Photo credit: Deep Sea Mining Finance Ltd

The Government of Papua New Guinea plans to re-open discussions with Deep Sea Mining Finance Ltd (DSMF) regarding the potential for mining minerals in the Bismarck Sea off the west coast of Namatanai, New Ireland. DSMF had previously acquired Nautilus Minerals, which had shown interest in deep sea mining in the mid-2000s through the Solwara 1 project. DSMF is a privately owned group with the aim of becoming the world's first company to mine the sea floor of massive sulphide deposits, starting with its high-grade copper-gold Solwara 1 project.

Mining Minister Sir Ano Pala said, "We expect discussions again with the company." Governor Sir Julius Chan also met with a team from DSMF in the province this week. The team was led by its CEO Chris Jordinson, including technical service manager Glen Jones, offshore exploration project manager Anthony Manocchio, and Nautilus Minerals country manager Paul Lahari.

Jordinson indicated that the company had met with Mining Minister Sir Ano Pala and the Mineral Resources Authority the previous week in Port Moresby. The dialogue between the company and the New Ireland government is crucial as they are responsible for the local impacted communities of the proposed Solwara 1 project off West Coast New Ireland. The NIPG has suggested that DSMF conduct proper awareness with the locals on the proposed project, including engaging an independent scientist to evaluate possible environmental impacts and give confidence to the local people that the project will not affect their livelihood.

In the words of the Governor, "The DSMF team was here to touch base and explain what they intend to do and how they will go about it. We suggested to them that they conduct proper awareness with the locals, engage an independent scientist to evaluate possible environmental impacts and give confidence to the local people that the project will not in any way affect their livelihood."

Photo: PM Marape

Prime Minister Hon. James Marape says the Independent Commission Against Corruption (ICAC) is now being operationalised after establishment by law in November 2020.

He also said the Ombudsman Commision would remain, however, would be subject to review of its roles and responsibilities.

PM Marape said this in Parliament on Tuesday (March 21, 2023) when answering questions from Moresby North-East MP, Hon. John Kaupa, on when ICAC would be established and what would happen to the Ombudsman Commission as a result of ICAC.

He said the Whistle Blowers’ Act (2020) and Proceeds Of Crime Act (2022) would complement ICAC in the fight against corruption.

PM Marape said MPs from both sides of Parliament were concerned about corruption, hence, their overwhelming support for ICAC, Whistle Blowers’ Act and Proceeds of Crime Act.

“The process of selecting the commissioner and two assistant commissioners of ICAC has been completed,” he said.

“Because of concerns that Papua New Guineans should not run ICAC, on the grounds of impartiality, the commissioners were selected independently of the Executive Government.

“We appointed Transparency International to supervise the selection process, so that we start the work of ICAC on a clean slate, right from day one.

“Transparency International, under the chairmanship of Mr. Peter Aitsi, supervised the process of appointing the commissioner and two assistant-commissioners.”

PM Marape said two Australians and a New Zealander, all with vast experience, had been selected and had taken up the offer. He said the Chief Justice, Opposition Leader and himself as Prime Minister were on the committee that made the appointment.

“ICAC will be operational very soon with funding already set aside. We are fully committed to get ICAC up and running at the earliest,” he said.

PM Marape said ICAC would not take over the role of the Ombudsman Commission.

“The Ombudsman Commission will focus on those of us who come under the Leadership Code,” he said.

“As we set up ICAC, and it becomes fully operational, we will look holistically at the role of the Ombudsman Commission.

“There is an outstanding issue of ‘double jeopardy’, which we will look at, so that leaders do not have to come under the scrutiny of different offices to prosecute them on alleged corruption that may arise.

“The Ombudsman Commission’s role will not be diluted, however, there should not be two different organisations doing the same task. This makes it such that matters are progressed and not stalled.”

PM Marape encouraged the people not to make accusations against leaders on social media, but rather, report to ICAC, Ombudsman Commission or Police.

“Take your allegations to Ombudsman Commission, Police and ICAC. Facebook is not a police station, Facebook is not an Ombudsman Commission office, Facebook is not ICAC,” he said.

“It is our collective responsibility to report corruption.”

Photo: From left to right: Kevin Anderson (Theodist National Sales and Marketing Manager), Steven Abraham (Team PNG-para-athlete), Auvita Rapilla (PNGOC Secretary General) and Ryan Pini (Theodist Business Development Manager)

Theodist Ltd presented a cheque of K50,000 towards the PNG Olympics Committee as its annual sponsorship at the Theodist showroom on March 22, 2023. Present to receive the cheque were Secretary of the PNG Olympic Committee Auvita Rapilla and para-athlete for Team PNG Steven John.

Theodist Limited has been assisting the PNG OC for the past 20 years and is a strong advocate for promoting sports development in PNG. Their renewed sponsorship is a testament to their commitment.

