As a follow up from the agreement signed between the Ministry of International Trade and Investment and Kumul Petroleum Holdings Limited earlier this year, the management of the Ihu SEZ have now also signed an MOU with KPHL.

Wapu Sonk, Managing Director of Kumul Petroleum Holdings said, “KPHL is happy to collaborate with the Ihu SEZ Development Company to carry out feasibility studies on possible power generation solutions for their particular area.”

“We will look at the most appropriate power solutions for the Ihu SEZ, which could include use of DMO gas from the Papua LNG Project, gas from other fields where KPHL is the operator or renewable energy sources such as hydro.”

The managing director of the Ihu SEZ Development Company, Peter Kengemar, noted that, “the Ihu SEZ, established in 2020, is geographically and strategically located close to the well heads and pipeline of the Papua LNG Project.”

“The SEZ has been designated for industrial downstream processing and as mentioned by Minister Maru earlier this year, SEZ’s will not be viable unless they have access to a source of affordable electricity”, he added.

Mr Sonk noted,”KPHL will carry out feasibility studies on potential sources for the generation of electricity and make recommendations on what is commercially viable, whilst it will be the responsibility of the SEZ Development Company to liaise with local landowners, LLGs, the Gulf Provincial Government and the Ministry of International Trade and Investment as may be necessary to progress the recommended options.”

The MOU signing was witnessed by Richard Maru, the Minister for International Trade and Soroi Eoe, member for Kikori and Commerce Minister.

Minister Maru reiterated that any SEZ in the country would have to comply with certain basic requirements, which included clear land ownership, road, air and sea access and especially reliable and affordable power.

“I am hoping that the involvement of Kumul Petroleum investigating power options will result in cheap and affordable electricity for this SEZ,” said the Minister.

Mr Sonk noted that KPHL could also be involved in the SEZ as an investor if it was found that it was feasible to process and value add gas and produce chemicals such as methanol or urea.

“As a national company we are prepared to proceed with a project even if the commercial rate of return is less than what is usually required, so that the consequent multiplier effects of employment and local business development can be enjoyed.”

Mr Sonk stated,” As I have said previously, as the national petroleum and energy company, KPHL stands ready to provide appropriate power solutions for the country’s SEZ’s.”

First revenues from the CCL project expected in 1H CY2024.

Mayur Resources Limited is pleased to advise that it has commenced pioneering and site enabling construction works at its Central Cement & Lime Project (the CCL Project) in the Central Province of Papua New Guinea.

Construction crew, mobile machinery, and building materials arrived at the site by barge in the month of June. Mayur’s dual objective is continue the bulk sample test pits for end user customers, and construction commencement to build the pioneer wharf and associated site enabling works. Mayur is now working with the MRA and Chief Inspector of Mines to progress these works. Equipment mobilised included two 30 tonne excavators, a 6WD all terrain truck, a D7 dozer, drill rig, and service truck.

An official groundbreaking ceremony was held on 29 June 2023, which was attended by a number of dignitaries including the Local Member Hon Keith Iduhu, Ward Councillor Kaia Podi, as well as local Clan Head village representatives.

During the ceremony, the Hon Keith Iduhu member for Hiri – Koiari commented on the significant benefits Mayur’s CCL project had for the domestic economy as an import replacement downstream processing business whilst also adding that it was critical to be pro business but also have at the forefront the betterment of living standards and benefits for local Landowners. Hon Keith Iduhu said “Whilst the construction commences for the CCL jetty, I have asked the PNG Government in the coming weeks to convene the consultative Forum enabling the finalisation of the benefit sharing for Landowners, Provincial Government and District and the PNG State.”

Mayur Executive Director, Mr Tim Crossley, commented, “We thank the many dignitaries for their attendance at our ground breaking ceremony yesterday and thank the community for their support over a period of more than eight years as our CCL project transitioned from a discovery through to a reality today with these early construction works paving the way for full construction to commence. We particularly acknowledge the MRA for their continued support and their proactive push to diversify PNG’s mineral base. We are pleased to see the project move to full construction that will create large scale local employment jobs and spin off business opportunities for the Kido community for decades to come. As highlighted by Hon Keith Iduhu, our project will also be significant to the PNG domestic economy, replacing imports and underpinning the beginning of a new export industry as the first commercial manufacturing capability for Lime in PNG.”

When constructed, the Phase 1 CCL Project will be a new large scale low-cost, high-grade aggregates and quicklime manufacturing facility to meet critical demand from battery minerals and environmental sectors in support of the global energy transition. Mayur expects first revenues from the CCL project in 1H CY2024, with a life of project EBITDA above US$25 million (A$37.8 million) per annum, exceeding US$770 million (A$1,164 million) over the Phase 1 project life of 30 years.1 The project will also create more than 400 permanent direct and indirect jobs over the 30 year project life while having capacity to replace all of PNGs current imports of Lime valued at approximately K$100 million (A$42.8 million) per year.

Mayur is also in discussions with the PNG Government on how the Phase 2 CCL Project can underpin the huge road and infrastructure building needs that exist in PNG where our CCL project will eliminate the 100% reliance PNG has on imported Clinker and Cement for its nation building needs.

In its continuous efforts to mitigate environmental risks and impact to the environment, Ok Tedi Mining Limited (OTML) is the first Papua New Guinean Company to venture into ‘used tyres recycling’ after it commissioned its Tyre Pyrolysis Plant (TPP) in February this year.

The new TPP cost over US$30,000 and on average processes up to three tonnes of waste tyre per burn and conducts three burns per week.

Manager Environment, Erizo Kepe said, “OTML generates approximately 1,500 tonnes of waste tyres per year, with an estimated 30,000 tonnes currently held in stockpile from the last 30 years. Heavy equipment such as cranes, dozers and haultrucks contribute to large tyres with standing height ranging from 1.6 to 3.5m and weight ranging 450 to 3,760 kg while smaller tyres are mostly from light vehicles and other small mobile equipment.”

Global increase in demand for tyre dependent mobile equipment and vehicles has correspondingly increased the production of new tyres of all sizes. Subsequently the increasing number of waste tyre generation is becoming a waste management problem not only for OTML but globally.

Used tyres can become a major source of pollution to the environment as well as posing health hazards to humans and wildlife if not managed properly. “End of life rubber and plastic products are now becoming a global environmental issue, and the TPP is OTML’s contribution towards addressing this issue,” Ms Kepe said.

Pyrolysis is a thermal decomposition process that involves heating of tyres in the absence of reactive gases such as oxygen. The heating process decomposes tyres into char (solid carbon), steel wire, oil and syngas. Manager Waste Management, Hendrick Min said, “Options are being investigated to reuse the by-products including use of pyrolysis oil as a fuel substitute in OTML’s Lime Kiln plant, char as soil additive in some of the revegetation and rehabilitation projects and steel wire as scrap metal recycling through existing waste metal recycling processes.”

Waste tyres can cause harm to the Environment and human if not managed properly. Environmental harm is caused through release of toxic chemical contained in the tyres as the tyres gradually decompose or as toxic fumes when burnt. Other associated impacts at the OTML landfill where the waste tyres are stored include breeding of unwanted pests such as rats, snakes, and mosquitos.

“The tyre pyrolysis technology is new in PNG and OTML is proud to trial it and provide a learning opportunity for mining and other industries in PNG,” Mr Min said.

He said the OTML pyrolysis plant has the capacity to expand in future to cater for general plastic pyrolysis with some adjustment to the existing plant to process combustible plastics. Continuous improvement in environmental performance is consistent with the Company’s vision to be environmentally responsible in all aspects of the business. 

