PNG Business News - Issue 1, 2022

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ISSUE 1 2022

PACIFIC INDUSTRIES: THE STORY BEHIND PNG’S

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WHAT HAPPENED TO PNG’S

AIR TRAVEL BOOM?

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CONTENTS COMMENTARY WHAT HAPPENED TO AIR TRAVEL BOOM? / page 24

COVER STORY

PACIFIC INDUSTRIES: THE STORY BEHIND PNG / page 46

MINING

WORK FOR 3K MINERS AS PORGERA REOPENS / page 18

MINING

SPECIAL LICENSE FOR NEWCREST LIHIR / page 30

OIL AND GAS CABINET CLEARS P’NYANG GAS DEAL / page 36

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MORE STORIES 56 66 66 72 74 76 78 80 84

DUBAI POTENTIAL MARKET FOR PNG ROBUSTA COFFEE BANK PNG LAUNCHES CREDIT GUARANTEE CORP. CAPITAL INSURANCE GROUP OPENS KOKOPO BRANCH ACCESS TO QUALITY CREDIT BENEFITS EMPLOYERS, STAFF ARK PACIFIC’S INCREASED PRODUCTION, GROWTH EPIROC INTRODUCES DM30 XC BLASTHOLE DRILL TWM GRANTED HIGHEST LEVEL OF ENVI. PERMIT NEW DEDICATED HARBOUR TUG FOR PACTOW BLACK SWAN APPOINTS NEW GM SHANE HARDEN

CONTENTS

COMPANIES

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FINANCE

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COMMENTARY

ADB: Pacific returns to positive growth as vaccinations, border reopenings strengthen economies in 2022

A

fter two years of recession caused by the coronavirus disease (COVID-19) pandemic, the Pacific is expected to return to positive growth this year, according to the Asian Development Outlook (ADO) 2022, ADB’s flagship economic publication.

The economies of ADB’s Pacific developing member countries contracted by 0.6% on average in 2021 as the COVID-19 pandemic continued to weigh down tourism and trade. Growth in the Pacific is expected to resume at an average of 3.9% in 2022 and 5.4% in 2023.

Although most Pacific economies are projected to return to growth in 2022, led by the subregion’s tourism-dependent economies as borders reopen, economic contraction is seen to persist in Solomon Islands with COVID-19 community transmission in the first half of the year, as well as in Tonga due to the impacts of an undersea volcanic eruption and tsunami in January.

“Rising vaccination rates will help most of the economies of the Pacific recover from the effects of the pandemic by allowing the safe opening of borders and enabling a return to positive economic growth,” said ADB Director General for the Pacific Leah Gutierrez.

“This suggests the Pacific has turned a corner, and that is good

news. Now is not the time to be complacent about the vaccine rollout. It is critical for all countries in the subregion to reach a high vaccine coverage. At the same time, efforts to wind back heightened COVID-19 response expenditures, attention to bringing down debt levels, and careful monitoring of inflationary pressures are needed to underpin sustainable and inclusive economic recovery.”

High global fuel prices due to the Russian invasion of Ukraine are compounding inflationary pressures in the Pacific through elevated transportation costs and rising prices of imports.

On average, inflation in the Pacific is projected to rise sharply to 5.9% in 2022, before easing to 4.7% in 2023. High inflation poses a risk to recovery by potentially constraining economic growth through reduced purchasing pow-

er and consumption spending.

In 2021, growth in Papua New Guinea (PNG), the biggest economy in the Pacific, was dampened by two COVID-19 surges, underpinned by a very low vaccination rate. Some relief has come from strong commodity prices and fiscal stimulus sustained by ADB and other development partners.

Increased mining activities in the second half of the year should contribute to growth of 3.4% in 2022. ADO 2022 says growth in PNG is expected to rise to 4.6% in 2023.

Fiji, the subregion’s second-largest economy, is projected to record 7.1% growth in 2022 and 8.5% in 2023. The opening of the country’s borders in December 2021 gives hope for a revival of tourism, which remains key to a quick economic turnaround and restored employment. However,

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NEWS

A

Marape: 2022 elections will go ahead as scheduled

ccording to Prime Minister James Marape, the 2022 General Election scheduled from 11 to 24 June will go place as planned and will not be postponed.

He stated this to calm worries that the polls will be postponed, which had been fueled by speculation and bogus news on social media.

“The elections will not be delayed and will go ahead as scheduled,” PM Marape said.

“We are working together with the Electoral Commission to ensure that the elections are on time.”

PM Marape stated that there would be a lot of adjustments in this year’s elections.

“For purposes of transparency, we will have Transparency International, National Research Institute and civil society representation in the Elections Planning Committee,” he said.

“We will have separate voting queues for men and women to cast their votes without undue influence, as in the past.

“It is the right of voters to make their choice based on their God-given wisdom – not on inducements,

bribery, cash, food, wantok system or hype. We will have CCTV used for counting to make the elections fair and friendly for all.”

PM Marape further stated that election officials who engaged in “improper and unlawful behaviour” during polls would face serious punishment.

“There will be severe penalties for election officials engaged in corrupt practices at polling plac-

< From Page 10 international competition among travel destinations is likely to be intense, says the ADB report.

After successfully keeping COVID-19 at bay for almost 2 years, community transmission of the virus broke out in Solomon Islands in January this year. ADO 2022 expects the Solomon Islands economy to contract by 3% in 2022 because of restrictions on mobility and domestic transportation, and associated health impacts of the pandemic.

While logging activities are expected to decline in 2023, the expected easing of COVID-19 restrictions will increase construction, fishing, and mining, leading to an economic recovery of 3%.

Vanuatu’s economic growth is forecast at 1% in 2022, with growth in public services as well as a recovery in agriculture and construction offset by the domestic transmission of COVID-19, which has delayed the reopening of international borders. Growth is projected to rise to 4% in 2023 as tourism activity revives.

The South Pacific economies of the Cook Islands, Niue, Samoa, and Tonga were, until recently, largely spared the health impacts from community transmission of COVID-19, which allowed time for near-universal vaccine coverage.

es,” he said.

