A BOOST FOR PNG: TOLU MINERALS RESURRECTS TOLUKUMA GOLD MINE
MCWALTER: NATURAL GAS UTILISATION IN PNG
TOURISM: A BALANCING ACT IN PNG
PNG CR PROMOTES NATIONAL CONTENT, DRIVES ECONOMIC FUTURE
TOLU MINERALS DRIVES DEVELOPMENT WITH BAKOIUDU-TOLUKUMA ROAD
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COMMENTARY
Natural Gas Utilisation in PNG > 10
Tourism Without Tourists: A Balancing Act in Papua New Guinea > 24
Travel Recovery in the Pacific: Worrying Signs > 28
BUSINESS
ADB: Continued Growth Projected for the Pacific, but Resilience Still Needed > 32
GEE 2024 Conference Tackles
Sustainable Resource Extraction > 34
Business Regulators Summit Seeks to Drive Digital Transformation > 36
Bastille Day Celebrated in PNG: A Look at Franco-PNG Relations and Future Prospects > 38
Prime Minister Launches 2024
PNG Investment Week > 42
Maru: Indonesia is Our New Focus > 44
PNG Ports Partners with Stakeholders to Strengthen Security in Declared Ports > 46
PNGEITI Calls on Resource Firms to be Transparent in Their Operations > 48
POMCCI Event: Ashurst PNG Hosts Panel on ‘Building for the Future: Lessons Learnt’ > 50
Transparency International Gives Insights on Business, Anti-Corruption Efforts > 52
Ambassador: US Firms ‘Frustrated’ in Investing in PNG > 54
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Tolu Minerals Drives Development with BakoiuduTolukuma Road > 68
PNG Resources Week a Success > 72
Marape: PNG Has More Gold > 74
Stage 2 Wharf Construction Underway at Central Cement & Lime Project > 76
OTML Hosts East Sepik Delegation on Fact-Finding Mission > 78
Works to Address Ageing Panguna Mine Infrastructure > 80
OIL & GAS
Santos Signs Mid-Term LNG Supply Contract > 82
Marape Hails Economic Impact of PNG LNG Project > 82
Kumul Awards Seismic Contract to OilMin > 84
17 Graduate from Kumul Petroleum Academy > 86
PNG CORE Visits PNG LNG Project Operator > 88
AGRICULTURE
Empowering Local Farmers > 90
PNG-Australia Partnership: Organic Certification Training Paves Way for PNG Farmers to Enter Global Markets > 90
PNG Resources Week: Allan Bird on Impact of AgricultureCocoa in East Sepik > 92
ENERGY
PNG Solar Supply: Lighting Up Remote PNG > 94
NEA Launches First Corporate Plan 2023-2027 > 96
ABG Partners with Stellae Energy Ltd > 98
FINANCE
PNG’s Financial Sector Expands with 2 New Commercial Banks > 100
CreditBank PNG Gets Bank License
> 102
BPNG Launches Kina and Toea
Exhibition to Mark 50 Years of PNG’s Currency and Economic Evolution > 104
COMPANY
‘Long Distance Ocean Towage Increases for PacTow’ > 106
PNG Forest Products: Building our Future Since 1954 > 108
Empowering Industries with Specialist Recruitment and Service Delivery > 114
Daniells Returns to PNG as Steamships Managing Director > 116
TWM Group Opens First Waste Management Facility in the Pacific Region > 118
Weir Introduces ENDURON® Orbital Vibrating Screens with All-Bolted Construction for Longer Service Life > 124
Remington Group Welcomes Navin Raju as New CEO> 126
Air Niugini Confirms Gary Seddon as CEO > 130
Natural Gas Utilisation in PNG
EDITOR’S NOTE: Michael McWalter, former Director, Petroleum Division and Adviser to the Government of Papua New Guinea and erstwhile petroleum adviser to the Governments of Ghana, Liberia, Cambodia, Sao Tome, and South Sudan comments on the evolution of Papua New Guinea’s oil and gas industry and how Papua New Guinea has fostered the industry into some of its largest investments in LNG production.
Michael McWalter is a certified petroleum geologist and technical specialist in upstream petroleum industry regulation, administration, and institutional development.
EARLY GAS SUPPLY IN THE UNITED KINGDOM
When I was a child in the United Kingdom in the 1950s, my mother made delicious fruit cakes in our kitchen oven. It was fuelled by gas, but not natural gas, nor Liquefied Petroleum Gas (LPG) that we buy nowadays in a pressurised steel bottle. The gas was town gas made from the coking of coal in the local gasworks. Every house in our street had piped gas supply, as did the whole town and every town across the country; only rural homes and farms used LPG. The United Kingdom had no reservoired natural gas at that time. The United Kingdom despite being economically battered by the Second World War was still a highly-developed nation and sought to deliver energy to everyone by the supply of town gas.
heating value of 39.8 MJ/CM.
Michael McWalter reflects on natural gas utilisation in Papua New Guinea with reference to the United Kingdom, his country of birth, and explains the difficulties of deciding how to exploit this important natural resource for the benefit of PNG. Page 12 >
The making of this gas involved the heating of coal in the absence of air to
a temperature of about 1,000 degrees Celsius. This gave rise to coke, which is almost pure carbon, and various liquid and gaseous products. A typical coking operation produced by weight: 80% coke; 12% coke gas; 3% tar; and 1% light oils. Up until the 1960s, in the United Kingdom almost all gas for fuel and lighting was manufactured from coal. This town gas was primarily methane with other hydrocarbons, and carbon monoxide and hydrogen. It had a gross heating value of about 18 megajoules per cubic metre (MJ/CM) as compared to pure methane, which has a gross
Publisher Elizabeth Galura
Editor Jimbo Owen Gulle info@pngbusinessnews.com
Journalist
Roselyn Erehe roselyn@pngbusinessnews.com
Coal was our main fuel in the UK for many years, but it was ever so dangerous to mine and dirty to use. Its burning released abundant particulates, toxic acid gases and, of course, carbon dioxide. It provided our early gas supplies in the form of town gas
Graphic Designer : Bogtong Wangga PNG Business News is published for the PNG Business community.
Commentaries and contributed articles published in this magazine are the views of their authors and do not necessarily reflect the views of PNG Business News – our main role is to provide our readers in PNG and the region with a digest of business news in various sectors of Papua New Guinea.
Figure 1: A few gas street lights remain in London for heritage purposes, after London X London
Figure 2: Gasometers were an effective means of storing large amounts of gas at low pressure
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primarily for lighting, cooking, and industrial fuel. Coal gas alongside coal was born out of the British industrial revolution. Yes, indeed, even our street lights were fuelled by town gas, and they were lit every evening by the lamplighter; it was quaint, but decidedly Victorian. Town gas was supplied to households via municipally-owned piped distribution systems.
In the United Kingdom, the discovery of large reserves of natural gas led to the expensive conversion of the burners of most of Britain’s gas cookers and gas heaters during the 1970s. This conversion was due to the leaner composition of North Sea gas, which had a greater proportion of methane and less inert gases within it than coal gas; it thus had a much higher heating value.
A feature of such an early gas industry was railway trains hauling coal around the country from the coal fields where it was mined to municipal gasworks. Located adjacent to these gasworks there were massive and ugly containers called gasometers to provide for storage of the gas at ambient conditions. The volume of the container followed the quantity of stored gas, moving up and down with pressure coming from the weight of a movable cap. They were clearly an eye-sore and potentially very dangerous.
THE SWITCH TO NATURAL GAS
With the advent of natural gas supply from the North Sea, the UK town gas plants were abandoned and users were all supplied with reticulated natural gas through a National Transmission System (NTS). This was developed incrementally over time between the 1960s and the 1980s. This discovery of large natural gas accumulations transformed our lives and society. The NTS is still being augmented with feeder pipelines and spur pipelines, and transmits natural gas around the United Kingdom in large diameter high-pressure pipelines. It now comprises over 7,600 kilometres of welded steel gas pipelines. This system not only brings natural gas ashore from the North Sea gas fields, but also receives imported Liquefied Natural Gas (LNG) at three terminals from various exporters around the world, generally from within the Atlantic area.
Natural gas is thus readily available in the UK for residential use for cooking and home heating, commercial applications, industrial heating and chemical use, and for power generation, and coal is no longer mined in the UK. Of the UK’s total annual energy need (2023) of 6.95 ExaJoules (equivalent to 1.93 trillion kilowatt hours), some 33% is supplied by natural gas. This gas usage equates to about 2.17 trillion standard cubic feet of gas (TCF) per annum. One may consider this amount versus the development of the gas fields in PNG for LNG export. The PNG LNG Project seeks to produce about 11 TCF over more than 20 years of project life which would be enough to supply the UK with natural gas for just five years.
LESSONS FOR PNG
This story of UK’s use of town gas born from an intensive coal industry with plentiful supply of domestic coal for carbonisation in gasworks, and the UK’s progression to the use of natural gas using appropriate technologies may have lessons for PNG, though not exactly the same, but perhaps indicative. It is a story
of necessity, improvisation, and technology applied with much planning to recoup, sustain and grow a developed economy. Whilst ingenious at times, it has always been one of pragmatism and economic utilisation of domestic resources.
The finding of several large accumulations of natural gas in Papua New Guinea over twenty years ago came at a time when PNG’s energy demand was quite meagre due to a lack of commercial and industrial development and the preponderance of people living in the rural environment in a subsistence economy. This is somewhat different to the UK which endured an industrial revolution from the late 18th century well into the 19th century, which brought about innovative mechanisation and deep social change. This process saw the invention of steam-powered machines, which were used in factories in ever-growing urban centres, and the emergence of coal as the dominant energy source providing 95% of the UK energy needs in 1905, including its town gas supplies.
This begs the question: where is PNG’s industrial revolution, and how Page 14 >
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can PNG develop its economy based on its natural gas resources? Unlike Europe, Papua New Guinea is not generously endowed with vast coal deposits, but we do have substantial gas accumulations. Can we use that gas as energy to foster and fuel National development? PNG is not like the UK now, nor even the UK of the 1960s. PNG is almost twice as large in area as the UK, and currently has just about 20% of the UK’s population. The UK is a developed economy with high socio-economic living standards in a well-organised welfare State, with ample infrastructure. PNG is a struggling developing Nation emerging from isolation of thousands of years in a rural subsistence culture with extensive tribal connections, and with little infrastructure, but with enormous aspirations to embrace better living standards. The task for the UK is powering and maintaining an established lifestyle of modern residential living, commerce and industry, whereas the task for PNG is primary development of its people through the provision of health and education services, governance, and agricultural, industrial and infrastructure development - transitioning from the former subsistence culture to modern living.
The opportunity provided by the discovery of natural gas accumulations in PNG is to fuel that development and transition. Natural gas can be used in two ways. It can be exported and sold for cash which can underwrite national goals, and/or it can be used as a direct ingredient in national development to make fertilisers, make electricity, provide industrial heating, displace harmful biomass use, make chemicals, etc. An impediment to such use is the need for substantial investment and the realisation of a price for that gas to the gas producers that will enable their exploration, development and production efforts to be rewarded. If the petroleum fiscal regime is focused on the collection of resource rents to fill the Treasury and a consistent desire to just make more and more money, it will be hard to encourage domestic utilisation of natural gas. It is, of course, for Papua New Guinea and its Government to lead the way in the choice of the use of its natural resources, such as natural gas, which,
unlike gold, does not just represent monetary value, but does represents energy to develop a Nation.
The point that I wish to make here is that energy fuels development as was the case in the UK’s industrial revolution and its reconstruction after the Second World War. Coal replaced the water mills of the early industrial revolution, whilst natural gas from the North Sea replaced coal and eventually fuelled growth in the latter part of the 20th century. Both the coal and the natural gas supply were from local sources obviating the need to finance imported fuel. The UK used its own energy, as dirty and foul as it may have been at times. Alas, the UK now faces the problem of depletion of its gas reserves upon which it has depended for the last 50 years, and increasingly, the UK is importing Liquefied Natural Gas (LNG) at great cost from exporting nations in the Atlantic basin.
Whilst LNG consuming nations provide the market for LNG exporters like PNG, one has to ponder what gas might be left for economic development in a nation such as PNG when LNG exports have consumed the bulk of the reserves. This is a salutary lesson for any nation that commits to any gas development. We can produce and export LNG to make money, but then that money has to be dedicated to national development, and certainly not flittered away or wasted on servicing international borrowings. Then, as development progresses and energy demands grow, what will we use to energise our growing economy?
A measure of the durability of a nation’s natural gas production is the gas reserves to gas production ratio (R/P ratio) measured years. If we assume that overall gas production
in PNG (currently dominated by the PNG LNG Project) is an average of 1,300 million standard cubic feet per day (MMSCFD) and that the proven and probable gas reserves are around 27 trillion standard cubic feet (TCF), the R/P ratio for PNG is about 58 years. When we add the production from the imminent Papua LNG Project, aggregate natural gas production will rise to around 2,200 MMSCFD, reducing the R/P ratio to just 34 years.
Of course, the gas fields supplying the PNG LNG Project have been producing for ten years already, and the Papua LNG Project has yet to make a Final Investment Decision and commence construction. The P’nyang gas field development will likely takeup ullage in the PNG LNG Project infrastructure. However, it does seem the clock is already ticking, and that PNG’s gas resources are being rapidly depleted. There is nothing intrinsically wrong with that, provided PNG receives its just and agreed return on the development of its gas resources and that the money earned wends its way into national development. If an active and prosperous gas industry is promoted, there will surely be more large gas accumulations that will be discovered; one might hope that such might prolong PNG’s age of gas, and hopefully fuel the Nation!
PNG ENERGY USE
PNG’s energy usage is very modest, to say the least. We have all heard about various aid programmes seeking to address the chronic lack of penetration of electrical supply to the people of PNG, such as the USAID Papua New Guinea Electrification Partnership (PEP). As of 2020, approximately 15% of the PNG people had access to electricity through the national
Figure 4: UK Coal production and imports in tonnes per annum, after Dept for Energy & Climate Change
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grid, a modest improvement from just 2.6% in 1996, but access to electricity remains very low indeed by global standards. Grid connection varies significantly between urban and rural dwellers with an estimated 40% of urban households being grid-connected while only an estimated 11% of rural households are connected.
USAID’s January 2022 report: Papua New Guinea Electrification Partnership: Off-Grid Market Assessment cites that an estimated 60% of the population owns at least one off-grid solar product, such as a solar home system or solar lantern. Solar may be appropriate for disparate rural societies, but it is not likely going to fuel urban-based industry and its vast needs without extensive transmission and storage infrastructure, and the associated development costs. Little of PNG’s currently-produced natural gas is used for domestic purposes. PNG seems to have followed a path of large-scale commercial exploitation of its natural gas resources based on export of the gas as Liquefied Natural Gas to the energy-deficient developed economies of East Asia. This is essentially like cash-cropping: growing a crop for its commercial value, rather than for use by the grower. PNG has done little to develop its natural gas resources for its own use. However, the very first gas production at the Hides gas field in the beautiful forested Nogoli Valley in 1991 was indeed a domestic utilization project to provide gas to fuel the electrical power plant of the Porgera Gold mine, nowadays rated at 75 MW.
THE HIDES STORY
The Hides Gas Project was truly a domestic utilisation project that mitigated the import of fuel oil for the mine operations and the very expensive and difficult transport of such fuel up the Highlands Highway to the mine in Enga Province.
The first licence granted in Papua New Guinea by the Government for the development of an oil or gas field was Petroleum Development Licence No. 1 to British Petroleum and Oil Search Ltd in what was then the Southern Highlands Province (now Hela Province) on 27th September 1990 for the small-scale development of the Hides gas field. The Hides gas field is a large gas field discovered by British Petroleum in 1987, that was subsequently shown to hold as much a 7 trillion
standard cubic feet (TCF) of gas.
At that time, the large Porgera gold and silver mine in Enga Province was being developed by Placer Dome and its subsequent operations were forecast to have enormous energy requirements. The usual method of supply would have been by electricity generation using imported diesel fuel transported into the interior of the Highlands by road all the way from the port of Lae in Morobe Province, a distance of 654 kilometres.
This was a formidable and costly journey making fuel very expensive by the time it reached Porgera.
A clever scheme was devised by BP and Placer Dome in collaboration with the Dept of Minerals and Energy to use local natural gas from the Hides gas field to fuel gas turbine-powered generators located at Nogali next to the Hides gas processing plant, and to transmit the electricity along a 75-kilometre transmission line to the mine site. Since 1991, about an average of 14 million standard cubic feet per day (MMSCFD) have been produced to provide fuel for power generation of over 50 MegaWatts (MW). The
elegance of this scheme was that it has used Papua New Guinea’s hydrocarbon resources for domestic and local use, and voided the import and costly transportation of liquid fuels from overseas. It has thus saved foreign exchange, reduced project operating costs, and advanced the profitability of the Porgera Project, and so enabled improved tax revenues to the State.
It thus made clear economic sense, but it was to support another extractive industry project, in this instance, the Porgera gold mine, rather than broader economic and human development. Synergies were not developed to build upon this base load and commence other usage for residential, commercial and industrial usage. Perhaps, it was too easy to say that the gross lack of development of the people and their economy at that time did not warrant additional offtake of gas for electric power generation for non-mine community use. However, were one to commit to such a project today, one would most likely negotiate a domestic offtake agreement for such non-mine community use.
Figure 5: Papua New Guinea energy production by source in TWh, after USAID
Figure 6: The Hides Gas to Electricity Plant nestled in the verdant Nogoli Valley, after Australian Pipeliner
It is always difficult to foresee electrical power demand especially in a situation of primary development. Which comes first, the demand, or the market? One might say that economic growth and human development is inevitable when people are emergent from customary living that has endured for thousands of years into modern times, and that having a base load such as the Porgera mine power supply should have warranted more foresight for local electricity supply. Only now are people realising that there may indeed be a substantial and growing demand for electricity in the Highlands of PNG where development ensues at a pace. Such foundations of economic development are not necessarily about profit, but about making the best use of the endowment of natural resources that PNG has.
GAS-FIRED POWER GEN FOR PORT MORESBY
In 2001 the Dept of Petroleum and Energy commissioned a study from Gutteridge, Haskins and Davey Pty Ltd of Australia called the Port Moresby Pipeline Option Pre-Feasibility Study and Gas Report. This study was predicated on what was then the current scheme of development for offshore processing of gas gathered from gas fields in the Highlands and its pipeline transmission to various and disparate markets, primarily in Queensland, Australia. It perceived a potential gas market in Port Moresby for:
• Conversion of existing thermal power stations
• Replacement of aging and existing hydroelectric poerer generation with new gas-fired power generation
• Substitution of LPG; and
• Substitution of wood fuel usage.
An eight-inch diameter gas pipeline was envisaged, designed to carry about 24.6 million standard cubic feet of gas per day, equivalent to 10 PJ per annum of energy for a gas. Economic analysis showed that at an inlet price of just US$ 1.25 per GigaJoule (GJ), and a pipeline tariff of between US$ 1.23 to US$ 2.23 per GJ, natural gas supply to Port Moresby clearly beat electricity and LPG energy supply that were then priced at about US$ 16 per GJ. It seemed even to be highly competitive versus diesel and fuel oil then priced at US$ 6.1 per GJ. This was very encouraging, save for the
fact that the anticipated prices for the gas were very low indeed. Necessarily, if one can buy cheap natural gas, of course, it is most likely to be highly competetive against other energy supply.
This was the case for domestic natural gas offtake from a PNG scheme that sought to supply gas to Australia, variously called the Gas to Queensland Project, the Gas to Australia Project, and the PNG Gas Project. This scheme eventually died as the gas price that was available in Australia yielded little if any profit for such an endeavour; indeed, the only value for PNG remained in the export of the associated condensate liquids, whilst Australia would have secured an enduring very cheap supply of natural gas. Morover, so low were the gas prices in Australia that the netback price of gas at the welhead would have been almost zero. The scheme at one time had some 4,300 kilometres of pipeline hanging off PNG providing an effective gas grid in the north east quadrant of Australia at the expense of PNG gas!
Alas, PNG gas development was re-conceived, and the licensees returned
to the notion of liquefied natural gas (LNG) development as the Government had sought in the early 1990s, focusing instead on East Asian markets, where a premium price could be achieved for PNG gas. It would require the establishment of liquefaction facilities at great expense to cool the gas to liquid form, but much better prices could be achieved for gas delivered to the more dynamic markets of East Asia.
As a result of this better pricing for PNG gas, the net-back price for gas that was provided to an LNG plant was raised, and as a consequence this made PNG-produced gas more expensive for any domestic utilisation. No more could one envisage payment of just a few dollars per GJ. Gas prices of the order of US$ 10 per GJ might be required. Domestic gas use might now only be partially competetive. Also, a gas producer that has invested a collosal amount in establishing a liquefaction plant would naturally wish to keep that plant as full as is technically possible and would wish to restrict gas offtake for other purposes, unless buyers were willing to pay the netback price (or higher) of gas feedstock to that LNG
Figure 7: NiuPower Port Moresby Power Station 2023, after NiuPower
Figure 8: Dirio Port Moresby Power Plant, after MRDC
< Page 18
plant. Thus, in deciding to support LNG development to optimise the value of selling PNG gas as LNG, one created a value for the gas feedstock that somewhat precluded consideration of domestic gas utilisation options. This is an intrinsic problem of large-scale export-oriented gas development.
