application is for two separate pipelines, one for the gas and liquid and the other for the condensate, to transport both separately from the processing facility to the PNG LNG Plant site to be further conditioned for sale.

The project JV partners including the state through Kumul Petroleum Holdings Ltd. (KPHL) and landowners through MRDC are owners of gas and liquid in proportion to their participating interest and will benefit from the sales, Kua said.

In a transformative move towards enhancing the future prospects of Papua New Guineans, the Wan PNG platform is all set for its grand debut after several months of meticulous groundwork. With an unwavering commitment to address the challenges posed by skill gaps in the nation's workforce, the Wan PNG team has undertaken a dynamic journey, connecting with educational institutions and aspiring graduates to pave the way for a brighter and more empowered Papua New Guinea.

The journey towards Wan PNG's launch has been marked by extensive travels and engagements, as the team traversed the length and breadth of the nation, forging connections and spreading the message of empowerment. The heartening initiative has been all across the country from places like the University of Papua New Guinea (UPNG) Expo held on the 9th and 10th of August, a vibrant event that showcased the talents and aspirations of Papua New Guinean youth. At this event, the Wan PNG team interacted with graduates and learners, discussing the exciting opportunities that the platform holds for them. Before this the team was up in Lae at the Unitech and Lae Polytech exploring how the platform can help its graduates find work and transition from education to a good career.

A highlight in this journey was the collaboration with the Kumul Petroleum Holdings Limited (KPHL) Graduate Development Program. This strategic partnership showcased the platform's commitment to working hand in hand with institutions to bridge skill gaps and create avenues for employment. The KPHL Graduate Development Program resonates deeply with the ethos of Wan PNG, aligning visions to uplift local talents and channeling them towards a prosperous future.

Furthering their commitment to empowerment, the Wan PNG team engaged with the Institute of Business Studies University (IBSU). This engagement was a testament to the platform's focus on reaching diverse sectors of the economy. By collaborating with academic institutions like IBSU, Wan PNG demonstrates its capacity to encompass a wide spectrum of industries, nurturing skills and talents that span various fields.

The team's journey of empowerment also led them to the National Health Fair, an event that highlighted the significance of a skilled healthcare workforce. Engaging with healthcare professionals and aspiring students, Wan PNG emphasized the platform's potential in facilitating the development of the healthcare sector, ensuring a competent workforce to cater to the nation's needs.

Wan PNG's efforts have been truly commendable, extending to encompass educational institutions like the MAPEX Training Institute and the International Training Institute. These engagements reaffirm the platform's inclusive approach, as it collaborates with institutions from various sectors to ensure that no opportunity for growth is left untapped.

As the launch of Wan PNG approaches, Papua New Guinea stands on the cusp of a transformative era. The platform's tireless journey across the nation, connecting with graduates and institutions alike, showcases its dedication to creating a dynamic ecosystem where skills, talent, and opportunities converge. Wan PNG is primed to usher in a new era of empowerment and growth for all Papua New Guineans.

President of the Autonomous Region of Bougainville Hon. Ishmael Toroama officially launched the Bougainville Vision 2052 and the Bougainville Integrated Strategic Development Plan 2023 – 2027 in Arawa recently.

“I am very proud of the efforts by our government to create the Bougainville Vision 2052 and the Bougainville Integrated Strategic Development Plan 2023 – 2027 because for us in Bougainville it is essential to have a strategic plan to build our human resource capacity, improve and develop our revenue streams, build infrastructure, and enable a stable economy on Bougainville,” he said.

The Bougainville Vision 2052 is the ABG’s long term vision spanning thirty years. The vision of this long term plan states that “By 2052, Bougainville will be a high income, educated, healthy and peaceful sovereign nation”.

The long-term plan comprises of 8 pillars, with each pillar describing a key aspect of contemporary Bougainville and articulating a desired end situation for each pillar.

The eight pillars are: Bougainville Ways; Integral Human Development; Sustainable Economic Growth; Peace Justice & Security; Infrastructure & Technology; International Relations; and Environment & Natural, Resources and Climate Change.

President Toroama said that executing our independence mission comes with the realization that we must build our socioeconomic and political capacity as these are the very foundations of any sovereign nation to progress and prosper.

The Bougainville Long Term Vision will be implemented through series of six five-year medium term development plans; the first of which was also launched today which is the Bougainville Integrated Strategic Development Plan 2023-2027, and themed ‘Advancing Self-Reliance, Sustainability and Independence-Readiness’.