“A vote is the sanctified responsibility of each individual to cast his or her vote for a leader, who they feel will represent them in Parliament.

“It’s a high calling of each individual and must not be tampered by an ineffective process or corrupt election officials, campaign managers and officials, or candidates themselves.”

The report projects growth in the Cook Islands to be 9.1% in 2022 and 11.2% in 2023, supported by a vaccination rate of more than 96% of the eligible population and the acceleration of infrastructure projects to enhance readiness to receive tourists.

The economic recovery in Niue will similarly depend on safely easing restrictions and reopening to tourists in the coming months.

With no clear sign of borders reopening in Samoa, growth in 2022 is expected to be tepid at 0.4%. Constrained by scarring in the tourism sector, only a slight increase in growth to 2.2% is projected for 2023. The biggest risk to the economic outlook would be any escalation in the community transmission of COVID-19 and a consequent delay in restoring tourism.

The delayed reopening of borders in Tonga due to the recent volcanic eruption and community transmission of COVID-19 are likely to slow long-term tourism recovery. ADO 2022 projects an economic contraction of 1.2% for 2022 and a return to positive growth of 2.9% in 2023 assuming borders reopen.

The North Pacific economies contracted in 2021, as travel and mobility restrictions continued to stifle tourism in Palau and trade in the Federated States of Micronesia (FSM) and the Marshall Islands.

In the FSM and the Marshall Islands,

12 www.pngbusinessnews.com • Issue 1 2022

Prime MinisterJames Marape addresses the people of remote Maramuni in Enga.

border reopenings are expected to boost recovery, but this rests on further progress with vaccinations.

Economic expansion of 2.2% is expected in the FSM in 2022, accelerating to 4.2% in 2023, while the Marshall Islands economy is projected to return to growth of 1.2% in 2022, picking up to 2.2% in 2023.

Growth in the tourism-driven economy of Palau is expected to reach 9.4% in 2022 before accelerating to 18.3% in 2023, provided the effects of the pandemic dissipate, allowing for a gradual return to pre-pandemic levels of international arrivals.

The report projects a pickup in growth in the Central Pacific economies of Kiribati and Tuvalu and slower growth in Nauru in 2022. Surging global oil prices will significantly affect inflation in these import-dependent economies.

Growth of 1.8% is expected in Kiribati in 2022, picking up to 2.3% in 2023. Nauru’s economic growth will slow to 1% in 2022 and rise to 2.4% in 2023. Tuvalu will experience 3% growth in 2022 and again in 2023.

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NEWS

Marape announces record K10 billion in foreign exchange

I

n the midst of the worldwide crisis caused by the Russia-Ukraine war, Prime Minister James Marape claims the Bank of PNG has the largest amounts of foreign exchange ever, totaling more than K10 billion.

This is in sharp contrast to the O’Neill era, when foreign exchange reserves were dangerously low, and importers had to wait extended periods of time for US dollars.

PM Marape announced the good news in Parliament, in response to a query from NCD Governor, Hon. Powes Parkop was asked if PNG had enough currency for petroleum importers, notably Puma Energy, which operates the Napanapa Refinery.

“At this point in time, Bank of PNG has more foreign reserves than it has ever had, more so for the last 10 years,” he said.

“Today, we have got K10 billion-plus, or about US$3 billion sitting in our foreign reserves.

“This means that important customers like Puma, and others who need forex, should have easy access now to US dollars for their purchases.”

If Puma is having trouble accessing foreign funds to bring in gasoline, PM Marape says they should meet Treasurer Hon. To help, Ian Ling-Stuckey or himself.

“This is so that in these tough times, we don’t have queues (for forex), or shortage of fuel in our country,” he said.

PM Marape responded to a query about whether Napanapa

T

could get oil from Kutubu in the Southern Highlands by saying that Kutubu had set contracts but could also meet domestic market commitments.

“As you know, Kutubu Crude has export contracts to it, but this is something that we are looking at going forward into the future,” he said.

“That is why this Government has already been aggressive in the domestic market obligation side of gas, so that we move into the space

of downstream.

“Downstream processing is something that we have overlooked in our country for many, many years, but we are now moving to get more from our oil and gas so that we Move into downstream processing.

“This is so that in the future we are not so dependent on imported items like fuel, we are not dependent on external market forces, where a price rise means rise in prices in our domestic economy.”

PM Marape announcing the good news in Parliament.

Photo courtesy Parliament Media

STUCKEY: GOV’T ALLOTS K350M PACKAGE FOR FAMILIES

reasurer Ian Ling-Stuckey said the Papua New Guinea government had launched a K350-million package to assist households with the rising cost of living.

He stated that the government will do so responsibly, striving at a temporary decrease with expenditures restricted to K350 million as part of a “program of responsible budget repair.”

The current idea, according to Ling-Stuckey, is to target GST cutbacks on vital household items such

as gasoline, wheat, rice, corned beef, canned fish, biscuits, cooking oil, and women’s sanitary products.

“Given feedback from the community and sectoral interests, we are also examining options for partial or full tax relief on fuel, including import taxes on fuel and excise charges on fuel,” he said.

“The necessary legislative changes will be introduced in the Parliament session on April 19.

“The National Executive Council will need to consider workable options before then.

16 www.pngbusinessnews.com • Issue 1 2022

“I have instructed the acting Treasury secretary to convene and continue talks with the Internal Revenue Commission, Customs and the Independent Consumer and Competition Commission (ICCC) to develop a full set of costed options.

“Meetings will occur this week with PNG peak business groups on how best To Page 32 >

Treasurer Ian Ling-Stuckey

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MINING

F

Over 3,000 mine workers in PNG to work when Porgera reopens

ollowing the recent signing of stakeholder agreements, more than 3,000 workers will be employed when the Porgera mine reopens.

“Over the next couple of weeks, the company will hire 3,100 people, most of them Papua New Guineans, (who) will head back to Porgera valley, open the gate and start digging the ground,” State negotiation team chairman Dairi Vele said.

“We are hoping that they can announce that the first gold has been processed during June, July, and August.”