"Theodist Limited is truly happy to sponsor the PNG Olympic Committee through sports development as this contributes to nation-building and prepares young Papua New Guinean athletes to excel in sports," said Mr. Kevin Anderson, the National Sales and Marketing Manager of Theodist.

Upon receiving the cheque, Ms. Auvita Rapilla said the sponsorship would go a long way to meeting the administration costs for the upcoming Olympic Games and South Pacific games this year.

The PNG OC is also preparing for the 2024 Olympic Games in Paris and has appointed Ryan Pini, Theodist Limited's Corporate Development Manager and a former swimming sensation and four-time Olympian for Team PNG, as Chef de Mission to the Olympic Games in Paris.

Photo credit: The Pick

Lole Mining Limited, the new developer of the Tolukuma Gold Mine in Central Province, has recently developed an initial public offering (IPO) to be listed on the Australian Stock Exchange. Mineral Resource Authority managing director, Jerry Garry, told the Post Courier, "The company will be raising their capital from the stock market upon registration with the Australian Securities (ASX)."

Mr. Garry went on to explain that Lole Mining was granted an extension mining license (ML104) for 10 years in January of last year, following a liquidation order from the National Court in February 2018. Since then, the liquidator has been attempting to sell the assets of the mine, including the mining lease (ML104 and 105 surroundings), and while there were several interested parties, none of the agreements were successful.

"In April 2018, all those assets, including the ML 104 and 105 exploration licences, were transferred to the Pini Accounts and Advisors as the liquidators. As part of the agreement under the asset sale agreement, Lole Mine paid half a million (K500,000) and later K1.5 million in January 2022," he said.

After assessing all the proposals, Mr. Garry said, "The technical assessment team and the council believe that Lole Mining was the most sensible, logical, and cost-effective proposal to reopen the Tolukuma Gold Mine, having them fulfill the first two transfers to the liquidators to offset the creditors or the debts."

"The final payment was K20 million and that K20 million was paid by Lole Mining to the liquidator in October last year to allow for all the assets to be transferred to the company," Mr. Garry added.

The development of an IPO by Lole Mining marks a significant step in the company's growth strategy and will provide an opportunity for investors to participate in the development of the Tolukuma Gold Mine. Mr. Garry said, "With the successful completion of the IPO, Lole Mining will be well-positioned to drive the growth of the mining industry in Papua New Guinea."

Photo: Executive Team from Hilton Port Moresby Hotel and Residences leads media tour of the luxurious 'Star Mountain Plaza Hilton Residences

The luxurious five-star "Star Mountain Plaza Port Moresby Hilton Residences" are nearing completion and expected to be finished in mid-July 2023, located in the heart of Port Moresby City (Waigani). An executive team led by Hilton Port Moresby Hotel and Residences General Manager Mr. Ryan Mikkelson conducted a tour on the 21st of March 2023.

The Hilton Port Moresby Residences have 18 floors, including a recreational area, a hub work office space, a bar bistro eat and drink area, a gym, and various residential spaces that comprise studio rooms, one-bedroom, two-bedroom, and three-bedroom apartments, totaling 180 residences.

Area Vice President and Head of Australasia at Hilton Asia Pacific, Mr. Paul Hutton, commended Papua New Guinea's ability to rebound through the tough economic crisis experienced globally due to its resource-rich status despite the COVID pandemic. Hilton Management in Port Moresby is looking forward to hosting international and domestic meetings, including government, cultural, tourism, and the major oil and gas sector to generate income for the nation.

"We are looking forward to accommodating expatriates and interested families who would like to stay and experience the Star Mountain Plaza Hilton Residences," said Mr. Hutton.

The contractor for the "Star Mountain Plaza Hilton Residential Project" is Stratum Group, which was engaged in end-to-end scope, ranging from development management, design, procurement, and facilitating commercial feasibilities. They develop the brand proposition, secure hotel operators, demonstrate economic principles to attract investment and sponsorship.

The first stage of the Hilton hotel was completed in 2018 and is currently in operation, while the second stage, the Hilton Residences, will be opening mid-this year.

The Hilton Hotel and Residence is funded by Mineral Resources Development Corporation (MRDC) under its Landowner Company Star Mountain Plaza.

Once the Hilton Residence is open, it will create an extra 150 jobs for interested Papua New Guineans. Currently, it has 250 staff working in the hotel.

Photo: PM Marape meeting with the Korean delegation leader Park Byeong-seug, who is representing Korean President H.E. Yoon Suk Yeol.

Trade between Republic of Korea and Papua New Guinea was worth US$1.8 billion (K6.33 billion) in 2022, a massive 240 per cent increase from 2021, according to a high-level Korean delegation visiting PNG.

The delegation is made up of politicians, government officials and leaders of business in Korea.

Delegation leader Park Byeong-seug, who is representing Korean President H.E. Yoon Suk Yeol, revealed this to Prime Minister Hon. James Marape during a meeting at Sir Manasupe Haus in Port Moresby today (March 21, 2023). He said this was largely due to the leadership of PM Marape.

