Barrick Gold Corporation is aiming to restart operations at the Porgera gold mine later this year, president and chief executive Mark Bristow says.

This follows the Security Forum and the opening of the Development Forum on July 20, a precondition for the granting of a special mining lease, by the Minister of Mining, the Hon Sir Ano Pala, at an event attended by the Prime Minister, the Hon James Marape, the Governor of Enga Province, Sir Peter Ipatas and several thousand Porgerans. At the same event, the Mining Minister told the audience the maintenance of law and order was critical for the successful restart and operation of the mine.

Bristow commented that, if all goes according to plan, Porgera could be back in operation before the end of 2023. In preparation for the restart, the mobile fleet and fixed plant are being recommissioned, the mining and metallurgy plans have been updated, and the personnel recruitment plan has been finalized, with preference given to local employment.

“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders. For Barrick, the re-opening of the mine represents another victory for our host country partnership model which has been so successful in Tanzania and has also been adopted for the Reko Diq project in Pakistan,” he said.

Papua New Guinea stakeholders own 51% of New Porgera with Barrick Niugini Limited, which will operate the mine, holding 49%. Economic benefits will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini.

The Asian Development Bank (ADB) has appointed Said Zaidansyah as the Country Director for Papua New Guinea (PNG). Mr. Zaidansyah, who assumes office today, will oversee ADB’s country partnership strategy for PNG and wider engagement in the country.

“Working with the Government of Papua New Guinea, we are committed to, among other things, helping rehabilitate the Highlands Highway and other transport infrastructure, improve civil aviation safety, respond to climate change, promote private sector development, and increase access to health and financial services in the country,” Mr. Zaidansyah said.

A national of Indonesia, Mr. Zaidansya graduated with a master of laws (LLM) degree from Queen Mary College of University of London under the British Chevening scholarship, and obtained bachelor of laws (LLB) from the University of Indonesia. He joined ADB under the Young Professional Program in 2002 and spent many years in the Office of the General Counsel. Mr. Zaidansyah held most recently a senior management role as the Deputy Country Director for Indonesia.

ADB is financing large-scale infrastructure investments in transport and energy sectors, including the ongoing $1 billion program to rehabilitate and maintain 430 kilometers of highway in the highland areas. The program is also upgrading bridges, improving road safety, establishing logistics platforms and services for agricultural production, and supporting transport sector reforms. An electricity grid project to expand the transmission and distribution grid in the national capital was approved in 2022. 

The ADB-supported Civil Aviation Development Investment Project (Phase 2) is rehabilitating five more remote PNG airports. Weather observation and navigation services will be installed at the sites, and the power supply at Port Moresby International Airport will be boosted by the project. This will further enhance connectivity in PNG. Women will be the major beneficiaries of civil aviation training. 

The Improved Technical and Vocational Education and Training (TVET) for Employment Project, cofinanced with the governments of Australia and PNG, will strengthen the country’s TVET program and help prepare students to be more competitive and responsive to employment and industry demands.

ADB has also supported reforms in the health sector, through technical assistance and better public financial management.

For almost 17 years, the Sydney-based Pacific Private Sector Development Initiative (PSDI), cofinanced by the governments of Australia and New Zealand, has been helping improve the region’s business environment and promoting private sector investment. 

ADB is one of PNG’s largest sources of official development assistance, with an average annual lending of $399 million over 5 years from 2017 to 2022. To date, ADB has committed 268 public sector loans, grants, and technical assistance totaling $4.7 billion to PNG. Cumulative loan and grant disbursements to PNG amount to $3.44 billion. These were financed by regular and concessional ordinary capital resources, the Asian Development Fund, and other special funds. ADB’s ongoing sovereign portfolio in Papua New Guinea includes 16 loans and 1 grant worth $1.53 billion.

The Independent Consumer and Competition Commission (ICCC) has given the Newmont Corporation the green light to proceed with its proposed acquisition of Newcrest Mining Ltd. Newmont's Chief Executive Officer, Tom Palmer, expressed his appreciation to the ICCC in PNG for their meticulous review and clearance of the acquisition proposal for Newcrest, paving the way for the transaction's closure in the final quarter of this year.

“We appreciate the ICCC in PNG for carefully reviewing and clearing our proposed acquisition of Newcrest,” Palmer said. “Lihir is one of the world’s great gold mines and a Tier One operation by any measure. We also see profitable gold and copper growth through the world-class Wafi-Golpu project. We remain committed to building strong, mutually beneficial and longlasting relationships with the Government and communities. Newmont plans to establish PNG as a standalone fifth region in our portfolio with an in-country senior leadership presence, and pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).”

The acquisition of Newcrest opens up significant opportunities for Newmont, with Lihir being one of the world's premier gold mines and a highly regarded Tier One operation. Additionally, Newmont sees promising potential in gold and copper growth through the Wafi-Golpu project, which is renowned for its world-class standards. Newmont is dedicated to forging robust and lasting relationships with the Government and local communities in the region.

Furthermore, Newmont has strategic plans to establish PNG as an essential and independent region within its portfolio, accompanied by an in-country senior leadership presence. They also intend to pursue a secondary listing of Newmont depositary interests on the PNGX (PNG stock exchange).

Despite receiving approval from the ICCC, Newmont and Newcrest will continue engaging with the Government and regulators to secure other necessary approvals and clearances for the proposed transaction. The definitive agreement for the acquisition of Newcrest was announced by Newmont on May 14.

ICCC Commissioner and CEO, Paulus Ain, clarified that the approval was solely based on competition grounds. He acknowledged that there are other areas of national interest currently under scrutiny concerning this acquisition. However, the ICCC's jurisdiction is limited to the assessment of competition effects only. Matters related to investment and capital market listings fall outside the purview of the ICCC and should be addressed by relevant authorities.

“The ICCC understands that there are areas of national interest currently under scrutiny pertaining to this proposed acquisition,” Ain said. “However, the process under which this approval was given is on the competition effects only. Issues on investment and capital market listings are outside of ICCC’s mandate and can be addressed by relevant authorities. While the ICCC has cleared this proposed acquisition on competition grounds, it is not to be taken as the final regulatory approval for the proposed acquisition in PNG.”