We have nevertheless subsequently seen two domestic gas utilisation projects develop: the NiuPower Ltd’s Port Moresby power station, jointly owned by Kumul Petroleum Holdings Ltd and Santos Ltd, and the Dirio Gas and Power Port Moresby power plant, owned by parent company the Mineral Resources Development Co. (itself owned by landowners and provincial governments from the Southern Highlands, Hela, Gulf, Western and Central Provinces).
The NiuPower plant is rated at 58 MW and was PNG’s first dedicated grid-connected gas-fired power plant and is powered by two high efficiency Wärtsilä W20V34SG gas engine generators. It commenced development in 2017 at a cost of over U$ 100 million, and came online in 2019. The Dirio plant is rated at 45 MW and uses three 15 MW Titan Solar turbines.
Such is the precarious nature of electrical power supply to the National Capitial District that both of these power plants have found a niche to replace old and expensive fuel-oil supplied generation facilities, and to preserve water, currently used in hydro-electric generation, for city water supply.
These power plants near Port Moresby are a great start, and plans to expand electricity generation at Hides to provide for local markets make much sense, but how can more be done to liberate the energy of natural gas to aid development.
POTENTIAL DOMESTIC UTILISATION
There have been several schemes of development proposed over the years for so-called domestic utilisation of PNG natural gas by chemical conversion to products such as ammonia, methanol, urea, etc. Many gas development options have been evaluated over the years, either as a replacement for the former Gas to Australia projects, or in lieu of, or adjunct to LNG development.
In the early 2000s, Japanese
companies: Mitsubishi Gas Chemical Corp. and Itochu reviewed the feasibility of building a world scale methanol/di-methyl ether plant. It was envisaged that such a plant would produce 2.5 million tonnes per annum of products requiring a gas feedstock of about 220 million cubic feet per day of gas for 20 years, at a cost of cost around US$ 500 million (in 2004 US dollars). It was even suggested that this might be augmented with a further 100 MMSFD for the production of meth-ammonia (methyl amines).
Studies were undertaken with US-based Syntroleum Corporation to review the feasibility of a barge-mounted Gas-to-Liquids (GTL) facility, located near the Gulf of Papua. Syntroleum Corporation envisaged the conversion of natural gas into synthetic oil producing a nominal 20,000 barrels per day of liquids using up to 190 million cubic feet per day of gas feedstock.
The opportunity to export compressed natural gas (CNG) from PNG to New Zealand and other potential regional customers was examined, and gas for power generation for alumina smelting was also considered. The manufacture of gas derivatives by chemical processing requires considerable amounts of energy. What would-be gas-to-liquids developers of methanol, ammonia and synthetic oil all forget to advise the Government is that they want very cheap gas feedstock and the synthesis process itself consumes about 40-45% of the gas feedstock, giving liquid yields of between 50-60% only, on an energy equivalence basis. By comparison, liquefaction in an efficient LNG plant may only consume about 7-8% of the feedstock to fuel cryogenic processes.
In the nexus of the first decade of this century when the notion of gas development by transportation of gas to Australia was waning, and was eventually abandoned in favour of LNG development, every mode of natural gas utilisation was examined. Not only did industry examine many options, but the Dept of Petroleum and Energy also commissioned comprehensive studies on gas utilisation from Worley Ltd, a reputable Australian energy consulting firm, including: studies on the Potential for Manufacture of Ammonia and its Derivatives; LNG Supply/Demand; Alternate Gas Development Options
and Domestic Usage - Liquefied Petroleum Gas. LNG development was nevertheless seen to be superior in economic terms.
RECENT POLICY INITIATIVES
Recent Domestic Market Obligations (DMOs) negotiated in some Gas Agreements between petroleum licensees and the State have provided for specific proportions of domestic gas offtake from future gas projects at discounted prices. These are classic DMOs of the type deployed in Indonesia. They are not the Domestic Market Obligations of the Oil and Gas Act, Section 67. Those refer to the sale of gas being required of a licensee on equivalent export terms to a bona fide willing PNG purchaser at a parity purchase price. The new DMOs introduced as policy during negotiations may provide useful offtake of natural gas if these obligations can be matched up with willing investments in appropriate gas utilisation. These are genuine and brave efforts to encourage domestic utilisation, but may be geographically constrained in their implementation.
IDEAS FOR THE FUTURE
In so far as LNG development likely provides the best economic return amongst gas development options, one has to be worried that the resource revenue that emanates for the Nation from such endeavours will be carefully cherished and used wisely. As an alternative to monetary value which has the intrinsic potential to be wasted through lack of diligence and rectitude in the expenditure of the National budget, one might indeed prefer to forego some of such lavish National incomes and instead persevere with domestic gas utilisation schemes. This is a resource policy issue and the matter has to be very carefully evaluated by extensive planning, not only of gas development and the degree of domestic utilisation achievable, required and desirable, but also long term gas resource planning.
PNG has shown itself to be highly petroliferous, but it is also a remote frontier area for petroleum exploration. If there is to be an enduring future for gas development and its domestic utilisation, then more gas accumulations need to be discovered, and that requires exploration now for future field development. A compre - Page 22 >
hensive projection of gas production and likely gas field discovery and field development, including export and domestic utilisation options needs to be made for the next fifty years.
One of the problems that have bedevilled domestic gas utilisation in PNG, aside from potential gas markets being highly disparate and very small, is that the costs of exploration and development in PNG have been very high, necessitating relative high produced gas prices. This is exacerbated by the quest for a greater and greater take by the State from gas resource development. This is a natural desire of any Government in respect of export-based projects that provide natural gas for use in other economies, but perhaps domestic gas utilisation needs alternative thinking.
When the natural gas is consumed in the domestic economy, it creates greater opportunities for residents, commerce and industry. Gas consumed in country, induces multiplier effects, which should in turn enhance State fiscal revenues. The stumbling block is the price that producers need
to develop a gas field. If somehow this can be reduced, whilst they still make a reasonable return on their investment, domestic gas developments might be encouraged. The only way to do this is to reduce the fiscal and commercial burden on domestic gas production for instances where the gas is consumed in country. One might propose that the current tax rate of 30% along with other commercial aspects in favour of the Government might be adjusted downward in proportion to the gas producer lowering the price of produced gas proportionately.
The notion of consumption in PNG could be attested by any gas utilisation that breaks the chemical bonds of the natural gas in PNG. The idea is that the breaking of the chemical bonds of the gas for its utilisation and consumption in PNG might receive a reduced tax rate or other concession as compared to exporting the gas where its chemical bonds will be broken overseas. This reduction would only be in some proportion to the agreed reduction of the gas price into the domestic market. This may not work for high capital and operating
expenditure projects like a complex methanol project, but it is likely to work well for a relatively constrained smaller-scale upstream gas production projects.
Basic analysis shows that for upstream gas development projects with low costs, significant reductions in gas price may be produced by foregoing some of the fiscal and commercial imposts of the State. Naturally, such incentives for domestic utilisation might come at the expense of revenue, but they may significantly spur national development.
One is, nevertheless, equally mindful that whilst technically and economically feasible development of petroleum resources may be a goal, the resulting revenues can be readily squandered. This was the case in the United Kingdom when our then Prime Minister, Mrs Thatcher used North Sea oil and gas revenues to reduce the tax burden for the wealthy and industry – essentially, her supporters. Perhaps, there are lessons to be learnt from the UK after all. The wise thing is to consider all gas development options and remember that it is never too late to plan!
In August 2024, I had the privilege of attending the Mount Hagen Cultural Show, one of Papua New Guinea’s most vibrant and significant cultural events. As I stood among the performers adorned in feathers, paint, and traditional attire, I couldn’t help but marvel at the richness of the island’s cultural heritage.
The festival, or Singsing in Tok Pisin (a creole language spoken throughout the country), is a testament to the country’s cultural diversity, where over 800 languages are spoken, and each community has its unique traditions and customs. This diversity, combined with the stunning biodiversity, offers a tourism potential that is both unique and underexplored.
Papua New Guinea (PNG) is a country that, by all accounts, should be a prime destination for global travellers. It boasts some of the world’s most diverse ecosystems, pristine beaches, and unparalleled diving opportunities, especially in regions like Milne Bay and Kimbe Bay. The rugged landscapes of the highlands are home to an array of bird species, including the rare and beautiful birds of paradise.
Yet, despite these attractions, PNG remains one of the least visited countries in the world, with tourism numbers lagging many of its Pacific neighbours.
THE POTENTIAL AND PERILS OF TOURISM
The potential for tourism to bring economic benefits to PNG is undeniable. In many developing countries, tourism has acted as a catalyst for economic growth, creating jobs, fostering small businesses, and bringing in much-needed foreign exchange.
Tourism Without Tourists: A Balancing Act in Papua New Guinea
By: NIKI ALSFORD
Niki Alsford is Professor of Anthropology and Human Geography, and Director for the Institutes for the Study of the Asia Pacific (ISAP) at the University of Central Lancashire. He is Research Associate at SOAS, the University of London and Associate Member of the Faculty of Asian and Middle Eastern Studies at the University of Oxford.
In PNG, where the economy largely depends on extractive industries like mining and oil, tourism could provide a more sustainable and diversified income stream. However, as with any developing nation, the influx of tourists comes with its own set of challenges.
PNG operates on a dual economic system: a formal monetary economy that the government and larger businesses operate within, and a subsistence economy where the majority of the population engages in farming and bartering to meet their daily needs.
The introduction of large-scale tourism could disrupt this delicate balance, particularly in the highlands, where traditional ways of life have been preserved to a greater extent than in the more urbanised coastal regions like Port Moresby and Lae.
In the highlands, the economy is not driven by cash but by subsistence farming and the exchange of goods and services within the community.
This system has allowed highlanders to live sustainably for generations. Introducing a tourism-driven cash economy could lead to social stratification, with those benefiting from tourism becoming wealthier while others are left behind.
Moreover, the allure of easy money from tourists could lead to the erosion of traditional values and practices, which are integral to the social fabric of highland communities.
CULTURAL SENSITIVITY AND RESPONSIBLE TOURISM
One of the most critical issues in developing tourism in PNG is ensuring that it does not lead to cultural exploitation or degradation. The highlands, in particular, do not need to be “developed” in the global sense of the word. Development here should not mean the imposition of foreign values or economic systems, but rather the empowerment of local communities to share their culture on their terms.
proached with a model of cultural sensitivity and responsibility. This means developing tourism initiatives that are community-led and that prioritise the preservation of cultural heritage over profit.
For instance, cultural festivals like the Hagen show should be supported in a way that ensures they remain authentic expressions of local traditions rather than becoming commercialised spectacles for foreign visitors.
One approach could be to focus on low-impact, high-value tourism. This model would limit the number of tourists but increase the revenue generated per visitor.
By targeting niche markets, such as eco-tourism, bird-watching, and cultural tourism, PNG can attract travellers who are genuinely interested in learning about and respecting local cultures and ecosystems. These tourists are more likely to spend money on local services and products, ensuring that the benefits of tourism are felt at the community level.
THE IMPORTANCE OF INFRASTRUCTURE AND SAFETY
A significant barrier to increasing tourism in PNG is the lack of infrastructure. Many of the country’s most beautiful and culturally rich areas are difficult to access, with limited transportation and accommodation options. Investing in infrastructure is essential to make these areas more accessible to tourists. However, this must be done in a way that is sensitive to the environment and the needs of local communities.
Safety is another concern that has deterred many potential tourists from visiting PNG. The country has a reputation for lawlessness, particularly in urban areas. While this perception is not entirely accurate, it does highlight the need for improving security, particularly in tourist areas.
Collaborations between the government, local communities, and international partners could help address these issues, making PNG a more attractive destination for international visitors.
BALANCING DEVELOPMENT AND PRESERVATION
Ultimately, the challenge for PNG is to find a balance between leveraging tourism for economic development
and preserving the country’s unique cultural and natural heritage. The highlands, in particular, represent a region where this balance is especially crucial.
Development should not come at the cost of cultural erosion or environmental degradation. Instead, it should focus on empowering local communities to manage tourism in a way that benefits them economically while preserving their cultural identity.
To achieve this, the government, NGOs, and the private sector must work together to develop tourism policies that prioritise sustainability and cultural sensitivity. This includes providing training for local communities in tourism management, developing infrastructure that benefits both tourists and locals, and ensuring that tourism revenues are reinvested into the community.
As such, Papua New Guinea stands at a crossroads. The potential for tourism to bring economic benefits to the country is significant, but it must be managed carefully to avoid the pitfalls that have befallen other developing nations.
By focusing on responsible, culturally sensitive tourism that prioritises the needs and desires of local communities, PNG can develop a tourism industry that not only brings economic benefits but also helps to preserve its rich cultural and natural heritage for future generations.
Tourism without tourists might
seem like a paradox, but in the context of PNG, it represents a model of development that respects and preserves the very things that make the country unique.
By embracing this model, PNG can offer travellers an experience that is not just about visiting a new place, but about understanding and appreciating a way of life that has endured for centuries.
Travel Recovery in the Pacific: Worrying Signs
By: HUIYUAN LIU AND STEPHEN HOWES
As the pandemic recedes and gradually fades from people’s memories, travel in the Pacific is rebounding. However, the Pacific’s travel recovery is highly variable.
Comparing visitor arrivals in 2023 with those in 2019 (Figure 1 below), it looks like Vanuatu is the biggest winner, but this is misleading. Vanuatu has experienced a surge in cruise tourism, with the number of cruise arrivals nearly doubling from 2019 to 2023 and reaching more than three times the number of air arrivals in 2023.
However, cruise tourism in Vanuatu has been “fickle and volatile”. It can strain limited labour resources and generates much less revenue than tourism by air. In 2019, though there were 40% more cruise tourists than air tourists, air tourists generated roughly nine times as much revenue. Meanwhile, Vanuatu’s air tourism arrivals have only recovered to 70% of their pre-COVID levels, with total air arrivals in 2023 at just 64% of 2019 levels.
Fiji has done well to achieve 4% growth from its already high pre-pandemic travel numbers. Holiday arrivals, which constituted over 70% of total arrivals in 2019, experienced a substantial increase of 12% over the same period. Other market segments are still lagging though, attracting only 82% of their pre-COVID visitor levels.
Samoa has also done well with 2023 arrivals only 3% below the 2019 level.
Solomon Islands and Tonga have
Huiyuan (Sharon) Liu is a research officer at the Development Policy Centre, working in the area of economic development.
Stephen Howes is Director of the Development Policy Centre and Professor of Economics at the Crawford School of Public Policy at The Australian National University.
visitor arrivals nearing but still significantly below pre-COVID levels, with recoveries of 90% and 87% respectively. Solomon Islands benefited from its hosting of the Pacific Games last year. If its November arrivals had been at the average level for the other months of the year, then its 2023 arrivals would have only been 70% of 2019 levels.
That leaves Papua New Guinea and Palau. PNG is at only 68% of its pre-COVID air arrivals level, and Palau is struggling with just 44%.
To explain Palau’s poor performance, we need to look at the source countries. While visitor numbers from Australia and New Zealand to the
region have fully rebounded to preCOVID levels, visitors from Asian countries have been slow to return. Overall, the total number of visitors from Asia to the seven countries that we have data for has decreased by 44%, with Palau and Vanuatu experiencing particularly steep declines of 67% and 55% respectively. This downturn is particularly significant for Palau, where visitors from Asia accounted for 82% of total visitors in 2019. In contrast, other Pacific countries attract more visitors from Australia and New Zealand. In Fiji, there were 67,513 more Australian visitors in 2023 than 2019, which more than filled the gap left by a
reduced number of tourists from Asia.
Papua New Guinea is a special case (see Figure 2). Its slow recovery is evident across all source countries and purposes of travel, with 2023 arrivals at 62% (business), 77% (employment), 64% (air tourism) and 61% (cruise tourism) of their 2019 levels.
If we look at air arrivals only, 2023 volumes are back at 2007 or 2008 levels. 2007 was at the start of PNG’s air arrival boom, which ended in 2014. Air arrivals have been falling since, so this is not just about the pandemic. Flight disruptions due to fuel rationing, outbreaks of violence and riots, delayed resource projects and a generally depressed business environment have all deterred travellers.
Businesses, governments and NGOs learned to get by without travel during the pandemic, so it is perhaps not surprising that total travel has not fully recovered. And from a climate point of view, the less air travel the better. But the fall-off in air travel is problematic for the Pacific region if it means less tourism and depressed business conditions. From that point of view,
there are some very worrying signs from this travel data for a number of economies, especially Palau, PNG and Vanuatu.
Disclosure: This research was supported by the Pacific Research Program, with
funding from the Department of Foreign Affairs and Trade. The views are those of the authors only.
This article appeared first on Devpolicy Blog (devpolicy.org), from the Development Policy Centre at The Australian National University.
ADB: Continued Growth Projected for the Pacific, but Resilience Still Needed
The Pacific is projected to grow by 3.3% in 2024 and 4.0% in 2025, but the need to build resilience continues, according to the latest issue of the Asian Development Bank’s (ADB) Pacific Economic Monitor (PEM).
This growth is largely driven by the recovery of resource extraction in Papua New Guinea, the subregion’s largest economy. Stable visitor arrivals in most tourism-dependent economies and stimulus from public infrastructure projects are also seen to drive growth. However, a wide range of factors—including labour shortages, reduced fiscal space, and exposure to climate change and disaster risk—pose downside risks to the outlook.
“This positive growth is good news for the Pacific, but significant downside risks highlight the ongoing need to build resilience,” said ADB Director General for the Pacific Leah Gutierrez. “ADB will
continue to work closely with our Pacific developing member countries to help manage these risks and safeguard development gains from shocks.”
The latest PEM explores various aspects of building resilience in the Pacific. One article discusses ways to build climate and disaster resilience in the Cook Islands, Samoa, and Tonga, and another examines Fiji’s new fiscal year 2025 budget in light of the need to adhere to debt targets while maintaining economic growth.
Other articles related to public financial management examine debt sustainability challenges faced by Papua New Guinea, ways to better manage Constituency Development Funds in Solomon Islands, and strategies for building resilience in the Marshall Islands, the Federated States of Micronesia, and Palau following the renewal of their Compacts of Free Associa -
tion with the United States. Other articles look at issues relating to social protection and the high cost of living in Kiribati, Niue, and Tuvalu; developing a resilient labour market in Nauru; and the future of air travel in Vanuatu.
Policy briefs in the PEM spotlight building resilient infrastructure, bolstering climate resilience, and strengthening public financial management within the unique Pacific context. Another policy brief highlights the need to understand the vulnerability and fragility of Pacific small island developing states to develop solutions for resilience.
The PEM is ADB’s biannual review of economic developments and policy issues in ADB’s 14 Pacific developing member countries. In combination with the Asian Development Outlook (ADO) series, ADB provides quarterly reports on economic trends and policy developments in the Pacific.
The Mineral Resources Authority (MRA) Managing Director, Jerry Gerry, emphasized the critical importance of sustainable practices in harnessing Papua New Guinea’s rich mineral and petroleum resources.
Mr Garry addressed a diverse audience of analysts, regulators, environmental scientists, and industry professionals during the Geosciences, Exploration, and Extraction (GEE) 2024 Conference.
The conference commenced at APEC Haus in Port Moresby in August with over 350 delegates attending and thousands nationwide and from abroad watching via live stream.
Following the tradition of excellence established in the inaugural conference in 2022, the event brought together experts to discuss the future of resource extraction.
In PNG Prime Minster Hon. James Marape’s opening speech through MRA MD Gerry, he acknowledged the global community of scientists whose work contributes to enhancing life and supporting the economic, environmental, and public health needs of nations.
Marape highlighted the significance of this year’s conference theme, “Research and Innovation in Geosciences, Exploration, and Extraction for Sustainability,” as a response to the growing international demand for limited resources.
This year’s theme also addresses the rapidly depleting PNG minerals
and hydrocarbon reserves due to a lack of major discoveries over the last four decades.
Marape underscored the responsibility that comes with PNG’s abundant mineral and petroleum resources. He noted, “As a nation, we stand at a crossroads where our decisions will resonate through generations yet to come.”
He stressed that the exploration and extraction of these resources are not merely academic exercises but vital missions that directly impact the livelihoods of countless communities.
Marape also called for the use of cutting-edge technologies and artificial intelligence to minimize environmental harm while maximizing the efficiency of exploration and extraction methods.
“Our globe is demanding a reduction of emissions and greater care for our environment,” he said, urging the industry to embrace sustainable mining practices.