According to Mark Bristow, president and chief executive of-

T

ficer of Barrick Niugini Ltd (BNL), the cost of restarting the Porgera mine is roughly US$300 million (K1.052 billion).

The signing of the agreement at Port Moresby, according to Vele, “signified the reopening of the project.”

“The main one is the shareholders’ agreement, that is, the coming together to build the company.

“That’s not for the Government.

That’s for Kumul Minerals Holdings Ltd (KMHL), the landowners and Barrick.

“The company is born today – it is the beginning of the mine.”

Vele said the company should be registered in the next 48 hours.

“Kumul will own the company with 36 per cent, landowners 15 per cent, and Barrick 49 per cent,” he said.

However, the government will receive 53% of the advantages, while Barrick will receive 47%.

The 51% government share in the new Porgera firm, according to KMHL managing director Dr John Kuwimb, is made up of 15% for the landowners and the Enga government and 36% for Kumul Minerals.

Barrick and the State, he claimed, would each have four directors.

“We will work to run Porgera, and this company that we are incorporating will appoint Barrick as the operator,” he said.

DEED OF AMENDMENT TO PORGERA AGREEMENT, DEED OF ESCROW SIGNED

wo important documents as part of the important milestones to be ticked off by the State and its project partners were signed at the Government House on April 7.

The Prime Minister delayed his scheduled visit to Oro Province to observe this important signing. These are the Deed of Amendment to the Porgera Project Commencement Agreement (PPCA), and the Deed of Escrow to park 10% of the project equity.

The PPCA was deemed concluded when Mineral Resources Enga signed on 3 February 2022. The PPCA is the central and structural document designed to elaborate and deal more specifically with what was set out in the Framework Agreement.

This agreement is the main foundational agreement that establishes how the joint venture will operate and the operating model that delivers the agreed benefits to all parties.

It deals with legacy liability issues, taxation issues, license

issues, the establishment of the incorporated joint ventures, benefit flows, landowner benefits, project financing, mine closure and reclamation, fiscal and regulatory stability issues, and other issues and legal terms supporting the recommencement of the mine.

“This is a major milestone. We needed to ensure that all the important responsibilities and commitments by all stakeholders are captured in very clear terms under this agreement. Matters that were overlooked are now captured in the amendment deed and will establish very clearly what is required going forward in our quest to reopen the Porgera Mine”, Marape said.

The Prime Minister paid special commendations to Barrick and its CEO, Mark Bristow, for his patience in allowing the state and its stakeholders to ensure that any matters, which were overlooked in the original PPCA, are captured in the amendment deed.

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MINING

< From Page 18 “I want to thank Mark Bristow for his patience to allow the State and its stakeholders to ensure that every important detail is captured in the amendment deed. This was important to us, and I would like to acknowledge Mr. Bristow’s support in that respect”, he said.

The amended PPCA now paves the way for the parties to move very quickly to implement further series of documents which include, the signing of the shareholders’ agreement and the incorporation of the joint venture company, the operatorship agreement between the joint venture company, and Barrick as the operator, the fiscal stability agreement, a mining development contract, and the memorandum of agreement regarding benefit-sharing between the relevant provincial government and local level government.

“This is why we are excited about this milestone because it allows us firstly to cover all issues, and secondly it triggers a whole series of final documents which will position us well in terms of our goal to reopen the mine.”

Also, the Deed of Escrow for the New Porgera Limited 10% Shareholding was signed.

In accordance with the PPCA, the shares in the new project company will be as follows: Barrick Gold and Zijin, 49%, Kumul Minerals Holdings Limited, 36%, Mineral Resources Enga, 5%, and Porgera Landowners 10%.

The parties to the PPCA have agreed that until such time a determination is reached by the landowners as to how the 10% is apportioned, at an appropriate forum, the 10% would be held in escrow.

“This situation was specifically contemplated by the PPCA which sets out the provisions for the establishment of escrow arrangements so that the 10% shareholding may be issued by the project company pending the determination of the ultimate shareholder(s).”

This arrangement is important because we want a proper forum to be held to have the landowners themselves determine how the shares will be held to best represent their interests.

“The development forum, which is the properly constituted process, will be held shortly to provide an opportunity for this matter to be determined by the

20 www.pngbusinessnews.com • Issue 1 2022

landowners and their interests. This forum is where everyone who is impacted directly and indirectly by the mine will have their say, and for the government, this is absolutely important.”

The intention of the escrow, therefore, is to allow the project company to be incorporated in the short term to allow the lodgement of its application for a special mining lease to be made.

It allows important regulatory tasks to proceed unhindered while plans are put into place for the development forum to take place.

“I am also pleased to announce that the stakeholders have all agreed for the Mineral Resources Development Corporation, (MRDC) to be the escrow agent. MRDC is an experienced company dealing with landowner matters in the oil, gas, and mining space. We are confident that they will be able to perform their tasks diligently in accordance with the Deed of Escrow.”

These important signings now pave the way for the final pieces of the puzzle to be put in place for the mine to be reopened.

“I have been briefed on the critical pathway to the reopening of the mine, and it remains my utmost priority to ensure that matters which are within the control of the government are concluded as soon as possible to allow the process to move and accelerate.”

“The operator has already assembled their team to design the shortest possible pathway and I want to do what I can to assist in this regard.”

Following the signing, the Prime Minister headed straight to the airport and travelled to Popondetta for a very important visit with the Oro Provincial Government.

PM Marape talking to Porgera mine workers; (above) Aerial shot of Porgera mine.

Photo courtesy Zijin Mining

Empowering A NATION

KUMUL PETROLEUM

Image courtesy of PORT MORESBY GENERAL HOSPITAL

On 19 August 2020, Kumul Petroleum signed a Memorandum of Agreement (MOA), between the Ministry of Health and Port Moresby General Hospital to fund the establishment of a National Heart Centre. The project, jointly funded by Kumul Petroleum and the PNG Government through the National Department of Health has a scope of works that includes the building of human resource capacity with the recruitment of a Cardiologist, Cardiac Surgeon, and Cardiac Anesthetist amongst others, together with training and research. Also included under the MOA is the purchase and supply of specialist equipment for Cardiothoracic Surgery and a Cardiothoracic Intensive Care Unit which include a Catheterization Laboratory. This support through the MOA bore results with the first stenting procedure taking place at Port Moresby General Hospital on 22 July 2021.