The State Negotiating Team for the proposed Joint Venture (JV) between the State and the RD Corporation met for the first time today to commence JV negotiations. Minister for International Trade and Investment, Hon. Richard Maru met with the team to give them the overall picture of what the Government wanted from this JV negotiations and what the team had to deliver in the next three months.

“The State Negotiating Team must deliver a proposed Joint Venture Agreement between the State and RD Corporation to start a Joint Venture fishing company in Madang. They must also deliver a Benefit Sharing Agreement between the impact communities and Madang Provincial Government, and the State on how they will benefit from the development of PMIZ,” said Minister Maru.

“Their work will also include the valuation of current assets of RD Fishing at Vidar in Madang, which includes land, a wharf, a cold storage, dockyard, buildings, and the fishing boats. The State Negotiating Team has three months to deliver these,” added Minister Maru.

Chairman of the State Negotiating Team, Mr. Issaac Lupari said he was involved in many State negotiations of the past, but this was one that he was very excited about.

“If we can deliver this, it will transform our local fishing industry and secure benefits we have never enjoyed by being a rent collector all these years. This will also result in the creation of thousands of new jobs and exponential increase in revenue for the State. This is a very exciting project, and I am very humbled that I have been chosen to lead this team,” said Mr. Lupari.

Kumul Consolidated Holding Managing Director, Professor David Kavanamur said KCH was also very excited to be part of the State Negotiating Team and offered to provide free technical assistance in whatever form required to assist with the State negotiations.

Minister for International Trade and Investment, Hon. Richard Maru says he is happy with his visit to China recently.

“Building on the sister-city relationship between Shenzhen and Port Moresby and the recent State visit of Governor of Guangdong, Wang Weizhong, I was happy to make my first official visit as the Minister for International Trade and Investment to two economic powerhouse cities of China, Shenzhen, and Guangzhou. My one-week visit to China was to let the Government and the people of China know that PNG was ready to do business with China,” said Minister Maru.

Minister Maru led a small delegation and they visited Hong Kong, and Shenzhen and Guangzhou of Guangdong Province from July 24-28, 2023. The main objectives of this visit were to inspect the venue, and do awareness and drum up support from the Private Sector of Hong Kong and mainland China for the upcoming inaugural Papua New Guinea (PNG)-Asia Investment Conference that will be hosted in Hong Kong from October 16-17, 2023; to check possible locations in Shenzhen to open a new Trade Mission following the closure of the PNG Trade Office in Taipei, Taiwan; and meet with Shenzhen and Guangzhou Municipal Governments and their State-Owned Enterprises and Private Sector to inform them of investment opportunities in PNG.

Minister Maru and delegation visited the confirmed venue of the upcoming PNG-Asia Investment Conference, which is Regent Hotel on Victoria Harbour, Hong Kong.

“If this inaugural conference is successful then it will become an annual event that will build the bridge and relationship between PNG and Hong Kong, China, and the greater Asia Region,” said Minister Maru.

Whilst in Hong Kong, Minister Maru also met with the executives and members of the PNG (Hong Kong, China) Chamber of Commerce (PNGHKCCC).

“PNGHKCCC will host a welcome dinner on October 15, 2023, for the PNG delegates who will be attending the PNG-Asia Investment Conference. Prime Minister Marape will be invited to this welcome dinner to formally give PNGHKCCC a Certificate of Recognition from the Government of Papua New Guinea. The PNGHKCCC Chairman, Mr. Anthony Lai and I agreed on this arrangement during our meeting,” said Minister Maru.

Minister Maru also met with the Shenzhen Government and private sector where an agreement was reached between them and the Ministry and the Department of International Trade and Investment for the new PNG Trade Mission to be in a very prestigious office building in Shenzhen.

“Under my Ministry I intended to have this Trade Mission opened in October of this year. A team will visit Shenzhen in the coming weeks to finalize the negotiations on the office space and to cost out the whole setup and operation. The position of the trade commissioner will be advertised this week so a trade commissioner could be appointed as soon as possible. If all arrangements go well, we will invite Prime Minister Marape to open this new Trade Mission during his visit to China for the Belt and Road Initiative Leaders Meeting in Beijing,” said Minister Maru.

Minister Maru also had a bilateral meeting with the Governor Weizhong of Guangdong Province. One of the main issues that Governor Weizhong raised was the difficulty in obtaining visas for business travel in a timely and efficient manner, especially in the south of China. He informed Minister Maru that there were currently 68 Consulates in Guangzhou with Vanuatu being the latest country to establish its office in addition to their Embassy in Beijing. He strongly recommended for PNG to consider establishing a Consulate in Guangzhou to help facilitate visas and two-way trade.

“I conveyed that this issue will be given the utmost attention to ensure that the PNG Ministry of Foreign Affairs and Ministry of Immigration work to immediately address this issue. Currently all the visas are issued in PNG’s Embassy in Beijing, however, noting that most businesses and possible investors are in the south of China, it would be more practical to have a Consulate in Guangdong Province, specifically in Guangzhou so we can improve the trade and investment relationship between our two countries and our people,” said Minister Maru.

Governor Weizhong also mentioned that initial talks with Southern China Airlines have started following his discussions with Prime Minister Marape on direct flights between Port Moresby and Guangzhou.

“The commencement of this flight will not only ease the facilitation of business travel into PNG but will also be a booster for tourism in the country and in transforming Port Moresby to becoming a transit hub for Asian and Pacific travellers,” said Minister Maru.

“Overall, my trip to Hong Kong and mainland China was very successful. China is ready to invest in PNG in big ways in both the renewable and non-renewable sectors. My trip has laid the groundwork for key deliverables of the Marape-Rosso Government which is the inaugural PNG-Asia Investment Conference, opening of PNG’s first Trade Mission in Shenzhen, and possibly a new Consulate in Guangzhou. Large investors are looking forward to attending the upcoming PNG-Asia Investment Conference on October in Hong Kong and they are also ready to partner with PNG in the oil, gas and mining sector, and the non-renewable sector. We have to work on addressing the issues that have been raised as a concern to the people and the Government of China so we can improve the trade and investment relationship between our two countries and peoples,” said Minister Maru.

Minister Maru said added that PNG was serious with its relationship with China.