OTML joined the rest of the world to celebrate International World Environment Day (WED) observed on the 05th of June 2023 by staging awareness programs and activities at the mine site and the surrounding communities, mainly targeting schools in Tabubil and Kiunga.

The 2023 WED Theme is “Solutions to Plastic Pollution” and OTMLs slogan is ‘Lukautim Ples Graun – Behainim Gutpla Rot Bilong Stopim Plastik Pipia (Protect our mother Earth – Apply and follow appropriate measures to stop the generation of plastic wastes)

From mining camps, to health and education facilities, to retail and commercial fit outs, PNGFP’s NiuBuild provides complete project solutions throughout PNG and the South Pacific. In fact, you might be surprised to know that PNG Forest Products is the largest supplier of timber housing & infrastructure projects in the South Pacific. Having delivered more than 10,000 buildings, PNGFP supply PNG's only preservative pressure treated kit-set buildings, engineered to PNG and Australian building codes, that are fully protected from termites and rotting. 

NiuBuild’s team of Designers, Draftsmen, Engineers and QA Managers provide solutions that are cost effective, user friendly and serviceable even in the remotest areas. Having built in excess of 2,000 buildings in PNG including numerous Mining and Exploration Camps, PNGFP has supplied over 1,000 School Buildings and hundreds of Education and Health Facilities throughout the country. Their prefabricated, transportable and modular buildings are designed for permanent large-scale infrastructure developments as well as temporary mining and exploration camps. The prefabricated system means ease of construction and allows for the involvement of local stakeholders in the camp construction stage.

NiuBuild has also developed an innovative range of transportable, modular solutions for mining, gas and petroleum camps that provide instant accommodation without the need for on-site construction. Each unit in the range is affixed to a steel chassis skid frame with lifting eyes for easy craning onto trucks for transport to site. The range includes a transportable duplex with ensuites; 4-Man duplex; 3-Storey stackable duplex and transportable ablution blocks. 

Employing over 1,300 Papua New Guineans, PNGFP is committed to building a better future through sustainable manufacturing practices. All timber is sourced from renewable PNG pine plantations while the processing plants are powered by PNGFP’s own sustainable Hydro Power stations in Bulolo.

So when you invest in PNGFP products and services, you are not only investing in the best value, highest quality engineered wood products in PNG, you are also investing in 1,200 local jobs and supporting the economy whilst also supporting the environment… and that’s an investment in PNG’s future! For more information contact the NiuBuild team on 478 8111 or email buildingsales@pngfp.com

The Special Parliamentary Committee on Public Service Reform and Service Delivery has recommended the immediate update of the government payroll system to counter abuse and misuse of funds.

Governor for Northern Province Garry Juffa said the last update of the government's payroll system was back in 2002, and without continuous updating the system has been prone to misuse of government funds over the years.

A forensic audit will be conducted to identify where and when certain ends of the system have been compromised or misused with those responsible to be held accountable.

A recent audit was conducted into the state of government departments, statutory bodies, and agencies by private auditor Deloitte. The aim was to find out financial disbursement and delegations and how the entities were operating and their specific roles and responsibilities.

Public Accounts committee member Juffa said the audit was independent without any interference from either the committee or the executive government with the completed report given to the Prime Minister, the Department of Finance, Treasury, and Personal Management.

The committee has recommended the immediate update of the government's Alesco payroll system, as Mr Juffa said the lack of an update has created avenues for corrupt activities to take place.

"We have a significant recommendation one of which is to upgrade the software system which had not been update since 2002. This is very alarming!"

"The lack of an upgrade to the government's payroll system gave room to abuse, misuse and fraud and it is here where we believe That significant monies were diverted Unlawfully and deliberately by various public servants’ individuals and organisations," Governor Juffa said.

The report will also be tabled in parliament when it reconvenes during the August sitting.

Meanwhile, the committee also recommended that a forensic audit be carried out into the state of government agencies. This would be carried out by authorities, and those that have been misusing and diverting government funds for their personal gain over the years would be held accountable.

After the forensic audits into government bodies, the public accounts committee wants the government to immediately put a moratorium on the creation of any state entity.

Governor Juffa stated that for a country of Papua New Guinea's size, having more than 1,400 government departments, statutory bodies and entities simply does not make sense.

The public accounts committee wants a financial and functional audit to determine if some of this state entities are necessary. Governor Juffa said so much money has been spent on these entities many of which perform duplicate roles, and some do not even function as they are supposed to.

"As of 2018, Papua New Guinea has 1419 creatures of state, government departments, statutory bodies and agencies. The PAC feels that many of these organisations are duplicating each other's roles and are not functioning as the ought to and costing the government a lot of money."

"We are calling for the national government to put an immediate moratorium on the creation of any more government departments or statutory organisations until we carry out a functional audit to determine whether these organisations are relevant and if they need to continue be merged or abolished,"

Reference:

Press Conference of Special parliamentary committee/ Public Accounts Committee. Tabled Audit report & findings. June 21, 2023 [Paul Oeka/PNG Business News]

Papua New Guinea continues to work towards achieving the development sustainable goals of being self-reliant in meat production by 2025. As part of this vision, officials from the Livestock Development Corporation and the minister responsible for livestock, Segie Agiso, recently travelled to North Queensland in Australia to visit Sugarbag Cattle company, one of Australia's biggest cattle exporters.

The trip was to continue dialogue discussions that were already in place to have live cattle shipped from Australia to Papua New Guinea for breeding purposes.

In a Media Conference on Monday 26 June 2023, Terry Koim, managing director of Livestock Development Corporations (LDC) clarified there is currently an arrangement in place since 2020 with Sugarbag’s yards to export live cattle to PNG for slaughter as well as for breeding. However, due to the Covid-19 pandemic, the plan did not push through.

Mr Koim said the Australian firm is ready to export cattle to PNG, but the country has yet to meet international requirements before exports can start. He revealed that the livestock development corporation has plans to build four Post-Entry Quarantine (PEQ) facilities as an international requirement.

Mr Koim said one PEQ facility will cost about K5 million. The PEQ is a requirement for any live animal or livestock coming into the country to properly check and ensure that they do not have any diseases that may threaten food security in the country.

"We decided to go and continue the dialogue with the cattle farmer which is Sugarbag yard from where we left off in North Queensland and we have agreed to re-progress the initial plan of exporting cattle." Koim said.

Meantime, Agisa, the Minister for livestock and member for South Fly, called on the Government to support this program, as it is one of the government's key agenda in the agriculture and livestock aspects to make PNG be self-reliant in meat production by 2025.

He appealed to the Treasurer and the Department of National Planning and Monitoring to release funding that has been earmarked to build the PEQ facilities.

Agisa further stressed the importance of the program and said that funding should be released and allocated as soon as possible to get the PEQ facilities off the ground.

"(This is) to meet international requirements before we can start accessing the cattle exports we need funding, because the PEQ is a requirement for any live animals or livestock coming into the country to properly checked and quarantined."

He said the focus needed to be on rebuilding PNG's cattle industry for this to occur.

"There has been so much concentration on our petroleum and mining industries so in future we would like to focus on farming, going back to basics like agriculture" Minister Agiso said.

Last year, the government introduced a new agriculture strategy in Papua New Guinea that was aimed to broaden the country’s primary production base and cut import costs to maintain sustainability in the sector.