OUR COMMITMENT TO SUPPORT THE GOVERNMENT DELIVER LONG TERM RESULTS FOR THE HEALTH SECTOR WITH THE ESTABLISHMENT OF A NATIONAL HEART CENTRE

19 AUGUST 2020

21 MAY 2021

24 & 28 MAY 2021

22 JULY 2021

HEART CENTRE ESTABLISHMENT

SPECIALIST EQUIPMENT TO CARDIAC ICU

ARRIVAL OF CARDIOLOGIST & DELIVERY OF EQUIPMENT

FIRST STENTING PROCEDURE

Kumul Petroleum commits K50 million over 5 years to support the establishment of a National Heart Centre at Port Moresby General Hospital.

Kumul Petroleum presented over K2 million worth of medical supplies for Port Moresby General Hospital Cardiac Intensive Care Unit

The recruitment of an experienced interventional cardiologist who began duties at Port Moresby General Hospital & delivery of equipment.

Port Moresby General Hospital becomes the first public hospital in PNG to carry-out an invasive cardiac catherization.

Kumul Petroleum Holdings Limited | Level 8, Kina Bank Haus, Douglas Street | PO Box 143, Port Moresby 121, National Capital District | Papua New Guinea | Phone: (675) 320 2253 | Fax: (675) 320 0238

Empowering A NATION

KUMUL PETROLEUM

Image courtesy of PORT MORESBY GENERAL HOSPITAL

Since the first stenting procedure took place on 22 July 2021, it is pleasing to note from Port Moresby General Hospital (PMGH) updates to Kumul Petroleum that the nation's largest hospital has to date conducted over 400 stenting and angiogram procedures. Prior to this project, Papua New Guineans were spending on average PGK150,000.00 to PGK200,000.00 to travel overseas for stent operations. This now means that hundreds of Papua New Guineans have saved hundreds of thousands of kina that would have otherwise been spent to travel overseas; saving the country and its citizens millions of kina. Kumul Petroleum extend its gratitude to the Ministry of Health, Port Moresby General Hospital CEO, its staff and all other officials who have been working together to make this MOA a reality. We look forward to the continued partnership and thank the many health care professionals at the hospital for their commitment to ensure the safety and wellbeing of all Papua New Guineans.

WE ARE COMMITTED TO ENSURE THAT THE PARTNERSHIP WITH THE MINISTRY OF HEALTH & PORT MORESBY GENERAL HOSPITAL CONTINUES TO BEAR POSITIVE RESULTS

1O DECEMBER 2021

28 JANUARY 2022

DELIVERY OF ULTRASOUND MACHINES

DELIVERY OF ECG & TREADMILL MACHINES

CARDIAC SERVICES BECOMES AVAILABLE

FIRST EVER STENTING ON A DIABETIC LIMB

Kumul Petroleum made a delivery of the first set of Ultrasound machines purchased from GE to Port Moresby General Hospital Cardiac Centre.

PMGH announces at the delivery that since the first stenting procedure took place on 22 July 2021, it carried out 200 angiograms and 100 stent operations.

Port Moresby General Hospital issues a Public Notice that under the partnership cardiac service becomes available at a fraction of the cost to all Papua New Guineans.

Port Moresby General Hospital becomes the first public hospital in the country to carry-out stenting on a diebetic patient that prevented amputation of the limb.

09 SEPTEMBER 2021

02 MARCH 2022

Kumul Petroleum Holdings Limited | Level 8, Kina Bank Haus, Douglas Street | PO Box 143, Port Moresby 121, National Capital District | Papua New Guinea | Phone: (675) 320 2253 | Fax: (675) 320 0238

COMMENTARY

What happened to PNG’s air travel boom?

By Huiyuan Liu and Stephen Howes

T

he number of visitors to Papua New Guinea (PNG) by air tripled between 2002 and 2015.

But with the end of the economic boom around that time, the air travel boom ended as well. Travel numbers flattened out in 2016, before falling in 2017 by more than 20%. They were stagnant in 2018, before recovering in 2019 by 14% to leave arrivals at 13% below their 2015 peak.

We can get a clearer picture by looking at the three main categories of foreign visitors to PNG: business travellers, workers, and tourists.

The fall in business visitors (see Figure 2) of one-third between 2016 (the peak) and 2019 is hardly surprising given the weak growth performance of the PNG economy in recent years, the lack of progress on various major resource projects, and the difficulties placed in the way of foreign investors, including foreign exchange rationing and policies to restrict foreign investment.

The fall in arrivals for employment, also shown in Figure 2, can also be explained by recent economic trends. It began in 2013, the year in which PNG LNG construction was completed, with a steep decline to 2018 of one-third, before significantly bouncing back in 2019. It’s not easy to explain the exact trajectory, but the decline between 2013 and 2019 in foreign workers arriving matches that of the formal sector workforce over the same period: 8%.

The sharp decline in tourists arriving by air is more surprising. Their number, like that of business arrivals, also fell by one-third between 2015 and 2019. The success story for PNG tourism in the last few years has been cruise arrivals, which have increased from zero or close to it a decade ago, to almost 51,500 in 2019.

Unfortunately, those travelling by cruise ship contribute very little to the PNG economy. A 2019 Tourism Promotion Authority (TPA) report put their total domestic spend at just K21.6 million, which is only K420 per cruise passenger. The same report estimates that each air arrival contributes K7,500 per person, 18 times as much. Or, to put it differently, 51,500 cruise arrivals are equivalent in their expenditure to only 2,900 tourists by plane. The increase in cruise travellers in no way offsets

the precipitous decline in air tourists.