“China is becoming PNG’s biggest trading partner. PNG’s current exports to China is valued at K5 billion, whilst China's total value of exports to PNG is worth K1.5 billion. With more mining and petroleum projects coming on board, China will continue to be our biggest market in the future. We have to consolidate and deepen our relationship with China in order to secure future market not only for our resources industries but also our non-renewable sectors of forestry, fisheries, and agriculture,” said Minister Maru.

“With our Government’s focus to follow the path of Special Economic Zones, China is the appropriate partner to learn best practices from given their own success which led to China from being an agrarian economy to one of the economic superpowers of the world today. We can learn a lot from China in terms of technology and skills transfer. This is a whole new unexplored area,” added Minister Maru.

Prime Minister Hon. James Marape recently gave a gleaming report on Minerals Resources Development Company (MRDC) while describing it “very much the success story (Great) Grand Chief Sir Michael Somare wanted it to be”.

PM Marape was tabling the financial accounts of the company in Parliament when he revealed that the company, founded by the late founding father in May 1975, has grown its investment portfolio over the years to K7 billion in 2022.

The Prime Minister also revealed that, for the first time in its 47-year history, the MRDC’s financial records were all in order.

“Sir Michael initially intended for the company to conduct explorations for mineral reserves in PNG. It was a noble intention by him as the nation’s vast mineral, and oil and gas potential, was already known to the world.

“Today, 48 years after its inception, MRDC is very much the success story (Great) Grand Chief Sir Michael wanted it to be.

“The MRDC Group’s total investment portfolio has grown in value in the last 16 years. From K395 million recorded in 2006, the Group’s investment portfolio has grown to K7 billion in 2022.

“In December last year, I received from the MRDC Board the audited financial statement for MRDC for the year 2019. The audit was carried out by the Auditor-General of PNG in conjunction with the internationally-recognised firm, Deloitte.

“For the first time in the company’s 47-year history, the audit opinion was clean and unqualified, meaning the accounts and records were properly stated, and there were no misstatements.

“This is a major achievement for MRDC in terms of its adherence to compliance and governance requirements, and I commend MRDC management under the leadership of Managing-Director, Mr Augustine Mano for a job well done,” said PM Marape.

MRDC’s portfolio of assets is well diversified, with investment in banking (BSP), airline (PNG Air and Hevilift), hotel and hospitality (Hilton Hotel), healthcare (Pacific International Hospital), real estate and commercial office space (Pacific Property Trust), power generation (Dirio Gas & Power Ltd), among others.

The company and its investment subsidiaries continue to employ thousands of Papua New Guineans and, since 2019, has paid in excess of K100 million in taxes to the government.

“Two months ago, MRDC’s biggest subsidiary Petroleum Resources Kutubu and Internal Revenue Commission completed a legacy tax liability issue amounting to K120 million. I want to commend MRDC and PRK to reaching an amicable resolution with IRC, and clearing those liabilities owed to the State,” stated PM Marape.

The Prime Minister also revealed that through its Community Infrastructure Development Program, MRDC has improved availability and access to vital services among communities in the project footprint areas, including schools, aid posts, water supply and the like, spending a total of K50 million over the last 10 years.

Prime Minister and Foreign Affairs Minister Hon. James Marape expressed his enthusiasm for the goodwill visit of two large Indian naval vessels to Papua New Guinea, stating that it signifies a promising future for India-Papua New Guinea relations. The visit, closely following the historic presence of Indian Prime Minister Hon. Narendra Modi in May, reinforces the bilateral ties between the two nations.

The reception, held on the evening of Thursday, August 3, 2023, aboard INS Sahyadri and INS Kolkata berthed in Port Moresby Harbour, was attended by esteemed guests, including Government Ministers, Governors, members of the diplomatic corps, business community, public service, and military personnel.

During the reception, Prime Minister Marape extended a warm welcome to the captains and crews of the two Indian navy vessels, emphasising the significance of their visit from distant shores. He praised the swift return to Papua New Guinea following Prime Minister Modi’s visit, which had left a lasting impact on the nation.

“We appreciate the presence of these two esteemed navy ships in Port Moresby Harbour,” remarked Prime Minister Marape.

“May this visit be the inception of regular exchanges and collaborations between our defense force and the Indian defense force, fostering stronger bonds between our two navies.”

The Prime Minister highlighted the existing robust government-to-government and people-to-people relationship between India and Papua New Guinea. He expressed his desire to further strengthen these ties through increased engagements and cooperation in various sectors.

As INS Sahyadri and INS Kolkata continue their stay in Port Moresby from August 2-4, they engage with the Papua New Guinea Defence Force, allowing for opportunities to build understanding and camaraderie.

The visit of the Indian naval vessels signifies a positive step towards enhancing mutual cooperation and friendship between India and Papua New Guinea. The governments of both nations remain committed to deepening their partnership for the benefit of their people.

With three weeks to go the start of the inaugural PNG Community Affairs and National Content Conference and Expo (CANCONEX), leading landowner Trustee company, Mineral Resources Development Company (MRDC) has stepped in as a Principal Sponsor for the event, which take place from August 28th to 30th at the PNG University of Technology in Lae Morobe Province. The event will be opened by Prime Minister Marape with a keynote address on local content.

MRDC Managing Director Augustine Mano, when confirming Principal Sponsorship of CANCONEX, highlighted the importance of bringing together landowners from across the resource sector, who are an integral part of project success.

“As the Trustee Shareholder for landowner interest across mining, petroleum and energy projects, MRDC is pleased to support this worthy initiative. Landowners are critical to the development and sustainability of resource projects, and CANCONEX provides the perfect opportunity for landowners to engage, share experiences, and collaborate in areas of mutual interest, to ensure maximum benefits are realized. MRDC is therefore proud to be the first Principal Sponsor, for this inaugural event. We look forward to supporting this initiative, to ensure its success.”

Through the theme ‘Promoting National Participation for Sustainable Communities’, discussions on Community Affairs, Business Development, Local Contracting, National Content, Community Investment, Women & Youth Development, and Access to Finance are among topics which will be covered across the three-day event.

In response, PNG Chamber of Mines and Petroleum President Anthony Smarè thanked MRDC for coming on board as a principal sponsor for CANCONEX.