Highlighting the necessity for collaboration, Garry advocated for cross-border, interdisciplinary partnerships between universities, research institutions, government agencies, and private enterprises.
Such cooperation, he emphasized, is crucial for protecting the environment while meeting the demands of an ever-growing population.
Garry extended his gratitude to the conference organizers, particularly the Chairman of the Organizing Committee, partners and all sponsors.
Whilst we’re proud of what we’ve achieved in PNG since 2008, our eyes are still fixed firmly on the future. Our history might talk of our commitment to service and delivery, but it’s our vision that speaks of the potential ahead.
MRA Managing Director Mr. Jerry Gerry delivering PM Hon James Marape’s speech to officially open the GEE 2024 Conference.
Business Regulators Summit Seeks to Drive Digital Transformation
By: ROSELYN EREHE
The 2024 Business Regulators Summit co-hosted by the Investment Promotion Authority (IPA) and Department of Information, Communication and Technology (DICT) on July 30 to 31 in Port Moresby drew representatives from businesses, regulators, investors, government agencies, non-government organisations, and the media across Papua New Guinea to Port Moresby for the two-day summit.
Discussing the result on the outcomes of the inaugural 2019 event, IPA Managing Director Mr Clarence Hoot said: “From the first summit, an outcome report on the discussions and recommendations were produced, and an NEC paper was submitted through the Minister of Commerce and Industry.”
“The key recommendations include all streamlining all regulatory agencies to adopt system automation (interoperability) to achieve government’s vision for digital transformation.”
This year’s summit aimed to identify synergies among the government and the statutory regulatory agencies to take stock of reforms and progress to achieve PNG’s e-commerce agenda and digital transformation.
DICT Minister Timothy Masiu officially launched the summit at Stanley Hotel in Port Moresby, saying: “This Summit aligns perfectly with our digital transformation agenda where the objective is to harness digitalization for social and economic growth.”
The theme, “Interoperability; Connect and Co-create,” underscores efforts by his Ministry and DICT’s collective goal to harness synergies among government bodies and statutory regulatory agencies to advance the nation’s e-commerce agenda and digital transformation efforts.
“This is where interoperability comes into play. Interoperability will make conducting economic activities easier for business com -
munities,” Masiu said.
“The journey toward digital transformation supported through interoperability is both exciting and challenging. You, as regulators play a very important role in creating an environment where it will be conducive for business to grow.”
“The easier the business processes are, it will encourage more citizens to engage and operate MSMEs’ and SMEs’ creating more income generation and employment opportunities,” Masiu added.
“This will contribute towards growing PNG economy that will ultimately result in the improvement of the citizens’ livelihoods.”
“Our aim here today is to leverage these insights to inform our strategies and policies, aligning them with international best practices that have successfully driven digital transformation,” the minister added.
The summit featured a focus on high-level statements from the Government Ministers on the first day, followed by agenda setting and overview of the Regulators Summit topics.
The second day included panel discussions at technical level for regulators and policy makers to identify issues and opportunities, and outline recommendations for regulatory convergence and interoperability.
Discussions focused on:
• A stock-take on progress in adopting e-commerce and digital optimization within government departments, agencies, and industry regulatory bodies to improve service delivery.
• Promoting dialogue and identifying a central depository point for regulatory agencies to create synergies and achieve interoperability in business processes.
• Providing policy recommendations for the government’s consideration and action.
Masiu stressed the discussions aimed to inform ongoing Government to Citizen (G2C) and Government to Business (G2B) digitalization initiatives through necessary policy and legal frameworks, including the Digital Transformation Policy 2020, the Digital Government Act 2022, and the Digital Government Plan 2023–2027.
He said: “Together, we can provide policy recommendations that align with our national goals and drive meaningful change. Our collective insights will inform the government’s strategic decisions, ensuring that our policies are responsive to emerging challenges and opportunities.”
Key sponsors of the summit included PNG Ports Corporation, Immigration and Citizenship Authority, and the Australia-PNG Economic Partnership Program.
(In rows, from L-R) Participants and Attendees of the 2024 Business Regulators Summit co-hosted by the Investment Promotion Authority (IPA) and Department of Information, Communication and Technology (DICT) eventuated on July 30-31st in Port Moresby. Attended by businesses, regulators, investors, Government Agencies, NGOs and the media across PNG to Port Moresby for a two-day summit.
pIONEERS IN & ENGINEERING in png QUALITY, INFRASTRUCTURE GREEN ENERGY SOLUTIONS
“
Bastille Day Celebrated in PNG: A Look at Franco-PNG Relations and Future Prospects
By: ROSELYN EREHE
The French Ambassador to Papua New Guinea spoke highly of Franco-PNG relations during the French National Day celebrated in Port Moresby on July 14.
French National Day or Bastille Day is celebrated worldwide and in Papua New Guinea saw a grand event held at the Marriott Executive Desk venue, presided over by French Ambassador HE Guillaume Lemoine and his wife Olivia.
Lemoine reflected on the past year’s accomplishments in Franco-PNG relations, recalling the momentous visit of French President Emmanuel Macron to Papua New Guinea in July 2023.
Macron’s symbolic walk with Prime Minister Marape in Variarata Park highlighted the visit, which Lemoine described as “a profound moment in bilateral relations.”
“The frequent meetings between President Macron and Prime Minister Marape—five times in less than 13 months between the APEC Summit of Bangkok in November 2022 and the COP in Dubai last December—underscore
the deepening relationship between our nations. It shows how France values the relation with Papua New Guinea. It shows how Papua New Guinea values France as a global player and a nation of the Pacific,” he said.
(L-R) Ambassador Guillaume Lemoine & Acting PM, Hon. John Rosso address the attendees of the France National Day Celebrations in Port Moresby, PNG. A proof of strong ties of the Franco-PNG relations. -image provided by French Embassy in PNG
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The ambassador also highlighted the economic and development achievements of the past year. He pointed to the progress of the Papua LNG project, led by TotalEnergies, which has been a cornerstone of the economic cooperation between the two countries.
Additionally, he noted Air Niugini’s significant investment in modernizing its fleet with 11 new Airbus A220 aircraft. Other French companies like Easy Skill, AcquaTerra Food, Vinci, CMACGM, and Dassault Aviation were recognized for their contributions and sponsorship of the Bastille Day event.
In terms of development, the ambassador highlighted the launch of a Country Package for PNG dedicated to the conservation and protection of forests, nature, and climate. This initiative includes a pledge of at least 100 million USD for funds and projects aimed at ben efiting local communities.
Lemoine praised Papua New Guinea’s proactive engagement in this partnership, describing the country as “one of the most advanced of this innovative model of partnership,” mentioning that potential funding pledges would be announced at the upcoming COP in Cali or Baku later this year.
Another key announcement was the recent establishment of the French Development Agency or AFD’s office in Port Moresby under the leadership of Benoit Chassatte. This new office will play a vital role in strengthening bilateral ties and facilitating new development projects.
Lemoine also noted the advance ments in military cooperation between France and PNG, under scoring a mutual commitment to regional security.
“Of course, the bilateral relation between France and PNG will continue to improve on different areas of cooperation, also thanks to the increase in the staff of the embassy,” he affirmed.
He also invited attendees to look forward to the Paris 2024 Olympics and Paralympics Games, empha sizing its potential to promote the values of Liberty, Equality, Frater
nity, and the Olympic principles of Excellence, Respect, and Friendship.
“We hope that the Olympic spirit will spread on and off the field of play, to inspire athletes and spectators alike, but not only, also among the whole world,” he said, underscoring the opening ceremony and calling it “an amazing show.”
The ambassador also announced his forthcoming departure from PNG. He expressed pride in the achievements of his tenure and gratitude for the strong bilateral
relationship that has developed. “I am happy and proud of the work that has been accomplished since I arrived,” he said.
Representing the Government of Papua New Guinea, Acting Prime Minister John Rosso was also present, along with Defence Chief Philip Polewara, German Minister of State at the Federal Foreign Office Katja Keul, members of parliament, the diplomatic corps, the French community, business leaders, non-government organizations, and friends.
Prime Minister Launches 2024 PNG Investment Week
By: ROSELYN EREHE
The Papua New Guinea Chamber of Resources & Energy (PNG CORE) has announced the 2024 Papua New Guinea (PNG) Investment Week from December 6th to 11th, 2024, slated at the International Convention Centre in Sydney.
At the official launch, Prime Minister Hon. James Marape acknowledged the partnership between the Government and PNG CORE in continuing to promote the country as an investment destination of choice.
“The annual PNG Resources & Energy Investment Conference and Expo has been the country’s premier international event, which has enabled our international stakeholders, particularly those within resources & energy, to engage with the State to discuss opportunities in PNG, as well as to progress development of projects within this critical economic sector,” Marape said.
“Last year’s event was a tremendous success with heads of major mining and energy companies present and promoting investment in PNG. It is indeed the only event where all who matter are in one place at the one time,” he added.
The Prime Minister said it is “timely” that the event is broadened into a week of promotion of international investment in PNG.
“We are very happy that it has now become PNG Investment Week, and will feature not just the promotion of investment in our core energy and resources sector, but also other sectors such as financial services, agriculture, fisheries, manufacturing, infrastructure and renewables, but also the very good work that PNG’s bilateral and multilateral partners are doing in PNG,” he said.
“My government stands ready to work with PNG CORE to make this event a resounding success yet again,” Marape added.
PNG CORE President Anthony Smare reaffirmed the commitment by industry to promote opportunities on offer, in partnership with government, and key stakeholders.
“This change of name and format of the traditional conference into 5 days of PNG-focused activities in Sydney will boost investment into PNG by expanding attention beyond PNG’s resources sector into other areas,” Mr Smare said.
vestment Week, with well over a thousand from international jurisdictions.
Smare added: “We believe that by working closely with the National Government, and our major private sector and multilateral partners, we can deliver an investment event that will be both larger and more successful than anything we have delivered in the past offshore in terms of translating to improving investor sentiment in PNG and driving more direct investment into PNG’s various sectors.”
“We are also pleased to acknowledge as well, the early and proactive commitment by
This event will unite all investment and business stakeholders in PNG and abroad through a series of activities:
• PNG Golf Challenge
• PNG International Suppliers Forum
• Meet the PNG Regulators
• Large Investor briefings with PNG PM
• President’s CEOs Dinner
• PNG Investment Conference
• PNG Investment Gala Dinner
• PNG Investment Expo
Sponsorship opportunities, and delegate registration for the 2024 PNG Investment
Other industries benefitting are the PNG’s financial sector, agriculture, fisheries, renewables and infrastructure, “and providing opportunities for our international and multilateral partners to also advocate for PNG as an investment destination,” he added.
PNG CORE anticipates more than 2000 business delegates to attend the PNG In -
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Maru: Indonesia is Our New Focus
The Minister for International Trade and Investment, Hon. Richard Maru, has highlighted Papua New Guinea’s (PNG) new focus on attracting Indonesian investments following recent high-level engagements between the two nations.
These include state visits by the heads of both countries, a trade and investment mission led by Deputy Prime Minister Hon. John Rosso, and the signing of a Joint Declaration establishing a high-level Dialogue and Cooperation Mechanism.
Minister Maru remarked: “Indonesia’s economy has grown tenfold over the last 20 years, driven in part by the government’s policy of banning raw material exports. This policy, announced three years in advance, has been strictly implemented.”
Indonesia is the largest economy in Southeast Asia, the world’s fourth most populous nation, and ranks as the 16th largest economy globally by nominal GDP, as well as the seventh largest in terms of purchasing power parity.
Minister Maru added, “While Indonesia has historically relied on imports of manufactured goods, advanced technology, and technical skills, it has successfully transitioned from a primary sector economy to one focused on secondary and tertiary industries.”
“This shift, supported by the creation of numerous economic zones, has strengthened Indonesia’s downstream processing and value addition in manufacturing, trade, and services.”
Indonesia currently has 118 industrial parks, 15 Special Economic Zones (SEZs), four Free Trade Zones, and 10 Tourism Zones, all of which have contributed significantly to the country’s policy of downstream processing of natural resources.
“Downstream processing has been highly successful in Indonesia, creating thousands of jobs, transferring higher-value skills, and introducing advanced technological processes. The nickel SEZ at Weda Bay alone created 80,000 direct jobs and 12,000 indirect jobs—more jobs than PNG’s entire mining and petroleum industries combined.”
“In 2022, investment in downstream mining surged to almost US$9.2 billion, compared to US$4.1 billion in 2019,” Maru noted, emphasising the significant role these investments have played in Indonesia’s mining industry.
The Indonesian Government has recommended that PNG adopt a similar approach and implement a ban on raw material exports.
“Our government has already declared its intention to pursue downstream processing, and we don’t have to reinvent the wheel. Indonesia is right next door, ready to share its experience and offer support,” said Minister Maru.
“For nearly five decades, PNG’s engagement with Indonesia has largely focused on border and security talks, which have not resulted in improved border facilities, direct shipping links, job creation, or significant trade between our countries.”
“It’s time for PNG to establish a robust trade and investment relationship with Indonesia, which has already mastered downstream processing and value addition. PNG has immense potential in mining, petroleum, agriculture, fisheries, forestry, and services, and we can learn valuable lessons from Indonesia’s success.”
Maru stressed that PNG must move beyond being a primary exporter of raw materials and focus on value addition through downstream processing to create more jobs and increase the value of its exports.
“Under the Marape-Rosso Government, PNG must shift away from being a mere exporter of raw materials. As we approach our 50th anniversary, it is imperative that we make a decisive change.”
“Indonesia, our closest neighbour, has successfully navigated this path and is now a formidable player on the global stage. They are willing to share their experience and expertise, and we must stand ready to learn and collaborate.”
The minister also extended an invitation to Indonesian companies in sectors such as manufacturing, mining, petroleum, agriculture, fisheries, tourism, and Special Economic Zones to invest in PNG.
He revealed that two Indonesian companies have expressed interest in multibillion-kina rice and recycling projects in PNG, with proposals under review for approval by the National Executive Council (NEC).
“This marks the beginning of a new era for PNG as we shift our trade and investment focus to Indonesia,” Maru concluded.
PNG Ports Partners with Stakeholders to Strengthen Security in Declared Ports
By: ROSELYN EREHE
To enhance maritime security, PNG Ports Corporation Limited (PNG Ports) has announced its active involvement in a committee aimed at addressing criminal activities within declared port areas.
This initiative comes at a time when ensuring the safety and security of ports is increasingly vital to the smooth operation of national and international trade.
PNG Ports’ Chairman, Harvey Nii, Chief Executive Officer, Neil Papenfus, and Chief Maritime Compliance Officer, Ben Tomba, led discussions on the matter during a recent workshop at the Grand Papua Hotel in Port Moresby.
The workshop, hosted by PNG Ports, brought together various stakeholders from both the public and private sectors to outline collaborative strategies to combat criminal activity within the boundaries of PNG’s declared ports.
Mr Papenfus highlighted the importance of a cooperative approach, stating: “As the port authority, we can only do what is in our jurisdiction, and this issue is one that will need all stakeholders and port users to discuss the way forward.”
He emphasised the need for shared knowledge and resources to address these maritime security challenges effectively.
Papenfus also mentioned that PNG Ports would fully support the formulation and implementation of a policy to combat crime in the regulated port areas and would upgrade its Vessel Tracking Services (VTS) systems to aid in this effort.
Recognising the importance of an integrated approach, PNG Ports has committed to supporting the development and implementation of a comprehensive policy to combat crime at regulated port areas.
As part of these efforts, the corporation also plans to upgrade its VTS systems to better monitor port activities and enhance security.
Mr Tomba added that the outcomes from the discussions during the workshop would serve as the foundation for a draft policy, which is expected to be reviewed by the relevant authorities.
This proactive approach aligns with PNG Ports’ broader mission to ensure safe and efficient shipping operations across its network of 15 ports.
The workshop featured representatives from the Department of Transport, National Maritime Safety Authority, Water Police, PNGDF Maritime Operations, PNG Customs, National Capital District Commission, Motu Koita Assembly, National Agricultural Quarantine Inspection Authority, Conservation and Environment Protection Authority, Civil Aviation and Safety Authority, National Fisheries Authority, and Total Energy, among others.
As the owner and manager of port
facilities, PNG Ports, through its PNG Harbours Management Services (PNGHMS), plays a central role in maintaining safety, security, and environmental standards across the country’s declared ports.
The PNGHMS, under the leadership of the Chief Maritime Compliance Officer, is responsible for ensuring compliance with the Harbours Act, which governs safety, regulatory inspections, and policy formulation in port operations.
PNGEITI Calls on Resource Firms to be Transparent in Their Operations
The PNG Extractive Industries Transparency Initiative (PNGEITI) has called on companies operating in the extractive sector to honour their commitments to the EITI process by being transparent in all areas of their operations, including their obligation to pay taxes to the government.
The Executive Director of the PNGEITI National Secretariat, Lucas Alkan, said these companies made their commitments to the EITI reporting framework when they signed up to support the government in implementing the EITI Global Best Practice Standard in 2013.
The call by PNGEITI follows concerns recently raised by the Internal Revenue Commission (IRC) that leading mining companies are not complying with their mandatory obligation to pay Dividend Withholding Tax (DWT).
The IRC emphasised that a lack of DWT payments implied that these companies were either not generating adequate profits or were simply avoiding their tax obligations, thus depriving the government of much-needed revenue.
The IRC stated that the payment of these taxes not only upholds fair tax practices but also supports the national economy and the government’s revenue.
The IRC Commissioner General indicated that despite a significant increase from K9 billion in 2013 to K44.2 billion in 2021, as reported by the Bank of PNG in its Quarterly Economic Bulletin (QEB), there have been no corresponding dividend payments to the stakeholders from these resource companies.
Mr Anthony Smare, the President of the PNG Chamber of Resources and Energy (PNGCORE), in a media statement, explained that companies in the resources sector were reinvesting their profits back into the country. He emphasised that all existing projects have dedicated significant capital to mine expansion and development projects.
Mr. Alkan stated that while extractive sector resource companies may be reinvesting in expansions and capital expenditures as stated by PNGCORE, they must provide actual figures to
justify this in the EITI annual reports as members of the EITI.
“Reinvesting in expansions among other capital expenditures is good for the economy, and the PNGEITI supports what they are doing, but this must be justified by providing actual data or figures on such expenditures in the EITI reports for transparency purposes,” said Alkan.
“I’m calling on resource companies to disclose to the public the actual figures expended on reinvesting in expansions and capital expenditures, as these alone will justify their stance,” he added.
The call for transparency and accountability in PNG’s extractive sector is not just about compliance but also has broader implications for good governance, social equity, and sustainable development in the country, the EITI body added.
Mr Alkan added that enhanced transparency can lead to better resource management, build trust among different stakeholders, and contribute to long-term development goals.
He said these companies signed the Multi-Stakeholder Group (MSG) Memorandum of Understanding (MoU) in 2013 to be transparent in their operations through the EITI reporting process and must always demonstrate that they are honouring their commitments.
The PNGEITI reports are considered reliable and comprehensible sources of information aimed at increasing industry transparency and accountability. This is because the reports are prepared by independent administrators in accordance with the requirements of the EITI Standard.
The extractive sector contributes significantly to the economy, both directly and indirectly, in terms of government revenues and its contribution to GDP, while also delivering a range of socio-economic benefits.
The revenue streams deemed material for EITI reports include those that contribute 2% or more of the total known revenue received by the government from the mining and petroleum sectors for that financial year.
Revenue streams that are not considered material for reconciliation are
reported unilaterally by the receiving government entity, or, in the case of social expenditures, by the companies making the payments.
According to PNGEITI reports, the Dividend Withholding Tax payments received from 2013 to 2021 were considered not material for reporting. This meant that government revenue from DWT was consistently under 2% of total receipts annually.
For instance, in the 2017 and 2018 PNGEITI reports, K47,229,739 and K387,722 were received, respectively, as DWT payments.
Alkan noted that from January 2017, a standardised DWT rate across all sectors of 15% came into effect. Prior to this, withholding taxes had been con cessional for resource taxpayers, with the DWT rate being nil for dividends paid out of gas or petroleum income and 10% for dividends paid by compa nies engaged in mining operations.
Taxation amendments introduced in the 2018 and 2019 Budgets exempt ed PNG LNG-sourced profits from paying dividends, consistent with the PNG LNG Gas Agreement, which also contributed to low DWT revenue to the government from 2018 to 2022.
The table below provides a summary of DWT received by the government from the years 2013 to 2022 as contained in the PNGEITI reports that have been published over these years.
POMCCI Event: Ashurst PNG Hosts Panel on ‘Building for the Future: Lessons Learnt’
By: ROSELYN EREHE
The recent Port Moresby Chamber of Commerce and Industry (POMCCI) Breakfast event in August saw Ashurst PNG host an exclusive breakfast panel discussion, “Building for the Future: Lessons Learnt,” at the Marriott Executive Apartments’ Harbourside South in Port Moresby.