President Toroama challenged all Bougainvilleans to question themselves as to what kind of society they wanted an independent Bougainville to look like and how they should go about creating the kind of society they wished for as Bougainville prepares for independence.

“This is the question that I had in mind when I stated, under the six-point strategy, a desire for the ABG to get into the practice of long-term visioning and planning so that we can start laying the foundations of a future Bougainville society,” he said.

President Toroama added that the Government has already begun the process of nation building through the numerous economic and development endeavors that his government has initiated. This also includes the work being undertaken by the Bougainville Constitutional Planning Commission to craft a new constitution for the Independent Sovereign State of Bougainville. The constitution will look at the creation of the legislature, the judiciary, and the executive arms of government for Bougainville.

Furthermore, the Bougainville administration is also focused on the effective delivery of social, economic and governance services for Bougainville.

President Toroama says these are all preparatory activities that the government and the administration have undertaken in the last three years and these activities require proper planning and coordination to achieve our short term and long-term goals.

“As President I am of the view that it is time to introduce reforms to ensure there is cohesion between the government and administration of Bougainville. It is time the government’s vision is clearly articulated by the administration and transformed into tangible development. We have no time to waste arguing amongst ourselves and working against the greater vision of this government. I urge you all put aside your differences and work towards our common goal and that is the independence of Bougainville.”

Mayur Resources Limited is pleased to announce that it has executed a Term Sheet with Vision Blue Resources (“VBR”), a clean energy related investment firm led by Sir Mick Davis, for an investment of US$40 million for a 49% equity share in the Project. Mayur believes that the Proposed Investment will be sufficient to satisfy the total equity funding required for completion of the Project’s development and construction works, implement onsite carbon reduction initiatives, and enter commercial production.

The Proposed Investment is subject to a number of conditions precedent including, but not limited to, negotiation of long form investment documents and Project-related documents, securing requested fiscal approvals by applicable PNG government bodies, required debt funding and ongoing commitments to ensure the production of low carbon lime. VBR and Mayur are working together to secure debt financing of approximately US$70 million to fully fund and complete the Project. Due to the Project’s economic significance in the APAC region, including its importance in supporting the critical minerals sector in Australia, the Company is in negotiations with the Australian Government as one of its preferred debt funders with a view to enhancing bilateral ties between the two countries.

Sir Mick Davis, CEO of VBR, said:

"The importance of lime supply to the processing of minerals and metals linked to the energy transition is considerable and the Mayur leadership team’s credentials in this market are world- class. The project in PNG is compelling in terms of its size, scalability and quality, given the high calcium content of the deposit. The Project has an attractive low risk profile which aligns well with VBR’s investment criteria, is fully permitted, construction is underway, and benefits from project developed road and port infrastructure– all located in a strategic location, to support the PNG and greater APAC markets. We look forward to working with the Mayur team to negotiate the long form transaction documents and satisfy the conditions required for the Proposed Investment to complete.”

Mayur’s Managing Director, Mr Paul Mulder, added:

“We are thrilled to welcome VBR, a partner of impeccable pedigree, to collaborate on our Central Lime Project. VBR’s recognition of the pivotal role of lime in meeting the escalating demand across various environmental and renewable energy sectors is evident.”

“The Project will see PNG become a pivotal contributor to the regional and global lime industry, with demand for lime set to continue to rapidly expand as a key input in the global energy transition.”

“The Project also promises substantial benefits for the domestic PNG economy. It paves the way for an import substitution downstream processing business, while providing significant local employment opportunities. The enhancement of living standards and benefits for local landowners remain at the forefront of our mission."

“According to Wood Mackenzie forecast lime consumer demand vs. the producer ‘supply response’ clearly evidences the increasing supply deficit and dislocation in a supply chain being able to respond in the APAC region where material upward pressure on lime prices is forecast. The Australian market in recent times has shown consumers are now willing to import higher grade, cleaner better performing lime from abroad. Collectively with our partners VBR we plan to become a dominant player not only in Australia, but also the APAC region. Indonesia has significant forecast demand for lime in the foreseeable future for its Nickel HPAL (High Pressure Acid Leach) plants, being constructed at an unprecedented rate where again we plan to play a material role. This key downstream processing of its raw minerals opens a sizeable market opportunity in close proximity to the Project, with PNG’s Prime Minister and Indonesia’s President having just last month resolved to markedly pursue increased bilateral trade relations.”