The Livestock Development Corporation (LDC) was established under the initial Pangu Government in 1983 to take over the responsibilities and operations of the various ranches, abattoirs, and piggeries in the country, to commercialise the successful livestock division of the old Department of Primary Industry.

In its early days, LDC was successful financially, but was grossly mismanaged and over time was left to deteriorate.  Without sustainable programs in place and good leadership, LDC was forced to close most of its facilities, in turn forcing Papua New Guineans to turn to overseas markets, especially Australia and New Zealand to buy their livestock supply in quantities.

With the return of attention on livestock in this major way, PNG can now produce and supply its own livestock, and look at exporting this to nearby markets soon.

The livestock sector can be seen as an important factor to the economic and cultural life of the Papua New Guineans, as the sector can provides food and income to the country’s rural population if the government plays its role in enhancing sustainable pathways for investments in the sector.

For the seventh consecutive year, the PNG Industrial & Mining Resources Exhibition pulled out all the stops to deliver a successful event on the 21st to 22nd June 2023 and set a new benchmark with its number of participants.

Throughout the years, the event has continued to serve as an essential and valuable meeting place for industry stakeholders where buyers and sellers come together to connect face-to-face and innovative products, services and technologies were revealed.

The two-day free-to-attend exhibition featured over 115 suppliers in an expanded floor plan at the Taurama Aquatic Centre in Port Moresby that included national and international manufacturers and suppliers with the latest innovations in the supply of services and equipment for the industrial, mining and oil & gas sectors.

The exhibition became the premier meeting place to connect and network with industry decision makers across a broad industry reach, including senior management, procurement, government personnel, engineers, contractors, and trade technicians.

The event proved to be the place to meet and engage with suppliers and even find a way into the mining industry. Among the exhibitors included were XCMG PNG, TE PNG, Nasfund, Monier, Biz print, Atlas Steel, Digitec, BSP, PNGAir, Vodafone and one of the major sponsors of the event Boss Attachments.

One exciting feature of the exhibition was the seminar series sponsored by Digitec and aimed at upskilling attendees in areas like technology, smart mining, and safety.

Exhibitors had the opportunity to attend a free How to Do Business in PNG Seminar and gave short presentations across one of two Conference stages on the exhibition floor over the two days.

Boss Attachments General Manager, Ricky Kirby, believes the supplier engagement at industry event will help strengthen relationships. among the Exhibitors.

"We’re proud to lead the way in the Exhibition, the experience we had showcasing our products and services with suppliers only helps to broaden our thinking and innovation perspective. The future in the industry is significant – and the expo helps to increase the visibility of that future," Kirby said.

In an Interview with PNG Business News, Patrick McElligot, Event Organizer and Managing Director of Trans-Tasman Media said: "In the current environment, finding the right people makes all the difference to our workplace, delivering production and getting results – so we’re looking at all avenues to encourage interest from existing and new-to-industry candidates to be part of the event in the coming years."

“The expo provides a much-needed platform for buyers and sellers to connect face to face again at a live, in-person exhibition,” he added.

"Exhibitions in the modern world remain incredibly relevant and their importance cannot be underestimated in their ability to drive the recovery and reconnection of industries, sectors and economies."

"During the course of the event people will connect across industries, hundreds of products will be on display and face-to-face interactions will take place," Mr McElligot said.

With machinery and equipment on display often high-value items, the show offered a platform for buyers to get up close to the products, see the quality, speak to technical experts, and view the live demonstrations. It also offered the opportunity to compare products and brands.

The event was attended by the private, public, and non-governmental sectors over the two days. They were mainly interested in the reviving of the industry after a slow-down during the COVID-19 pandemic. These exhibitors spoke about their services in human resource training, equipment purchasing and hire, and standardised testing for safety and operations.

Many expressed they were happy and satisfied with how the exhibition had progressed and were grateful for Trans-Tasman Media and its major sponsors for having hosted the PNG Industrial & Mining Resources Exhibition and Conference every year in Port Moresby.

The exhibition covered all aspects of the industry, everything from mining, electrical and automation to manufacturing, power and transport. So, there was a lot to see for everyone in those fields.

Community relations and national content, the heart beat of PNG benefits for local communities from any mineral and energy resource development in PNG, is set to take center stage at CANCONEX 2023, PNG’s first ever National Conference and Expo, organized by the PNG Chamber of Mines and Petroleum at PNG University of Technology Lae in August 2023.

It is expected that over 800 delegates will attend, which will include executives from the business sector and a large representation from project area landowners and landowner companies from all of PNG’s major existing or future project developments.

In announcing CANCONEX 2023, the Chamber President Anthony Smarè said it was important the resource sector took the lead in sharing its experiences in this area and for all stakeholders to come together to share learnings and identify opportunities to maximize equitable utilization of community benefits.

“We recognize that Community Affairs and National Content, including aspects such as community engagement, community social responsibility, workforce development, local procurement, and local business development are so important that it deserved its own dedicated conference and expo. CANCONEX 2023 will be PNG’s first largescale industry wide conference and exhibition focused on promoting awareness and engagement on community affairs and national content, to celebrate success stories, and to foster collaborative action to ensure sustainable outcomes for all stakeholders in PNG’s mineral resources and energy sector. I encourage all businesses, landowner companies and landowner groups which have exposure to PNG’s minerals and energy sector to attend and share your experiences”.

The theme for this year’s event will be ‘Promoting National Participation for Sustainable Communities’.

Prime Minister James Marape has been invited to provide the keynote address on the opening day of CANCONEX 2023, to highlight the commitment by the National Government in driving the National Content agenda.

Lae has been selected as the venue for this inaugural event, given the significant progress that have been made by the National Government, the Morobe Provincial Government, local communities, and the developer to advance the nearby Wafi-Golpu project to development.

Major Landowner companies, services providers, and resource project developers will also be exhibiting their offerings across the three days of CANCONEX 2023. A special 40% discount off the registration price is available to landowner representatives from project areas.

Those wishing to participate are encouraged to contact the Chamber on bkorosa@pngchamberminpet.com.pg or proj3@pngchamberminpet.com.pg to secure their participation. 

The Chamber looks forward to welcoming Over 800 attendees from government policy makers, business houses, landowner companies as well as large representation from landowner groups from project areas at CANCONEX 2023.”

Photo: Prime Minister and Foreign Affairs Minister Hon. James Marape with Guangdong Governor H.E. Wang Weizhong and National Capital District Governor Hon. Powes Parkop.-PM’s OFFICE MEDIA

Prime Minister and Foreign Affairs Minister Hon. James Marape expressed his appreciation for the increasing trade ties between Guangdong, a prominent Chinese province, and Papua New Guinea during a meeting with Guangdong Governor H.E. Wang Weizhong on Thursday, June 22, 2023. The discussions revealed a substantial surge of 265.2 percent in trade volume between Guangdong and PNG from January to May this year.

Prime Minister Marape graciously accepted Governor Wang’s invitation to visit Guangdong during his upcoming trip to China later this year.

Also at the meeting were National Capital District Governor Hon. Powes Parkop, State Enterprises Minister Hon. William Duma, Fisheries Minister Hon. Jelta Wong, Internal Security Minister Hon. Peter Tsiamalili Jr, other MPs and senior public servants.

Known as China’s economic powerhouse, Guangdong boasts the largest and fastest-growing economy in terms of GDP among the 31 provinces and municipalities in mainland China. It is home to the influential Pearl River Delta (PRD) Economic Zone, along with the Shantou, Shenzhen, and Zhuhai Special Economic Zones.