The event, designed as a networking stand-up buffet, was attended by leading corporate members, industry stakeholders, and decision-makers.
With limited seating available on a first-come, first-served basis, the breakfast brought together key figures from various industries to discuss their insights on leadership, strategy, and navigating challenges in their respective fields.
The event was hosted by Tureia Sample, Ashurst PNG’s incoming Office Managing Partner Elect. Sample led the discussion in a “fireside chat” format, featuring senior representatives from the resources, telecommunications, construction, banking, and professional services sectors.
The breakfast panel facilitated valuable networking opportunities and provided attendees with insights and strategies that could be applied within their own organisations.
Group Chief Executive Officer, BSP Financial Group Limited
KEY PANEL DISCUSSIONS:
Resources Sector:
Ms Lelai shared her experiences leading in the resource sector. She emphasised the importance of vision and leadership in driving success, particularly in the challenging environment of Papua New Guinea (PNG).
Lelai remarked, “Leadership and strategy are crucial. Our leadership from the very top in Barrick had a vision. They knew what they wanted to do and drove that mercilessly.”
She highlighted the need for endurance and strong communication with stakeholders, noting, “We made them (stakeholders) feel important. Their voices were being heard.”
Lelai also acknowledged the support of Kumul Minerals Holdings Limited, saying: “We wouldn’t have restarted the mine as successfully as we did without the support of our partner, Kumul Minerals Holdings, every step of the way.”
Commercial & Industrial Development:
Mr Constantinou, Group Chairman of Constantinou Group, discussed the challenges of succession and the importance of clear communication during periods of transition.
Constantinou, whose company operates in the hospitality, construction, and property sectors, employing around 3,000 people, said: “The biggest chal-
lenge has been people-based, getting to know the employees and communicating the new direction of the company.”
He reflected on the difficulties of following in the footsteps of his predecessors, “It’s probably more of a relational, people-based scenario, which has been the biggest challenge.”
Professional Services:
Mr Jenkins provided insights from his 18 years of leadership across 31 offices in 18 countries. He shared the complexities of merging two large firms from different cultural backgrounds.
“There were cultural differences and issues about engagement when you bring two large organisations together,” he said.
Jenkins emphasised the importance of leadership and clear communication, adding, “If you can have a strategy that’s on a page, it’s a lot better than a strategy that’s in 20 pages and no one can explain.”
Jenkins also reflected on the challenges of his early days in the role, “There were periods where I was getting in front of a group of, say, 20 Paris partners around one table and having to explain what the vision is and what the strategy is.”
Telecommunications:
Mr Henao shared his thoughts on leading in the telecommunications sector. Page 52 >
Karo Lelai, Country Manager of New Porgera Limited; George Constantinou, Group Chairman of Constantinou Group; Tureia Sample, Partner Elect at Ashurst PNG; Mark Robinson, Group Chief Executive Officer of BSP Financial Group Limited; Michael Henao, General Counsel at Digicel PNG; and Paul Jenkins, Global CEO of Ashurst, pose for a photo after the POMCCI Breakfast Panel Discussion hosted by Ashurst. Panellists of the POMCCI Event: Ashurst. (Image provided by Chey’ Visuals)
Transparency International Gives Insights on Business, Anti-Corruption Efforts
By: ROSELYN EREHE
François Valerian, the Elected Chair of Transparency International (TI), has raised concerns surrounding the long-term value of combating corruption within the business sector globally, including in Papua New Guinea.
He noted that ethical practices are essential for sustainable growth, during the Port Moresby Chamber of Commerce and Industry (POMCCI) breakfast meeting at the Royal Papua Yacht Club in Port Moresby.
“The benefit of shareholders and stakeholders lies in the sustainability and long-term reputation of the company,” Mr Valerian stated, stressing that short-term profits gained through corrupt practices ultimately harm businesses.
The presentation, focused on the theme “Fighting Corruption: What’s in it for the Business Sector?” saw POMCCI members, government agencies, business leaders, and industry professionals discuss the pressing issues of corruption and its impact on the business environment.
The meeting underscored the critical need for businesses to adopt anti-corruption programs and to cultivate a culture of integrity within their organisations.
Valerian called on top management to lead by example, asserting that “there has to be a culture of compliance within companies. No head of a company can say that corruption is behind us—it is not true.”
TI’s presentation also highlighted the impact of corruption on local businesses in PNG.
Valerian contextualised the global fight against corruption within the PNG setting, where businesses bear
< Page 50
Banking:
Mr Robinson discussed the challenges he faced upon assuming his role. He described his experience of stepping into leadership as akin to “drinking out of a firehose,” particularly in managing the immediate challenges in PNG.
He emphasised the importance of engaging with stakeholders, saying: “My
significant costs related to power supply, security, and interactions with government entities due to the prevalence of corrupt practices. He emphasised the importance of maintaining a level playing field in both the public and private sectors.
He also pointed out that since the establishment of Transparency International 31 years ago, the focus has expanded to tackle corruption on a global scale.
“We are fighting the global economy of corruption. With all that money being stolen and bribes paid, public resources are embezzled, fuelling immense transnational illicit flows,” he remarked.
TI addressed the role of offshore financial centres in perpetuating global corruption. Valerian criticised the ongoing secrecy in such jurisdictions, where money flows vastly exceed the economic output of the countries, creating a haven for illicit funds.
“We are asking for beneficial ownership transparency,” he said, advocating for greater clarity on who owns and controls legal entities, including subsidiaries in offshore centres.
Valerian also underscored the need
time has to really be spent with some very important stakeholders, not the least of which are our largest customers, our largest shareholders, and most importantly, our regulator.”
Reflecting on his leadership approach, Robinson added: “For many people, the CEO just turning up, I realised I didn’t even have to say anything. People were just pleased that I was making the effort to be present.”
for strong whistleblower protections within corporations. He stressed that whistleblowers are vital to improving systems and making them more sustainable, rather than being seen as threats to the organisations they expose.
“What is extremely important as well is for corporations, like for the government, to have systems that adequately protect the whistleblowers. The whistleblowers are not enemies of the systems, the entities they are working for.”
The meeting concluded with a call to action for the business community to support Transparency International PNG’s efforts.
Valerian praised the role of smaller companies and state-owned entities in this fight, highlighting the importance of ethical behaviour not just for corporate success, but for the overall well-being of society.
Valerian’s visit to PNG is part of a broader regional tour, with subsequent stops planned in Vanuatu and Fiji. His insights have provided a powerful reminder of the ongoing challenges and the critical role businesses must play in fighting corruption both globally and locally.
The event provided a platform for leaders across diverse industries to share their experiences and the lessons they have learned in navigating complex challenges.
The panel discussions underscored the critical role of leadership, communication, and stakeholder engagement in driving success, particularly in the unique business environment of PNG.
Members of Transparency International and POMCCI pose for a photo together at another successful POMCCI breakfast meeting.
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Ambassador: US Firms ‘Frustrated’ in Investing in PNG
It is difficult to attract American companies to come and invest in
Papua New Guinea (PNG) if they continue to go through the frustrations of establishing themselves in PNG, the United States Ambassador to PNG, Her Excellency Ann Marie Yastishock, said in her meeting with the Minister for International Trade and Investment, Hon. Richard Maru.
Yastishock said: “A classic example is StarLink (the satellite internet company owned by billionaire Elon Musk – Editor). StarLink was promised a license in January this year. We are now in August, and they still have not had their approval.”
“One of the big sticking points for US and the US companies is ease of doing business, and it is not always easy to do business here in PNG. So, the questions are: What do we do to attract those American businesses to come to PNG?” the ambassador added.
“How do we get NICTA (the National ICT Authority) to approve
StarLink License that would reduce the cost of internet access which will be helpful to communities who do not have access to the internet? It is difficult to understand why it is very difficult to get approval in PNG when Pacific Island countries like Tonga and Fiji have approved StarLink, which has brought down the cost of internet access big time.”
Yastishock added: “There is a lot that PNG can offer including the population and the landmass, and it sits in a place between ASEAN, Southeast Asia and the Pacific, and it is a member of the APEC.”
“We have American businesses already operating in the country including Exxon Mobil, Hilton, Marriot, and Newmont that has now started up. We are also talking to some other American companies about coming to PNG, but it is these little stumbling blocks that frustrates American companies.”
“Without dealing with issues like this and the Government not being able to
help us, we cannot attract American businesses to come and operate in PNG to help drive the cost of doing business down, create employment, and help drive economic growth.”
Minister Maru in response said: “American companies have a good reason to be frustrated. This is unacceptable. We need competition and we need to drive the cost of doing business down in the country, including internet cost.”
“Our consumers should be the most important factor. We need to drive the cost of doing business down in this country and make it affordable. PNG has one of the highest costs of doing business and when American companies are willing to help us to offer critical services, we are just frustrating them.”
The Ombudsman Commission recently stopped NICTA from issuing the license to StarLink because of some investigations, which has taken over eight months, The National newspaper reported.
PNG Regulators Call for Regulatory Reform, Enhanced Capacity
By: ROSELYN EREHE
The Papua New Guinea Chamber of Resources and Energy (PNG Core) Manager for Policy and Analysis, Gretel Orake, addressed the urgent need for regulatory reform and enhanced capacity within PNG’s regulatory bodies during the 2024 Business Regulators Summit held at Stanley’s Hotel.
Orake highlighted critical areas requiring attention to foster a more conducive business environment and drive the nation’s economic growth as it approaches its 50th anniversary.
Presenting on “Challenges in Regulatory Compliance and Coordination” on the second day of the Summit, Orake stressed the role of regulators in ensuring the ease of doing business in PNG.
“This is a call to attention, recognizing the critical role of regulators in ensuring the ease of doing business. The industry is about our country and our people,” she emphasized.
Orake noted that the scrutiny faced by the extractive industry is intense, and meeting international standards is imperative for the country’s development.
Reflecting on the decline in explo -
ration licenses over the past decade, Orake pointed out: “Just over ten years ago, we had a lot... An example of that is the mining exploration tenement map in 2011. Ten years later, in 2023, the interest has declined.”
Despite PNG’s natural resource potential remaining unchanged, the waning interest signals a need for regulatory revitalization, she said.
Orake emphasized the necessity of adhering to global norms through stringent regulations such as the Mining Act, Oil and Gas Act, and Environment Act.
“For Papua Energy, for instance, to get its oil and gas license, it needs to comply with the Environment Act. It must spend up to 19 million Australian dollars to comply with our Act,” she detailed.
However, Orake identified a critical imbalance: the extensive requirements placed on the industry versus the limited capacity of regulatory bodies.
“When the industry is coming with a 19 million dollar document for you to review, and you are an organization that has what, 6 people? This increases the risk of error in decision
making,” she remarked, highlighting the delays and inefficiencies caused by under-resourced regulatory agencies.
She stressed the importance of adequate funding and resources for regulatory bodies to function effectively, and called for enhanced coordination among regulators to streamline processes and reduce bureaucratic hurdles.
“I should be able to, as a regulator, have the funding. When I have only 5 or 6 people, I should still have the ability to put out a tender and ask for expert advice,” she asserted.
Orake also addressed the issue of outdated legislation, particularly the need to update the Mining Safety Act. Urging the government to commit resources to modernize regulatory frameworks, Orake emphasized that a well-resourced regulator is key to a successful economy.
“Teamwork makes the dream work. An enhanced coordination of regulators will definitely result in the ease of doing business,” she said, reiterating the importance of a robust regulatory framework for the future of PNG’s economy.
Lae Biscuit: PNG-Made on World Stage in Australia Exhibit
LAE Biscuit Company Limited for the first time is promoting its quality Papua New Guinea-made products to the world through an exhibition in Australia.
Fine Food Australia is the leading trade event for the food industry running for 40 years.
The event has featured hundreds of food industry professionals from Australasia and beyond.
In an interview with The Nation newspaper, Lae Biscuit Company general manager John Chow said they were grateful to be part of the event through the efforts of the Pacific Trade Invest Australia, as part of the Pacific Islands stand in Melbourne.
“It certainly puts us on the map with other known manufacturers in the
Pacific,” he said.
“The best part is seeing different Pacific Islanders recognise our brand and share their excitement and enthusiasm to see us here at the exhibition.
“We aren’t focusing on our Snax biscuits (but on) our company as a whole, and that we can be trusted to create and develop quality products within PNG that can meet the needs of customers overseas.”
He added that although the company faced many challenges as a local manufacturer, he was optimistic that in time it would get the full support it needed to be a renowned food manufacturer in the Pacific in line with its overall vision.
Chow also said it was an exciting opportunity for the company to promote
its new products along with its branding partnership with National Rugby League club Cronulla Sharks, South Sydney Rabbitohs and PNG Kumuls superstar Alex Johnston.
It is proud of its food safety system certification (FSSC 22000) international certification, which only a handful of local food companies have achieved in PNG.
Meanwhile, group chairman and founder Ian Chow revealed that manufacturers would not survive in PNG if the Government failed to find additional markets.
He said there were too many people with no jobs or money, while the high costs of manufacturing and lack of government assistance was holding back the potential of the country.
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PNG CR Promotes National Content, Drives Economic Future
By: ROSELYN EREHE
As Papua New Guinea (PNG) approaches its 50th Golden Jubilee of independence, the country reflects on its development across the business, resource, and industrial sectors.
A key topic at the forefront of discussions is National Content, which emphasizes the participation of local businesses and workforce in resource projects, aiming to ensure that PNG maximizes its benefits from natural assets.
National Content refers to the active involvement of local businesses, workforce, and investments in sectors like mining, oil, and gas. This global agenda is rapidly gaining momentum, and PNG is at the forefront of these efforts, aiming to transform into a middle-income economy by 2030.
In 2009, the PNG government launched its 40-year development strategy, known as the PNG Vision 2050, aiming to guide the country toward economic growth, wealth creation, and national development.
One of the central agenda’s in discussion is this strategy, ‘National Content’ which ensures that the benefits from PNG’s natural resources remain within the country.
For PNG to meet its Vision 2050 targets, improvements in governance, service delivery, law and order, and investor relations are essential. These improvements are vital as the country reaches its 49th Independence Day on September 16, with the 50th Jubilee just around the corner in 2025.
THE GROWING FOCUS ON NATIONAL CONTENT
The PNG Chamber of Resources and Energy (PNG CORE) hosted the 2nd Community Affairs and National Content Expo (CANCONEX 2024), reinforced the significance of National Content in shaping the country’s future.
Participants from government, industry, and international experts came together to discuss strategies to align national content policies with global standards. The PNG Resource week was held in July 1-4 at the University of Papua New Guinea.
The PNG National Content Policy (PNGNCP) for Resources Sector 2023’ will be launched later this year by the
National Government and the Department of Commerce and Industry.
It is a roadmap that will provide a strategic policy and institutional framework to promote and facilitate greater national participation and partnership in all resource development investments in the country.
The policy covers six focus areas; Domestic Procurement of goods and services, Supplier and Entrepreneurship development, Employment Opportunities for Papua New Guineans, Skilled Workforces Development for graduates, Greater Equity participation by PNG institutions and citizen, and Oversight on investments on Sustainable Development for project impacted landowner communities and the economy as a whole.
In light of the National Content agenda, the Governor of the National Capital District, Hon. Powes Parkop expressed his thoughts on it in an interview with PNG Business News (PNG BN), emphasizing its importance for the
country’s long-term prosperity.
“National Content is that development must capture national interest,” he said, highlighting the need for equity, royalties, and tax structures that maximize national benefits.
“National content is very important to any project development especially in the non-renewal sector as these are resources and opportunities we will never have again.
“Having national content ensues we gain maximum benefit that benefit us of today and we ensure the generation of the future equally benefits by saving some of these benefits in facilities like sovereign wealth fund and other investments,” he added.
MRA’S JERRY GARRY ON NATIONAL CONTENT:
In an exclusive interview with PNG Business News, Managing Director of the Mineral Resources Authority (MRA), Jerry Garry, offered his perspective on the national content in
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PNG, focusing on the country’s natural resource sectors.
His comments highlighted the crucial role that national content plays in ensuring fair and equitable development from Papua New Guinea’s natural assets, including its fisheries, forestry, agriculture, oil, gas, and minerals.
Garry underlined the importance of PNG’s natural resources, stating that these are the country’s most valuable assets. Since independence, the mining sector has been the largest contributor to export revenue. This remained true until 2014, when the country’s first LNG export shifted the balance.
However, Garry explained that the debate surrounding national content extends beyond the financial contributions of these projects.
“The fundamental question is: How much of the development cost and the benefits emanating from a project remain in the country? That defines what national content really is,” Garry stated.
He urged stakeholders to look beyond taxes, such as corporate income tax and royalties, to assess the full picture of a project’s contribution. This includes considering the number of people employed, the skill transfers achieved, and the infrastructure built through the project.
Garry said one of the most overlooked aspects of national content is the role of skill transfer and infrastructure development. He praised PNG’s mining sector for fostering the development of skilled professionals, noting that many of these professionals have gone on to work in international markets such as Australia.
The challenges presented by PNG’s terrain have led to the deployment of advanced technologies, and this exposure has equipped local professionals to be competitive on a global stage.
However, Garry expressed concern about the lack of attention to building infrastructure and meeting corporate social responsibilities. He emphasized that many extractive companies in PNG have failed to provide adequate infrastructure for local landowners.
“I have not seen one respectable company in this country that built decent homes for the landowners and put electricity into them,” he remarked, noting that the Woodland Vault Project is a rare exception in this regard.
Garry urged companies to consider how much of their revenue remains in PNG to support local development. He pointed out that many companies are not paying corporate income tax, claiming that they have not made a profit, even though they continue to export significant volumes of metals, gas, and other resources.
“There’s a lot of work that needs to be done to improve on corporate income tax,” he added, stressing that more transparency and accountability are required in the way profits are reported.
On the broader challenges of national development, Garry emphasized the critical need for reliable energy infrastructure. “If you don’t have cheap, reliable, and stable energy, you can’t build other infrastructures or talk about industrialization,” he said.
Garry argued that without proper infrastructure, including energy, PNG will struggle to fully leverage its natural resources to develop other industries and create sustainable growth.
‘NATIONAL
CONTENT MUST BENEFIT PNG’
Garry reiterated that the goal of national content should be to ensure that a reasonable portion of the revenue generated from PNG’s natural resources remains in the country.
He advocated for a national content policy that mandates a significant percentage—at least 20% to 40%—of the economic value generated by resource projects to be reinvested in the country. This includes contributions to public infrastructure, community projects, and landowner development.
“At the end of the day, that pie you produce from the land must show that 20% to 40% remains within the country. That would be a good national content policy,” Garry concluded.
PNG CR LEADING THE WAY IN SUPPORT OF NATIONAL CONTENT
A company that embodies the goals of the National Content is PNG CR Services, formerly known as Red Sea Housing.
With a longstanding presence in PNG since 2008, PNG CR has proven its commitment to supporting local businesses and communities while providing top-tier services in various sectors especially with the resource sectors.
PNG CR sources the majority of its goods and services from companies registered in PNG and has built strong relationships with local suppliers.
PNG CR’s commitment to local content is evident in its workforce as well. The company boasts a team of over 300 personnel, all of whom are based in PNG.
This local presence enables PNG CR to deliver projects efficiently and in line with the needs of the community, minimizing potential delays and maximizing the benefits for Papua New Guineans.
PNG CR Company’s operations align closely with the agenda of National Content.
The company’s expertise in camp facility management, construction services, and modular building solutions has seen them complete over 127 projects across the country for Tier One clients such as Kumul Petroleum Holdings Limited, ExxonMobil, Newcrest Mining, Australian Federal Police, Australian Defense Force, Abt Associates and PNG Sustainable Development.
In addition to its business activities, PNG CR has a strong focus on corporate social responsibility.
The company has contributed to several community initiatives, including the establishment of Women Sexual Violence Units, providing space for St. John Ambulance, and supporting the Hope Orphanage, the Cheshire Disability Centre and Nature Park in Port Moresby.
PNG CR services success story proves to what can be achieved when local content is prioritized. With its state-of-the-art facilities in Port Moresby, PNG CR designs, engineers, and fabricates modular buildings that are constructed in PNG, providing jobs and skills training for Papua New Guineans.
Companies like PNG CR will play a crucial role in helping PNG achieve its development goals. With a focus on local content, PNG has the opportunity to build a more inclusive and sustainable economy, ensuring that the wealth generated benefits all Papua New Guineans.
Local businesses and well-established companies operating in PNG are central to the nation’s resource projects, this gives a more inclusive and sustainable economic future.
Bisnis PNG Supplier Management Portal Set; ExxonMobil Commits Support
By: ROSELYN EREHE
The Bisnis PNG Supplier Management Portal (SMP), launched by the PNG Institute of Banking and Business Management (IBBM), is empowering local businesses to increase their visibility and access opportunities.
The SMP, a collaboration between IBBM and ExxonMobil, aims to connect businesses and people, and promote entrepreneurial development. It provides a platform for businesses to register their credentials online, facilitating easier interaction with potential clients.