“MRDC are a natural partner and principle sponsor of CANCONEX. Since the announcement of CANCONEX, to, we have witnessed an overwhelming number of participants and organizations from both public and private sectors who have registered. This demonstrates the appetite for this forum, which is tailored to providing a platform for discussion of how landowners and other Papua New Guineans can maximise their participation in the benefits of resource projects.”

“And we are pleased to have MRDC, the country’s leading Landowner Trustee Company, on board this event as a Principal Sponsor, demonstrating MRDC’s strong commitment to ensuring that our landowners are well-informed, focused on maximizing their benefits and returns for sustainable economic futures. The Chamber looks forward to welcoming MRDC, landowners, landowner companies, government policy makers, business houses, and project developers at CANCONEX 2023.”

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

Ok Tedi Mining Ltd (OTML) is strengthening its operations to deliver maximum return to PNG shareholders, mine impacted communities and the people of Papua New Guinea.

Managing Director and CEO Kedi Ilimbit said this when speaking to OTML and Business Partner employees during a roadshow conducted from the 06th to the 09th of June.

The roadshow was conducted to inform employees about Ok Tedi’s new Vision, and the improvements that are being undertaken to strengthen the mine’s operation to ensure maximum return was achieved for mine impacted communities, PNG shareholders and the people of Papua New Guinea.

“Our focus currently is to ensure existing systems and processes we have in place are improved to strengthen our operations and derive maximum value of the resources we have during and beyond the current Life of Mine plan of 2033,” he said.

OTML’s New Vision is ‘We operate with excellence, maximising the value of our mineral resource in an environmentally responsible way, to deliver sustainable economic and social benefits to our communities and the people of PNG’.

“With this new Vision, we are excited about Ok Tedi’s future, and will be working with all our employees, business partners, communities and shareholders to make Ok Tedi the best it can be as it provides us guidance about why Ok Tedi exists and what is the desired result of our efforts,” he added.

The Company expects to generate over PGK19 Billion in social benefits for the benefit of PNG over the next 10 years within the current life of mine plan. OTML has tripled its value in the last 6 years with an extended mine life to 2033 with a possibility of further extension.

The Ok Tedi Mine is 100% PNG owned with the State of PNG through the Kumul Minerals Ok Tedi Ltd owning 67% while three Western Province entities hold the remaining 33%.

Since mining operations commenced in 1984, the mine has generated PGK13 Billion in dividends to PNG shareholders, PGK10.2 Billion in taxes/duties, PGK1.5 Billion in compensation payments, and PGK1.3 Billion in royalties. The mine has also paid PGK972 Million in Community Mine Continuation Agreement (CMCA) payments since 2001 and spent PGK515 Million in Tax Credit Scheme projects since 1997.

Ok Tedi Mining Limited (OTML) is committed to our vision of social value which reflects our purpose through providing business opportunities in ensuring our local communities ‘transition towards a more sustainable future after the Life of Mine.

Among many initiatives and programs in place that contribute to achieving this commitment is the focus on ensuring OTML’s Landowner Companies (Lancos) from the Mine Impacted communities and Western Province can establish and sustain their businesses into the future.

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit said, “Ok Tedi has contributed a lot to PNG’s economy over the years and while we continue to do that, we also want to focus on improving the livelihood of our mine impacted communities and the people of Western Province and one way of doing that is to ensure the local people know how to run their businesses profitably and be able to sustain these businesses and the benefits to the wider population of the affected communities.”

OTML aims to maximise the value of contracts to landowner companies (LANCOS) from the current 31 percent to 60 percent participation by 2025 with the opportunity to venture into major contracts.

Over the last 38 years, the scope of works offered to LANCOS have been limited to minor service contracts. These contracts include standard activities such as labour hire, security, messing and accommodation, general maintenance, logistics, and minor equipment hires. Major contracts were owned by non-LANCOS.

The Company is now exploring opportunities to expand the scope and venture into higher-value contracts such as leasing of mining fleet, warehousing, aircraft charter, mine and exploration drilling and potentially contract mining in the future which are classified as Major contracts.

In the recent past, OTML has been able to outsource and award the following major contracts to LANCOS: 

• Tabubil Development Corporation (TDC) Ltd, a subsidiary of Mineral Resources Star Mountain Group (MRSM), acquired a 51.24% stake in Pacific Direct, the current operator of OTML’s charter services. TDC is now the majority shareholder in Pacific Direct. 
• Mineral Resources CMCA entered into a lease Agreement with OTML to supply 300 Light Vehicles (LV’s) to the company. 
• OTML outsourced its Linehaul and Bus Services and its Workshop 1 Maintenance team to its Umbrella Company Milum Services Limited on 9th May 2023.

OTML continues to review its business functions and have ongoing discussions for LANCOS to participate more in OTML’s businesses.

To our readers, 

We sincerely apologise for the article 'Gold Trader Speaks Out on Proposed Gold Refinery Bill' on our platform. 

It has come to our attention that the article contained misleading and erroneous information, and upon our review we concur with this observation. 

We have taken immediate action to rectify the situation by removing the article from our platform. 

To the parties involved in the National Gold Corporation Project, we extend our apologies for any inconvenience or confusion caused by this error. 

Moving forward, our team is committed to implementing additional measures and preventing similar errors from occurring in the future. 

Best regards, 

PNG Business News

During his visit to the Variarata National Park on Friday, July 28, 323, His Excellency Emmanuel Macron, the French President, addressed the students of Sogeri School of Excellence in Central Province, emphasising the importance of rainforest conservation in generating employment opportunities.

President Macron highlighted the significance of preserving forests to foster job creation and recognise the efforts of those working tirelessly to combat deforestation while ensuring the sustainability of these natural resources. He stressed the need to establish a value chain that supports and compensates individuals dedicated to preserving the rainforests.

“Preserving forests creates value chains and jobs, fostering both environmental preservation and economic growth. This treasure must be conserved, not just for its biodiversity and carbon capture potential, but also to provide promising job prospects for our youth,” stated President Macron.

In response to the President’s visit, Prime Minister Hon. James Marape expressed his gratitude for the partnership between France and Papua New Guinea in rainforest conservation. He highlighted the importance of long-term sustainable management, in contrast to short-term practices like deforestation, which may deprive future generations of revenue from these invaluable resources.