Development of the Project will leverage, and benefit from Mayur’s Executive Team, which includes several veterans from the global lime industry. Notably, it includes Mr. Brad Lemmon, former Executive General Manager of Lime and Cement at Adelaide Brighton; Mr. Campbell Jones, former Managing Director of Sibelco Australia and Americas; Mr. Bruno Wauters, former President of Sibelco South East Asia, and incoming CEO of the Central Lime Project, Mr. John McBride, who served previously as the President of Graymont SE Asia and CEO of Sibelco Lime and will be returning home to PNG having been born in Rabaul.

The Project's strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Project to become a regional lime industry leader. Construction is expected to continue until the middle of 2025 with lime to be produced shortly thereafter. High grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility.

The experiences and impacts on social and economic ecosystems on local communities of mine closures of Bougainville and Porgera mines will feature during the program on Day 1 of CANCONEX in Lae on 28 August 2023.

The Bougainville perspective will be presented by prominent Bougainvillean leaders Theresa Jaintong and Paul Nerau and the lessons from Porgera by Porgera Chamber of Commerce President Nickson Pakea and Porgera District Women’s Association president Serah Erasi.

With more than 700 stakeholders of resource projects in attendance, the inaugural Community Affairs and National Content Conference and Expo (CANCONEX), will provide the platform for open and frank discussions, in the hope of sharing solutions on pertinent issues that are common across resource project areas. Among these, how local communities and stakeholders ensure resilience in their social and economic ecosystem to deal with the closure of resource projects – planned or otherwise.

In announcing the presenters for this important session, Chamber President Anthony Smaré spoke of the need to learn from the past, to assess current practices, and to plan better for the future.

“The lessons of Panguna, and Porgera, particularly in how social and business ecosystems and infrastructure survive to benefit the local communities, are critical learnings that need to be taken on board by all stakeholders to ensure sustainable outcomes for all communities from resource development in the first place.

Panguna itself provided the financial foundation for Papua New Guinea’s independence in 1975 and contributed immensely to the development of communities in Panguna, Bougainville, and in wider Papua New Guinea. Many Papua New Guineans who progressed to taking up key roles within the mining industry were trained by the operator of Panguna, BCL, and have since become leaders in other mining projects in PNG, as well as abroad.

Whilst this project provided the necessary support to PNG, perceptions of unfair distribution of opportunities, especially from Landowners, formed the basis of events leading up to the forced shutdown of this project, triggering a decade-long conflict on the island, and the loss of many lives.

Similarly, Porgera in Enga Province contributed immensely to the development of a province which was once considered the “last province” in the country, to a leader in the provision of free-education, training Engans to a level now where many hold influential positions in both the public and private sector.

The closure of Porgera in 2020 effectively removed a major economic lifeline for many within Porgera, and surrounding communities. The effects of which continue to be experienced today.

In the centre of all of this has been the efforts of landowners, and local business leaders to find a way to ensure a sense of normalcy continues, albeit in very difficult circumstances.

What are the lessons that we can learn from Panguna and Porgera, about resilience and sustainability of social and commercial investments that the community, the State and the developer make and how do we improve to ensure much better resilience for future project closures, planned or otherwise?

These are the discussions which will take place at CANCONEX – discussions which are critical for all landowners especially.”

Registration for CANCONEX is still open, with a special 50% discount off the registration price available to landowner representatives from project areas, who are endorsed by their respective project Community Affairs teams. Those wishing to participate are encouraged to register via www.canconex.com to secure their participation.

Prime Minister Hon. James Marape warmly embraces the establishment of a United States Agency for International Development (USAID) Country Representative Office within Papua New Guinea.

He also welcomed the backing of a substantial US$7.4 million (K25.4 million) from USAID. Prime Minister Marape asked USAID to ensure that this assistance aligns to the recently-launched Medium Term Development Plan IV (2023-2027).

His remarks followed a jointly convened press conference and productive bilateral meeting today with USAID Administrator H.E. Samantha Power, where announcement of the office and assistance was unveiled.

“The USAID office follows US President Joe Biden’s 2022 promise at the historic US-Pacific Island Countries’ Summit, which I attended,” Prime Minister Marape said.