The focus was on the transition from traditional, paper-based business processes to a streamlined, digital approach through the SMP, the key benefits of which include:
• Increased visibility: Businesses can showcase their capabilities to a wider audience.
• Improved access: Easier connection with potential clients and business opportunities.
• Enhanced efficiency: Streamlined business processes through digital registration.
• National content support: Aligns with PNG’s commitment to local business development.
The SMP has already attracted significant interest, with over 3,200 suppliers registered across various sectors. IBBM’s CEO, Susil Nelson-Kongoi, emphasized the portal’s potential to go beyond the extractives industry and open up opportunities for businesses in all sectors.
Kongoi stated that it is a legacy of a partnership between ExxonMobil and IBBM, “a partnership committed and focused in developing, growing, promoting and supporting supplier development, which is increasingly becoming a standard norm of National Content Obligations.”
ExxonMobil PNG has a strong track record of supporting local businesses. Through its national content initiatives, the company has invested significantly in PNG businesses and provided training and development opportunities for local workers.
The SMP is a valuable tool for local businesses seeking to grow and
succeed in Papua New Guinea. By leveraging the platform’s capabilities, businesses can enhance their visibility, connect with new opportunities, and contribute to the country’s economic development.
ExxonMobil PNG’s National Content Manager Mr Sam Koyama delivered the Keynote Address, stressing its commitment to support supplier development as part of national content.
Other notable attendees included GM for Enterprise Development at IBBM, Mr. Peterson Lais; First Assistant Secretary Department of Commerce and Industry, Mr. Frazer Murray; Managing Director for Nares Engineers, Mr. Francis Kunuma; and the Executive Director for the Petroleum Sector National Content
Office, Mr Simon Sanagke.
ExxonMobil PNG’s track record in national content is notable. In 2023 the PNG LNG project had a workforce of 3,714 people, with 88% being PNG nationals.
In the same year, the company delivered over 225,900 training hours through some 2,600 company and third-party contractor courses, thus enhancing the skills of PNG workers across various job categories.
In 2023, ExxonMobil PNG spent approximately PGK833 million with PNG businesses, including PGK338 million with landowner companies. Since production began, the total expenditure with PNG businesses has reached PGK6.8 billion, with PGK2.2 billion spent on landowner companies.
A Boost for PNG: Tolu Minerals Resurrects Tolukuma Gold Mine
By: ROSELYN EREHE
Tolu Minerals is poised to breathe new life into the Tolukuma gold mine, aiming to unlock substantial gold resources and restore production.
This strategic effort not only signals a significant revitalisation of one of Papua New Guinea’s historically high-grade mines but also promises far-reaching economic and social benefits for the region.
Tolu Minerals acquired the Tolukuma gold mine in October 2022 after an extensive due diligence process, culminating in a purchase agreement with the mine’s liquidator for 20 million kina.
The mine, located in the Woitape area of Goilala District in the Central Province, has a rich history, having operated for 20 years as a high-grade gold producer since its establishment in 1995.
Throughout its operational life, the
mine consistently produced approximately 15 grams of gold per tonne of ore, peaking at 23 grams per tonne during its early, more productive years. However, by the late 2000s, several critical cost factors led to the mine’s closure and subsequent care and maintenance status in 2015.
With a clear understanding of the challenges that led to Tolukuma’s previous closure and a well-defined strategy to address them, Tolu Minerals is well-positioned to ensure the long-term success of the Tolukuma gold mine, benefiting both its shareholders and the local communities it serves.
SOCIAL IMPACT:
The social impact of the Tolukuma mine’s revival cannot be understated. The support for socio-economic development includes:
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With 25+ years experience servicing exploration and mining clients in some of the world’s most remote and challenging terrain, our team have continued to deliver results for our clients decade after decade.
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• Employment and social uplifting
• Training and skills development
• Access to markets to stimulate economic activity
• Local procurement
• Power generation
At its peak, the mine employed 600 to 700 people, with a multiplier effect empowering an estimated 9,000 individuals economically.
As the mine ramps up operations, it is expected to create hundreds of jobs and stimulate secondary economic activities, such as agriculture and local manufacturing.
The new road and power infrastructure will open opportunities for further economic development in Goilala District and surrounding areas, transforming the region’s economic landscape.
In an exclusive interview with PNG Business News (PNGBN), the Chief Executive Officer & Managing Director of Tolu Minerals Ltd, Iain Macpherson, shared insights into their plans for both the Tolukuma mine and the surrounding area.
He elaborated on the importance of balancing the mine’s development with regional infrastructure and socio-economic development, saying: “The company is committed to reviving a historic mine and also to fostering sustainable economic growth in the Central Province.”
ADDRESSING KEY COST CHALLENGES:
One of the primary challenges faced by Tolukuma was its reliance on helicopter service for all logistical needs, including the transport of diesel fuel, which escalated operational costs. Additionally, the deterioration of the mine’s hydropower station, once a reliable source of power, forced a shift to expensive diesel-powered electricity generation. The mine’s design also contributed to its downfall, as it was developed from the top of the mountain downward without a lower entrance, resulting in costly water pumping operations.
Recognising these issues, Tolu Minerals has made addressing these cost drivers a top priority. The company began road construction in December 2023, which will significantly reduce the exorbitant
costs associated with helicopter transport.
STRATEGIC INVESTMENTS AND PARTNERSHIPS:
Following its initial public offering (IPO) on the Australian Exchange in November 2023, Tolu Minerals successfully funded the Tolukuma project.
The company’s shareholding is noteworthy, with nearly half of it held by important Papua New Guinean private individuals and institutions, including Trans Wonderland Limited (TWL), Kumul Minerals, and Mineral Resources Development Company Ltd (MRDC).
Tolu Minerals has also forged strategic partnerships to ensure the successful revival of Tolukuma. The company is collaborating with the Allan Guo Group of Companies, known for constructing the Edevu Power Station, to build the road and develop proposals for the hydropower station’s refurbishment.
The hydropower station, which is scheduled for re-commissioning within 18 months, will be oversized to establish a local power grid, further stimulating economic activity in the surrounding areas.
In addition to exploration and technological improvements, Tolu Minerals has commenced an airborne Magneto Telluric (MT) geophysical survey over the Tolukuma Gold Mine in Central Province—a portfolio of gold, silver, and base metal
mineralised projects.
This technique has already been used with success at K92 Mining in PNG. This high-resolution survey will enhance regional exploration targeting, crucial in the challenging terrain of the region, where exploration is expensive due to mountainous landscapes and the need for helicopter service.
Airborne MT resistivity data is modelled to provide a more accurate guide to the depth and location of drill targets. New targets are expected to be interpreted, requiring an ongoing field exploration program of geological mapping, sampling, and drill testing following the current drill programme.
The company has contracted Expert Geophysics Limited (EG) to perform the MT Survey, which covers the Tolukuma Mining Lease and surrounding tenements, including Ipi River ELA2780 to the northwest of Tolukuma.
It’s interesting to note that the Mobile MT utilises naturally occurring electromagnetic fields from three orthogonal induction coils that are contained within an aerodynamically shaped capsule towed by a helicopter 60 to 70 metres above the ground. This is when magnetic data is collected to assist in mapping sub-surface geology.
This process will also inform an evolving exploration strategy.
The results will increase the existing extensive database of technical information, including airborne and ground geophysics, geochemistry, historical drilling results, and geology.
Tolu Minerals Drives Development with Bakoiudu-Tolukuma Road
By: ROSELYN EREHE
Tolu Minerals has launched the Bakoiudu-Tolukuma Road Project in Central Province, Papua New Guinea. This crucial infrastructure initiative will connect the Kairuku and Goilala Districts, benefiting both the Tolukuma Mine and local communities.
Governor for Central Province, Hon. Rufina Peter, and Managing Director of the MRA, Mr. Jerry Garry, the Managing Director of Tunnel Engineering Ltd Allan Guo, and members of both the Kairuku and Goilala Districts attended the event along with local leaders, media representatives, and residents from both LLGs.
A COLLABORATIVE EFFORT
The project is a joint venture between Tolu Minerals, the Mineral Resources Authority (MRA), and various government bodies and local stakeholders. It has received strong support from the Central Province Government, Kairuku and Goilala Districts, and local leaders.
In a keynote address, Chief Executive Officer & Managing Director of Tolu Minerals Ltd, Iain Macpherson, highlighted the transformative potential of the road project, not just for the Tolukuma Mine but for the entire Central Province.
“Physical infrastructure always supports economic development,” he stated.
“Roads, in particular, allow sustainable business operations, promote the exchange of goods and services, facilitate the movement of people and skills, and generally enhance economic activity. The mere fact that a road is going through is going to change the nature of the region. It’s going to make it of more interest to people coming in from outside.”
TRANSFORMING THE REGION
The road will significantly improve access to the Tolukuma Mine, reducing reliance on costly helicopter transport. It will also boost economic activity in the region, creating jobs and facilitating trade.
“The road has to be built for the future of the mine and for the future of the region,” Macpherson remarked.
Gov. Peter said, “This road has been
sit and wait, watch the opportunity to pass us. It’s a good opportunity that this developers have come to develop our district. Let’s take it,” she added.
TWO-STAGE CONSTRUCTION
The project is divided into two phases:
1. Pilot Road: Construction of a temporary gravel road to connect the mine to the Bakoiudu area. This stage is nearing completion.
2. Upgrade: Upgrading the pilot road to a provincial standard, ensuring longterm benefits for the region.
“My objective is to have the first vehicle drive that road well before the end of this year,” Macpherson declared.
“Thank you for your support in the past, today, and in the future to get this project completed. For the benefit, not only of Tolu Minerals and Tolukuma Mine, but for the communities and the district and the region as a whole. And indeed, for the benefit of Papua New Guinea as a whole.”
ECONOMIC AND SOCIAL BENEFITS
The road will:
• Reduce costs: Lower transportation costs for the Tolukuma Mine.
• Create jobs: Generate employment opportunities in the construction and mining sectors.
• Boost trade: Facilitate the movement of goods and services between regions.
• Improve access: Enhance access to markets for local agricultural products.
“With the right team, the right contractors, the right technology, I believe our plans to build and develop the regions will be successful.” Garry added.
A CATALYST FOR DEVELOPMENT
The Bakoiudu-Tolukuma Road Project is a testament to the positive impact that responsible mining can have on local communities. It demonstrates Tolu Minerals’ commitment to sustainable development and its role in driving progress in Papua New Guinea.
“The successful completion of the road will not only rejuvenate the Tolukuma Mine but also provide longterm economic benefits to the region, including employment opportunities and increased access to markets,” Macpherson said.
He reiterated, “We are absolutely committed to delivering this project and delivering the return of Tolukuma Mine and delivering the economic development of the entire region.”
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PNG Resources Week a Success
Stresses Local Engagement, Career Opportunities; Smare: Event ‘A Great Pathway’
By: ROSELYN EREHE
The inaugural Papua New Guinea (PNG) Resources Week, featuring the PNG Core Expo and Canconexx, concluded on a high note at the University of Papua New Guinea (UPNG) and The Resources Summit Dinner hosted at Hilton Hotel on July 4th.
Aimed at fostering greater local engagement in the country’s resource sector, the event saw a good turnout of delegates, investors, stakeholders, and local businesses.
The week presented a diverse array of exhibitors across four categories: Principal, Platinum, Standard, and Economy.
Industry giants such as Santos, Newmont, and Huawei displayed alongside local entities like PNG Business News and community-focused organizations such as St John Ambulance and Community Education Services and service providers from both the public and private sectors.
July 3 and 4 featured a Career Fair, where universities and technical colleges explored booths set up by various corporates, businesses, and organisations especially from the mining and resources sectors, including:
• University of Papua New Guinea
• Pacific Adventist University
• Divine Word University (Port Moresby Campus)
• Institute of Business Studies
• Don Bosco Technological Institute
• Other business and technical schools.
The University of Technology was the only National University that had an information booth.
President of PNG CORE Anthony Smare told PNG Business News and UNITECH: “You pick more pathways for students. The only way that you can be a bridge is to actively go out and participate when you see there’s a big gathering or convening of the business community, but also multinational-type community events like this one.”
The Career Fair also facilitated interactions between universities, technical colleges, and corporate entities from the mining and resources sectors.
“The more that you engage, not just having your stall, but also speaking at conferences and talking about your needs and your issues... It’s really important to be effective,” remarked Mr. Smare.
The event also included the CANCONEX 2024, focused on community affairs and national content, reinforcing the role of local stakeholders in the resource sector’s development.
The initiative aimed to enhance collaboration between industry players and local communities, promoting sustainable growth and resource governance.
A key highlight was the PNG Resource Summit at the Hilton Hotel, featuring a keynote address by Prime Minister Hon. James Marape at the closing gala dinner in Port Moresby on the evening of July 4.
The summit provided a platform to discuss outlooks and strategies for PNG’s resource sector, which accounts for a significant portion of the country’s annual exports.
MARAPE’S KEYNOTE
In an official media release, PM Marape congratulated PNG CORE on successfully hosting “a resource week’ that saw stakeholders in the mining and petroleum sectors meet to discuss industry matters.”
He commended PNG CORE for bringing together resource stakeholders to meet and talk, as he reminded the companies to become
more inclusive of landowners in business spin-offs.
Pointing out the Hilton Hotel, where the dinner was being held, as an example of landowner entrepreneurship, the Prime Minister said developers need not look far.
“If you doubt the ability of landowners, we sit in a hotel that is landowner-owned. In 2008, the Consortium that owns this, they come under the management of MRDC, their balance sheet was K300 million. Today, their balance sheet is K7 billion.
“That indicates one thing, that landowner companies in the country are growing capacities that are adequate to fill in the gaps of service providers. And so, we want to migrate past catering provision and security provision to the highest we could participate in for resources and resource harvesting.”
Prime Minister Marape said people on whose land developers do business -- including the Motu Koitabu in the city – must be acknowledged and opportunities given to them to participate in spinoff businesses.
He once more reminded the companies of the pain of Panguna, which arose because landowner’s needs were not respected.
“No amount of razor wire can stop the people from fighting for their rights if you do not give them what their rightful entitlements are,” he said.
Hon. James Marape at Hilton giving his keynote speech during the Closing Gala Dinner for the 2024 PNG RESOURCES WEEK. Port Moresby.
Marape: PNG Has More Gold
Papua New Guinea has an estimated 100 million ounces of gold that is yet to be mined, according to Prime Minister Hon. James Marape.
Marape revealed this when officially closing the Geoscience, Exploration & Extraction Conference 2024 at the APEC Haus in Port Moresby.
He said based on the gold price of around US$2,400 an ounce, the 100m ounces would equate to a total asset base of US$150 billion worth of gold.
He described the numbers as “staggering” considering that PNG also produces copper, nickel and silver, which adds onto the asset base.
Marape said PNG has a young geology and that the country sits on possibly six or seven plate tectonics that is still forming, with mineralization continuously taking place.
In terms of policy, the govern -
finished products, Marape said.
“Our market is closer to home, not to mention markets further from us. We have 4 billion people right within the Asian region and millions in Australia with appetite for our resources. We are placed in a in a part of planet Earth that can produce resources, process resources and supply to the market that is closer to home.”
He assured the mining sector that it would continue to receive government support, adding that the government was looking at regulatory framework and legislative environment that does not hurt investors, but at the same time PNG value-adds from the harvest of its resources.
The government was looking at a transparent way of farming out exploration “and ensuring that the best companies are participating in exploration, and development of our resources,” the Prime Minister
Management (DMPGM) and the MRA have been asked to look at auctioning resources, adding this was something that the government was looking at very closely.
He said the Department of Mineral Policy & Geohazards
“We put the resources, maps and exploration spaces on auction. The best companies out there who have cleaner technology, better resource benefit sharing formula and those who can respect my landowners and provinces better, could come in, bid and bring in the capital and work with local partners to develop these resources.”
Building a stronger PNG together
We’re proud to say that our wor kforce is the engine of the PNG LNG Project, Pa pua New Guinea’s r st LNG business.
Of our 3,70 0 workforce, almost 90% are Papua New Guinean who excel in all areas of our bus ines s, ris ing through the ranks in PNG and even going on to roles around the world
Women are playing a vital role in our succes s, accounting for 20% of our overall workforce In fact, more than a third of our PNG LNG technicians are female, set ting a global benchmark for Ex xonMobil
In our rst 10 years of production we have worked more than 10 0 million hours to produce over 80 million tons of LNG, along the way building one of the safest and most reliable LNG operations in the world
By investing in Papua New Guineans, we are strengthening skills and building capabilities that will bene t this industr y and countr y for years to come.
10 years of partnership, grow th and success
Stage 2 Wharf Construction Underway at Central Cement & Lime Project
Mayur Resources provided an update on the Stage 2 wharf development at the Central Cement and Lime Project in Papua New Guinea.
Mayur Resources Managing Director Paul Mulder said the wharf development was a critical piece of work enabling marine infrastructure for both PNG, and the Company’s plans.
“Dedicated wharf facilities are strategically important to Mayur’s CCL Project. The proximity of the wharf is less than one kilometre from Mayur’s manufacturing facilities and quarries,” Mr Mulder said.
“This compares incredibly favourably over some of our Southeast Asian competitor suppliers, who have trucking distances of some 100 kilometres to the wharf prior to barging to the FOB loading point that are significantly further away from customer markets in Australia and the Pacific, both of which, generate a significant cost advantage for Mayur.”
“Our wharf facilities create a unique, vertically integrated development with a highly efficient supply chain and direct access to Southeast Asian markets. We look forward to completing construction in Q4 CY2024 and generating early-stage revenue from the sale of limestone and aggregates,” Mr Mulder said.
SECOND STAGE OF WHARF CONSTRUCTION COMMENCES
Mayur has placed key orders for construction materials, that is sheet piling for Stage 2 construction of the wharf with PNG owned and operated Hi-Lift Global, a company with over 48 years of experience in PNG in logistics and facilitating the delivery of construction materials.
This is a key milestone in the Company’s CCL project construction program, with the wharf development scheduled to be completed by Q4 CY2024.
Stage 2 of the wharf (Figure 2) will enable both roll-on/roll-off barge access and crane loaded double sided barge operations. First revenues from the sale of limestone and aggregates are expected once Stage 2 of the wharf completes later this year.
Stage 3 of the wharf development is planned for 2025. Once completed, the wharf will be capable of loading and unloading bulk materials on vessels up to Handymax size (40,000 to 55,000 tonnes).
Mayur will own the wharf, which is a strategic asset for the Company’s CCL project. It will provide the Company with ownership and control of its supply chain within PNG, while also providing access to both domestic and export markets. The Company will also continue engagement with other third-party prospective Port Operators and Owners.
PNG ESTABLISHES STATE NEGOTIATION TEAM ENGAGEMENT TO FACILITATE CENTRAL LIME AND CEMENT PROJECT
Mayur also reported that the National Executive Council of Papua New Guinea’s Government has established a State Negotiation Team to finalise the terms of a Project Development Agreement (the PDA) between Mayur and the PNG Government.
The PDA will set out the terms upon which the PNG Government
will participate in the CCL Project, ensuring the interests of the state, provincial government, and landowners are adequately represented.
Finalising a PDA with the PNG Government is a critical final step towards Mayur commencing full scale construction of the Central Lime Project and the later expansion into Clinker and Cement.
Mayur expects to finalise the PDA within Q3 CY2024.
ONGOING STAKEHOLDER ENGAGEMENT & COMMUNITY BENEFITS
Mayur is soon to commence construction of a new rugby and sports field for the local community in Kido. Design works are complete with construction to commence in parallel with Stage 2 development of the wharf.
The sports field is critical social infrastructure for the Kido community and early construction will allow for a transition from the existing field to a new location by the end of Q4 CY2024.
Infrastructure projects that will benefit the Kido community will Page 78 >
3D model of the final wharf (under design) and the Central Cement & Lime Projects
Stage 2 wharf schematic overlay on drone image of current Stage 1 development process
a lot more later.
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OTML Hosts East Sepik Delegation on Fact-Finding Mission
Ok Tedi Mining Limited (OTML) hosted a delegation from the East Sepik Provincial Administration on a fact-finding mission to gain insights from Ok Tedi operations to prepare for the upcoming Frieda River Project in the Sepik Region.
The delegation from the Provincial Administration Mining Desk Team sought to understand the various aspects of the mine operations to address some of their concerns with the upcoming Frieda River Copper-Gold Project.
The Frieda River Project is in a region shared by both East and West Sepik Provinces and has garnered significant attention from local communities due to its potential impact on the environment, particularly concerning the Sepik River and its floodplain system.
The delegation visited the Mine, Mill, Ok Menga Hydro Power Station, Bige and Kiunga Operations, and had the opportunity to witness the second stage of regional meetings for the current Community Mine Continuation Agreement (CMCA) Review.
They observed the management of mine waste, pyrite concentrate plant, environment monitoring, community relations activities, national and local content business structure, and community development programs, particularly through the Ok Tedi Development Foundation (OTDF).