Governor Wang stated, “Import and export trade between Guangdong Province and Papua New Guinea reached an impressive US$477 million (K1.6 billion) last year, marking a notable increase of 93.28 percent. The positive momentum has continued to strengthen, with import and export trade between our regions growing by 265.2 percent from January to May this year.”

Expressing his satisfaction with the flourishing trade and investment levels, Prime Minister Marape emphasised, “The trade partnership between our two regions has seen a remarkable growth of over 200 per cent. However, there is still ample room for expansion, and we are eager to foster further collaborations with your province.”

Recognising Guangdong as PNG’s primary trading partner in China, Prime Minister Marape commended Governor Wang’s leadership, stating, “Guangdong stands as a shining example of a prosperous Chinese province. We warmly welcome investors from your province and encourage the continued strengthening of relationships between our capital city and your province and cities. It is a pleasure to have you here for the second time, and you are most welcome.”

Prime Minister Marape also highlighted the establishment of special economic zones within Port Moresby and other regions across the country, stating, “We are creating special economic zones within Port Moresby, as well as in other parts of our country. I invite you to become a friend of our nation and to promote Papua New Guinea as a prime business destination.”

Furthermore, Prime Minister Marape expressed PNG’s willingness to provide land to Chinese investors interested in forestry, fisheries, oil and gas, and other sectors.

During the meeting, Prime Minister Marape informed Governor Wang about Chinese President H.E. Xi Jinping’s longstanding connection with PNG, which dates back to 1998 when President Xi was Governor of Fujian Province. Notably, President Xi played a significant role in establishing the Lufa Mushroom Project in Eastern Highlands.

Highlighting this historical association, Prime Minister Marape shared his recent visit to Lufa, where he was presented with mushrooms cultivated through the Chinese project, stating, “Your President is a true friend of Papua New Guinea. Even when he served as Governor of Fujian Province, he maintained a special relationship with Eastern Highlands Province. Some of the projects he initiated, such as the Lufa Mushroom Project, continue to thrive.”

Emphasising the enduring connection between the Chinese people and PNG, Prime Minister Marape acknowledged the long history of Chinese influence in the country, stating, “Chinese people have been a part of Papua New Guinea for over 200 years. Many of our foundational businesses were established by Papua New Guineans of Chinese origin. You are not among strangers but amidst a nation and people with strong ties not only to the People’s Republic of China but also to the Chinese people.”

Prime Minister Marape expressed his gratitude to President Xi for elevating China-PNG relations to a higher level and thanked China for its status as PNG’s largest trading partner. He concluded by reaffirming the vital role that Guangdong plays in the friendly and cordial relationship between China and PNG.

K92 Mining Inc. is pleased to announce that the Company has set its inaugural energy and greenhouse gas (“GHG”) emissions reduction target as part of its ongoing overall sustainability commitments.

After completing detailed energy and GHG forecasts for its Stage 3 and Stage 4 Expansions, and identifying opportunities for energy reductions, the Company has set a target to reduce Scope 1 and Scope 2 emissions by 25% on a business-as-usual basis by 2030 (a 25% reduction against forecast Scope 1 and 2 GHG emissions by 2030 assuming no mitigation measures are implemented to reduce carbon emissions). Additional information on the GHG target and the overall approach to sustainability will be available in the Company’s forthcoming Sustainability Report covering 2022.

K92 Mining’s CEO and Director John Lewins stated, “As part of our commitment to help combat the negative impacts of climate change, we are pleased to announce our inaugural GHG reduction target, aiming to reduce our Scope 1 and Scope 2 emissions by 25% on a business-as-usual basis by 2030. The Kainantu mine is a high-grade, underground operation with a significant amount of power sourced from hydroelectricity, a cleaner, renewable power source. As a result, we have one of the lower carbon footprints in the industry and we continue to look for opportunities to improve upon this.

Importantly, we have already taken action to reduce our emissions through our partnership with PNG Power Ltd., which aims to upgrade grid power infrastructure near Kainantu. We recently completed a dedicated 22kV powerline to site to increase the reliability of clean hydroelectric power from the grid and reduce the use of backup diesel gensets. Additional power upgrades to increase our renewable energy profile are being investigated.

Beyond this, we are also exploring the potential electrification of our fleet and carbon sequestration. In combination with other energy reduction initiatives, we are confident we can achieve our GHG reduction goals, and we remain committed to working with our partners and our stakeholders in support of the world’s transition to a low-carbon economy.”

Prime Minister Hon. James Marape has recently commended Barrick Niugini Limited for agreeing to pay the base tax that has been an outstanding issue for some time.

In doing so, the Prime Minister also conveyed his high commendations to Barrick for its steadfastness in reopening the mine and open-mindedness in its negotiations with the government on revenue and cost sharing.

“I want to commend Barrick and our Internal Revenue Commission for finding an amicable solution, and for Barrick to pay the principle of what is owed as I appreciate the effort to resolve the tax issue that has been outstanding for SML 1,” said PM Marape.

“I also thank Barrick for carrying the cost of care and maintenance of the mine as well as paying for costs of the mine start up with no immediate burden on State parties for its 51 percent stake in New Porgera.

“Because of Barrick’s strong partnership with Papua New Guinea, the government or our mining company Kumul Minerals Holdings Ltd have been prevented from going out to borrow money for the re-start of the mine, as Barrick has taken onboard the full costs of starting up New Porgera.

“This means our landowners, the Enga Provincial Government and the State are winners from Day 1, while KMHL and Barrick work on recovering the money that has gone into care and maintenance and the reopening of the mine.

“I commend Barrick for its strong leadership, commitment and continued faith in our country,” said PM Marape.

The Prime Minister also noted that the developer has already recruited over 1500 staff to prepare the mine for reopening, while preparations are taking place for the final lot of consultations preceding the restart to take place.

“I am pleased to note that we are coming to the final round in the opening of New Porgera.

“Barrick has recruited over 1500 staff to prepare the mine for reopening.

“Early next month in July, we will be having a security forum and a landowners consultation forum so that we are on one page. We are working to meet all statutory requirements of landowners in all impact areas as far as the Mining Act is concerned.

“For New Porgera, we will do better. We will focus on resettlement and making sure that there are minimal environmental costs. We will resettle properly; tidy Porgera Valley; rebuild the police and restore Law & Order presence on the ground; support vocational schools in Porgera Valley and Enga to prepare young people to continue working the mine and participating in the spin-offs.”

PM Marape said from information to him, first gold should be out by the third quarter of this year if all things go according to schedule.

“I want to inform everyone that I have received indication that in the 3rd Quarter of this year, if all things go as scheduled, we should expect first gold to be processed in Porgera.”

PM Marape added that New Porgera would be employing over 3000 people and will provide many spin-offs.

“This is a big benefit to the country, not just in terms of royalty and equity and tax, but also in Mr Bristow’s personal commitment and Barrick’s commitment that they will ramp up on more local content and more of the spin-offs to benefit our local economy rather than exporting spin-offs to other countries.”

The Prime Minister once more highlighted the monetary value landowners and the Enga Provincial Government would be getting out of New Porgera.

“Earlier you were only beneficiary to 2.5 percent each. Today, your combined benefit is 15 percent starting from first gold. This is only weeks away.

“I want to ask every one of us – let us focus to come to the development forum, put all our issues on the table where the State will process them according to law.

“We are looking forward to New Porgera becoming better in delivering to expectations, the protection of environment, landowners happiness, proper settlement and, in the end, becoming a blessing to the country.”

Prime Minister Hon. James Marape has recently commended multinational oil and gas corporation, ExxonMobil, for continuing its exploration in Papua New Guinea over the last two years, which has revealed “some good finds”.