2017, an election year, was a disastrous year for tourism, with a decline of 41% in air arrivals in a single year. When we look at the data by nationality, we find a slight increase in the number of Australian tourists, the biggest category, in 2017, but big falls in tourists from all other regions. Australia dominates the PNG cruise market (with about 80% of market share), even more than it does the plane-tourism market (just above 50%).

So, it doesn’t look like people have decided they would rather cruise around PNG than travel to it by air.

Rather, the two trends seem unrelated.

PNG’s TPA in its analysis has emphasised the total number of tourists. While this makes for a much more positive narrative, it hides the sharply reduced contribution of tourism to the PNG economy.

Of course, in 2020 COVID-19 severely disrupted international travel. There were only 38,940 international air arrivals in PNG in 2020, one-quarter of the 2019 level. With low levels of vaccination, it is hard to see how tourism will recover quickly in PNG. Travel for business and work

24 www.pngbusinessnews.com • Issue 1 2022

will recover more quickly, but the former might also stay low now that people are used to virtual meetings.

The last time we looked at this international air travel data on Devpolicy we were analysing data up to 2013. The question that article ended with was whether visitor growth would remain strong, or whether there would be a slowdown. No one would have guessed then that the number of visitors in 2019 would have been actually below the 2013 level.

How relevant these past trends are for the future is uncertain. It would be good to see some analysis from PNG’s TPA on why tourism by air shows no sustained growth since the late 1990s. But perhaps

(Above) A nearly empty Port Moresby airport ramp.

To Page 28 >

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NEWS

Nadzab airport to be renovated by end of 2022

T

he 1,600- meter runway at Nadzab Airport has been finished, with another 800 meters to be renovated by the end of the year before it is completely operational.

The final 800 meters of the runway, according to Oriental Consultants Global architect Satoru Ijiri, should be entirely improved by the end of this year.

He stated the airport terminal building is halfway completed and will accommodate both international and local flights. He also stated that airport aeronautical ground lights would be placed to allow planes to land at night by the end of the year.

On a visit to the Nadzab Airport Redevelopment project site, Japanese Ambassador Nobuyuki Watanabe noted that refurbishing the airport is a big step toward expanding the airport’s function and

developing Lae’s economy.

According to Amb Watanabe, the airport’s expansion will increase the capacity of international planes landing and departing straight from Lae’s Nadzab International Airport.

“I am very happy to see that progress, and I hope the airport will enhance the locals and to improve and upgrade the internationalisation of Lae and to develop the whole economy of Lae,”

26 www.pngbusinessnews.com • Issue 1 2022

he said. “Due to the COVID situation, the construction has been suspended for 10 months, but the construction was normalised at the end of last year and is proceeding very smoothly.”

The Nadzab Airport Redevelopment Project is a JICA-funded project with a contract signing expected for November 2019.

Construction on the project began on February 4, 2020, and it will be finished in April 2023.

Nazdab Airport architectural mock-up.

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COMMENTARY

< From Page 24 the main value of this exercise is to show how difficult it is to predict the future from the past – and, unfortunately, to underline that while the resource boom of the 2000s permanently increased economic activity in the country, that boom finished several years ago, and the economy has been stuck in the doldrums ever since.

Notes: 1. This article updates and uses data from a series of articles from our former colleague Carmen Voigt-Graf. Her data ran from 1996 to 2013. In this article we also look at another six years of data from the PNG Tourism Promotion Authority. (We exclude data from 2020 since obviously travel numbers collapsed that year with the onset of COVID-19.) Data is available in TPA reports on the number of cruise arrivals, and that is subtracted from the number of tourists and the total arrivals. TPA data is available from 2007. Aggregate arrivals are identical in 2007, and similar in other years, at the level analysed in this article.

2. As Carmen explained in one of her articles, “Foreign nationals residing in PNG for a certain amount of time who leave temporarily and then re-enter the country are counted as ‘returning residents’, and are therefore not included in the figures of visitors. They are only counted when they enter PNG for the first time.”

3. In the TPA expenditure report quoted in the blog, air visitors are not only tourists but all visitors except for workers.

4. Data used in this article is available in this excel spreadsheet. (All previous articles, spreadsheets mentioned in this article are available as hyperlinks on this article at devpolicy.org).

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.

Huiyuan (Sharon) Liu is a Research Officer at the Development Policy Centre, working in the area of economic development.

Stephen Howes is the Director of the Development Policy Centre and a Professor of Economics at the Crawford School.

28 www.pngbusinessnews.com • Issue 1 2022

MINING

PNG government grants special purpose lease to Newcrest Lihir

T

he National Government has granted a Special Purpose Lease to Newcrest’s wholly owned subsidiary Lihir Gold Limited (LGL), which now allows the company to develop the Londolovit Township on Lihir Island further.

Minister for Department of Lands and Physical Planning, Mr John Rosso, handed over the Special Purpose Lease (SPL) for Portion 1021 in Lihir, Namatanai, to LGL in Port Moresby last week.

“On behalf of the Department, I thank Newcrest Lihir and key Lihir stakeholders for seeking our assistance with the consolidation and grant of the SPL for Portion 1021,” said Mr Rosso.

“Newcrest Lihir is the first mining project in the country to have considered planning and developing a town with postmine closure in mind; I commend Newcrest for taking this approach,” added Mr Rosso.

The consolidation and granting of the SPL are the first phase of a project that would ultimately create a sustainable future for the people of Lihir post-mine closure.

Newcrest Lihir embarked on this project following consultations with key stakeholders on Lihir. The process involved the conversion of two Agricultural Leases for Portions 422 and 717, held by LGL, to

the consolidated SPL. The first subdivision of the SPL will see the development and grant of approximately 100 state leases to the Kapit families affected by mining activities. The second subdivision will further develop Londolovit township to boost economic growth.

“I am delighted that Newcrest is committed to utilising the state lease to achieve these outcomes. DLPP committed to delivering the consolidated title to you (Newcrest), and we are proud to have delivered on our commitment. We will continue to support you at every stage of the project,” Mr Rosso said.

Additionally, Mr Rosso encouraged his technical teams within DLPP to develop a longterm partnership that would benefit all stakeholders in the project. He also urged Lihirian people to support the project.