The allocated US$7.4 million will serve the following pivotal purposes:

1. Launching new humanitarian initiatives to bolster preparedness and address the ongoing volcanic activities (US$5.2 million). This allocation will encompass comprehensive community-based disaster risk management, augmenting the readiness of local and provincial governmental bodies to effectively manage disasters (US$3.5 million). It will also address the pressing challenge of severe and acute malnutrition within Papua New Guinea (US$1.2 million), and extend US$500,000 to support the emergency response to the recent eruption of Mt Bagana on Bougainville.
2. Pioneering the establishment of a solar mini-grid system in Central Province (US$1.2 million).
3. Enhancing Papua New Guinea's oxygen and laboratory ecosystems, while concurrently bolstering the nation's COVID-19 surveillance capabilities (US$1 million).

"Today marks yet another monumental chapter in the flourishing USA-PNG alliance, characterized by the resounding announcements made by Administrator Power, underscoring the inception of the USAID Country Representative Office within PNG and the substantial US$7.4 million (K25.4 million) in vital aid," said Prime Minister Marape.

"On behalf of the entire populace of Papua New Guinea, I extend profound gratitude to US President Joe Biden and his esteemed Administration, via USAID, for this indispensable support.

"This development encapsulates the dynamic progression of the relationship between the United States and Papua New Guinea.

"The visit by Administrator Power marks the third visit of this caliber from distinguished members of the US Cabinet, following the visits by Secretary of State H.E. Antony Blinken and Secretary of Defense Lloyd Austin.

"Barely a few days ago, I presided over a ceremony honoring 43 of our brightest young minds, poised to embark on their academic journeys to various universities across the United States. Today's announcement by USAID fortifies this momentum.

"This bodes exceedingly well for the collaborative journey of our two nations."

Prime Minister Hon. James Marape expressed his satisfaction upon receiving the announcement that the monumental K770 million Edevu Hydropower Project, situated along the Brown River in Central, is set to commence operations next month.

Having inaugurated the project in April earlier this year, Prime Minister Marape acknowledged the government’s collaboration, facilitated by Kumul Consolidated Holdings, in partnership with the project. The government has committed K120 million towards the establishment of a 132KV transmission line connecting Edevu to Port Moresby. This contribution supplements the K650 million already invested by Chinese investor PNG Hydro Development Ltd.

In light of the imminent project launch, Prime Minister Marape emphasised the significant positive impact the endeavor will bring to the Port Moresby Grid, which is currently facing operational constraints and frequent power outages.

“This initiative will play a crucial role in alleviating power supply challenges in the National Capital District, as well as Central and Gulf provinces,” Prime Minister Marape stated.

Reflecting on the broader implications, Prime Minister Marape underscored the Edevu Hydropower Project as an exemplary achievement of what a government agency accomplished through a collaborative effort with a private enterprise.

He recounted the progress achieved during the past four years of his tenure, refuting criticisms that have cast doubt on the government’s accomplishments.

“The K650 million hydro power station and the K120 million allocation for the 132 KV transmission lines exemplify strategic investments aimed at lighting up previously underserved regions of Papua New Guinea, including National Capital District, Central, and Gulf provinces. These regions stand to gain the most from this transformative initiative,” Prime Minister Marape said.

Moreover, Prime Minister Marape took the opportunity to highlight the project’s socio-economic contribution. “An estimated 2,000 jobs have been generated, both directly and indirectly, benefitting the communities of Central and NCD,” he affirmed.

Prime Minister Marape extended gratitude towards the landowners and developers for their dedicated efforts in bringing this ambitious project to fruition. He commended the proactive approach of Edevu landowners, exemplifying effective collaboration with foreign investors as a model for other landholders across the nation.

Acknowledging the commitment of PNG Hydro Development Ltd and its Managing Director, Allan Guo, as well as the Chinese financier, Prime Minister Marape hailed their unwavering dedication to the project since its inception in 2009. In particular, he highlighted their perseverance during the challenging times posed by the COVID-19 pandemic.

“The dedication demonstrated by Mr. Guo and his team amidst the global adversity caused by COVID-19 is truly remarkable. It serves as a testament to the confidence of an international investor in Papua New Guinea’s potential,” Prime Minister Marape said.