The Prime Minister said the company has spent up to $300 million on exploration in the last two years.

“From my discussions with ExxonMobil leadership in Houston, Texas and my follow-up engagements, I am glad to see the company take up exploration again.

“I commend them for investing between $200 million and $300 million on exploration in the last two years. They have been exploring in the south-eastern Papuan Fault Belt area, and have indicated some good finds, which we will make sure are protected.”

PM Marape said the government has been working on an incentive regime for ExxonMobil and those in the exploration space and would be announcing soon.

“This is so that we not only earn ‘construction dollar’ for the development of the fields, but we also have ‘exploration dollars’ coming into our country.

“Our government will soon be announcing these incentives.

“I want to commend ExxonMobil for the fact that, even before the commencement of these incentives and just going by my word with its Houston headquarters, the company has brought over $200 million into our country through exploration alone. This was over the last two years when our economy needed it the most during the aftermath of COVID-19.

“PNG might be the only one or two countries in the world where EExxonMobil has engaged in exploration. I commend ExxonMobil leaders in Houston, Texas; Asia Pacific, and Papua New Guinea for continuing to invest in our country.”

The Prime Minister also called upon companies within the oil & gas, and mining sectors to take up exploration in PNG.

“Many of the resources we have today both in the oil & gas, and mining spaces are resources established in prior years of exploration.

“I encourage Total and partners who are in country to move into this space beyond just the development phase of Papua LNG.

“Likewise, we call on other companies who want to come into the exploration of mining and petroleum: if you have an interest, place a call to the two departments concerned for license or permit. We will help you.”

The Prime Minister has also called on companies holding onto exploration licenses to look into developing their fields quickly before they lose them to expiration.

“If they do not have the capacity to engage in explorations, it is in their interest to talk to the Petroleum and Mining departments for assistance.

“Our country has abundant potential for oil & gas, and mining, and so I want to assure our people that we are still an attractive place for investments, as indicated by ExxonMobil,” said PM Marape.

Barrick (Niugini) Limited (BNL) and the Internal Revenue Commission of Papua New Guinea (IRC) are pleased to announce that BNL, Barrick Gold Corporation, and the IRC have settled all disputes and issues relating to old Porgera tax matters on terms satisfactory to the parties.

Although BNL and Barrick had the option of appealing the objection assessment, the parties resolved to settle the matter amicably in the interest of reopening the Porgera mine. The settlement enables BNL and the State to reopen Porgera as soon as other pending matters are finalised.

BNL would like to express its appreciation to the IRC for their cooperation and professionalism throughout the resolution process. The company remains committed to upholding the highest standards of corporate integrity and ethical conduct.

Photo: Porgera gold mine in PNG's Enga Province (Barrick)

The PNG Chamber of Mines and Petroleum (“the Chamber”) congratulates the Internal Revenue Commission (IRC) and Barrick (Niugini) Limited (BNL) on settling all disputes and issues relating to old Porgera tax matters.

This follows the announcement of a Deed of Settlement earlier this week, signed by IRC Commissioner General, Sam Koim, and Barrick Chief Operations Officer Latin America and Asia Pacific, Mark Hill.

The Chamber President Anthony Smaré said this development brings the imminent reopening of Porgera one step closer to fruition.

“Tax contributions are an important aspect of social licence for the operation of a project thus the Chamber is pleased that both IRC and BNL have come to an understanding regarding the old Porgera tax disputes and related issues. Through constant dialogue, these issues have been resolved, thus allowing the parties involved in New Porgera to focus on other regulatory requirements for Porgera.”

“The Chamber looks forward to more favourable progress towards the reopening of this strategic resource project for the benefit of all stakeholders.”

“Porgera remains an important project for the nation, and in particular Enga Province and Highlands region. Efforts towards reopening Porgera are welcomed, as all stakeholders can now also prepare to take advantage of the opportunities that will be on offer once the project is up and running.”

Photo: Operations continue at the OTML Mine.

Ok Tedi Mining Limited (OTML) brings 100% of its sales revenue into the country and provides an average of more than US$600 Million in foreign currency annually into the Papua New Guinea market.

This year, the Company has already provided US$272 Million into the PNG market as at June 20th. In 2022, OTML sold US$580 Million in foreign exchange into the PNG economy and US$674 Million in 2021.

OTML Managing Director and Chief Executive Officer, Kedi Ilimbit said, “OTML generates in excess of US$1 Billion in foreign currency for PNG annually. The Company uses approximately 35% of this to meet its own operational foreign currency requirements and the balance is sold to the commercial banks in PNG.”

He said OTML never holds more than one to two months for its own FX needs.

Mr Ilimbit further added that OTML is compliant with the Central Bank’s regulations and continues to efficiently submit monthly reports of the FX bank account balances, receipts and disbursements to the Central Bank for monitoring purposes.

OTML is a 100% PNG-owned company and will continue to provide support to the country’s economy through our operations and that includes assisting in alleviating the foreign currency shortfalls by due process.

Photo: Kostas Constantinou

Papua New Guinea (PNG) is mourning the loss of Sir Kostas Constantinou, a renowned entrepreneur and philanthropist, who passed away on June 17 in Brisbane, Australia at the age of 66. The country is deeply saddened by the untimely demise of this extraordinary citizen, who revolutionised the business sector in PNG. Sir Kostas was widely regarded as a national business leader who made a significant impact on the country's economy.

The family of Sir Kostas Constantinou issued a statement on social media on June 18, 2023, informing the public of his passing in Brisbane, Australia, following heart complications on June 17. Condolences have poured in from the business and political communities on social media, with many paying tribute to the renowned businessman for his exceptional leadership of some of the country's top organisations.

Sir Kostas Constantinou was a prominent figure in the business world, holding numerous high-level private and public sector positions. As a visionary business leader, he employed thousands of Papua New Guineans and expanded local businesses across Asia and the Pacific.

Throughout his career, Sir Kostas demonstrated unwavering commitment to excellence, innovation, and growth. He successfully led several companies, including BSP and Air Niugini, leaving a lasting legacy in the business world. His entrepreneurial spirit and ability to adapt to changing market conditions were truly remarkable.

Furthermore, Sir Kostas was deeply committed to giving back to the community and played a vital role in promoting corporate social responsibility and philanthropy. According to the Constantinou family, he ensured that the businesses he managed and the boards he served on invested money back into communities throughout the country, particularly in healthcare and education.

Previously serving as the group chairman of the BSP (Bank South Pacific) Financial Group for over a decade until his retirement in February of this year, Sir Kostas Constantinou achieved significant milestones during his tenure. One of his key accomplishments was expanding the PNG bank's presence to several Pacific Island nations, including the Solomon Islands, Fiji, and Samoa, as well as entering the asset finance markets in Cambodia and Laos.

The Constantinou Group of Companies, as stated in their issued statement, revealed that the late businessman built an empire across the Pacific, carrying on the legacy of his late father, Sir George Constantinou. The statement highlighted Sir Kostas's appointment as chairman of various organisations, including BSP and Air Niugini. Additionally, he served as the Honorary Consul for Greece and Cyprus.

"Sir Kostas Constantinou was a resilient and proud Papua New Guinean at heart, creating employment opportunities and inspiring numerous individuals in the pursuit of progress for the future. His impact will be greatly missed, but his memory and vision will be cherished, especially through his philanthropy. He was an incredible human being, and his legacy will be irreplaceable", as stated in the family's statement.