“Trade volume last year (2022) between Korea and Papua New Guinea recorded US$1.8 billion dollars, which was a 240 per cent increase compared to the previous year,” he told PM Marape.

“I believe it shows how our economic relations are complementary to each other, which means there is greater potential for both development and cooperation.

“Korea and Papua New Guinea, and their economies, are complementary because because Korea has the experience of growth and high-level technology, while PNG has high-growth potential as well as rich resources.

“Korea has grown from one of the poorest countries in the world to one of the G10 countries in the world, which is why Korea is wanting to establish win-win relations with PNG – based on mutual understanding.”

Mr. Byeong-seug invited PM Marape, on behalf of President Yoon, to attend the first Korea-Pacific Islands Summit in Seoul in May, to discuss issues of climate change as well as furthering bilateral relations. He also asked for PNG’s support to host World Expo2030 in Busan, which PM Marape pledged.

“Korea sees Papua New Guinea as the hub nation of Pacific Island countries and values the potential of bilateral relations for both cooperation and development,” Mr. Byeong-seug said.

PM Marape said the big increase in trade between Korea and PNG had not gone unnoticed by his Government, and there was room for even more growth.

“I want to offer my country as an investment destination for Korean companies, as well as for our producers to export to your country’s markets,” he told Mr. Byeong-seug.

“We have energy sources; we have raw materials. My Government is pushing for downstream processing and we invite companies in relevant industries in your country to come into our Special Economic Zones (SEZs).

“Our GDP (gross domestic product) is well-placed to expand rapidly in the next 10 to 15 years, based on the resources we have, so we are inviting companies from friends of PNG – including Korea – to come and do business here.”

PM Marape also said there were several outstanding bilateral issues between Korea and PNG over many years which needed to be resolved.

Photo: William Duma in Parliament

The Wafi-Golpu Gold Mine project in Bulolo district of Morobe Province is expected to become a key economic driver for the Ramu 2 Hydro project, which will span the Eastern Highlands and Morobe provinces. During a recent parliamentary session, State Enterprise Minister William Duma gave this assurance in response to questions from Kainantu MP William Hagahuno:

"They (Kumul Consolidated Holdings Limited) on behalf of the PNG Power and Ramu 2 Hydro project developer) will then be negotiating with the Wafi-Golpu Mine so that they sign an off-grid agreement so that they underpin the economics of this project," he said.

"PNG Power is owned by this country and it is important that both sides of this house (Parliament) support this project."

Duma emphasised the importance of both sides of parliament supporting the project, as PNG Power is owned by the country. He noted that:

"It is a project where the Eastern Highlands provincial government and the landowners have allowed PNG Power to supply power from Yonki Hydro, but were not able to get any benefit from the government over the years.

"This time around, the government has recognised the contribution made by the people of Eastern Highlands and has made a decision to allow free equity to be given to the people and the provincial government for shareholding up to 20% for that project and another 20% to the people of Morobe who host the Wafi-Golpu gold mine."

Duma assured that the state guarantee would be signed soon, following which the project developer and KCHL will approach the Eastern Highlands and Morobe provincial governments and the landowners to sign the benefit sharing agreements. The project will follow a build, transfer, and own agreement, which will allow the developer to spend £520 million to recover investments and then transfer ownership to PNG Power, which will own 60%. The remaining balance will be owned by the Eastern Highlands and Morobe provincial governments and the landowners.

He said:

"It is a build, transfer and own agreement that will enable the developer to spend about £520 million to recover investment and then transfer ownership to PNG Power which will own only 60% and the Eastern Highlands and Morobe provincial governments and the landowners will own the balance."

This project is set to be the first jointly-owned project between the government and people under the build, transfer program.

Photo credit: PNG Tourism Promotion Authority

The Tourism Promotion Authority (TPA) has confirmed that over 100 cruise liners will be visiting PNG this year, bringing in an estimated US$40 million (about K137.10 million), according to an official. During the launch of the TPA Corporate Plan 2023-2026 in Port Moresby on Friday, CEO Eric Uvovo stated that the plan would guide TPA's strategic direction.

"With a promising forecast on the cruise tourism sector, we are expecting over 100 cruise ships into PNG this year, carrying over 90,000 cruise passengers into PNG and with a direct economic impact to the PNG economy through tax and levies of over US$40 million, we have a lot to offer in PNG," said Uvovo.

Uvovo outlined TPA's strategic priorities, which include "expanding global, regional and domestic reach; accelerating tourism investment through smart policies and plans; raising the levels of tourism service education and management; maximising value from tourism research and monitoring; strengthening tourism product development for sustainable tourism; maintaining excellence in corporate governance and performance; and providing effective services through human resource, ICT and financial management."

Tourism, Arts and Culture Minister Isi Henry Leonard commented that PNG has a lot of tourism products to offer. Uvovo added that the corporate plan aligns with the national government's economic development objectives, as captured in the Medium-Term Development Plan and Vision 2050.