Team Lead Mr Martin Torovi said Ok Tedi is of a similar physical setting to the proposed Frieda River Mine and the legacy issues of Ok Tedi are the very concerns and anxiety of the Sepik River People.
“If Environmental Permit is granted, East Sepik Provincial Administration will be tasked with managing a large mine’s environmental impact and benefit sharing agreements and negotiations. We Sepiks do not have the experience to manage these issues. As such we reached out to Ok Tedi for the learning experience,” said Mr Torovi.
“Some of the key takeaways from the visit include: The Development of Engineered Waste Rock Dumps; pyrite treatment plant; Bige Dredging; sustainable development projects; and understanding the Equity, Royalty, Trusts and Development Funds structure.”
Mr Torovi added: “We also could not have asked for a better time to conduct this visit. We had the opportunity to observe the CMCA meetings that is very appropriate to the concerns we have.”
Provincial Mine and Lands Minister &
President of Gaui LLG Mr Leo Singut said he appreciated the opportunity to visit and learn from Ok Tedi.
OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, said: “We are pleased to provide the delegation valuable insight into the multifaceted activities of our operation. We believe the visit has provided them valuable information as they prepare for the upcoming Frieda River Project and its impacts in their respective region and province.”
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commence upon Financial Investment Decision Conditions Precedent being achieved for the Central Lime Project financing.
These include but are not limited to the provision of water and electricity supply infrastructure and connecting road and bridge access to Port Moresby.
Works to Address Ageing Panguna Mine Infrastructure
The Autonomous Bougainville Government (ABG), Bougainville Copper Limited (BCL), and Rio Tinto have signed a Memorandum of Understanding to address concerns around future risks of ageing infrastructure in the former Panguna mine area.
This collaboration comes in response to information obtained during field work for the independent Legacy Impact Assessment, which identified several ageing structures requiring prompt attention.
The MoU aims to mitigate potential risks associated with deteriorating infrastructure and promote safety in the region.
Works will be carried out on old BCL assets, including the Jaba Pump Station and the Momau River Bridge, as well as the former mine area workshop, storage facilities and concrete wall in the Panguna town area. The works are expected to commence in November 2024 and will take several months to complete.
ABG Chief Secretary Kearnneth Nanei said concerns about run down
infrastructure had been escalated to the government following field work conducted as part of the Panguna Mine Legacy Impact Assessment (PMLIA).
“We are very pleased to be working with BCL with support from Rio Tinto in responding to the issues raised, in the best interest of our people. As we await the final results of the legacy impact assessment, these works represent a positive sign of cooperation by BCL and Rio Tinto,” he said.
BCL Chairman Sir Mel Togolo said as the mine’s former operator and holder of the EL01 exploration licence for the area, BCL maintains a presence and is recognised as a development partner on the ground in Bougainville.
“Our local team will be working closely together with the ABG in overseeing the project works to ensure these ageing buildings and structures don’t cause issues for the community,” he said.
Rio Tinto Country Director for PNG Andrew Cooper said: “We are pleased to support the Autonomous Bougainville Government
and Bougainville Copper Limited in addressing these issues identified as a priority during the legacy impact assessment field work. We commend the ABG and Chief Secretary Nanei for their proactive leadership in driving tangible action.”
The results of Phase 1 of the PMLIA are due for public release in the fourth quarter of 2024. These will provide all parties with a clearer understanding of the potential environmental impacts and directly connected social and human rights impacts, associated with the Panguna mine since the cessation of mining in 1989.
BCL Chairman Sir Mel Togolo and Rio Tinto Country Director for PNG Andrew Cooper signing the MoU
Santos Signs Mid-Term LNG Supply Contract
Santos has announced the signing of a mid-term LNG supply contract with Glencore Singapore Pte Ltd (Glencore).
The contract involves supplying 19 LNG cargoes, or up to approximately 0.5 million tonnes of LNG per annum, over a period of three years plus one quarter. The supply will come from Santos’ global portfolio of world-class LNG assets on a delivered ex-ship basis.
Santos Managing Director and Chief Executive Officer Kevin Gallagher noted that the contract with Glencore extends their existing strong business relationship and presents a valuable opportunity for both companies to leverage their expertise in Asian LNG markets.
“This oil-indexed contract, along with a long-term LNG Sales and Purchase Agreement
with Hokkaido Gas in Japan, highlights Santos’ robust LNG portfolio position and customer relationships in the region,” Mr Gallagher said.
“There continues to be strong demand in Asia for high heating value LNG from projects such as Barossa and PNG LNG. Santos is committed to supporting the energy security of our valued customers across Asia,” he added.
Marape Hails Economic Impact of PNG LNG Project
The “transformational” PNG LNG Project has brought in K26.3 billion in economic benefits to Papua New Guinea since the export of the first gas in 2014, Prime Minister Hon. James Marape announced at the Hilton Hotel in Port Moresby while addressing a dinner commemorating the 10th anniversary of the project.
Marape thanked project developer Exxon Mobil for having faith in PNG since 2008 when it started work on the project up to the export of the first gas in 2014, up until today.
He also appreciated all joint venture partners, including Kumul Petroleum Holdings Ltd (KPHL), Santos Ltd, JX Nippon Oil & Gas Exploration Company, and Mineral Resources Development Company (MRDC).
He also thanked all landowners for allowing the project to proceed on their land and acknowledged leaders, including the late former Prime Minister Sir Michael Somare and the late Hela Governor Anderson Agiru, for their vision and foresight.
“The PNG LNG Project is a transformational project. The National Alliance Government of the late former Prime Minister, Sir Michael Somare, must be commended for having the foresight in 2008 to start this project,” Marape said.
“The total value of economic benefits to the country since first production started 10 years ago is K26.3 billion. This includes K1.3 billion for landowner royalties, K1.26 billion in development levies, 2 per cent equity for landown -
ers plus distribution to Mineral Resources Development Company of K1.9 billion, K9.6 billion to Kumul Petroleum Holdings for 16.5 per cent equity, and total tax of K12 billion.
“As of today, after 1069 cargoes, we have received in the country K26.3 billion. The economy has grown from under K25 billion in 2008 to K79 billion in 2019 when I took office, to K113 billion now. This project was the impetus for the growth of the economy,” the Prime Minister added.
Marape noted that companies, both large and small, have benefited from the PNG LNG Project since its inception. He added that when the project started in 2008, there were many critics and sceptics, who have now been proven wrong.
Kumul Awards Seismic Contract to OilMin
Kumul Petroleum Holdings has awarded a contract to OilMin Holdings Limited to carry out seismic work in two petroleum retention licences where KPHL is the operator. General Manager, Fintan Lalor, signed the contract on behalf of OilMin.
Kumul Petroleum managing director Wapu Sonk said: “This contract award is the next step in our management of the petroleum retention licences awarded to KPHL by DPE. We have engaged OiMin to shoot a total of 79 kilometres of seismic, in six lines, over the Kimu and Barikewa fields in Gulf and Western provinces.”
“This is the first time that a national company has engaged in petroleum exploration in PNG.”
Mr Sonk said: “The purpose of this seismic work is to gather additional information on the petroleum resources already discovered in these two licences, to hopefully increase the confirmed volumes of oil and gas they contain, as well as improve further exploration targets.”
“Once we have a better idea of the oil and gas volumes in these licences, we can assess the economic feasibility of monetising this resource and select a development path.”
“As approved by the KPHL Board, the contract has a value of K79 million, this cost split almost equally between the two licences. We are happy to engage OilMin, a national company who have many years of experience in the management of remote field operations in the country and employ many Papua New Guineans.”
Explaining some of the detail of the planned seimic, Sonk said: “the proposed work is in remote areas and will be heli-supported. Seismic line cutting is a labour-intensive activity, and it is likely that
there will be 3-400 casual labourers engaged by OilMin during the programme.”
“OilMin, as principal contractor, will be responsible for all aspects of the programme including seismic data collection, helicopter support, medical and security services on site. This seismic programme will start this month and should be complete by March
2025.”
“I am glad that Kumul Petroleum Holdings is now actively involved in upstream petroleum exploration and investigating the possibility of further commercialisation of PNG’s gas resources, in licences where these discoveries had previously been considered uneconomic stranded fields.”
tic Liquid Fertilizer
17 Graduate from Kumul Petroleum Academy
In late August, 17 ExxonMobil trainees graduated in a ceremony held at the Kumul Petroleum Academy (KPA) at Idubada, as they completed a one-year full-time course and achieved City and Guilds certification in their respective disciplines.
Eleven trainees received their certificates in plant process operation, and six were certified as instrument maintenance technicians. Notably, four of the 17 graduates were female, and are part of the 9th cohort to complete their training at KPA.
The graduation ceremony featured speeches from guest speakers including ExxonMobil Upstream Asset Manager Mr Breton Macdonald, Kumul Petroleum Holdings Senior Manager Mr Sikke Jan Wynia, and several trainees as well as the KPA manager.
Echoing the sentiments of other speakers, Mr Wynia congratulated the trainees on their successful completion of studies.
“Kumul Petroleum is proud to have sponsored KPA for almost 10 years, enhancing the capabilities of the petroleum industry workforce, including the 17 graduates today from the 8th Junior Operations and Maintenance Staff
Course,” he said.
Wynia also highlighted that Kumul Petroleum is constructing a new training facility at Caution Bay, which will provide improved facilities and allow for additional courses to further raise the technical standards of Papua New Guinea’s national industrial workforce.
Guests at the graduation included family and friends of the graduates, ExxonMobil personnel, and the staff at KPA. The event was also enlivened by a Motuan music and dance troupe.
City and Guilds is a United Kingdom-based awarding body for skills development. The trainees’ education
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included an introduction to the oil and gas industry, safety training, knowledge in their chosen disciplines, practical on-the-job training, and coaching in the well-equipped workshops and the Safe Live Process Plant located at KPA’s Idubada campus.
Since its inception in 2016, 186 trainees sponsored by ExxonMobil, Oil Search, Santos, and Kumul Petroleum Holdings have graduated from KPA.
The academy has a three-year contract with Santos to provide training and is currently preparing to welcome the 10th cohort of ExxonMobil-sponsored trainees in the coming weeks.
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PNG CORE Visits PNG LNG Project Operator
As part of its member engagement activities, staff from PNG Chamber of Resources and Energy (PNG CORE) recently took part in a stakeholder engagement, hosted by ExxonMobil PNG (EMPNG).
This advocacy session, facilitated by EMPNG’s Government Affairs team, provided PNG CORE staff with an appreciation of work done by the PNG LNG Project operator, particularly through their external affairs and stakeholder engagement.
PNG CORE Chief operating officer Pansy Taueni-Sialis said it was an informative session which provided insights on what happens in the PNG LNG Project especially around benefit sharing agreements, licenses, ongoing trade and investment relations, landowner benefits and the overall operations of the project.
“As the leading industry body for the mineral, petroleum, and energy sectors, it is crucial for the PNG CORE team to understand the intricacies of project operations to provide relevant support, particularly in advocacy and representa -
tion on behalf of our members at various levels. We are grateful for the opportunity for our team to attend this workshop.”
PNG CORE Graduate Trainee Henrietta Daniel said the workshop significantly clarified the operational structure of the LNG pipeline, detailing the roles and responsibilities across the entire system - from drilling and operations at the Hides Gas Conditioning Plant (HGCP) to the processing facility at Caution Bay, outside Port Moresby.
“My primary interest lies in LNG processing, from inception to ship -
ment, and the workshop’s detailed breakdown of these processes was particularly enlightening. I gained valuable and firsthand insights into the PNGLNG project’s future expansion plans, including the integration of the Papua LNG Project to the existing plant and the transition towards greener practices with e-trains.”
“I am grateful for the opportunity to receive this firsthand information, which will go long way in assisting me in my role with PNG CORE in providing awareness to our membership across the resources sector.”
PNG CORE staff with
ExxonMobil PNG’s Public & Government Affairs at the stakeholder engagement
INVESTING IN AGRICULTURE IN PNG FOR OVER 30 YEARS
Empowering Local Farmers
Trukai Smart Farmer Program’s Success in Sustainable Rice Farming in PNG
Since its inception in 2022, the Trukai Smart Farmer Program and its partners have so far trained over 400 participants.
Trukai Industries Agriculture team has adopted the irrigated rice farming concept as a sustainable initiative to ensure farmers are introduced to best crop management, quality grain management and pest management systems.
Trukai Industries signed a Memorandum of Understanding with the PNG University of Technology in Lae in 2022 and the Pacific Adventist University in Port Moresby in 2023. With the aim of building capacity in local rice farming and supporting communities in PNG, the Trukai Smart Farmer Program has certified more than 140 rice farmers in Irrigated Rice Farming.
In June and July, a total of 201 participants attended the fourth batch of the Smart Farmer Program that were held in Lae Unitech and PAU in Port Moresby.
Many local rice farmers from all over the country attended this course with an underlying objective of going back to their areas to grow their rice and ultimately teach their community of these techniques.
Alex Kuariri, 38, from the East Sepik Province was amongst these farmers. He practices irrigation farming in his village, using this method to nurture oil palm, and has a fish farm.
Having underwent the Trukai Smart Farmer Program, Kuariri explains that he has upskilled his knowledge around irrigated farming and can now extend his farming technique into growing rice.
“Though I do irrigation farming, this training from Trukai has thought me a lot about farming rice. I’m excited and I believe I have the knowledge and skills to now grow rice in my village,” said Kuariri.
He added that he plans to teach the skills he has learnt to his family and fellow farmers in his area.
“I will start educating the people in my village and lead them to grow rice. I see two benefits of farming rice, it can be for commercial purposes and the second reason is, I can take home to my family to eat, he said.
Trukai Industries’ Rice Development Manager Aina Davis explained that the Smart Farmer Training has now become accessible to all farmers nationwide because it is being taught in two main centres in PNG.
“We have now seen an increased number of participants because of the accessibility of this training. Participants can now choose their institution of choice depending on their geographical location and transportation accessibility,” said Davis.
Trukai Industries’ CEO Alan Preston described the Trukai Smart Farmer Program as a commitment to supporting local rice farmers and agriculture in Papua New Guinea.
“We continue to support local rice farmers by enhancing their rice cultivation skills, strengthening families, building communities and reaffirming our commitment to PNG through extensive agriculture programs, rice research, science, technology and development through our partnerships with leading institutions in the country,” said Preston.
The partnership with both UniTech and PAU will enable participating farmers of the Smart Farmer Program to share and access classrooms, research laboratories, and farm or field facilities for farmer training as well as undergraduate and postgraduate student training, research and development, and extension activities.
PNG-Australia Partnership: Organic Certification Training Paves Way for PNG Farmers to Enter Global Markets
By: ROSELYN EREHE
An innovative partnership between the Australian Government and PNGbased accreditation provider Paradais Review Services is set to send six Papua New Guineans on a vital training program in South Australia.
Over a two-week program, these individuals will train as National Association of Sustainable Agriculture Australia (NASAA) Organic Inspectors and Food Safety Management System Auditors in Adelaide.
Local farmers have long struggled to gain access to the lucrative global organic produce market despite much of their crops being naturally
organic. A major barrier has been the absence of locally qualified organic certifiers.
Currently, international certifiers come in from countries like Australia, making the process both costly and logistically challenging for PNG agribusinesses. This initiative seeks to address this issue head-on by equipping local professionals with the necessary skills and qualifications.
Australian High Commission Economics Counsellor Nic Jonsson said this training initiative is a concrete step under the PNG-Australia Partnership to improve livelihoods in PNG’s agricultural sector.
“Once this training is complete, PNG farmers will have on-theground access to internationally qualified organic food inspectors. This means it will make it easier for PNG produce to compete in valuable overseas organic markets like Australia,” Mr. Jonsson said.
He said the inspectors will conclude their initial 14-day training on August 23 before returning to PNG.
Over the following year, they will continue their learning through online modules and practical, onthe-ground instruction, ensuring they are fully certified and ready to assist PNG farmers by August 2025.
PNG Resources Week: Allan Bird on Impact of Agriculture-Cocoa in East Sepik
By: ROSELYN EREHE
The Papua New Guinea Resources Week allowed presenters to share information, network opportunities, and PNG’s national content.
East Sepik Governor Allan Bird took the opportunity to articulate a bold vision for the future of his province, highlighting significant strides in agriculture and community empowerment.
In his presentation during the Resource Week Day 3 themed “Impact in Agriculture,” Bird underscored the challenges faced and the innovative solutions implemented to drive sustainable development in East Sepik.
Agricultural Transformation
Bird emphasized the pivotal role of agriculture in East Sepik’s economic scope, particularly focusing on cocoa production.
He revealed ambitious plans to equip each of the province’s estimated 128,000 cocoa farmers with the skills and resources needed to increase productivity.
Through the establishment of over 600 village nurseries, Bird’s administration has empowered local farmers to manage their cocoa plots independently, fostering self-sufficiency and boosting production capacity.
“We tried to bring all of that together to develop an economic base. Moving forward, obviously we picked cocoa, we tried to go to every single village, and I think we’ve established more than 600 village nurseries as of today we’ve established more than 600 village nurseries. So essentially every village has its own cocoa nursery,” Bird said.
“Then we spent money training our people on what to do with the nursery. So how to select their clones, how to produce a new seedling, essentially trying to upgrade them from what they were doing before in terms of their skills so that they can become self-sustaining.
“That was the whole idea, to give them the skills they need. In 2017, the entire province had about 12 people. We had about 3 nurseries in the whole province. Today we have more than 600 nurseries. We have close to 50,000 local farmers. We have people who can produce their own clones.
“So essentially, they can make their own decisions as to what they want to do with their land, with their resources, their labour, how to apply it. And I think we’ve been pretty successful at that. We were amongst the top five cocoa producers in the country. Our target is to try to get each one of our 128,000 cocoa farmers to produce one pound of cocoa. That’s our challenge. That’s our goal.”
“Today, we’ve already produced one and a half million seedlings this year alone,” Bird announced, illustrating the province’s rapid agricultural expansion.
By investing in training programs and infrastructure, East Sepik aims to lead PNG in cocoa production, a significant achievement for a region once struggling with agricultural viability, the governor said.
Community Empowerment and Infrastructure Development
Beyond agriculture, Bird highlighted initiatives aimed at enhancing community resilience and infrastructure.
He recounted success stories from villages like Changriwa in East Sepik Province, where every household now owns a cocoa plot, thanks to collaborative efforts between the provincial government and local communities.
Solar power initiatives have also been pivotal, providing sustainable energy solutions to remote areas previously lacking in basic services.
“We’ve managed to create many villages where self-sufficiency is the norm,” Bird noted, pointing out the transformative impact of these initiatives on local livelihoods.
From improved housing to enhanced access to essential services, communities across East Sepik are experiencing tangible improvements in quality of life.
Bird acknowledged persistent challenges, including logistical hurdles and financial constraints. He stressed the importance of continued support from national and international partners to sustain momentum and expand initiatives across the province.
“We need bigger ships to bring stock into Wewak,” Bird remarked, noting they are working towards solutions to match the growing demands of East Sepik’s economy while preserving its environment.
The governor expressed gratitude for the growing support from both public and governmental organisations. He credited increased public engagement and collaboration with overcoming initial resistance to reform initiatives, emphasizing the importance of transparent governance and community involvement in decision-making processes.
“In the last two years, public support has been crucial,” Bird stated, further assuring his commitment to empowering local communities and revitalizing agriculture.
Governor for East Sepik Province in PNG, Hon. Allan Bird addressing the delegates and sharing insights on the Impacts of Agriculture, specifically Cocoa in East Sepik Province during Day 3 theme, of PNG Resources Week at UPNG. Port Moresby. PNG.
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PNG Solar Supply: Lighting Up Remote PNG
By: ROSELYN EREHE
PNG Solar Supply - SPIA Enterprises Ltd is lighting-up the remotest corners of Papua New Guinea with sustainable and affordable solar energy solutions.
PNG Solar Supply is providing renewable energy solutions across the country. As a subsidiary and the commercial arm of the South Pacific International Academy, all profits from PNG Solar Supply are reinvested into the school’s expansion efforts. This unique business model allows the company to contribute both to energy sustainability and educational growth in PNG.
One of PNG Solar Supply’s flagship projects is the Kanabea MiniGrid, located deep in the hinterlands of Gulf Province. This mini-grid system features a 103 kWp solar array supported by 122 kWh of battery storage utilizing advanced lithium iron phosphate batteries.
The system connects 41 buildings, including a rural health centre, a church, and a primary school, providing reliable energy to essential services. This project highlights the company’s ability to bring sustainable energy to even the most isolated regions of the country.
PNG Solar Supply is proudly Papua New Guinean-owned and operated and has supplied 23 projects across PNG, providing much-needed employment opportunities for local communities.
With a commitment to designing and procuring solar-powered systems, the company has delivered energy infrastructure for numerous communities, most notably in remote and underserved regions.