“By managing our rainforests responsibly, we secure the future for our children and grandchildren, ensuring they continue to benefit from this precious natural heritage,” Prime Minister Marape stated. He further emphasised that sustainable rainforest management could lead to financial support for vital sectors such as education, road maintenance, and healthcare, reducing the country’s dependency on destructive practices for assistance.

The Prime Minister outlined a comprehensive strategy to preserve PNG’s rainforests, emphasising President Macron’s commitment to mobilising support not only from France but also from other nations. He commended TotalEnergies’ approach in PNG, promoting the use of gas as a transitional energy source for the next decade.

Highlighting the global importance of renewable energy, the Prime Minister urged for a collective effort in safeguarding the planet. “Whether you’re a Papua New Guinean or French, we share one planet, and its preservation remains paramount,” he added.

In conclusion, the visit of President Emmanuel Macron has reinforced the bilateral partnership between France and PNG, promising greater strides in rainforest conservation and sustainable development.

Papua New Guinea and the Republic of France have established a landmark cooperation in Forest Management, Conservation, and Climate Change during a bilateral meeting between Prime Minister of Papua New Guinea, Hon. James Marape, and the President of the Republic of France, His Excellency Emmanuel Macron, in Port Moresby on Friday, July 28, 2023.

Prime Minister James Marape expressed his satisfaction with the fruitful meeting, emphasising that it paves the way for elevating the long-standing good relations between the two nations to new heights.

The leaders mutually agreed to intensify their collaboration in forest management, conservation, and climate change.

“This is an issue that I have been passionate about, as many of you know from my interventions at the United Nations level," Prime Minister Marape stated.

Among the key areas of intervention discussed, both leaders have agreed to:

1. Establish an office for expertise from France in Papua New Guinea.
2. Foster cooperation in energy transition initiatives.
3. Allocate funding for works at the Port of Rabaul to enhance its climate resilience.
4. Extend support for green finance in the Pacific region.

"The above interventions clearly demonstrate France's commitment to sustaining its long-term partnership with PNG and the wider Pacific region. This step is highly welcome and timely," Prime Minister Marape said.

During the meeting, President Macron assured Papua New Guinea of France's readiness to allocate a funding of EUR$63 million (K238 million) for the period 2021-2024 under the Forests, Climate Change, and Biodiversity (FCCB) intervention programme in PNG. The Managalas Conservation area in the Northern Province will be one of the projects featured in this programme.

The FCCB will also encompass support for government, community service organisations, private sector, education, and research, complementing and enhancing existing programmes in the country.

On the topic of ongoing private sector engagement, both leaders discussed France's continued investment in the oil and gas sector, particularly in Papua LNG through TotalEnergies EP PNG Ltd. This substantial investment is set to further transform Papua New Guinea's economic landscape and boost the Gross Domestic Product (GDP) in the future.

Prime Minister Marape extended an invitation for French companies to participate in Special Economic Zones (SEZs) to engage in downstream processing and add value to agriculture, timber, and fisheries products before exporting them to overseas markets.

"To conclude, President Macron and I will count on the support of our Ministers, Officials, and business community to take appropriate actions towards the realisation of these projects," Prime Minister Marape stated.

Reflecting on the significance of the visit, Prime Minister Marape acknowledged the historical links between France and Papua New Guinea that date back to the 1800s when the first French Catholic Missionaries arrived on Woodlark Island in the Milne Bay Province, and later to Yule Island in the Central Province. He expressed gratitude for their contributions to the spread of the Catholic religion, education, healthcare, and other essential services that continue to support the country.

The visit by President Macron marks a historical event as the first visit by a French President-in-Office to Papua New Guinea, signifying the strengthening and reshaping of bilateral relations since the formalisation of ties in 1975.

"On behalf of the people of PNG, I extend appreciation to the government of France for their contributions to our development agenda, including our trade relations through the European Union. We are extremely grateful for the support rendered to developing countries like PNG," Prime Minister Marape concluded.

The year 2023 has undoubtedly become a momentous year for Papua New Guinea, with a multitude of global leaders visiting its shores. Prime Minister Marape expressed that such visits are unprecedented since independence and contribute significantly to the country's development priorities, particularly in the realm of Forest Management, Climate Change, and environmental sustainability.

K92 Mining Inc. is pleased to announce that the Board of Directors has authorized the Company’s award of the engineering, procurement, construction and commissioning (“ EPC ”) Lump Sum Contract for the 1.2 million-tonnes-per-annum (“ mtpa ”) Stage 3 Expansion Process Plant to GR Engineering Services Limited (“ GRES ”) following a tender process.

The EPC Lump Sum Contract award amount is US$81 million and is fixed price / lump sum, significantly de-risking potential cost increases to K92. In addition to the award of the contract, all process plant long-lead item contracts have already been awarded on a fixed price (excluding freight), to CITIC HIC Australia Pty Ltd for the SAG and ball mills, Jord International Pty Ltd for the filter press, and Metso Outotec Australia Limited for the tank flotation cells, flash flotation cells and high-rate thickeners.

Following the award of the EPC Lump Sum Contract and the placement of orders for the long lead items, the forecast cost of the 1.2 mtpa Stage 3 Process Plant is within 10% of the capital cost outlined in the Kainantu Integrated Development Plan (“ IDP ”) Definitive Feasibility and Preliminary Economic Assessment cases ( see September 12, 2022 press release – K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan ), and importantly approximately 94% of the forecast capital cost has been fixed. This significantly mitigates K92’s cost inflation risk for the largest growth capital cost item for the Stage 3 Expansion (the 1.2 mtpa Stage 3 Process Plant), representing over half of the forecast growth capital (inclusive of attributable EPCM costs) as outlined in the IDP. Approximately 6% of the remaining unfixed price capital cost is for projects led by K92, including bulk earthworks and long-lead item freight logistics. The mitigation of the Process Plant’s inflation risk as noted above has notably strengthened the Company’s self-funding position for the Stage 3 Expansion.

With the award of the long-lead items and the EPC contract, commissioning of the 1.2 mtpa Stage 3 Expansion Process Plant is targeting the end of Q1 2025. The mobilization of the construction contractor is forecasted for early 2024, with bulk process plant earthworks to be completed prior. The EPC contract with GRES is expected to be executed by the end of August. The multi-year growth capital estimate for the Stage 3 Expansion project is planned to be provided at the end of the 3 rd Quarter.