"Our strategic priorities seek to amplify our role as defined in the TPA Act (1993) and the Tourism Sector Development Plan 2022-2026 as aligned with the national government’s economic development objectives as captured in the Medium-Term Development Plan and Vision 2050," said Uvovo.

"I am confident our Vision 2026 will be successful in strategically meeting and delivering all our aspirations for a prosperous tourism sector," Uvovo added. The Corporate Plan 2023-2026 is expected to serve as the roadmap to achieving this vision. With the anticipated increase in cruise liners visiting PNG, the tourism sector has a lot to offer and will provide a significant economic impact on the country.

The Tolukuma Mine in Central Province is set to reopen its mining operations after years of closure. However, local communities affected by the mine's previous operations are still concerned about environmental issues that may arise. The local MP for Kairuku, Peter Isoaimo, welcomed the news of the mine's reopening but expressed his constituents' concerns about the mine's waste disposal practices. According to him:

"The St Joseph Angabanga river ring has sedimentation build-up in the riverbed, which causes havoc as soon as the rain starts pouring in the mountains of Goilala district. We have deformed babies and mysterious deaths. All these relate to destruction caused by the mine in the last 25-30 years of the mine’s life."

Mr Isoaimo called on the Mining and Conservation and Environment Protection Agency to prioritise the livelihood of the people and address the environmental issues before allowing the mine to resume operations. He also warned that failure to do so could result in a genocide, as has happened in other parts of the world. He said:

"With the reopening now, I’d like to bring to the attention of the Mining and Conservation and Environment Protection Agency that we need to look at the livelihood of the people. Otherwise, we will cause a genocide like every other place in the world."

Mr Isoaimo also asked the Mining Minister to confirm whether the mining licence was issued to the new mining operator, Lole Mining, despite the unresolved environmental concerns. In response, the Mining Minister, Sir Ano Pala, confirmed the existence of the licence and clarified the status of the operator. He assured the people of Kairuku that responsible authorities would do everything possible to minimise the impact of waste from the mine. Sir Ano said:

"We are aware of the issues of concern and will look at every way possible to minimise the impact of waste."

Photo credit: EMTV

Kumul Minerals Holdings Ltd (KMHL) has made a significant contribution to the State, paying K105 million in dividends. The payment was handed over to State Enterprises Minister William Duma by KMHL Chairman Dr Ila Temu. Speaking about the dividend payment, Dr Temu said, "Kumul Minerals hold 67 per cent in Ok Tedi, through the Government transfer that occurred a couple of years ago...Although KMHL acquired the 67 per cent some years back, it is the first time that the dividend is actually flowing through Kumul Minerals and then back to the State. We retained some of the dividends for our operations and our investment opportunities."

The dividend payment is related to the 2022-year dividend declared by Ok Tedi Mining, which totalled K368 million. Dr Temu further explained that "the amount that we are presenting now to the State through the trustee delegate and minister is K105 million...under the Government approved dividend policy, the State and Kumul share equally any benefit that is declared in any year."

State Enterprises Minister William Duma thanked KMHL for its contribution, noting that the money would be put to good use. He highlighted the challenge faced by the State in funding projects related to law and order, health, and education, particularly in light of the increasing population and a budget deficit of K4 billion this year. He said, "We will put this money to good use. The need to fund projects particularly in the areas of law and order, health, education, are increasing every year, with an increasing population. The challenge is on those companies that are in the income generating sector, particularly those owned by the State, to do what they can do and deliver dividends."

Photo: On January 17th, Ambassador Jacques Fradin met with Hon. Mannaseh Makiba, Minister for Bougainville Affairs, to discuss important matters of mutual interest. Photo credit: European Union in Papua New Guinea

European Union (EU) shares the same values of nation building as Bougainville according to Ambassador Jacques Fradin, Head of Delegation to Papua New Guinea.

Ambassador Jacques Fradin, was in the Autonomous Region of Bougainville to build bilateral relations with the Autonomous Bougainville Government (ABG) and the people last month.

Ambassador Jacques Fradin started his mission to Papua New Guinea in September 2022 and visited the region for the first time with a small delegation to accompany him in a short tour around the north-east part of the North Bougainville.

The EU team were welcomed at the Buka airport and then taken to the Nazareth Centre for Rehabilitation to be guests at a panel discussion with the Member for Selau Constituency Hon. Paul Cheong and the women peace advocators in the Selau Constituency.

In the panel discussion the EU heard for themselves what the women normally do to make a difference to the lives of the mothers and youths who have been traumatized by violence-related abuse and their concerns of what was working in the communities and what was not working in terms of peace building and resilience.

He said that Bougainville and the European Union (EU) shared the same values of nation building and that his visit to the region was to maintain the bi-lateral relations with the government and the people of Bougainville.