Support continues to grow for the inaugural Community Affairs and National Content Conference and Expo (CANCONEX), with leading landowner company, PNG Mining And Petroleum Hospitality Services Limited (PNGMPHSL) showing its support as a Platinum Sponsor for the national landowner event.

Formed in 2015, PNGMPHSL is a fully owned Papua New Guinea based company owned by landowners from Kutubu, Gobe, Gigira, Kikori and Moran, that prides itself in providing quality and highly effective safety-focused support services throughout the nation. Today, PNGMPHSL operates in several locations throughout PNG serving an average of over 8,500 meals per day.

Through their support, PNGMPHSL will be the official caterer to over 500 delegates on the final day of CANCONEX (Wednesday August 30th , 2023).

In welcoming PNGMPHSL’s support to CANCONEX, PNG Chamber of Mines and Petroleum President Anthony Smaré spoke highly of the landowner company, which has become a leader in the hospitality space, especially within the resource industry.

“CANCONEX 2023, as the inaugural national landowner conference & expo provides an opportunity for all project area landowners from across the country and other PNG businesses to come together, share their experiences, and expand their networks to see where they can all partner in areas of mutual interest to support each other to maximize opportunities for project developments.

The PNGMPHSL story is one of how multiple landowner companies within the resources industry, from can unite under one entity, to expand and improve their services, strengthen their brand, and in turn increase profitability to provide better returns for landowners – theirs is the story which will be shared with other landowners at CANCONEX.

As a Platinum Sponsor, PNGMPHSL will be providing their world-class catering services to attendees on the final day of the event, which will include the closing dinner, which will highlight the offerings from across their shareholding from Southern Highlands to Gulf Province, which will be a memorable experience for all who will attend.

The Chamber thanks PNGMPHSL Chairman Peter Heno, CEO Jonathan Corotan, Management and staff for supporting CANCONEX, and we look forward to partnering with PNGMPHSL for a successful event.”

Registration for CANCONEX is still open, with a special 50% discount off the registration price available to landowner representatives from project areas, who are endorsed by their respective project Community Affairs teams.

The PNG Chamber of Mines and Petroleum (“the Chamber”) recently hosted its first ever Media Wind Down event, in Port Moresby on Friday July 28, 2023.

Staged as a meet and greet event with the theme “To Connect, Communicate and Collaborate”, the event brought together public relations professionals within the mining and petroleum sectors, and journalists, as well as other interested parties for an educational and fun filled evening.

Communications and Public Relations Manager for the Chamber, Mr. Meriba Tulo said the event being the first of its kind for the Chamber, like the Health, Safety and Environment (HSE) Wind Down held in June, was hailed a success given the turn out and smooth flow of the program.

“The purpose of the media wind down was to bring together all professionals within the communications space to come out and mix and mingle with other likeminded professionals and strengthen working relationships for greater collaboration within the industry.”

Other key highlights at the event included invited speakers who shared enlightening experiences and challenges as founders of locally owned exploration companies and international volunteerism in Papua New Guinea.

Founder and Director of Munga River Limited, Mr. Koiti Mel shared an insight into his work as a local geologist in the exploration space alongside fellow geologist Mr. Moses Mondowa, the founder of Aiabba Minerals Limited, a full subsidiary of Canadian company Apache-Abba Minerals Limited.

The other guest speaker was Liz Mackinlay of Australian Business Volunteers (ABV) who shared an insight to her work in Papua New Guinea via zoom presentation from Sydney, Australia.

The monthly Chamber Wind Down events are an avenue for professionals within specific fields in industry to come together to network and discuss issues that are pertinent to each field. These events also provide an opportunity for potential membership to gain firsthand information about the benefits of becoming a member of the Chamber.

We thank ExxonMobil PNG for sponsoring the July Media Wind Down event, and we look forward to hosting our next event in the coming month.”

Ok Tedi Mining Limited (OTML) hosted esteemed representatives from Mitsubishi Materials Corporation (MMC), one of its leading customers of copper concentrate from Japan last week.

Among the distinguished visitors were General Manager – Raw Materials Department, Mr. Hiroyuki Tsukamoto; Deputy General Manager – Raw Materials Department, Mr. Masahide Iwataki; Manager – Raw Materials Department, Mr. Kotaro Hirokawa.

Accompanying the MMC team were Marubeni Corporation personnel, who represent MMC as their Buyer’s Agent, with General Manager – Non Ferrous Ores Section, Non-Ferrous Metals and Ore Trading Department, Mr. Yoichiro Suga, from Tokyo, and Port Moresby Representative, Mr. Ryuichi Ueno.