John Lewins, K92 Chief Executive Officer and Director, stated, “The award of the EPC contract for the 1.2 mtpa Stage 3 Expansion Process Plant is a major milestone and de-risking event for the Company. Combined with the long-lead items, the Company has awarded approximately 94% of the process plant capital cost, our largest growth capital item for the expansion, forecasted to represent over half of the growth capital, on a fixed price basis, significantly mitigating potential capital cost increases. Importantly, the forecasted cost of the process plant has tracked well with the Integrated Development Plan and the mitigation of the Process Plant’s capital inflation risk strengthens our position to self-fund the Stage 3 Expansion.

We are also very pleased to be working with GRES, a world-class engineering and contracting firm. GRES brings not only significant expertise in the design and construction of process plants but also extensive experience in Papua New Guinea.”

Stage 3 Expansion Activities Update

In addition to the 1.2 mtpa Process Plant, multiple activities are progressing considerably for the Stage 3 Expansion including, but not limited to:

• Pastefill Plant Front End Engineering and Design (“ FEED ”) proceeding this quarter, with final contract to be awarded in the Q4 2023;
• Tailings dam lift 1C well underway (60% complete) and targeting completion by end of 2023;
• Tender process underway for various underground and surface infrastructure packages including vertical development, power and transportation; and
• Ongoing expansion of accommodation facilities.

About GR Engineering Services Limited

GRES is a leading Australian engineering consulting and contracting company, that specializes in providing fixed price engineering design and construction services to the global resources and mineral processing industries. GRES has a proven track record of delivering integrated project solutions in over 20 countries across all major commodity types, including extensive experience in Papua New Guinea. As a group, GRES employs more than 500 professional, technical and support staff throughout Australia and internationally, in addition to a direct construction workforce and subcontracted personnel.

Kumul Petroleum, Papua New Guinea’s national petroleum and energy company, formally welcomed 12 young professionals into its ranks as this year’s graduate development programme intake, in a small ceremony.

Welcoming the new graduates, KPHL managaing director Wapu Sonk said, “You are joining the organisation at the right time, since Kumul Petroleum is currently expanding its capability to fully participate in forthcoming LNG projects and domestic utilisation of gas.”

“As a partner in significant LNG projects and operator of our own licences, Kumul Petroleum has to access international finance and this requires us to demonstrate the highest standards in terms of governance, environmental management and accountability. We expect all our employees to adhere to these standards.”

Mr Sonk added, ”Kumul Petroleum is a PNG company and we aspire to grow to become as large and diverse as other national petroleum companies in the region, such as Petronas. You will all, in your respective disciplines, help us along this journey.”

The twelve new graduates, eight male and 4 female, are from all regions of the country, and now on staff will result in Kumul Petroleum employees exceeding one hundred. The successful cndidates were selected after an intense assessment process from over 1,500 initial applicants and they will be placed in engineering, geology, HSE, finance and accounting positions in the company.

“Kumul Petroleum also carries out a number of nation-building projects on behalf of the Government, particularly in health infrastructure and training institutions, and I am sure that some of you graduates will be involved in these activities as well.”

Mr Sonk concluded, ”I am hoping that you can grow with Kumul Petroleum in the years to come, as we play an increasingly large role in the country’s petroleum and energy sectors.”

Prime Minister Hon. James Marape on Thursday, July 27, 2023, met with the United States Secretary of Defense Lloyd J. Austin III as Papua New Guinea and USA continue to work at taking their deepening bilateral relation to the next level.

The visit by Secretary Austin to Port Moresby and his meeting with PM Marape is a follow-up to the signing of two significant agreements – the Defense Cooperation Agreement and the Shiprider Agreement – between the two countries in May this year, undertaken by US Secretary of State Antony Blinken and PNG Defense Minster Hon. Win Daki in Port Moresby.

At the bilateral meeting, Prime Minister Marape and Secretary Austin continued to discuss the details and the benefits of the agreements, and United States’ commitment to securing PNG’s sovereignty, as well as its commitment to securing a free and peaceful Indo-Pacific region.

Prime Minister Marape said he appreciated the US’s “3D approach of Diplomacy and Defense followed by Development”, that is being seen in the recent engagements, and the upcoming visit of the head of USAID to Port Moresby to formally signal this office to report directly to Washington DC instead of through the Manila, Philippines office.

The visit by Secretary Austin to Port Moresby and his meeting with PM Marape is a follow-up to the signing of two significant agreements – the Defense Cooperation Agreement and the Shiprider Agreement – between the two countries in May this year, undertaken by US Secretary of State Antony Blinken and PNG Defense Minster Hon. Win Daki in Port Moresby.

At the bilateral meeting, Prime Minister Marape and Secretary Austin continued to discuss the details and the benefits of the agreements, and United States’ commitment to securing PNG’s sovereignty, as well as its commitment to securing a free and peaceful Indo-Pacific region.

Prime Minister Marape said he appreciated the US’s “3D approach of Diplomacy and Defense followed by Development”, that is being seen in the recent engagements, and the upcoming visit of the head of USAID to Port Moresby to formally signal this office to report directly to Washington DC instead of through the Manila, Philippines office.

“I take special note of the purpose of Secretary Austin’s visit which is to show commitment in defense and security following the singing of the Defense Cooperation Agreement and the Shiprider Agreement during Secretary Blinken’s visit in PNG in May this year,” PM Marape said.

“The DCA heralds a new chapter in PNG and USA relations, as these agreements form the basis for strengthening and consolidating closer cooperation between our two countries.

“One of the key objectives of the PNG government is for our country to pursue and enhance closer trade and economic ties with key bilateral and multilateral partners, including with the United States under Biden’s leadership.

“In that connection, PNG views the US as a key partner to enhance and diversify trade and economic relations, either through a bilateral or a regional trade arrangement.

“Consistent with President Biden’s call and challenge to American corporations to develop cleaner technology, the Pacific Island region offers great investment opportunities for US companies through public-private partnerships,” said the Prime Minister.

PM Marape continued by promoting Papua New Guinea’s expanding potential in agriculture and the supply of fresh organic foods to the world, including the United States, while he encouraged the American business community to take more interest in PNG.