The Constantinou Group encompasses several establishments, including Airways Hotel & Apartments, Lamana Hotel, Loloata Private Island Resort, Gazelle International Hotel, Taumeasina Island Resort-Samoa, Heritage Park Hotel, Texas Chicken, Sir Theo Foundation, Lamana Development Ltd, Hebou Constructions (PNG) Limited, Monier Limited, Monier Water Solutions, Central Sands Supplies, and Rouna Quarries.

Sir Kostas Constantinou had a profound impact on various industries in PNG, including business, aviation, and the banking and finance sector. He will be remembered for his exceptional leadership, visionary thinking, and significant contributions to the business community in PNG.

Papua New Guinea’s commercial interest is not being compromised by the Defence Cooperation Agreement (DCA) and it will not affect trade and investment of our country as far as I am concerned,” says the Minister for International Trade and Investment, Hon. Richard Maru. Minister Maru said this in his statement last week in the parliament during the debating of DCA between Papua New Guinea (PNG) and the United States (US).

“There is no need to talk about unnecessary fear about DCA stopping PNG from trading with other countries like China because the biggest trading partners of China are two of America’s strongest allies- Australia and New Zealand. China is their biggest trading partner whilst knowing that they are the strongest allies to the US. So, there is no need for fear as DCA will not affect trade and investment of our country; it will elevate the USA-PNG bilateral relations to one of confidence and trust in all aspects of our relationship including our bilateral trade and investment relationships,” said Minister Maru.

Minister Maru also clarified that what was signed was only a framework agreement and there were no details in terms of the cooperation.

“We are making so much fuss over a framework agreement. The details of the agreement are yet to come. Once we have the details that is when we should really talk,” said Minister Maru.

Minister Maru added that such agreement had benefited other countries like Fiji.

“I was recently in London where I met the Deputy Prime Minister of Fiji and a Fijian Officer who told me that under an MOA that was signed between the Fijian Government and the British Government, Fiji has 1000 men stationed in the UK Defence Force at any one point in time who are trained, equipped and on the payroll of the UK Government. They even join the UN Peacekeeping Forces because they are very highly trained and equipped,” said Minister Maru.

“They told me that Defence is a big industry for Fiji in terms of revenue generation. The Fijian soldiers in the UK send a billion US dollars every year back to their families in Fiji. And amazingly, Fiji has a Defence Force with the size of 13, 000 soldiers at any one point in time whilst PNG only has 3000. We have bigger security issues than Fiji, but they have a bigger Defence Force while we, for the last 48 years have not been given the support and the capacity to build up our Defence Force, even to deal with our internal issues,” said Minister Maru.

Minister Maru also stated in his recent meeting with the US Trade Team during the APEC Trade Minister’s Meeting at Detroit in the US that apart from the DCA, the two countries should also enter into a Bilateral Trade and Investment Framework Agreement to further PNG-US bilateral trade and investment relations.

“US at the moment is a big investor in our oil and gas industry through the Exxon Mobil and will soon invest in a big mining project in PNG- the Wafi-Golpu Mine. Through the Bilateral Trade and Investment Framework Agreement, the US can consider investing in the Special Economic Zones (SEZs) that our Government is championing,” said Minister Maru.

“This is the sort of discussions we need to have at the same time as we are negotiating the details of the future DCA which will be enhanced after the signing of the agreement,” added Minister Maru.

Minister Maru commended the Prime Minister, the Defence Minister, and the team behind the DCA.

“I believe that we have started on the right path. We must now work together and put together details and see how we can benefit from this agreement like how other countries like Fiji have benefited from such an agreement,” said Minister Maru.

Photo: Panguna Mine

The Autonomous Bougainville Government will not allow foreign investors on Bougainville to breach its laws to exploit its people and resources.

Bougainville President Ishmael Toroama made this statement following the Bougainville Executive Council’s decision to refuse the mineral license applications by joint-venture entities involving Wyndale Holdings Pty Ltd and its local partners.

The Bougainville Executive Council (BEC) is the authority on Bougainville that grants mineral exploration license applications upon advise from the Bougainville Mining Advisory Council.

The first application was for a mineral Exploration License over Eivo/Torau areas and the second was an application for an Artisanal Mining License over the Jaba middle tailings to lower tailings areas.

For the Eivo/Torau areas the BEC made the decision to refuse to grant an Exploration License to Paruparu Joint Venture Limited (PJVL); PJVL is a joint venture involving Wyndale and local company Karatapo Resources Limited.

President Toroama also announced that the BEC has also endorsed the decision by Mining Minister Robin Wilson not to grant an Artisanal Mining License to Bakeuroro Joint Venture Limited (BJVL). BJVL is a joint venture between Wyndale and local company Bakeuroro Investment Limited along the Java mid tailings to lower tailings areas.

Wyndale is a private Australian company with links to Australian Mr. Nickolajs Zuks who claims to have been issued mining licenses by the Autonomous Bougainville Government.

President Toroama revealed the government’s decisions were purely based on application of law, wherein the applicants failed to meet the application requirements provided for under the Bougainville Mining Act 2015.

President Toroama warned that the ABG will not be entertaining companies and individuals who use duplicitous means to exploit Bougainville’s mineral resources.

The President further cautioned investors to be wary of being misled and that the ABG will not be held liable for losses incurred as a result of fraudulent misrepresentations.

Photo: PM Marape with Chinese President H.E. Xi Jinping meeting in Bangkok, Thailand, last November

Prime Minister and Foreign Affairs Minister Hon. James Marape presented a reciprocal visa waiver agreement between China and Papua New Guinea to Parliament on Thursday, June 15, 2023, for ratification. The agreement received unanimous support from Parliament, reflecting the shared commitment to strengthening bilateral relations.

The visa waiver agreement aims to facilitate travel for holders of official and diplomatic passports between China and Papua New Guinea by enabling visa issuance upon arrival. Prime Minister Marape highlighted that this agreement will allow diplomatic and official passport holders from both countries to travel seamlessly for a specified period, fostering closer government-to-government ties.

"This reciprocal visa waiver agreement is a significant step towards enhancing business and tourism potential between China and Papua New Guinea," stated PM Marape.

"Furthermore, it will streamline travel arrangements for state and official representatives, facilitating their important duties."

In addition to promoting economic and diplomatic ties, the Prime Minister emphasised the convenience this agreement will bring to travellers. "This visa waiver arrangement will alleviate the travel preparation burden, benefiting not only government officials but also individuals engaged in trade and tourism between our nations," he explained.

The Prime Minister acknowledged the efforts of former Foreign Affairs Minister, Hon. Justin Tkatchenko, for his role in advancing visa agreements, including those with China and Indonesia. PM Marape expressed gratitude for the swift action taken to bring these agreements to Parliament, ensuring their timely implementation.

Once ratified, this bilateral visa waiver agreement will mark a significant milestone in the relationship between China and Papua New Guinea, strengthening cooperation and fostering greater understanding between the two nations.

Prime Minister and Foreign Affairs Minister, Hon. James Marape, took a significant step on Thursday, June 15, 2023, by presenting the long-awaited reciprocal visa waiver agreement between Indonesia and Papua New Guinea to Parliament for ratification.

Originally signed by Indonesia and PNG in 2014, the agreement had remained inactive until now. However, it received unanimous support from Parliament, marking a crucial development in bilateral relations. Indonesian President H.E. Joko Widodo visits PNG on July 6, 2023.

The agreement facilitates visa-free travel for holders of official and diplomatic passports, enabling them to visit each other's countries and obtain visas on arrival.