Photo: State Enterprises Minister William Duma

State Enterprises Minister William Duma has acknowledged that the state of the economy is a result of global events beyond the government's control. In his words, "We have just come out of a global pandemic, an ongoing war in Europe between Ukraine and Russia, and an increase in the price of oil and gas globally. All these are contributing factors to the situation our country is facing... The government is doing all it can to navigate the country through this challenging time, but it can only do so little. It needs the support from all citizens, stakeholders, and business houses to drive the country forward."

Duma has pointed out that other countries are facing similar or tougher circumstances than PNG. He also noted that PNG has yet to resort to printing more money, which has kept inflation in check. According to him, "We are still way above the inflation line, and that should be a good motivation for people to be optimistic about the future instead of panicking."

In response to the temporary closure of operations by Lae Biscuit Company, Duma expressed sympathy for the company and assured that the government would provide a response. He recognised the company's significance as one of the largest employers in the country. Duma maintained that the rising prices of goods and services are part of the measures taken to stabilise the economy, and expressed confidence that the closure of Lae Biscuit Company is temporary and that it would resume production. He said, "I believe the closure is temporary, and Lae Biscuit Company will come back to production. But this and many other issues happening across the country are all noted while we (Government) work on the best possible ways to ensure our economy is operational and that the Government can still deliver to the people."

However, recent reports indicate that the company's chairman, Ian Chow, has warned that the company might consider moving offshore if the government does not intervene. Duma assured that Prime Minister James Marape was aware of the situation and would address it. He said, "The government will give its response to this situation this week... The Prime Minister is aware of the closure, and we will address the issue."

Photo: Westpac Bank Senior Economist, Justin Smirk. Credit: Westpac Bank

The postponement of the Papua Liquefied Natural Gas (LNG) investment until next year will maintain the lack of foreign exchange as an issue this year, slowing down growth, said Justin Smirk, a senior economist at Westpac Bank. He noted that Papua New Guinea's economy was projected to rebound strongly this year, but the delays in LNG project implementation will likely lead to more restrained growth, as the investment surge is postponed to 2024.

Nonetheless, Smirk identified a window of opportunity for Papua New Guinea in the next five years, as he explained, "there’s an underinvestment in carbon-based energy, but carbon-based energy has not completely vanished from our society yet; demand for it is still rising on many components." He also mentioned that "LNG is an important transition field; its demand will remain elevated during this time of inadequate investment in LNG worldwide."

Smirk stated that there is a shortage of carbon-based energy due to western banks and investors becoming less confident in purchasing and holding carbon energy-based assets to decrease their carbon footprint. He commented, "We're observing that oil and gas prices remain well-supported outside the Ukraine crisis. That puts PNG LNG in a good position to capitalise on this window of opportunity during this transitional period."

Furthermore, Smirk highlighted that the LNG shortage is unlikely to disappear, as he stated, "unlike expectations of a few years ago where people believed there would be too much LNG in the world, this shortage will not dissipate." He added, "its demand will remain elevated during this time of inadequate investment in LNG worldwide. Therefore, unlike expectations of a few years ago where people believed there would be too much LNG in the world, this shortage will not dissipate."

Photo: James Marape

Prime Minister Hon. James Marape says the Pangu Pati-led Government he leads has “total belief and sees great value” in the provincial government system.

PM Marape said this on Monday, March 13, 2023, at the end of the two-day Governors’ Meeting in Port Moresby.

“We subscribe to decentralisation – which is deeply entrenched in our Constitution. That is the reason why our nation remains together,” he said.

“In the midst of many challenges, 47 years on, we now have the Special Region of Bougainville under autonomy, we have many performing provinces who want to be functionally autonomous, we also have some provinces who in terms of their internal revenue are weak.

“How do we balance this conversation so that the system and structures of government we set up do not become impediments, but assist in service delivery to the masses of our people? At the moment, as we speak, 80 per cent of our people remain in the provinces and districts.

“Recognising the importance of the provincial government system, and the functions they have, the National Government came in this afternoon to give respect to them.”

PM Marape said Minister for Inter-Government Relations, Hon. Soroi Eoe, would take recommendations of the Governors to the Government.

“This is so that, together with the Governors, we can tailor make a system that is complementary to National Government in as far as service delivery and ensuring our people are better served going forward,” he said.

The Prime Minister commended the Governors for coming together in a bipartisan approach, whether in Government or Opposition, to make decisions for the good of the people.

“This all leads on to our nation celebrating 50 years of independence. By September 16 this year, we hope to have total clarity on what are the roles, responsibilities and functions of provincial government, national government, districts and local level governments,” he said.

“We hope to be expeditious in the way and manner in which we do business to deliver services to our people.”

Photo credit: PNG Forest Industries Association

Prime Minister Hon. James Marape has called on logging companies, landowners and the National Forest Authority (NFA) to be involved in reforestation of areas that have been logged.