In Climate Change mitigation, also a security issue, Prime Minister Marape reminded the US government through Secretary Austin about the Pacific region’s continued vulnerability to rising sea levels and climate-induced natural calamities, and that all nations with interest in the Pacific must take collective action to follow through on general conversations that have been held repeatedly over time.

“While we invite the US to pursue its interests in the region from a geopolitical and geostrategic context, I urge the United States to adjust its lens so that it can truly understand the real needs of the region,” said PM Marape.

PM Marape also highlighted PNG’s impending 50th Independence Anniversary in 2025 and invited US partnership leading up to and its presence at this major national event.

The Marape Government has ambitious plans to escalate palm oil production through enhanced collaboration and equity participation of all stakeholders in the palm oil industry, according to Oil Palm Industry Corporation (OPIC) General Secretary, Kepson Pupita. He made this announcement during his address at the Council of Palm Oil Producing Countries (CPOPC) International Smallholders Workshop held in Melaka, Malaysia.The Papua New Guinea Medium Term Development Plan (MTDP) IV 2023-2027 spearheads this initiative, aimed at fostering sustainable growth and development.

Founded in 2015 by Indonesia and Malaysia, the CPOPC is an intergovernmental organisation dedicated to promoting the responsible and global use of palm oil. As the world’s leading producers, contributing to 90 percent of global palm oil output, Indonesia and Malaysia initiated the establishment of independent palm oil sustainability standards. CPOPC’s mission includes harmonising these sustainability standards between the two countries.

Papua New Guinea received an invitation to participate in the CPOPC following a recent visit by Indonesian President, H.E. Joko Widodo. During his meeting with Prime Minister Hon. James Marape, President Widodo extended an invitation for PNG to increase its palm oil production and export to Indonesia.

By 2027, Papua New Guinea envisions achieving the following targets:

• Increase palm oil export value to US$ 1.594 billion (K5.313 billion);
• Raise crude palm oil (CPO) export volume by 1.3 million tonnes;
• Expand oil palm planting by 200,000 hectares;
• Engage 50,000 households in cultivating oil palm; and
• Enhance rural income and self-employment opportunities, leading to improved livelihoods.

“Palm oil serves as a vital agricultural export for PNG, generating an average of US$510 million (K1.7 billion) in export revenue per year from 2018 to 2022,” stated Pupita.

“Over the last three decades, palm oil has contributed significantly to the nation’s economy, amounting to US$7.2 billion (K24 billion) in export revenue.

“To achieve the projected increase in production, Papua New Guinea aims to involve more smallholder growers in the industry. At present, companies account for 66.5 percent of the total planted area, covering 133,854 hectares, while landowners hold the remaining 33.5 percent on 67,610 hectares, summing up to a total of 201,464 hectares. Surprisingly, this constitutes only 4 percent of the total moderate-highly suitable areas for oil palm cultivation in PNG.”

Pupita emphasised, “Incorporating new development areas into the current project areas managed by OPIC and milling companies’ estates would lead to an increase in the total planted area, reaching up to 250,000 hectares.”

“The smallholder segment plays a significant role, with 21,126 smallholder blocks under three distinct schemes: Land Settlement Scheme (LSS), Village Oil Palm (VOP), and Customary Rights Purchase (CRP). Currently, smallholders have cultivated 67,610 hectares of oil palm under these schemes.

“The Marape Government’s commitment to promoting sustainable palm oil production, with the active engagement of all stakeholders, is poised to drive economic growth and prosperity for Papua New Guinea while ensuring environmental responsibility and social welfare.”

The Papua New Guinea (Hong Kong, China) Chamber of Commerce (PNGHKCCC) will be officially recognized by the Government of Papua New Guinea (PNG) on October 15, 2023, during a welcome dinner which will be hosted by the chamber for the PNG delegates who will be attending the upcoming inaugural PNG-Asia Investment Conference in Hong Kong on October 16-17. This arrangement was agreed on recently by the Minister for International Trade and Investment, Hon. Richard Maru and the Chairman of the PNGHKCCC, Mr. Anthony Lai in Hong Kong where Minister Maru and delegation met with the executives and the members of the chamber.

PNGHKCCC was established in 2019 with the objectives of becoming an information bank and promoter of PNG in Hong Kong, to help build business-to-business and people-to-people relationship between Hong Kong and PNG, and to set the foundation for Special Economic Zone development in PNG through bilateral technological skills transfer schemes.

"During the welcome dinner on October 15, Prime Minister, Hon. James Marape will be invited to formally give the PNG (Hong Kong, China) Chamber of Commerce an official Certificate of Recognition by the Government of Papua New Guinea. This will mean the chamber is officially recognized by our Government and the country as the official body that will represent Papua New Guinea in Hong Kong,” said Minister Maru.

Minister Maru asked the executives and the members of the PNGHKCCC to get behind PNG Government and the PNG Chamber of Mines and Petroleum to host the inaugural PNG-Asia Investment Conference. Minister Maru and delegation also visited Regent Hotel which had been confirmed as the venue where the conference will be held.

“This will be the first time for us to host such conference out of Australia and it will be the start of a new journey between Papua New Guinea and China. China exports about K1.5 billion worth of goods to Papua New Guinea annually and we export up to K5 billion worth of goods to China every year. These figures indicate that China is becoming the most important trading partner of Papua New Guinea,” said Minister Maru.

"If this inaugural conference is successful then it will become an annual event which will build the bridge and relationship between Papua New Guinea and Hong Kong, China, and the greater Asia Region," added Minister Maru.

Meanwhile, PNGHKCCC raised a concern that it had been very difficult for the people, especially businessmen in Hong Kong and the southern part of China to get their visas to travel to PNG because Beijing was further up north, and it was costly for them to travel there and back to access the consular service there.

Minister Maru in response said he had noted these concerns and would take it up with the Government and the responsible departments when he returned to the country.

An agreement was reached recently between the Ministry and the Department of International Trade and Investment, and the Shenzhen Government and private sector for the new Papua New Guinea (PNG) trade mission to be in a very prestigious office building in Shenzhen.

“To have a trade mission in China is a very historic decision made by our Government and I am very pleased that the trade mission will be in Shenzhen,” said the Minister for International Trade and Investment, Hon. Richard Maru.