Prime Minister Marape emphasised the significance of this waiver agreement, stating, "This pivotal agreement allows diplomatic and official passport holders from Papua New Guinea and Indonesia to travel between our nations, obtain visas on arrival, and stay for a specified period of time."

He further highlighted that this reciprocal visa arrangement acknowledges the necessity for seamless and efficient movement of officials and state representatives during their official duties.

The Prime Minister noted the timeliness of this arrangement, particularly considering the anticipated increase in government business between Indonesia and PNG. Recognising the vast business and tourism potential of Indonesia, he expressed the intention to explore visa on arrival options for business and tourism travelers in the future.

"The existing air service agreement between Papua New Guinea and Indonesia, combined with the reciprocal visa waiver for official and diplomatic passport holders, will alleviate the burdensome visa preparation process," added PM Marape.
Furthermore, he mentioned that PNG already has a similar agreement in place with all Melanesia Solidarity Group (MSG) countries and proposed the potential expansion of such agreements to include neighbouring nations like Indonesia in the future.

The visa waiver agreement marks a significant milestone in strengthening diplomatic ties, fostering increased economic cooperation, and promoting cultural exchange between Indonesia and PNG.

PNGX, Papua New Guinea’s national stock exchange, welcomes the statement by Hon. Richard Maru OBE, MP, Minister For International Investment and Trade on 14 June 2023.

Newcrest is an important listing on PNGX, representing the company’s commitment to the country from which it extracts significant resources. PNGX would welcome a continued listing of these assets following completion of the merger with Newmont for similar reasons.

It is not the role of the stock exchange to advocate for or against the merger. However, it is the role of the stock exchange to advocate for the national interest of the capital market.

PNGX agrees that in a resource-rich developing nation such as Papua New Guinea, supporting the local capital markets is an important part of a company’s social, political and economic licence to operate in the country.

On 31 March this year, Hon. Richard Maru, Minister for International Trade & Investment, said “We want the capital market to grow exponentially to the point where all foreign listed companies who buy into or operate and profit from PNG to have a secondary listing on the PNG national stock exchange”.

“PNGX welcomes the further reference in Minister Maru’s statement that in future the Government will put in place a process for all such entities to be listed on the exchange to improve the wealth for Papua New Guinean citizens and landholder companies apart from the State. We look forwards to working with the Minister on this exciting opportunity for local investors” said PNGX Chairman, Mr David Lawrence.

A copy of the Minister’s statement on June 14th can be found below: 

The proposed merger between Newmont Corporation and Newcrest Mining Limited will have potential implications for Papua New Guinea’s capital market as Newmont has no current plans to maintain current listing list on Papua New Guinea Stock Exchange. This merger has significant ramifications for PNG's capital market and the interests of local Papua New Guinean investors.

According to Newcrest's announcement on 15 May 2023, the proposed merger involves Newmont Corporation of Denver Colorado, acquiring all shares in Newcrest through an Australian Scheme of Arrangement. While Newcrest is currently listed on both the Australian Securities Exchange (ASX) and the Papua New Guinea Stock Exchange (PNGX) as an "exempt foreign company," it is evident that Newmont has no current plans to list on PNGX as a part of its operations in PNG.

Historically, as one of the first companies to list on the PNG stock exchange 25 years ago, the listing of Newcrest on PNGX has been of paramount importance, transcending individual investments and clearly demonstrating Newcrest’s commitment to the country. It avails the opportunity for all Papua New Guineans to participate in the success of their country's inherent wealth. It supports domestic savings through capital growth, facilitates income growth through the distribution of dividends, and contributes to the development of the capital markets through various fees and levies. Losing these benefits to offshore interests will be fundamentally detrimental to the emerging domestic savings and investment market in PNG.

Newcrest has more than 99% shareholders domicile in Australia, and they will follow Australian Takeovers Codes and their legal approval for the scheme. As matter of national interest as Newcrest has significant projects in PNG. I want our local people and institutional shareholders to invest in company that extracts resources from PNG shores.

Newmont has a corporate responsibility to maintain listing on the exchange and further offload portion of the shares to Papua New Guinean institutional companies to increase market confidence and image within the region like Santos did earlier.

The situation raises immediate concerns for the more than 2,700 shareholders domiciled in PNG who hold investments in Newcrest. In simple terms, it denies the Papua New Guinean investment community the opportunity to invest in the country's largest mining operations and will force an outflow of investment funds as investors are forced to re-domicile their holdings to Australia or the USA.

• The delisting of Newcrest from PNGX will significantly impact the overall capitalization of the market, decreasing it by 39%
• Reduction in market liquidity and dilute of PNG shareholders
• Delisting will affect our markets image

However, if Newmont maintain listing on our market, our market capitalization would increase by 84%, demonstrating confidence in the country's economic potential and encouraging further listings and investment. In a resource-rich developing nation such as PNG, supporting the local capital markets is an important part of a company’s social, political, and economic licence to operate in the country.

In the future the PNG government will put in place a process compulsory for all entities to be listed in our exchange to improve wealth for our citizens and landowner companies apart from the State. Given the gravity of these implications, I will implore Newmont Corporation to carefully consider the national interest of Papua New Guinea in relation to the proposed merger. I will also reach out to the Prime Minister, seeking assurance that any government approval of the merger or the continuation of Newcrest mining licenses in PNG, including Lihir and Wafi-Golpu, be contingent upon the following preconditions:

1. Resident Newcrest shareholders in Papua New Guinea should receive Newmont shares or Papua New Guinean depository receipts, regardless of the size of their holdings.
2. Newmont lists its shares or depository receipts on the Papua New Guinea Stock Exchange (PNGX), allowing local investors to participate directly in the country's largest mining company.

Global warming is continuing to cause significant risks to countries around the world, and the impact of climate change is more widespread and severe than anticipated. This has become a constant reminder to economies throughout the globe of the urgency of addressing and disclosing climate risks.

In Papua New Guinea, there are so many vulnerable communities impacted by climate change and so many people in vulnerable communities find it hard to cope with financial losses resulting from the impact of climate change.

Climate change, deforestation, pollution, and other environmental issues pose significant economic threats to businesses. In turn, this jeopardises financial stability in the banking sector.

Rising sea levels, extreme weather events, and resource scarcity can also disrupt supply chains, increase production costs, and lead to financial losses. In doing so, these threats compromise price stability within the financial sector and the economy.

To counter the ongoing effects of this economic risk, the Bank of PNG have embraced green finance to address such risks, proactively, investing in projects that mitigate environmental challenges and foster long-term sustainability.

Launching of the Inclusive Green Finance Policy in PNG: The Bank of PNG in partnership with the Center for Excellence in Financial Inclusion (CEFI) and it's development partners recently launched the Inclusive Green Finance Policy with the theme: 'Pathway to a Greener Economy for a Resilient Future' on Thursday 08th June, 2023 at the Hilton Hotel in Port Moresby.

The ceremony was witnessed by Prime Minister James Marape, who expressed his honor in inaugurating this significant policy. He encouraged government departments, state-owned enterprises, financial institutions, and MSMEs to collaborate and utilize this policy as a foundation for building a green business economy.

The Prime Minister expressed gratitude to the Bank of Papua New Guinea, the Global Green Growth Institution (GGGI), the New Zealand Highland Commission, financial institutions, and other technical and development partners for their collaboration in designing and developing the Inclusive Green Finance Policy.

"I am delighted to announce that this policy is being unveiled alongside the Bank of PNG's own Financial Inclusion Strategy, introduced in April this year. This visionary product represents a long-term commitment to Papua New Guinea," he added.