“Lihirian communities, take ownership of this project and support it because this township (Londolovit) is important for the generations of Lihirians yet to come,” he said.

In partnership with the Nimamar Local Level Government (NLLG), DLPP and other key stakeholders, Newcrest Lihir is preparing to continue with other project phases, which include town planning and surveying.

30 www.pngbusinessnews.com • Issue 1 2022

Newcrest Lihir General Manager, Mr Johan Labuschagne, received the SPL on behalf of the company and thanked the DLPP Minister, his team, and key stakeholders for collaborating on this project.

“We are delighted as a company and the first mining project to achieve this outcome as it sets the trend for future projects.

Owning this Special Purpose Lease is a unique situation in PNG. We are fully committed to creating a sustainable and positive legacy through this lease,” said Mr Labuschagne.

“We look forward to working together with all stakeholders to ensure Londolovit Township becomes a prosperous town, supporting our mining operation now and post-life of mine,” he added.

Furthermore, NLLG Deputy President, Mr Sebastian Siadodoh, commended Newcrest Lihir for embarking on the project, describing it as the ‘right move’.

“This project aligns with the development aspiration of the people we serve – traditional landowners, affected mining resettlement landowners, and over 25 000 people who live, invest and work in Lihir. Our Kapit people will also now have security of tenure, bringing them together to settle as a community on state land,” he said.

Photo courtesy PNG Chamber of Mines and Petroleum

NEWS

PNG set for second EITI validation starting April

P

apua New Guinea’s second country validation on implementing the Extractive Industries Transparency Initiative (EITI) Global Standard commenced on Friday, April, 1st.

Head of the PNGEITI National Secretariat Mr. Lucas Alkan says the validation is intended to assess the impact EITI implementation has made in the country in terms of addressing sector governance challenges.

The six-months validation exercise will entail an independent and comprehensive assessment with an announcement on the outcome by the international EITI board expected in October.

“Our second country Validation will be a quality assessment on how far we have progressed implementing the EITI International best practice requirements in PNG,” Mr. Alkan said.

PNG was awarded “meaningful progress” ranking in its first Validation in 2018 with recommendations to close EITI reporting gaps and this validation will assess how PNG implemented recommenda-

tions and other EITI requirements under the EITI Standard.

“The validation focuses on the efforts made by the country in; implementing the specific requirements as prescribed by the EITI Standard, the lessons learned or challenges faced in the country’s effort to implement these requirements, the progress made in undertaking policy and legislative reforms as recommended through the EITI country reports, as well as any concerns stakeholders may have in the extractive sector relating to resource governance for better management of the sector,” Mr. Alkan explained.

PNG’s validation will be undertaken in three phases.

Firstly, staff from the EITI International, the PNGEITI Secretariat and its Multi-Stakeholder Group (MSG) will undertake a desk review of all relevant documentations of the PNGEITI since its inception.

Upon completion of the desk review, staff from the EITI International Secretariat will undertake

stakeholder consultations with the intent of drawing up the initial validation assessment report.

Upon completion of the country consultations, the EITI International Secretariat team will compile an initial assessment report.

An Independent Validator will then review the initial assessment report, do an independent assessment, and compile a draft Validation Report.

PNG, through PNGEITI MSG, will be given an opportunity to assess and provide further feedback on the draft Report before a final Report is submitted to the EITI Board for deliberation and decision making.

“The validation process commences on 1st April and all stakeholders from key government entities, industry players, civil society organizations and development partners are requested to provide necessary information and support when contacted during the consultation process to ensure PNG achieves a good scoring in this second round of assessment,” Mr. Alkan said.

< From Page 16

just cutting income taxes will only benefit the small proportion of our people in the formal economy, and even then, there will be no benefit for those on minimum wages as they already pay no income taxes.

“The preference is GST and fuel excise and fuel import tax cuts.

“We need to work with businesses to determine a fair, efficient and fast way to deliver these tax cuts.

We need to work with the ICCC to ensure these tax cuts are passed on to families.

“I am listening to advise on the proposed household items to benefit from a GST cut.

“I am very concerned about the health of our people, including the increase in obesity levels (some say fatness), which increases the chances of diabetes and heart attack and other health conditions.

“On this basis, I have recommended the removal of sugar from the proposed GST tax cuts with savings allocated to other key household items.

to implement such important administrative changes.

“The war between Ukraine and Russia continues to impact cost-ofliving pressures on PNG families.

“As announced in the March session of Parliament, the MarapeBasil Government is determined to make life easier for families and small businesses through GST tax cuts.

“As previously stated in response to some industry groups,

32 www.pngbusinessnews.com • Issue 1 2022

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MINING

T

4 months paid maternal leave for St Barbara employees

o fulfill its commitment to diversity and inclusion, St Barbara, operator of Simberi gold mine in New Ireland, has announced a generous parental leave package for its employees.

Women staff can now take four months fully paid maternity leave to recover from pregnancy and childbirth while bonding with their babies while the men are entitled to 15 days paid paternity leave.

Employees only must complete their six month-probation to be entitled to the parental leave.

It is believed, the four-month fully paid maternity leave incentive is the first of its kind in Papua New Guinea and both men and women employees are applauding St Barbara for introducing the groundbreaking policy.

Some employees who have successfully completed their probation are already benefiting from the scheme while others like accounts clerk Sainian Wurlima looks forward to making the most of the opportunity when her turn comes.

Sainian, who has been working at the Simberi operation since 2009, is five months away from having her third baby and is overwhelmed by the good news.

“I am very grateful for this incentive. On behalf of my family, I say a big thank you to St Barbara for giving recognition to us, women employees, and understanding the challenges we go through in juggling our motherly role and career,” said a very happy Sainian who flies to the mine to work from Kokopo in East New Britain.

“It is a great incentive for mothers and babies, especially those with complications. I believe it is a first in PNG and I say how lucky my women colleagues are for being employed

by St Barbara,” said accountant and local Tabar islander Paskalis Maradangoi.