He made the call on Friday, March 10, 2023, at remote Kurindal in Lasul-Baining Local Level Government (LLG), Gazelle, East New Britain, when launching the brand-new KKC Veneer Mill. This is a project fully supported by Gazelle District, East New Britain Provincial Government and landowners.

PM Marape said the Government – through NFA - would give K3 million for reforestation of the area being logged in Lasul-Baining LLG, and gave K1 million to Gazelle MP and Fisheries Minister, Hon. Jelta Wong, as the first installment.

“I want to ask the investor, landowners and the NFA to be involved in reforestation. When you chop down trees, you have a plant a new one, so that forestry can continue in a sustainable manner going forward,” he said.

“I want NFA to get K3 million from Log Export Development Levy (LEDL) funds and work with the company and landowners in forest regrowth, plantation forest, and bring in balsa to be grown here.

“You can grow 1000 balsa trees on one hectare of land, with one cubic metre of balsa earning K400, which means a family can make up to K20,000 per year from one hectare. This K20,000 is more than the pay of people working in towns and cities. There is money on the land.

“I want to see forestry being a sustainable business in the Lasul-Baining area now and into the future

PM Marape commended the East New Britain leadership at all levels for being proactive in sustainable development through logging, agriculture, fisheries and tourism and said this must continue.

Returning for its seventh year due to ongoing industry demand, the PNG Industrial and Mining Resources Exhibition and Conference (IMREC) will be held in Port Moresby this June.

Acclaimed for bridging the gap for Papua New Guinea and Australia’s industrial relations, PNG’s IMREC will host respected industry delegates and over 100 exhibitors across two days with a mammoth exhibition event, gala awards dinner and networking conference.

Being held at a new and larger venue, the Taurama Aquatic Centre on 21 and 22 June, some of the biggest names in mining and resources will meet to create valuable business connections, share industry knowledge, and explore the latest in innovative products and services.

Event organiser Patrick McElligott says that PNG’s IMREC has formed an invaluable link between mining and resources companies as well as major Industrial Businesses, working between PNG and Australia, or with aspirations to do so, for almost one decade.

“Year after year this event has demonstrated the importance of nurturing the business relationships between PNG and Australia, and there are now more exciting opportunities than ever before with PNG’s developments in gold mining, oil and gas, and commercial fishing,” Mr McElligott said.

“It’s rewarding to be regarded as a longstanding resource for these businesses as we continue to create further awareness about the possibilities available when each country has the ability to work together.”

This year, the PNG’s IMREC will welcome many repeat exhibitors as well as a collection of exciting new companies. A greater range of Manufactures, suppliers with a range of new products and Services will be exhibiting at the Exhibition this year.

Attendees will hear first-hand from reputable guest speakers including Doctor Frederick Guirguis from WHO Safety Services International to discuss the lost art of cultural safety in the workplace, and representatives from Women in Construction to highlight the importance of diversity in the industry.

PNG’s IMREC will welcome up to 5,000 guests through its doors this June. To secure a stand or for details on tickets, guests are encouraged to act now.

WHAT: PNG’s Industrial and Mining Resources Exhibition and Conference

WHEN: 21 and 22 June, 2023

WHERE: Taurama Aquatic Centre, G5HR+56J, Port Moresby, Papua New Guinea

Photo: Looking back: Happy memories with the locals at Yandera, Madang Province in 2014. From 2006 until 2014, the Yandera Project was owned and managed by the Australian company, Marengo Mining Limited, with Mr Les Emery as their CEO. (Photo credits: Mr Les Emery)

The Yandera Project in Madang Province, PNG, is considered to be one of the world's largest undeveloped copper-gold-molybdenum projects. Currently, it is owned by Freeport Resources Inc., a copper-centric company based in Vancouver, British Columbia, Canada.

However, the local landowners have expressed their concerns about the current status of the Yandera Project.

What the does future hold for Yandera Project? The following may help in understanding its current status and in predicting its future.

On 9th January 2023, Freeport Resources Inc. announced a proposed stock issue with an objective to raise up to C$3 million for working capital.

On 3rd February 2023 Freeport announced that it had closed the first tranche by raising C$1.47 million.[1]

The project was formerly held by the Sentient Private Equity Fund, through Marengo Mining Limited (later re-named Era Resources Inc).

The Yandera Project is held under Exploration Licence 1335, which is awaiting approval of a renewal application.

Looking back from 2006 until 2014, the Yandera Project was owned and operated by Marengo Mining, with Mr Les Emery as their President & CEO. The locals and landowners felt more at ease with this company under Mr Emery’s leadership. Thus, the transition after 2014 was something they felt was unfavorable for the community as it generated many issues.

Photo: Part of the local workforce with Mr Les Emery, CEO of Marengo Mining Limited, which managed the Yandera Project from 2006 until 2014. (Photo credits: Mr Les Emery)

In relation to Freeport’s recent announcement on their proposed issue of stock with the objective to raise up to C$3 million, Mr Emery shared his sentiments on the matter. He stated, “Even if they do raise the full amount, speaking from my years of experience at Yandera with Marengo, these funds will go nowhere near getting the project to the next stage.”