MMC, the largest of the Japanese smelter companies in terms of concentrate demand, currently operates two smelters in Japan at Onahama and Naoshima, plus one in Indonesia where they hold a 60.5% ownership interest in the Gresik smelter.

MMC's visit to OTML holds significant importance as it signals their deep-rooted interest in forging a continued business relationship. The delegation's exploration of OTML's innovative waste management strategy, specifically riverine disposal, highlights MMC's commitment to aligning their operations with the principles of Environmental Social Governance (ESG) and shareholder expectations.

During the visit, the MMC representatives were provided with an exclusive tour of OTML's mine and processing operations. Furthermore, they gained valuable insights into the Bige dredging operation and Kiunga operations, witnessing first-hand the company's commitment to sustainable practices.

They also learnt of the amazing work carried out by the Ok Tedi Development Foundation in the Mine and Community Mine Continuation Agreement (CMCA) communities.

A key highlight of the engagement was OTML's presentation on the company's outlook over the next few years. The strategic vision and growth plans of OTML resonated deeply with the MMC executives, further solidifying their desire to continue the fruitful partnership.

Expressing his enthusiasm on behalf of MMC, Mr. Hiroyuki Tsukamoto reiterated their commitment to sustain the business collaboration with OTML well beyond 2026.

OTML Managing Director & CEO, Mr. Kedi Ilimbit, assured the delegation that OTML is also committed to solidifying their partnership with MMC and expanding on opportunities into the future.

Japan has been, and continues to be, the largest market for the purchase of OTML’s copper concentrate. Currently 60% of its copper concentrate is purchased by five Japanese smelter companies.

OTML’s relationship with Japanese smelters extends back to the commencement of copper production in 1987, with the first shipment of OTML copper concentrate to Japan leaving Port Moresby on 21st August 1987. And this month marks 36 years of continuous sales and shipments into Japan.

‘FX market turnover in the June quarter rose 28% from the March quarter 2023 to PGK13.9 billion, due to a 58% increase in BPNG FX intervention,’ according to BSP’s June Quarter 2023, Pacific Economic & Market Insights report.

“Excluding BPNG intervention, market turnover rose 12% in the June Quarter, but remains flat (unchanged) in 1H-2023 when compared to 1H-2022,” Rohan George, BSP’s Group General Manager for Treasury, said.

Mr. George highlighted lower commodity prices as the main reason behind no growth in FX turnover. “In 2023 Palm Oil prices are down 40%, Oil down 20%, and Copper down 10% on 1H-2022 averages,” he said.

“BPNG’s record PGK969 million FX intervention in May helped reduce BSP’s outstanding FX orders by 50% from the end of the March Quarter, but outstanding FX orders have never-the-less doubled over the course of the year. Despite increased Central Bank intervention, the PNG FX market continues to miss the foreign currency contribution from Porgera.”

The Kina mid-rate fell against the US dollar by 1.8% to 0.2790 between May to July and was mostly unchanged against the Australian Dollar at 0.4230 in Q2-2023. Mr. George expects the PNG kina to continue to depreciate against the U.S. dollar by approximately 0.7% per month, or 8.4% per annum.

“We anticipate continued flat trading conditions, and the focus will shift to the IMF Roadmap to a more effective monetary policy framework and reforms to PNG’s financial system,” Mr. George said. “This will be released at the end of August and most likely involve a gradual move to a freely floating currency, removal of exchange control regulations, and more active Central Bank intervention in the FX and Kina money market.

“Reforms will create greater market risk and volatility in the PNG FX market and customers should commence preparing and budgeting for this,” Mr. George stated.

The Government, through BPNG, seeks to bring the PGK/USD exchange rate to the ‘market clearing’ rate, where the supply of currency can meet demand without BPNG intervention.

“This will, in theory, allow for the free flow of trade particularly for imports. This is a necessary step by the Government for the market to function efficiently,” Mark Robinson said BSP’s Group CEO, said.

“The PGK/USD midrate was reduced in May (-0.7%), June (-0.7%) and July (-0.4%) from 0.2840 to 0.2790 during this period,” Mr. Robinson said. “These slight reductions are likely to be spread out over multiple years and overlapping with the large FX inflows expected through the various resource projects coming up.”