Payroll officer Margaret Kupo

P

described the parental leave as a unique advantage for mothers and dads and reminded her colleagues to give back to the company in return.

“Our company has given us women a unique blessing. I call on fellow women staffers to enjoy it, but not abuse it,” said Margaret.

“Once you return to work after four months of resting and bonding with your babies, do your part by remaining committed to your work and giving it your best.”

St Barbara, an ASX 200 company, is the only Australian mining company to be recognised as an Employer of Choice for Gender Equality by Australia’s Workplace Gender Equality Agency (WGEA).

The company has received this citation for seven consecutive years

running and is an initial signatory to the WGEA Pay Equity Pledge.

Managing Director and Chief Executive Officer Craig Jetson says the latest citation confirms the Company’s commitment to addressing pay equity and ensuring gender equality in recruitment, promotions, and reward and recognition.

“I feel privileged to have joined a company that is leading the mining industry when it comes to gender equality. As the only mining company to receive the citation again this year, I strongly encourage more resource companies to participate in the WGEA Employer of Choice program to discover the benefits diversity brings to innovation, engagement and performance.”

Photo courtesy PNG Chamber of Mines and Petroleum

KUA IN VIRTUAL MEET WITH SINOPEC EXECS

etroleum Minister Kerenga Kua recently attended a virtual meeting in Beijing with the Senior Vice President of Chinese Petroleum Giant SINOPEC. Minister Kua accompanied Prime Minister James Marape to Beijing and held a separate meeting to discuss various aspects of PNG’s petroleum business, including how

SINOPEC can best partner in upstream and downstream processing opportunities, as well as their interest in buying LNG from the Papua LNG Project and the P’nyang Gas Development Project.

SINOPEC, as the first LNG customer of PNG LNG with a 2MTPA long-term (20-year) contract, is looking for other long-term LNG

34 www.pngbusinessnews.com • Issue 1 2022

contracts for the PNG LNG projects that are due to begin FEED in the middle of this year.

SINOPEC is also interested in upstream involvement for existing projects as well as new licenses that provide the greatest investment potential.

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OIL AND GAS

P

Cabinet clears P’nyang gas deal

rime Minister Hon. James Marape, MP has announced that his Cabinet has cleared the P’nyang Gas Agreement, which now awaits signing between the State and ExxonMobil who is the lead project developer of the Petroleum Retention License (PRL) 3.

The Prime Minister said: “When I took office in mid-2019, I committed to the nation better results from resource projects we were going to undertake under my watch and today let me thank ExxonMobil for responding positively to our state’s position to earn more from our country’s national resources.

“We started a protracted negotiation that included detaching P’nyang from Papua LNG terms and moving onto a separate template to gain more for the State but at the same time giving respect to our investors’ return on their investments.

“After almost two years of exchanges, I think we have found the sweet spot where investors will be happy and we the PNG beneficiaries including Western Provincial Government and Landowners will be happy.”

The Cabinet meeting approved the gas agreement, which has the following unique features comparative to both PNG LNG and Papua LNG project agreements that the State Negotiation Team led by Chairman Dairi Vele successfully negotiated under Minister Hon. Kerenga Kua’s guide.

Total state equity to be at 34.5% over and above the 22.5% allowed

by oil and gas act, with ExxonMobil to offload 12% of their stake at fair market price to PNG parties of which PM has committed to offload most to Western Province and Landowners. Comparatively in PNGLNG we only have 19.6% and Papua LNG, the O’Neill Government signed up to only 22.5% as required by Law; Corrected the definitions of “well head value “of Royalty, Equity and Development Levy so that deductions only feature cost of harvesting the resources unlike present definition in both PNGLNG and Papua LNG; Secured additional production levy at 3% not given in PNGLNG project and Papua LNG is at 2%; Secured 5% of total gas domestic use at much cheaper price than Papua LNG’s DMO, a far bigger improvement from PNG LNG; No tax concessions except the increase on amortization cost and time period that will see PNG picking tax benefits in the later life of the project; License to develop is to be sequenced with Papua LNG construction where our country will see increase benefits to the economy with both Papua LNG and P’nyang LNG sequenced to construction from 2024 to 2032 instead of just four years for Papua LNG; With P’nyang coming on board, it means that PNG will be a gas producing nation up to 2060 and PNGLNG beneficiaries will collect toll revenue from P’nyang LNG in the period they are in production;

36 www.pngbusinessnews.com • Issue 1 2022

The P’nyang infrastructure will have capacity to upload other third party stranded gas in Western, Hela and SHP into the future; The total project economic gain for PNG sits at 59% and with adjustments to the life of the project.

It will rest at 63% all within the Marape-Basil Government mandate that SNT had used for the negotiations. PNG should note that in PNGLNG we are gaining at 49% and Papua LNG at 51% so above 59% to 63% is an all-time high for our country.

PM Marape commended ExxonMobil for understanding PNG’s aspirations by choosing to remain committed to unbundle the 4.4 TCF of gas that, if not developed, would remain in the foothills of our country’s hinterland.

More details will be made when the gas agreement is signed next week Tuesday at the Parliament’s State Function room, the Prime Minister said.

On a related matter, Prime Minister Marape mentioned Santos Ltd.’s positive indications of additional equity in the PNGLNG project, based on his request to Santos if they offload equity in PNGLNG as a result of their acquisition of Oil Search assets.

The Prime Minister commended Santos CEO Mr Kevin Gallagher for the good indications thus far saying this should recompense PNG parties in PNGLNG for dilution of their interest to only 19.6% instead of the 22.5% required by law.

Photo courtesy Santos Ltd.

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OIL AND GAS

S

Santos joins milestone agreement for P’nyang

antos has joined the Papua New Guinea Government and P’nyang project participants (affiliates of ExxonMobil and JX Nippon) to execute a gas agreement that provides a clear framework for P’nyang’s future development.

The signing of the gas agreement marks a major milestone for the project, setting out the fiscal framework and supporting project scoping and evaluation.