“It is also interesting to read in the release that they have stated that COVID-19 issues and political concerns have delayed the renewal of EL 1335. However, I believe that the failure of Freeport to fund any activity at Yandera, since they acquired ownership of Era Resources, is the main reason for the renewal application not yet being approved.”

Furthermore, he stated, “As I have said on many occasions, I believe that the Minister should be refusing the application for the renewal of EL 1335, to allow a new company to enter the Yandera Project.”

“It is time for the Landowners to again raise their voices in opposition to allowing Freeport / Era to remain at Yandera.”

Just last year a group of landowners released a media statement to set out their grievances. Their media statements were directly addressed to the Office of the Prime Minister of PNG, the Mining Minister, and others.

They stated that Yandera Project was discovered by BHP in the 1970s. However, landowners said that, “Nothing further was done until the Australian company Marengo, headed by CEO Mr Les Emery, entered the project in 2006.”

“From 2006, Marengo undertook exploration and other studies on the Yandera Project. This involved the drilling of some 622 diamond drill holes, bulk sampling, metallurgical test work, etc. Total expenditure up to 2014 was around 700 million Kina.”

The Project was moving forward until Mr Emery, his Board and Project Team were removed in 2014. This decision was forced by Sentient, the major shareholder at that time.

“Soon after the termination of Les Emery in April 2014, Sentient moved to change Marengo's name to Era Resources Inc. and compulsorily acquired all remaining shares in the Company, and in turn the Yandera Project.”

Budget reductions followed, and by 2020, local employment at Yandera was nil.

Here is another issue.

Landowners have reported that Freeport management have never contacted them to explain the transition of ownership nor the company’s plans for the Yandera Project since it acquired Era in 2021.

“It is suspected that they are trying to leverage the copper resource at Yandera to improve their share price and nothing more.” [2}   

Yandera Resource Owner Concerns

From the landowners’ media release regarding the licence renewal, they stated, “The reason of the delay is understood to be because of the lack of work undertaken at Yandera over recent years.”

Here are some of the concerns of the people of Yandera:

1. “In July 2017, the people of Yandera became agitated with the Era due to its failure to complete a Definitive Feasibility Study. At that time the Yandera LOA members raised their concerns that the Yandera Project might be put up for ‘sale’.”
2. “During the Mining Wardens hearing, in November 2017 the people of Yandera overwhelmingly objected to the renewal of EL 1335 to Era. However, recommendation to the Minister for Mining was for renewal of EL 1335 to Era for a further 2 years.”
3. “Our objection not to reissue EL 1335 to Era has grounds because the Yandera project literally came to an abrupt stop and has remained close since. We are sure that since buying Era, Freeport has gone hunting around trying to sell the Yandera project to the highest bidder.”

The people of Yandera described the site having world-class copper-molybdenum-gold deposit, on par with Frieda and Wafi-Golpu projects.

“The measured copper resources at Yandera stand at 959 million tonnes with a current value of USD$35 billion plus or PNGK120 billion. We want to be involved in equitable terms and partial ownership of a mine.” The Landowners said.

---

Acknowledgement:

Thank you to Mr Les Emery for the guidance and resources for this article.

Reference:

[1] Freeport Resources Inc. (9 Jan. 2023). "Freeport Announces Private Placement". Freeport Resources Inc. news release.

Retrieved from -

https://www.freeportresources.com/news-release-1/freeport-announces-private-placement?fbclid=IwAR1DKAShCeGJYxY57PSw4yNKca9SartxA_tEytQ3gW5m6kVMYg1_gGDt9zI

[2] Gambu, Kila. Egewo, Arnold.  Buka, Alois (2022). “Yandera Copper-Gold-Molybdenum Project, Bundi, Madang Province”. Media Advertisement.

Photo: James Marape

The Department of Commerce & Industry has finalized the NEC Policy Submission on the Gold Bullion Policy and has submitted it to the NEC for endorsement. The Gold Bullion Policy is an initiative of the Marape-Rosso Government to ensure our non-renewable and renewable resources are properly harnessed to increase revenue streams to support our national budget, grow our rural economy and improve the quality of life for our people.

The Government requires a vibrant and competitive national gold bullion program to support its macroeconomic and fiscal policy functions which will grow and sustain our economy and create wealth for the nation.

The submission in essence brings to reality the Government’s commitment to industrialize and downstream process of natural resources to add value to PNG’s primary commodities including gold and precious minerals, oil and gas, agriculture, forestry and fisheries products, which is an integral part of our policy directive deemed as ‘Take Back PNG, said Prime Minister James Marape.

“I am therefore greatly honored to announce this milestone National Gold Bullion Policy developed by my government to charter a new direction for the gold bullion industry particularly to add value through downstream processing and manufacturing.