PNG Solar Supply Sales and Marketing Coordinator Melvin Samuel stressed the company’s commitment to enhancing the accessibility of solar energy across PNG.
“PNG Solar Supply is the wholesale supplier of solar products throughout PNG. We focus on providing high quality materials at the lowest cost, seeking to utilise economies of scale to make it possible for local installers to implement solar projects at competitive costs,” Samuel stated.
He also expressed satisfaction with the growing adoption of renewable energy in the nation,
noting: “It is very satisfying to see renewable energy being installed across the nation.”
“For so long, diesel generators have filled this need, and those have been so harmful to the environment, not to mention the difficulty in logistics to just refuel them. Now users are getting solar panels that generate power for 25 years without having to think about it. This is very satisfying.”
PNG Solar Supply is capable of handling projects of any size, from single-family homes to larger minigrid installations. Their solar panels come with a 30-year warranty, while inverters and batteries are designed to last up to 10 years, ensuring longterm reliability.
Another notable project includes the design and procurement of solar power infrastructure for a surf resort in Vanimo, West Sepik Province. The 4.3 kWp solar array installed at the resort has 7.6 kWh of battery storage, powered by LifeLynk X technology, and connects five bungalows to the main power house, backed by a 5kVA generator.
By empowering PNG businesses and communities with clean, renewable energy, PNG Solar Supply is playing a key role in the nation’s transition to sustainable development.
PNG Solar Supply offers a full-service approach to solar energy projects, ensuring clients receive the highest level of service from start to finish. Their services include:
• Exploratory Stage: PNG Solar Supply uses the latest technology to assess energy needs and provide accurate cost and timeline estimates.
• Procurement Stage: With over 20 years of experience in foreign exchange and international procurement, PNG Solar Supply expertly handles international orders and manages the logistics of importing solar equipment, even amidst foreign exchange challenges.
• Installation and Commissioning: Through their partnership with Construction Electrical Services Ltd (CES), they offer professional installation and commissioning services, providing a complete turnkey solution.
As the nation continues to grapple with energy access and sustainability, solar power remains a viable solution.
PNG Solar Supply’s mission is to offer affordable, high-quality solar systems that can power even the most remote regions of the country.
NEA Launches First Corporate Plan 2023-2027
By: ROSELYN EREHE
The National Energy Authority (NEA) has officially launched its Corporate Plan 2023-2027, marking a significant milestone in Papua New Guinea’s energy sector.
The Corporate Plan, launched on 23 August at APEC Haus in Port Moresby, is the first of its kind for the NEA. It outlines the strategic direction and key objectives that will guide the Authority’s efforts over the next five years.
The Plan came into effect following the enactment of the National Energy Authority Bill in 2021, which established the NEA with the primary purpose of leading, facilitating, and accelerating the development of PNG’s energy sector.
The central goal of the Corporate Plan is to promote access to affordable, reliable, and sustainable energy services, which are crucial for economic growth and community prosperity.
A key focus is extending electricity access to 70% of PNG’s population by 2030 and achieving universal access by 2050. Currently, only about 15% of the population has access to electricity.
NEA Managing Director Roland Maketa highlighted the importance of the Corporate Plan in supporting the government’s national development goals, as outlined in the PNG Medium-Term Development Plan Four and Vision 2050.
“I am confident that the strategies outlined in this inaugural plan will take us a step closer towards achieving our goal of providing 70% of households with electricity from renewable sources by 2030 and 100% by 2050. Our commitment is to work collaboratively with all stakeholders to ensure its successful implementation.”
Deputy Chairman of the NEA, Raymond Unasi, reiterated similar sentiments, emphasising the Authority’s commitment to ensuring that even the remotest parts of the country will have electricity by 2050.
The Corporate Plan sets forth a comprehensive framework that identifies the NEA’s key roles, functions, and capabilities. It establishes
strategic goals and corporate priorities that will drive the Authority’s activities, focusing on enhancing the regulatory framework, expanding off-grid electrification, and harnessing the potential of renewable energy sources.
Government Commitment to Energy Security
The Minister for Energy, Hon. Thomas Opa, emphasised the importance of pursuing innovative solutions to increase energy generation and distribution, improve energy efficiency, and promote renewable energy sources.
Opa stated, “The government has placed great emphasis on energy security in Papua New Guinea. The medium-term development strategy is aligned with our goal to grow the economy by an estimated 200 billion by 2030 and double the country’s internal revenue, creating one million new jobs.”
He highlighted the government’s mission to transform PNG into a middle-income country by 2030, and central to this vision is ensuring a reliable and continuous electricity supply across the nation.
Establishment of the National Energy Authority
The NEA was established as a response to the need for a dedicated agency to oversee energy development. The separation of the Energy Division from the Petroleum Division of the former Petroleum and Energy Department in 2001 marked the beginning of a new era in PNG’s energy sector.
The creation of the NEA was supported by the Marape-Rosso government through the successful passage of the National Energy Authority Act in 2021.
Corporate Plan 2023-2027: Key Initiatives
The NEA’s Corporate Plan for 2023-2027 outlines several key initiatives aimed at strengthening the country’s energy infrastructure and promoting sustainable energy development. These include: Developing Renewable Energy: The NEA plans to invest in high-profile electric, solar, geothermal, biomass, and wind power projects across PNG.
Strengthening Energy Infrastructure: This involves expanding the use of mini grids, upgrading transmission and distribution networks, and utilising innovative financial mechanisms to attract private investment.
Promoting Energy Efficiency:
The plan also focuses on supporting the adoption of energy-efficient technologies, developing energy performance standards, and raising public awareness about the benefits of energy efficiency.
Facilitating Private Sector Investment: The NEA will create an enabling environment for private sector investment in energy projects, including clear regulatory frameworks, targeted tax incentives, and a streamlined project approval process.
Opa outlined the government’s ambitious target of providing 70% of PNG households with electricity by 2030, as part of the National Energy Rollout Plan.
Achieving this will require substantial investments in energy infrastructure, including the generation of clean and renewable energy sources such as hydropower, biomass, natural gas, geothermal, and wind.
The plan also aims to reduce the use of diesel-powered generators from 200 megawatts per annum to 150 megawatts by 2027.
The NEA expects to increase electricity generation in the Ramu grid, the Pom grid, and the Gazelle. To meet these goals, an estimated $3.3 billion in investment is needed for infrastructure priorities under various programs, including the National Power Generation Investment Program and the OffGrid Renewable Energy Development Program.
The NEA’s efforts have received strong support from international partners, including DFAT Australia, USAID, and the Asian Development Bank (ADB).
Last year, DFAT Australia supported urgent repairs across the Ramu and Port Moresby power grids and worked on designs to upgrade several potential power grids to hybrid solar-diesel systems.
ABG Partners with Stellae Energy Ltd
Explore potential for advancement of sustainable geothermal energy projects
The Autonomous Bougainville Government (ABG) has announced the signing of a Memorandum of Understanding (MOU) with Stellae Energy Ltd (Stellae), a UK-based Green Energy Solutions and Assets company.
This partnership marks a significant achievement in Bougainville’s journey towards energy independence and economic sustainability through the exploration of the region’s volcanic geothermal resources.
The MOU outlines a working cooperation between Stellae and the ABG through the Department of Mining and Petroleum (DMP) and the Bougainville Power and Water Corporation (BPWC), to identify and develop potential geothermal energy sites across the island.
This initiative is part of Bougainville’s broader energy security strategy to harness its natural resources in a way that benefits local communities, fosters economic growth, and contributes to global efforts to combat climate change.
“It is the Bougainville energy policy strategic view that green energy investment and development is encouraged by the government,” said President Ishmael Toroama who is also the Minister responsible for Mineral and Energy Resources.
“This partnership is a testament to Bougainville’s commitment to sustainable development and can provide the basis for an industrial revolution in Bougainville in the near future. By tapping into solar energy and now our geothermal resources, we not only aim to secure a reliable and clean energy source for our people but also
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USAID, through its five-year partnership with the PNG government, contributed $1.2 million to establish a solar mini-grid system in PNG’s central province.
Additionally, ADB has partnered with the government on several infrastructure projects aimed at strengthening the country’s energy sector.
Opa reiterated the importance of strong partnerships in realising PNG’s energy potential. He noted the paradox of PNG being rich in energy
aim to reduce our dependency on imported fossil fuels, paving the way for a greener and more self-sufficient Bougainville,” he said.
Stellae Energy Ltd, known for its innovative approach to renewable energy, will lead the exploration efforts in collaboration with local stakeholders. The project will be rolled out in phases, beginning with a comprehensive Exploration Screening Study. This study will assess the viability of various geothermal sites and lay out a clear roadmap for future development.
This opportunity has potential to bring electricity to local communities and businesses and to produce Green Hydrogen; this alternative energy carrier can be used to power transportation and other sectors, further
resources yet facing challenges in providing consistent electricity access.
“The key to unlocking this truth is unwavering commitment, not just by the government but by all stakeholders,” he said.
supporting sustainable development in Bougainville.
In addition to providing clean energy, this opportunity when progressed successfully will create jobs, stimulate local economies, and position Bougainville as a future leader in renewable energy within the Pacific region.
“The ABG is committed to ensuring that the development of geothermal resources is carried out with the utmost respect for the environment and the rights of local landowners. The government will work closely with Stellae Energy Ltd to engage with communities throughout the exploration and development process, ensuring that their voices are heard and their interests protected,” said Peter Kolotein, ABG Secretary for Mining and Petroleum.
The launch of the Corporate Plan also signifies NEA’s commitment to honouring international partnerships, including the PNG Electrification Partnership (PEP) countries and other allies, by ensuring a hands-on approach in all energy programs in PNG, as agreed upon during the 2018 APEC Summit and subsequent arrangements.
The launch was attended by key stakeholders and partners, including the New Zealand High Commissioner, representatives from PEP Partners, PNG Power Limited, Kumul Petroleum Holdings Limited, government agencies, and NEA management and staff.
The launch of the Corporate Plan is expected to set the foundation for NEA’s efforts to transform PNG’s energy sector, ensuring sustainable and equitable access to energy for all.
Mt Bagana, located in the southwest of mainland Bougainville, is one of the active volcanoes in the region.
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PNG’s Financial Sector Expands with 2 New Commercial Banks
By: ROSELYN EREHE
August 5th marked a historic moment for Papua New Guinea’s financial sector as the Bank of Papua New Guinea (BPNG) issued commercial banking licenses to TISA Bank Limited and Credit Bank PNG Limited.
This event, held at the BPNG headquarters in Port Moresby, is the first time two banking licenses have been granted on the same day, signalling a significant advancement in the PNG’s banking sector.
Governor Elizabeth Genia of BPNG officiated the event, stating: “It is my great pleasure to confirm that the Bank of Papua New Guinea has issued each with a commercial banking license today. Our hearty congratulations to PNG’s new commercial banks, TISA Bank Limited and Credit Bank PNG Limited.”
The announcement coincided with BPNG’s 50th anniversary, adding to the significance of the occasion.
Governor Genia highlighted the positive impact of increased competition for Papua New Guineans. BPNG, she said, will continue to provide regulatory support to both new banks, ensuring they meet the necessary standards.
“For the financial system to be
strong and vigorous, we need more service providers to foster real competition,” she noted. “BPNG actively supports reputable new entrants into the commercial banking market.”
The banking sector in PNG has faced challenges in recent years, with some banks closing operations or shifting strategies, leading to fewer retail banking options and a concentration of market share. However, the licensing of TISA Bank and Credit Bank PNG is expected to reverse this trend.
Governor Genia expressed optimism that increased competition would benefit consumers through more choices, innovative solutions, and better fee structures.
Dr. Albert Mellam, Chairman of Credit Corporation (PNG) Limited, reflected on the significance of the moment, stating: “Since we commenced operation in 1978, it has been a dream of our founding directors for Credit Corporation PNG to become a bank one day. Today, that dream is realized.”
He also outlined new services that Credit Bank PNG will offer, including internet banking and mobile applications tailored toward small to medium enterprises and emerging markets.
The rigorous two-year assessment
process conducted by BPNG ensured that both TISA Bank Limited and Credit Bank PNG Limited met stringent requirements to operate as commercial banks, including governance, risk management, financial health, and operational systems.
Governor Genia reiterated that obtaining a banking license is just the beginning. Ongoing compliance with the Banks and Financial Institutions Act 2000 and other regulations is crucial for these banks’ continued operation.
TISA, a key player in the savings and loans industry since 1972, also celebrated this milestone, as its Chairman Gabriel Tai emphasized the bank’s commitment to adhering to BPNG’s regulations and serving its 80,000 members across Papua New Guinea.
“TISA Bank is for everybody in Papua New Guinea,” Tai stated, underscoring the bank’s inclusive approach that aims to provide services to a broad range of customers, including SMEs and MSMEs.
These new bank entrants are expected to create jobs, promote financial inclusion, support local small and medium-sized enterprises (SMEs) and micro, small, and medium-sized enterprises (MSMEs), and drive innovation within the sector.
(Left - right)
TISAS Limited and CreditBank PNG display their banking Licence given on August 5th. (Standing center) BPNG
Governor Elizabeth Genia and BPNG staff. BPNG has issued commercial banking licenses to TISA Bank Limited and Credit Bank PNG Limited, marking the first time two banking licenses have been granted.image Provided BPNG PR
CreditBank PNG Gets Bank License
By: ROSELYN EREHE
Credit Corporation (PNG) Limited has achieved a longheld dream of its founding directors by evolving into a fully-fledged bank, a milestone celebrated by Chairman Dr. Albert Mellam during the official licensing event by the Bank of Papua New Guinea (BPNG).
The transition to CreditBank PNG marks a pivotal moment in the company’s history, reflecting its vision to become one of the leading financial service groups in the South Pacific.
Dr. Mellam remarked: “Today, that dream is realized. Becoming Papua New Guinea’s newest homegrown bank reflects our clear vision to be recognized as one of the leading financial service groups in the South Pacific.”
At the milestone event in Port Moresby in early August, Dr. Mellam expressed deep gratitude to BPNG for its support throughout the licensing process. “On behalf of the Board, management, staff of Credit Corp, and its shareholders, I want to say thank you,” he stated.
CreditBank PNG is set to offer a comprehensive range of banking services, including transaction accounts, savings, and deposit products, facilitated through new internet banking and mobile platforms.
The bank aims to cater to customers in the small to medium enterprise (SME), commercial, and emerging middle market segments.
“Customers in these segments want to partner with a financial service provider who delivers exceptional service and innovative products,” Dr. Mellam noted.
With over 45 years of experience in PNG’s financial sector, Credit Corporation is well positioned to meet the evolving needs of its customers.
The transition to banking will allow CreditBank PNG to expand beyond its established equipment finance offerings, introducing new services that support the growth of businesses across the country.
The journey to becoming a commercial bank involved a comprehensive project, including the implementation of a new core banking system, a web-based banking application, and significant enhancements to internal processes.
The project also focused on upskilling staff to ensure they are equipped to
manage banking operations. “Our new core banking system was launched in a controlled production environment in just seven months, on time and within budget,” Dr. Mellam said.
The successful pilot phase, with positive feedback from staff, helped refine the services to be competitive and user-friendly.
Dr. Mellam thanked the project team, BPNG staff, and business partners who played crucial roles in testing the Kina automated transfer system for inter-bank payments. He
also acknowledged the licensing, supervision, and payments teams at BPNG for their invaluable support.
As CreditBank PNG embarks on this new chapter, Dr. Mellam reaffirmed the company’s commitment to providing robust and innovative banking services, contributing to the growth of PNG’s financial sector.
“We are very proud to receive this license as Papua New Guinea’s newest bank and excited about the opportunities it will create for us and our customers,” he added.
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BPNG Launches Kina and Toea Exhibition to Mark 50 Years of PNG’s Currency and Economic Evolution
By: ROSELYN EREHE
The Bank of Papua New Guinea (BPNG) officially launched the Kina and Toea Exhibition, a display celebrating the nation’s rich economic history and the 50th anniversary of Papua New Guinea’s currency.
This event, held as part of the Bank’s 50th anniversary celebrations, coincides with the upcoming 50th anniversary of PNG’s independence in 2025.
The Kina and Toea Exhibition was launched on 29 August and continued from 30 August to 6 September 2024 at the National Museum & Art Gallery in Port Moresby.
The exhibition provided an opportunity to explore the fascinating history of PNG currency and its unique place in the nation’s development.
Displaying cultural richness and diversity, attendees were reminded of the significance of currency as a reflection of PNG identity, values, and traditions.
The Assistant Governor of Corporate Affairs, Mr Ron Sikar, gave the opening speech and officially declared the exhibition open on behalf of the Governor of BPNG, Elizabeth Genia, in her absence.
In Gov. Genia’s speech, she emphasised the exhibition’s importance in reflecting on the nation’s economic development and its roots in the introduction of the Kina and Toea, which have become not only economic instruments but also national emblems of independence and unity.
“It is an honour to stand before you today as we open the Kina and Toea Exhibition, a showcase of our nation’s rich and evolving economic history as part of the Bank’s 50th anniversary celebrations,” Genia said.
She highlighted that the event is particularly significant as it precedes the 50th anniversary of both the country’s currency and the nation itself.
The Governor also introduced the Bank’s Vision 2050, launched in line with the anniversary celebrations.
“The Bank’s Vision 2050 speaks of ‘economic opportunities for all Papua New Guineans,’ which at its core is about the transformation of the economy in the next two decades. This vision is a continuation of the development
process first initiated some 50 years ago in preparation for PNG’s independence in 1975.”
The Governor’s speech traced the historical journey of currency in PNG, starting with shell money used by the nation’s forefathers. Shells, particularly the Kina and Toea, were not only mediums of trade but also symbols of wealth, social status, and cultural practices.
“Deeply embedded in our traditions and cultural practices, shell money also represented social status, and it was used in marriages, deaths, and other significant ceremonies and events,” Genia explained.
The arrival of colonisers marked a turning point in the country’s economic history, leading to the introduction of contemporary currencies on 19 April 1975.
“These contemporary currencies served as both economic instruments and national emblems of our independence and unity as a nation,” Genia noted.
She provided insights into the cultural significance of the Kina and Toea, explaining that the word “Kina” is found in both the Pidgin and Kuanua languages and describes the priceless pearl shell extensively traded in PNG’s Highlands and Coastal regions. Similarly, “Toea” refers to a valuable type of shell used in trade and traditional bride price ceremonies in the Motuan Coastal villages.
Genia expressed the Bank’s ongoing commitment to maintaining trust and confidence in physical currency, even as global trends shift towards digital currencies and electronic payments.
“This exhibition provides a unique opportunity to reflect and appreciate how far we have come and to consider how we can continue to honour our heritage while embracing the future,” she said.
The exhibition was designed to take attendees on a journey through PNG’s history, showcasing images of rare artefacts, coins, and notes that have shaped the country’s economy.
The launch was attended by distinguished guests, partners, stakeholders, the staff and management of BPNG, and the media.
The Assistant Governor of Corporate Affairs, Mr Ron Sikar, gave the opening speech and officially declared the exhibition open on 29 August at the National Museum & Art Gallery in Port Moresby, on behalf of the Governor of BPNG, Elizabeth Genia, in her absence. (Image provided by A.O.)
‘Long Distance Ocean Towage Increases for PacTow’
Papua New Guinean marine services business, Pacific Towing (‘PacTow’) is performing a growing number of long-distance ocean towage projects, many of which are international.
The company has towed all sorts of vessels and ‘structures’ throughout Melanesia, as well as in Australian waters, Indonesia, Micronesia, the American waters of Guam, and Singapore, which is where its most recent international towage departed from.
Ocean towage projects performed by PacTow are typically either single-vessel transfers or salvages. However, the company also has a history of tandem towage projects, as well as towing oil rigs, transfer hoses, and mooring buoys for its oil and gas clientele.
Vessel transfers into PNG have increased over the last few years, largely due to logistics and shipping companies wanting to expand and modernise their fleets to service major resource developments. Other vessel transfers have been project-specific, for example tugs and barges utilised in port infrastructure upgrades.
Salvage is a core service of PacTow’s and one that frequently requires long distance towage. PacTow Manager, Gerard Kasnari, reports that “many of the vessels we assist,
whether they are adrift at sea due to some sort of mechanical failure, or have run aground a reef, are operating hundreds of miles from any kind of port let alone major ports where there are the right kind of repair services.”
“Sometimes we’ll tow a vessel to a small regional port like Rabaul for some initial repairs and then we’ll do a longer tow back to Port Moresby or Lae.”
Depending on the extent of repairs required and under which country the vessel is flagged, PacTow will also transfer salvaged vessels internationally if that’s what the owners want. At times, they will provide an escort service if the vessel can travel under its own power.
PacTow’s most recent international towage project involved picking up a new flat top barge in Singapore for a Port Moresby logistics client. The 70-metre-long, 20-metre-wide barge was loaded with four smaller vessels – two work boats for the client and two more line boats for PacTow’s operation in Lae.