The Prime Minister commended the Green Taxonomy, a unique feature of this policy, which is the first of its kind in the Pacific and Papua New Guinea. He congratulated the Acting Governor of the Bank of PNG and the development partners for their contribution in establishing this crucial tool and service for the benefit of the people.

"The Inclusive Green Finance Policy serves as a reminder for all of us to conduct our business in an environmentally conscious manner. By offsetting our global and PNG carbon footprints and participating in the conservation of PNG's tropical rainforest and mangroves, we can mitigate the impacts of climate change," the Prime Minister emphasized.

Policy's Development: When outlining the progressive steps taken into developing the policy, Mr George Awap, Assistant Governor of the Financial System Stability Group at the Bank of PNG and Chairman of the Inclusive Green Finance Steering Committee, highlighted the policy's development and the discussions surrounding the impact of climate change on economics.

Mr. Awap provided a brief overview of the journey toward implementing the Inclusive Green Finance Policy in Papua New Guinea. He mentioned that the Bank of PNG engaged the Global Green Growth Institution through a bidding process, and the Agriculture for Finance (AFC) was involved in developing the concept note, funded by the New Zealand Government.

He further explained that a steering committee, chaired by the Bank of PNG and consisting of representatives from the Office of Climate Change, Department of Treasury, Alliance for Financial Inclusion, NZHC, and GGGI as observers, worked to develop the Inclusive Green Finance Taxonomy Policy.

"Inclusive Green Finance is a new concept in the region, requiring extensive collaboration between the Bank of PNG, domestic financial institutions, various ministries, and stakeholders," concluded Mr Awap.

What role can the Inclusive Green Finance Policy play in PNG?: During the launching of the policy CEFI and its stakeholders explained and highlighted what it has been doing to ensure that the financial sector plays its part in greening the financial system and support sustainable growth.

Inclusive green finance is an evolving policy area that countries are beginning to implement to mitigate or build resilience to sweeping environmental, health, social and economic effects of climate change.

This comes as a convergence of financial inclusion and climate change policy outcomes in developing countries are increasingly evident, and affordable financial services play vital roles in enabling vulnerable people to cope with financial losses that result from the impact of climate change and build resilient sustainable livelihoods.

In September 2020, CEFI requested the GGGI to support in developing an inclusive Green Finance Policy for PNG’s financial sector. The Global Green Growth Institute serves as the Secretariat for the project with support from Agriculture and Finance Consultants.

The policy's goal is to  increase and facilitate flow of national and international funds and investments in a systematic manner towards businesses, projects and initiatives that would further the PNG government’s goals in growth or green and sustainable industries, financial inclusion, and climate change adaption and mitigation.

The policy aims to deliver two main outputs. First is a green taxonomy based on PNG's goals and priorities, which defines the conditions under which an economic activity can be deemed environmentally sustainable. It defines the technical criteria on environmental performance levels and social minimum safeguards for a list of activities that must be fulfilled if they are to be legally classified as environmentally sustainable.

Second is a diagnostic report on the state of green finance in PNG, which refers to financial investments and initiatives that promote sustainable economic growth, while reducing environmental impact. The goal of green finance strategy is to mobilise capital towards projects that have a positive impact on the environment.

Both aspects of the policy are expected to steer financial flows towards technologies and services that contributes to the government's financial inclusion and green growth goals

PM Marape's highlights: In his address, the Prime Minister stated, "Today, we celebrate the establishment of the Green Finance Policy by the Bank of PNG, which I believe is the first of many steps toward transitioning Papua New Guinea from a high-carbon economy to a sustainable and blue economy."

Mr Marape emphasized the policy's importance in addressing climate change and how it will benefit the people of Papua New Guinea. He stressed the need to develop the country's economy in a smarter and climate-resilient manner, fostering low-carbon, inclusive green growth.

"While we are currently on a high-carbon development trajectory, which has proven beneficial for our economy and supporting our rapidly growing population, we must acknowledge that the detrimental effects of climate change are accelerating. This necessitates a shorter timeframe for us to enjoy the benefits of our current pathway," said the Prime Minister.

BPNG Acting Governor on embracing green finance: Green finance is defined as a loan or investment that supports an environmentally friendly or sustainability-aligned activity, such as purchasing environmentally friendly and energy efficient goods and services or building environmentally friendly infrastructure such as renewable energy power plants.

Green projects not only include solar or wind energy, however. Sustainable land use, water, and urban waste management, green buildings, clean transportation, pollution prevention and control systems, and energy efficiency projects are some of the areas that are globally eligible to receive green financing.

With a focus on the mechanisms of Green Finance highlighted during her speech, Ms. Elizabeth Genia, Acting Governor of the Bank of Papua New Guinea, underscored the significance of embracing green finance and adopting a proactive approach to address environmental risks and invest in projects that promote long-term sustainability.

The Acting Governor emphasized the responsibility of financial institutions to integrate environmental and social factors into their investment decision-making processes. She encouraged the development of innovative financial products, such as green bonds and sustainability-linked loans, to facilitate green investments.

"To support financial institutions in this important journey, the Bank of PNG, in collaboration with its partners, will establish a Green Finance Center at the CEFI office. The center will provide necessary support, including staff training, technical assistance, and the design of innovative green lending products," stated Mrs. Genia.

“We also need to acknowledge that governments simply do not have the resources to meet all the demands on the public purse. As a society we need to find other ways to address society’s challenges.”

Investment Pathway: Green growth means achieving economic growth while reducing pollution and greenhouse gas emissions, minimising waste and improving efficiency in the use of natural resources. This requires long-term investment and sustained financing. Public budgets have traditionally been an important source of green infrastructure financing.

But given the strains on public finances, large-scale private investment will be needed for the transition towards a green economy. However, the Government has a key role to play in strengthening domestic policy frameworks to catalyse and mobilise private finance and investment in support of green growth.

One of the most frequently used terms in climate change discussions is environmental sustainability, with economic growth and foreign direct investment as supporting factors. In context, the government plays a vital role in enhancing sustainable pathways and addressing this incentives.

It is recommended that policymakers must push the financial sector to adopt the green finance policy to further the goals of long-term sustainable development through sound investment.

The Inclusive Green Finance Policy takes environmental, social and governance considerations into account when making decisions to invest. Environmental considerations include whether the investments would preserve biodiversity, prevent pollution, boost the circular economy or help climate change mitigation and adaptation.

Other considerations include human rights issues, labour relations, and investment in communities. So, what the policy aims to do is encourage and facilitate investments that contribute substantially to environmental objectives and promote wider sustainability objectives.

The challenge is how to effectively influence market stakeholders’ decision to invest in sustainable projects, activities, sources and supply chains.

References:

1) LAUNCHING OF THE INCLUSIVE GREEN FINANCE POLICY, Thursday 08th June, 2023 :  Hilton Hotel, Port Moresby [Paul Oeka/PNG Business News]

2) Website: www.thecefi.org Link to Photos, Videos, Audios, Speeches & Media Release - https://drive.google.com/drive/folders/1hJfJxZ2pgkgEEbP5lETwtv4jbCyuiIiS?usp=sharing

3) The Inclusive Green Finance Policy (IGFP) Project (Copy of Policy outline). Centre for Excellence in Financial Inclusion https://www.thecefi.org › green-fina...

4) Bank of Papua New Guinea https://www.bankpng.gov.pg › media Releases | Bank of Papua New Guinea (PNG) Port Moresby,