“In view of the above, I call upon all relevant stakeholders to support the Department of Commerce and Industry, Department of Treasury, Department of Mining, Bank of PNG and Mineral Resources Authority to mention a few, to take full ownership of this policy and support its implementation,” the Prime Minister said.

Photo: Theodist presenters in front of the 'Back to School CRV Promotion vehicle"

Theodist Ltd has announced the winner of its Back to School CRV Promotion. Mr Lantan Dawaki was declared the winner on Saturday, 11 March 2023 at the Theodist Car Park Entrance. The promotion, which ran from January to the end of February, was open to customers who spent K200 or more and were automatically entered into the draw. Participants from Lae, Mt Hagen and Port Moresby branches were eligible to enter.

Ryan Pini, the Business Development Manager of Theodist, drew the winner from among the participants. He expressed his gratitude to all customers for their participation, stating that the Back to School Promotion was the company's way of giving back to the community and making customers' lives better. The Back to School Promotion has been a regular event for Theodist for over 15 years in Papua New Guinea.

Theodist Ltd has also announced that it will be running more promotions in the future. Customers who spend K100 or more at Port Moresby, Lae or Hagen shops between 1 March and 30 April will have a chance to win one of three amazing vacation prizes. To increase their chances of winning, customers are encouraged to shop more.

We hope you take advantage of this promotion and good luck to all participants.

Coral Sea Hotels & Hospitality is proud to announce the opening of two new ENZO’s Pizza outlets this week in Port Moresby. The two new locations include Downtown, on Champions Parade, and Jacksons’ Airport at the Domestic Terminal Carpark.

ENZO’s Pizza Country Development Manager Sudeep Geethanandan said, “At ENZO’s. our vision is to be Papua New Guinea’s most loved pizza brand and our recent expansion is a testimony of how our customers have embraced ENZO’s Pizza and we remain grateful for that. We hope to bring many more celebratory moments for families, friends and colleagues in the future.”

The two new outlets operate seven days a week and are open from 9:30am. The new additions bring ENZO’s Pizza offering in Port Moresby to six stores, and the national coverage for the chain to 10 outlets across Port Moresby, Lae, Hagen, Goroka and Kiunga.

“We are growing at an exponential rate making us the fastest-growing Quick Service Restaurant brand in Papua New Guinea. We are making it more accessible to our pizza-loving customers with the opening of these ENZO’s Pizza outlets, says Mr. Geethanandan.

Treat yourself, your family, friends, or your team to one of ENZO’s saucy, toppings-loaded, hot, and deliciously cheesy pizzas today, and share your images with us using the hashtag #YumiCelebrate on Enzo’s Facebook page @enzospizza.p.n.g

Photo: Amazon Web Services officials speaking to UPNG students.

Connected PNG commenced its Technology Summit on 7th March at Stanley Hotel and Suites starting off with 10 exhibitions and showcasing globally-recognized technology companies including Real Wear, Eset, Stulz, Signiflow, Seagate, Amazon Web Services, Digicel PNG, Schneider Electric, Pandit and DJI & Emesent.

The exhibitors are mostly Australian-based companies doing business in Papua New Guinea under a partnership. Some are new to the Papua New Guinea market, and the rest are using Connected PNG as its vendor for purchasing specialized technology.

The showcase ranged from internet cabling and electrical battery storage to computer cooling systems, drone technology, website infrastructure framework, telecommunications, and many more.

Mr. Laine Kidner, Chief Executive Officer of Connected South Pacific, was present at the exhibition and was happy to see the technology showcase available for users.

He stated that during the COVID pandemic, operations had stopped, but the companies are now ready to set up operations again in 2023.

"Most of the equipment available on showcase is really expensive, and we are looking for a safe, secure, and convenient location to set up a productive operation," stated Mr. Kidner.

Connected PNG specializes in providing the best leading technology in the world for Papua New Guinea and the Pacific Islands to stay up to date with the digital world.

The summit continued with the exhibition and trade show and a keynote panel on UAVs (Unmanned Aerial Vehicles), Data Centres, and Digital Transformation, and ends 9th March with Sponsored Technical Workshops.

Photo: Kedi Ilimbit

The Ok Tedi Mining Limited Board of Directors has appointed Kedi Ilimbit as the Acting CEO of the Company at its meeting on Wednesday 08th March.

The appointment is in accordance with Mr Ilimbit’ s current position as the Deputy CEO and General Manager Community & Operations Support.

The OTML Board acknowledges Mark Thompson who has performed this role since 01st December 2022.

OTML Board Chairman, Jeffrey Innes said, “We thank Mark for ensuring continuity and stability during this period and appreciate the focus of all OTML and Business Partner personnel during this transition period to safely deliver on their commitments and to ensure the continuing success of Ok Tedi and its stakeholders.”

Mr Thompson will resume his position of General Manager, Major Projects.

Meanwhile, the Company’s search to fill the vacant position of Managing Director and CEO continues with a selection anticipated in the second quarter of this year.