The resource projects, especially the progress towards reopening of Porgera and the starting up of Papua LNG, are positive indications that have improved market sentiment. The timing of these projects can support current efforts to move to a more market-driven exchange rate system.

“As the Government attempts to correct historical inefficiencies with the exchange rate system, it must ensure that the transition is carefully staged to avoid the risk of exchange rate overshooting due to the pent-up FX demand.” Mr. Robinson concluded.

Warden’s Hearing for the Porgera Mine has been successfully concluded.

The hearing was held at Paiam Oval in Porgera on July 31, and in Tari Town Square Hela Province on Aug 1, with regards to the Special Mining Lease (SML) 13 and 15 supporting tenements.

Major stakeholders to the hearing process were the impacted landowners and the applicant New Porgera Limited (NPL). The NPL was represented by Chad Coulin, who is the Executive Manager of Barrick Niuigni Limited (BNL). BNL will be the operator of NPL.

Mr Coulin outlined the company’s proposals for reopening the mine and potential benefits that are expected.

The Chief Mining Warden of PNG Mineral Resources Authority (MRA), Mr Ovi Patrick, conducted the hearing at Paiam and Tari, following an application for an SML by NPL in June this year, to reopen and operate the Porgera mine.

Proceedings at Paiam was attended by about three thousand SML, Lease for Mining Purposes (LMP) and Mining Easements (ME) landowners. The landowners came with placards and banners carrying messages pertaining to their views on whether they wanted NPL to operate the mine or not.

Treasurer of the Porgera Land Owners Association (PLOA) Nixon Mangape, represented the PLOA amongst other leaders. Other stakeholders who were present were Enga Provincial Government, Porgera District Administration and the Local Level Government.

The hearing at Tari town square was graced by the participation of the Governor for Hela Province, Hon Philip Undialu and the Provincial Administrator Marago Dagoba. About five thousand impacted landowners gathered to witness and present their views at the event.

Mr Patrick explained to the landowners that a Warden’s Hearing is a statutory process, under section 108 in the Mining Act 1992. He said the objective of a Warden’s Hearing was to gauge the views of the impacted landowners, on whether they accept or object to applications.

In the case of Porgera, the Warden’s Hearing reports together with technical assessment report of the applications, will be submitted to the Mining Advisory Council (MAC). The MAC then makes recommendations to the Minister for Mining, who then submits the recommendations to the National Executive Council (NEC). The NEC will then advice the Head of State on whether to grant or refuse the applications for the SML and its associated tenements.

At Parliament House recently, Kumul Petroleum Holdings presented the Government with a dividend cheque for K250 million

Handing over the interim dividend payment to Treasurer, Ian Ling-Stuckey, and SOE Minister William Duma, Wapu Sonk, Managing Director of Kumul Petroleum Holdings said, “KPHL is fulfilling the commitment it made in its 2023 Annual Operating Plan, that an interim dividend payment would be made mid-year.”

“Kumul Petroleum has continued to support Government through direct payment of dividends and tax and indirectly through implementation of NEC approved projects. In 2022 KPHL paid K951 million in corporate taxation and this year, KPHL is expected to pay similar amount.

Mr Sonk, accompanied by KPHL directors Paul Nerau and Peterson Pipi, outlined that Kumul Petroleum was still negotiating finance but close to closing a deal on acquiring additional equity in the PNG LNG Project from Santos, as requested by Government. Also, that KPHL was ready to participate and maximise its participartion in the forthcoming Papua LNG Project.

“Kumul Petrolem intends to continue with its petroleum and energy sector initiatives which will result in long-term benefits for the country. This includes commercialising stranded gas fields and investigating domestic utilisation of gas for electricity generation and value added petrochemical chemical production. We can only do this if KPHL has the financial capability and allowed flexibility to operate commercially.”

Mr Sonk added, ”Kumul Petroleum intends to maximise national involvement in current and future LNG projects in areas of national content, especially during the construction phase. To make this a reality, KPHL is investing in a highly advanced skills training facility together with a Fabrication Facility which will create 4000 jobs directly and indirectly on top of those that will be created by Papua LNG and other projects.

Mr Sonk concluded, ”Kumul Petroleum, as the national petroleum and energy company, stands ready to support the National Government and its development priorities as outlined in the recently launched Medium Term Development Strategy and Vision 2050 plans.”