‘Tavurvur’ -- one of PacTow’s fleet of Azimuth Stern Drive (ASD) tugs which had recently completed a mandatory four-yearly dry docking in Singapore -- was utilised for the project. The tow covered approximately 3,000nm and took just over three weeks, including a stopover for fuel,
fresh water and food in Makassar, Indonesia.
Kasnari reports that the project went as planned and was relatively unchallenging except for marginal weather (high winds [25 – 30kt] and large swell [2 – 4m]) between Singapore and Makassar, and another patch of poor weather in the Coral Sea approximately 200nm from Port Moresby.
PacTow’s fleet of tugs, especially its larger and more powerful ASDs, are central to its long-distance ocean towage capacity. Kasnaripoints out that the purchase of most of the ASDs has been part of a strategic re-fleeting program that is now two thirds complete.
In addition to owning PNG’s largest tug fleet, PacTow has its tugs deployed at each of its five operations throughout PNG, as well as in Solomon Islands. The company has also established a business in Fiji.
PacTow delivers excellent, reliable, and safe marine services through Melanesia and the broader region. A well-maintained fleet, as well as a dedicated and exceptionally trained team underpin the company’s ongoing expansion and success.
PacTow is part of a larger sea and land logistics group wholly owned by Steamships Limited. To learn more about PacTow, visit www.pacifictowingmarineservices.com.
Pacific Towing’s most recent international tow was of a flat top barge from Singapore to Port Moresby
Total Waste Management
Total Industrial Services
Total Environmental Advisory
Total Renewables
Total Training
PNG Forest Products: Building our Future Since 1954
Celebrating 70 years of manufacturing in PNG this year, PNG Forest Products has long been an industry leader in Engineered Wood Products in the South Pacific, Australasian and Southeast Asian regions.
Their extensive range of products and services for the domestic and export markets include pressure treated pine timber and plywood; kit homes and prefabricated buildings; modular bridges and bridge decking; and project construction & infrastructure development.
In fact, PNGFP 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 kit-set buildings engineered to PNG and Australian building codes, that are preservative pressure treated to fully protected from termites and rotting.
The construction division, NiuBuild, has built well over 2,000 buildings in PNG including numerous mining and exploration camps; over 1,000 school buildings; and supplied hundreds of education and health facilities throughout the country.
Innovation is at the core of the company’s success, as reflected by PNGFP’s Managing Director, Tony Honey: “We are producing and exporting some really innovative and interesting engineered wood products that are value adding to an otherwise basic piece of plywood.”
“Modular bridges and decking into Australia and New Zealand; specialised railway bridge re-decking in Sydney; sound barriers along Australian highways and rail corridors; scarf-jointed bus and train floors for Australia, NZ, and Malaysia, and the list goes on.”
Surprisingly, the origins of the company start back in the early 1920’s, when Bulolo Gold Dredging (BGD) Limited was developing extensive alluvial mining operations in the Bulolo Valley.
To facilitate this large-scale
operation, they needed sufficient housing in the valley for the hundreds of workers and their families. So BGD secured timber permits, established sawmill and joinery facilities, and set about building a town, complete with a school and hospital.
By the mid 1930s, a total of eight dredges scoured the valley floor, powered by BGD’s own hydro power stations. As the operation grew in scale, so did the town and the need for more timber.
Plymill 1954
PNGFP Hydro’s 11.6MW Power Station at Baime
In the 1940s the Forestry Department established a pine nursery and reforestation program, planting 60,000 young pine trees in December 1948 and each year thereafter. When the mining operation scaled down, BGD formed Commonwealth New Guinea Timbers Ltd and constructed the largest plywood factory in the Southern Hemisphere.
In 1954 plywood production and the export of products to overseas commenced, signalling the birth of a new industry.
Today, PNG Forest Products employs over 1,500 Papua New Guineans and is committed to building a better future through sustainable manufacturing practices. All timber is sourced from renewable pine plantations managed by the PNG Forest Services. Sawdust and wood chip waste from the mills are utilised to power the boilers for the veneer driers and kilns.
PNGFP also works in conjunction with the Department of Environment and Conservation to ensure that the best environmental practices are maintained. In fact, PNG Forest Products is the only company in PNG that has achieved PEFC Chain of Custody accreditation based on 100% controlled wood.
PEFC (the Programme for the Endorsement of Forest Certification) is an international organisation that promotes sustainable forest management through independent third-party certification. PNGFP’s Chain of Custody certification demonstrates a commitment to sustainable forest management that is unique in this country.
As a further commitment to sustainability, the company’s manufacturing facilities in Bulolo are powered by their own hydropower stations, which they continue to invest in heavily.
In 2023, PNGFP Hydro commissioned their fourth power station at Baime, feeding 11.6MW into PPL’s Ramu grid and raising their capacity to supply PPL up to a total of 21MW. The combination of renewable timber resources processed with sustainable hydro power makes PNGFP’s engineered
wood products truly and uniquely 100% green.
For 70 years PNGFP has shown a great propensity to evolve and grow through innovation and diversification. From plywood to Engineered Wood Products, to Independent Power Production… and there’s more.
In Bulolo, PNGP operates a supermarket, bakery, butchery, liquor store, hardware store, service station, country club, abattoir, poultry farm and a 600-hectare cattle farm, all servicing the town and surrounding districts.
“Our future lies in adding value to our resources, whether it be timber, land or water,” says MD Tony Honey.
“Improved recovery from our log supply is essential, as is developing new products for our Pacific Region. Continuing our diversity through power generation, forest products, and poultry and cattle operations develops employment and sustainable income. Continuing reinvestment in our business is the key to our continued viability and the core to our future success.”
International SOS in Papua New Guinea
For more than 28 years operating in Papua New Guinea; we have been providing second-to-none medical services support for our energy and mining clients.
WE OFFER INTERNATIONAL STANDARD:
• Medical staffing
• Remote site medical clinics
• Medical supply services
• Clinic and hospital management
• Medical consulting
• Medical evacuation services
• Occupational health services
• Telehealth
• First Aid Training
• ACLS & BLS Training
Empowering Industries with Specialist Recruitment and Service Delivery
In today’s fast-paced and ever-evolving business landscape, having the right talent in place is crucial for success. This is especially true in sectors where technical expertise and operational efficiency are paramount.
For over four decades, SGS has been at the forefront of providing specialised recruitment and service delivery solutions that meet the unique needs of diverse industries across different regions.
At SGS, our recruitment and service delivery teams bring a wealth of experience to various operational stages, from project inception and growth to production and ongoing operations. Our mission is simple: to deliver high-quality professionals and value-adding services that optimise your projects.
“Our unparalleled knowledge, vast network, and abundant resources, empower us to connect you with highly skilled professionals.” - Brittany Shephard, Business Manager.
EXPERTISE ACROSS THE PROJECT LIFECYCLE AND TAILORED SOLUTIONS FOR DIVERSE NEEDS
Recognising that each project is unique, we offer tailored services to meet specific client needs.
Permanent Recruitment and Head-hunting, focuses on sourcing top-tier talent with specialised skills and providing scalable solutions with a one-off fee structure.
Contract Recruitment is ideal for flexible staffing for short or longterm projects, including global team deployments.
Local and International Payroll Solutions ensure seamless payroll management across borders, supporting regulatory compliance and multiple currencies.
Finally, Global Mobility Solutions handles logistics, visas, accommodations, and insurance, ensuring smooth international placements and contractor management.
MEETING THE CHALLENGES OF A DYNAMIC MARKET
Finding the best manpower resources, wherever your operations are based,
is critical. SGS - technical staffing solutions provide specialised support tailored to the shifting demands of the local market. Our cost-effective recruitment solutions are customised to meet your needs, ensuring that your projects benefit from the right blend of technical professionals and value-adding services.
Bronte Gale, General Manager Industries, says, “We leverage our local expertise in the Australia and Papua New Guinea region, along with our global reach, to ensure exceptional service delivery that aligns with your strategic goals.”
As industries evolve, the need for adaptable and skilled professionals remains constant. With SGS as your partner, you gain access to a dedicated team committed
delivering the highest standards of recruitment, payroll, and contract management services. Our solutions give you the edge to drive your projects confidently in a competitive landscape.
For further information, please contact: Brittany Shephard, Technical Staffing Solutions (Australia & PNG), Business Manager. T: +61 7 3622 4724
ABOUT SGS
We are SGS – the world’s leading testing, inspection and certification company. We are recognised as the global benchmark for sustainability, quality and integrity. Our 99,600 employees operate a network of 2,600 offices and laboratories around the world.
Daniells Returns to PNG as Steamships Managing Director
Mr. Chris Daniells officially assumed the role of Managing Director of Steamships Trading Company Ltd. (Steamships) on Monday 1st July 2024. He takes over from outgoing Managing Director, Mr. Rupert Bray, in a planned succession move.
This is not Mr. Daniells’ first time in PNG, as early in his career, he worked for Steamships Shipping Agencies as National Marketing Manager between 1998-1999.
“There has been a considerable development and change since I was in Port Moresby in the late 90’s,” said Daniells.
“I’m looking forward to continuing Steamships’ tradition of supporting PNG, investing in long-term commitments, and building sustainable and rewarding partnerships as we enter a new period of growth for the economy and the country. These are exciting times for PNG and Steamships is very much at the centre of them.”
Mr. Daniells becomes the 17th
and has been with the Company since September 2023, in the role of Chief Operating Officer.
Previously, he held the position of Chief Commercial Officer for Singapore based Swire Shipping and Managing Director of Swire Projects. Over the last 25 years, he has held various senior executive roles in different industries across Australia, Papua New Guinea, Hong Kong, Europe and Singapore.
The team at Steamships wish Mr. Bray well in his new role as Executive Director Senior of Swire Coca-Cola in Hong Kong.
“We have a strong team, and an exciting road ahead. Rupert’s six years in Steamships has established a strong foundation for the growth of the company and his support during the transition has been invaluable. I wish him all the best in this next phase in his career.”
The group also bade farewell to Finance Director & Company Secretary, Michael Scantlebury, who retired
replaced by Alessandro Mistroni, who joined Steamships in 2023 as Corporate Finance Manager.
ABOUT STEAMSHIPS
Steamships Trading Company Ltd. or Steamships, as it is more commonly known, is a diversified leader in logistics, property, hospitality and joint ventures in Papua New Guinea.
Commencing operations in 1918, Steamships has been investing in PNG’s growth, development and progress ever since, steadily evolving its business to meet current needs and anticipate the future. The group has been integral to, and part of, PNG’s development into a modern and formative leader within the Asia-Pacific region.
Committed to our people, the sustainability of our operations, and the future of Papua New Guinea, Steamships is pioneering sustainable progress in PNG for the next generation of stakeholders.
We don’t just do business in PNG….
TWM Group Opens First Waste Management Facility in the Pacific Region
By: ROSELYN EREHE
The TWM Group recently celebrated the opening of the first world-class industrial waste management facility in the Pacific Islands. Located in Roku, Central Province, this hazardous waste landfill is a pioneering initiative in Oceania, outside of Australia and New Zealand.
The facility marks the completion of stage one of Papua New Guinea’s comprehensive waste management strategy. It sets a new standard for environmental protection in PNG and the Pacific Islands, providing advanced solutions for hazardous waste treatment.
Over 150 key stakeholders attended the event, including Acting Prime Minister Hon. John Rosso, European Union Ambassador Jacques Fradin, and representatives from the Australian High Commission and the US Embassy. The occasion also honoured the traditional custodians of the land and acknowledged community figures.
A highlight of the event was the unveiling of a commemorative plaque by Hon. John Rosso, TWM Group Managing Director Mr. Kori Chan, and Group CEO Mr. Michael Chan, Jr.
Reflecting on the journey that
led to the facility’s establishment, CEO Michael Chan spoke passionately about their commitment to environmental conservation and sustainable practices:
“This hazardous waste landfill is not just a facility but a symbol of our commitment to setting a global standard in waste management. It represents a crucial step towards building a circular economy and advancing waste management practices in Papua New Guinea and the Pacific region.”
Chan expressed gratitude for the support received and emphasised TWM’s alignment with the United Nations’ sustainable development goals.
Regarding TWM’s operational transparency and commitment to national development goals, Chan stated:
“As a national company, our priorities include supporting the PNG government in achieving its medium-term development goals. We aim to do this by aligning with
The official unveiling of stage one of the Total Waste Management Hazardous Waste Landfill, 18 July 2024. - image Provided by TWM
(L-R)Unveiling of a commemorative plaque by TWM Group Managing Director Mr. Kori Chan, Acting PM of PNG Hon. John Rosso and Group CEO Mr. Michael Chan, Jr. -image provided by TWM
existing policies and regulations, and by enhancing waste management and recycling frameworks.”
The event concluded with a panel discussion by experts, detailing the rigorous process and regulatory compliance involved in delivering the project to world-class standards. TWM’s achievement of a Level 3 Environment Permit from the Conservation and Environment Protection Authority (CEPA) marked a milestone in their adherence to stringent environmental and social protection standards.
The Level 3 Environment Permit (EPL-485) is the first issued to a waste management company in PNG and includes over 127 conditions aimed at ensuring maximum environmental protection.
The facility, designed over three stages with capacities ranging from 13,000m3 to 130,000m3, adheres to US EPA, AUS EPA, and British standards for hazardous waste management.
Constructed over three stages:
• Stage 1: Size 10,800m2 Capacity: 13,000m3
• Stage 2: Size 12,000m2 Capacity: 45,000m3
• Stage 3: Size 14,000m2 Capacity: 130,000m3
TWM also celebrated its exemplary safety and environmental performance, with a flawless safety record throughout the project’s duration. Gerarda Mark, the QHSSE Advisor, highlighted the company’s commitment to maintaining exceptional safety and environmental standards.
Acting Prime Minister Rosso applauded TWM’s efforts and underscored the facility’s importance for PNG’s waste management capabilities and environmental sustainability efforts:
“This hazardous waste treatment plant represents a critical advancement in our waste management capabilities and sets a new benchmark for the region. It exemplifies the vision and perseverance of TWM in leading
sustainable development.”
Rosso highlighted ongoing challenges in waste management and expressed optimism that the facility would inspire similar initiatives across the Pacific Islands.
TWM, as a PNG-owned company, reaffirmed its commitment to innovation and collaboration with government and stakeholders to enhance local capabilities and global standards in waste management.
The opening of the landfill not only displayed TWM’s achievements but also sets a precedent for future developments in the waste management sector.
Mr Chan left guests with a powerful reminder of all people being custodians of the PNG land.
He said, “We often say, yumi no faul man. Meaning, we know where our land is, we know where we belong. If we can no longer live on our land and be sustained by it, then it means we have no home, we have no identity, we have nothing. We must do all we can to protecting our pristine environment and our people.”
P l a n n i n g t o r e t i r e ? C h a n g e o f c i r c u m s t a n c e s ?
P l a n n i n g t o r e t i r e ? C h a n g e o f c i r c u m s t a n c e s ?
C h a n g e o f P a s s i o n o r d i r e c t i o n ? W h a t e v e r t h e
C h a n g e o f P a s s i o n o r d i r e c t i o n ? W h a t e v e r t h e
r e a s o n f o r t h e s a l e o f y o u r b u s i n e s s , y o u n
r e a s o n f o r t h e s a l e o f y o u r b u s i n e s s , y o u n e e d a n e x p e r t t o m a x i m i z e t h e v a l u e o f t h e s a l e . I ’ l l
b e y o u r e x p e r t !
L o o k i n g t o d i v e r s i f y f r o m y o u r e x i s t i n g b u s i n e s s ?
W a n t t o e x p a n d i n y o u r c u r r e n t m a r k e t ?
W h a t e v e r t h e r e a s o n f o r
t h e p u r c h a s e o f a
b u s i n e s s , y o u n e e d a n
e x p e r t t o m a x i m i z e t h e
v a l u e o f t h e s a l e . I ’ l l b e
y o u r e x p e r t !
Weir Introduces ENDURON® Orbital Vibrating Screens with All-Bolted Construction for Longer Service Life
Weir, a global leader in innovative mining technology, has launched the all-new ENDURON® Orbital range of vibrating screens. Engineered for sand and aggregate, construction, and small tonnage mining operations, the new screens are designed to meet the most demanding of applications.
Featuring an all-bolted construction, the screens significantly improve reliability by eliminating welding in high-stress areas, removing the leading mode of failure in vibrating screens. Locking bolts ensure structural integrity and durability, facilitating easy maintenance with quick replacement of individual components without the need for extensive downtime.
The ENDURON® Orbital range is available in two screen types: the E series: Elliptical Motion Horizontal Screens and the C series: Circular Motion Inclined Screens. Both screen types are designed with a commitment to innovation and quality, incorporating the latest technologies to deliver exceptional performance in a broad range of sand and aggregate and mining duties.
A wide operating window provides flexibility to adjust screen settings in line with changing applications or feed conditions, without compromising the equipment’s structural integrity and minimising the risk of structural failure related to harmonic resonance.
The modular screen construction ensures that individual components can be easily replaced. Common interchangeable screen parts reduce inventory overflow and simplify maintenance. Both screens are digitally enabled, including our modular exciter technology, which senses and reports on the condition of the exciter. The exciter itself features a bolt-on/bolt-off design, meaning
they can be easily changed on site and refurbished in a mechanical workshop.
All ENDURON® products are fully supported by the Weir service network, offering unrivalled service, support, and local expertise across the globe. Weir continues to lead the industry in providing cutting-edge, high-performance solutions that are tailored to meet the unique requirements of our customers.
Corné Kleyn, Global Product Manager for Vibrating Screens
said: “We at Weir are excited to bring this revolutionary new screening technology to the market. The team has worked hard for the past two years to bring our customers a product that is reliable with the lowest total cost of ownership.”
“Our first screen has been successfully installed and commissioned at a large global customer and we are gaining momentum with more units planned for both the European and North America markets.”
Remington Group Welcomes Navin Raju as New CEO
The Remington Group Board of Directors is pleased to announce the appointment of Mr. Navin Raju as the new Chief Executive Officer (CEO). Navin brings extensive experience in leadership, strategic planning, and business development to the role, and will be instrumental in guiding Remington Group’s continued growth and expansion throughout Papua New Guinea.
Mr. Raju joins Remington Group with over two decades of executive experience across various industries. He most recently served as the CEO of CPL Group PNG, where he played a key role in driving the company’s success. His leadership background also includes roles such as CEO of Hardware Haus Limited, CEO of Heli Niugini Limited, and senior positions at AkzoNobel PNG.
In a statement regarding his appointment, Navin Raju expressed his enthusiasm:
“I am honoured and excited to take on this new role as CEO of Remington
Group. The company has a rich history of excellence and leadership in Papua New Guinea, and I look forward to working with the talented team here to further propel the organization for ward. My goal is to build on the strong foundation already established, con tinue driving innovation, and ensure Remington Group remains a leading force in the market.”
The Remington Group Board of Directors is confident that Navin’s wealth of experience and strategic vi sion will guide the company through
We o er;
• Short term rentals (Self Drive & Chauffeur)
• Long term leasing (12 months - 36 months)
• Safe and affordable staff transportation
• Chauffeur drive service with professional drivers
• Airport transfers
Air Niugini Confirms Gary Seddon as CEO
Air Niugini has officially appointed Gary Seddon as its Chief Executive Officer, following his tenure as Acting CEO. The confirmation was made by the National Executive Council (NEC) after a comprehensive selection process conducted by Kumul Consolidated Holdings (KCH), the airline’s shareholder.
Seddon, who has been instrumental in steering the airline through a challenging period, takes on the role permanently, having demonstrated strong leadership and a commitment to driving the national carrier forward. During his time as interim CEO, Seddon achieved several significant milestones, including the fleet replacement programme with Airbus and Boeing aircraft, the expansion of Air Niugini’s route network, and improvements in customer service. His strategic direction has positioned the airline to better navigate the competitive regional aviation market.
Air Niugini Chairman Karl Yalo
expressed confidence in Seddon’s ability to lead the airline into a new phase of growth, especially with the arrival of Airbus A220s in September 2025, coinciding with Papua New Guinea’s 50th Independence Anniversary. He noted that Seddon’s leadership would be crucial in the ongoing re-fleeting process, which aims to modernise the airline’s fleet and enhance its regional standing.
Seddon, upon his permanent appointment, conveyed his gratitude to the NEC, the Prime Minister, and the Minister for State Enterprises. He emphasised his commitment to improving the airline’s operations and addressing existing challenges, while thanking Air Niugini’s loyal customers and staff for their support.
William Duma, Minister for State Enterprises, highlighted the importance of Air Niugini’s role in delivering reliable and affordable services as a state-owned enterprise. He noted that the upcoming fleet upgrades, including the pur -
chase of Airbus A220s and Boeing 787 Dreamliners, would transform Air Niugini into a leading airline in the region, ensuring sustainable growth and delivering value for stakeholders.
Seddon’s permanent appointment signals a period of stability and ambition for Papua New Guinea’s national airline as it continues to expand and modernise.