Shenzhen transformed itself from a small fishing village into a global economic powerhouse in just over 40 years. It had experienced rapid economic, social, and environmental transformation and is described as innovative, inclusive, young, high-tech, and a green city. In terms of city status and influence, Shenzhen leads the development of Chinese cities and spearheads the progress of the whole world. The GDP of Shenzhen exceeded over USD 400 billion in 2022.

“We want our trade mission to be located in the heart of this rapidly evolving city,” said Minister Maru.

“Shenzhen and Port Moresby have a sister-city relationship so it makes sense for us to be located here as it would consolidate this relationship,” added Minister Maru.

Minister Maru said PNG was serious with its partnership with China.

“China and Papua New Guinea have been partners for 48 years, but we basically had a diplomatic relationship. This year is the start of a new beginning where we want to take our relationship to the next level and anchor the future of our relationship on trade and investment. We recognize that China is the economic powerhouse of the world, and we have a lot to learn from their experience. We know that China will continue to be a big market for our goods with trade currently in our favor. We also have a lot of exciting investment opportunities so the new trade mission will build the bridge between PNG and the private sector of China and the Chinese investors to look at long-term investments in PNG,” said Minister Maru.

“Our decision to host the inaugural PNG-Asia Investment forum in Hong Kong, the one-week State visit of our Prime Minister, Hon. James Marape to China for the Belt and Road Initiative Leaders Meeting in Beijing, and the opening of a trade mission in Shenzhen should be a statement to the Government and the people of China that PNG really wants to strengthen and deepen its relationship with China,” added Minister Maru.

A team will visit Shenzhen in the coming weeks to finalize the negotiations on the office space for the trade mission and to cost out the whole setup and operation. The position of the trade commissioner will be advertised soon so a trade commissioner could be appointed as soon as possible.

“If all arrangements go well, we will invite Prime Minister Marape to open our new trade mission in Shenzhen during his one-week State visit to China in October,” said Minister Maru.

Meanwhile, Minister Maru whilst in Shenzhen visited the Shenzhen Energy Group, Huawei, Qianhai Economic Zone, and the China Construction Science and Industry Corporation Limited, and he also met with the Deputy Secretary of the Chinese Communist Party Shenzhen Municipal Committee, Mr. Yu Xinguo.

The Governor for Guangdong Province of China, Wang Weizhong said his Government was already working with a local airline company, the China Southern Airlines to open direct flights between Port Moresby and Guangzhou following his discussion with Prime Minister, Hon. James Marape during his visit to Port Moresby in July this year. Governor Weizhong said this during a banquet that he hosted for the Minister for International Trade and Investment, Hon. Richard Maru and his delegation. Governor Weizhong said the opening of direct flights between Port Moresby and Guangzhou would improve more business connectivity between Papua New Guinea (PNG) and Guangdong Province, and China.

Governor Weizhong said that Chinese private sector and the Chinese enterprises in Papua New Guinea (PNG) raised a concern that it took relatively long for them to get visas. He suggested that PNG Government established a consulate in Guangzhou to help facilitate visas for not only business travelers but also for tourists with tourism being a huge market which was untapped. Vanuatu had recently opened its consulate in Guangzhou in addition to their embassy in Beijing, making it the 68th country to open a consulate in Guangzhou specially to facilitate the process of visas.

Governor Weizhong said he was keen to support more investors from his province to invest in PNG and he would be sending a large delegation to attend the inaugural PNG-Asia Investment Conference in Hong Kong which will be hosted in October 16-17, 2023. He also specifically requested for Prime Minister Marape to visit Guangdong Province, in particular the capital of the province, Guangzhou, during his visit to Hong Kong and Beijing in October.

Governor Weizhong also supported PNG Government’s decision to establish a trade mission in Shenzhen, and he said he would be happy to be there when Prime Minister Marape cut the ribbon to open the trade mission in October this year.

Minister Maru said his one-week visit to Guangdong Province was to let the Government and the people of China know that PNG was ready to do business with Guangdong Province and China.

“We will work on attending to the issues that have been raised as a concern to the people and the Government of China so we can improve the trade and investment relationship between our two countries and our people,” said Minister Maru.

Papua New Guinean marine services company Pacific Towing (PacTow) is assisting Australia’s Pacific Marine Group (PMG) with the upgrade of two major PNG ports.  PacTow’s commercial dive team completed work at the Alotau provincial wharf in Milne Bay Province in May and is part way through similar work  in Manus Province.  The two port upgrades are part of a broader infrastructure program funded by multiple parties including the PNG and Australian governments.

PacTow General Manager, Neil Papenfus, confirms that PacTow and PMG collectively hold nearly 70 years marine services’ experience in PNG and that their working relationship commenced in 2017 with a 900-metre ocean outfall pipeline project in Port Moresby’s Fairfax Harbour.  PacTow commercial divers were involved in several aspects of the project including the relocation of hundreds of living corals from the new pipeline footprint.

The more recent Alotau provinical wharf project involved the demolition of an existing jetty, followed by the installation of a new jetty made from tubular steel piles and a concrete deck.  A new floating concrete pontoon, together with an access walkway from the jetty and associated site buildings were also delivered as part of the project.

PacTow’s commercial dive team’s involvement in the Alotau project included a seabed survey, debris clearance, underwater cutting of broken steel piles, gridline mark outs, and the application of pile jackets on all new piles.  PacTow divers worked on the Alotau project for approximately five weeks split over a seven-month period (i.e., Oct 2022 - May 2023).  Commercial Dive Manager, Ricky Leka, reports that the project went well although it was called off at one point for three days due to strong wind (i.e., 25-30 Knots) and rough seas.

PacTow divers commenced work for PNG in Manus in May on the upgrade and extension of an existing marine facility as part of a significant and ongoing infrastructure project.  Their responsibilities have included clearing debris, removing old anode straps, and installing new anode straps. Similar to the Alotau wharf project, they will work on the project in several different stages, returning to site when required until its estimated completion in Q4 2023.

PacTow has PNG’s (as well as broader Melanesia’s) only permanent commercial dive team.  Its divers are internationally trained and certified with a wealth of experience servicing diverse sectors throughout the region.  Oil and gas majors are among PacTow’s clients, and the company has introduced numerous niche services for PNG’s growing oil and gas sector, including emergency response and spill services.