Subject to a final investment decision by the P’nyang participants, the ExxonMobil-operated P’nyang project would deliver LNG through new upstream facilities in Western Province linked to existing infrastructure, including our world-class PNG LNG plant near Port Moresby.

Upon completion, up to five per cent of P’nyang gas produced would also be made available to support the government’s electrification efforts in Western Province or another agreed location.

Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said he welcomes today’s gas agreement and looks forward to supporting the operator to develop this valuable resource for the region and as long-term backfill for existing LNG infrastructure.

“The signing of the P’nyang project gas agreement demonstrates the commitment of all parties to the project and will bring economic benefits for the people of PNG

T

when the project is developed,” Mr Gallagher said.

“I thank the PNG Government and the government of Western Province for their partnership with the P’nyang participants to move towards P’nyang project development, which is proposed to commence following delivery of the Papua LNG project.

“The P’nyang project will provide landowner benefits under a benefit

sharing agreement to be negotiated in the future. Development of P’nyang will create local and regional jobs and business opportunities, provide training and skills development opportunities, and help build stronger communities.”

The P’nyang gas field is within PRL3, located in the Western Province of Papua New Guinea.

Santos has a 38.5 per cent interest in P’nyang.

Photo courtesy Santos Ltd.

PNG CHAMBER CONGRATULATES ALL PARTIES ON SIGNING OF P’NYANG GAS AGREEMENT

he Papua New Guinea Chamber of Mines and Petroleum congratulates the Papua New Guinea Government and joint venture partners ExxonMobil, Santos and JX Nippon on the execution of a gas agreement to guide the development of the P’nyang Project.

Prime Minister James Marape, Petroleum Minister Kerenga Kua, Exxon Mobil’s Peter Larden and Santos’ Brett Darley, on behalf of the project partners signed the Project Gas Agreement Tuesday afternoon at Government House in Port Moresby, marking a major milestone for the project, and setting the fiscal framework and supporting project scoping and evaluation.

President of the PNG Chamber of Mines and Petroleum, Anthony Smaré, said this major project will see the delivery of gas and condensate through new upstream facilities in Western Province linked to the world-class PNG LNG plant near Port Moresby.

“The P’nyang project has been a long time coming, and all of the partners in the project, led by ExxonMobil PNG, must be commended for their steadfast commitment to ensuring negotiations on this project were resurrected, and now seen to fruition with this signing.

“The world is moving quickly under a new net-zero paradigm, and thus if we do not bring these projects onstream responsibly and

38 www.pngbusinessnews.com • Issue 1 2022

expeditiously, then as a country we may lose that opportunity, and with that associated benefits and revenues in the form of taxation revenue, job and training opportunities, state company revenues, landowner revenues and benefits, and business opportunities for Papua New Guinean entrepreneurs and SMEs”, Mr. Smaré said.

“It was important that P’nyang, Papua LNG, Wafi and Porgera are progressed in a responsible and expedient manner to significantly boost the economy to help our country overcome is recent economic challenges. This announcement will improve investment confidence in Papua New Guinea internationally.”

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ENERGY

A

Marape invites creation of power companies

s the new National Energy Authority (NEA) develops from strength to strength within a year of its inception, structural changes to boost energy output and tap into Papua New Guinea’s alternative power-generation sources continue.

Hon. Saki Soloma gave the country an update on the NEA’s work since its two enabling legislations, the National Energy Act 2021 and the Electricity Industry Amendment Act 2021, were approved in April of last year, establishing it.

The NEA is one of Prime Minister Hon. David Cameron’s constituents. James Marape’s aims to assist industrialize the PNG economy remain at the top of the agenda, along with the Connect PNG Program in civil infrastructure. The NEA was created as a result of his government uniting behind the passage of the NEA. The Prime Minister joined members of Parliament who came out in support of NEA and Minister Soloma’s efforts to get the statutory body up and running.

According to him, NEA takes over as the electricity regulator, leaving PNG Power Ltd with little choice but to operate as a power supply firm under a license.

This instantly opens the way for new power-supply businesses to operate in PNG, which the Prime Minister rapidly took advantage of today in Parliament to demand.

Bougainville, Manus, New Ireland, Oro, and a number of other locations not linked to the PNG power grid will be able to benefit from this new scenario, with the Prime Minister urging provincial governments to begin looking into developing it.

PNG, according to the Prime

Minister, has a plethora of alternative energy sources, including solar, hydro, wind, and geothermal energy, which the NEA plans to develop.

Even though it is still in its early stages, NEA has already formed collaborations with Australian investor Fortescue Future Industries in the geothermal and hydropower sectors, with the goals of local supply as well as international export and commerce.

The idea behind the current power programs involving the “four-nation” aid partners, according to the Prime Minister, is to get

each of these financiers to support the development of supply lines into the country’s most populous areas, similar to Japan’s current support for the Yonki-Lae 132kva grid.

Several more will be discovered, including the Yonki-Madang-Wewak supply chain.

“Vision 2050 clearly states that by 2030, 70 per cent of our citizens must have access to electricity. So it is consistent with a national focus that by 2050, and the three MTDs that we have operated thus far, that the 70 per cent target is achieved – if not in 2030, at the very earliest,” said PM Marape.

PM James Marape speaks to Parliament.

Photo courtesy Parliament Media

EU WILLING TO HELP PNG WITH FORESTRY REFORMS

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ccording to Ambassador Jernej Videtic, the European Union (EU) is willing to provide Papua New Guinea with hundreds of millions of kina to help the country complete its forestry reforms.

“Some of the areas that the EU will help are in environmental data management for carbon trading, knowledge management, green jobs, and growth, among others.

“PNG holds one of the largest primary forests of the world,” Videtic said.

Videtic, who spoke at the PNG

Forest Authority’s workshop to celebrate the 2022 International Day of Forest 2022 said PNG was in danger of climate change. “Forestry, climate change and biodiversity are intrinsically connected specially for PNG,” he said.

“We are aware that your forest not only serves PNG but Europe and the entire world.

“We are ready to support PNG and allocate significant funds in the hundreds of millions of kina for forestry, climate change and biodiversity programmes, three elements that

40 www.pngbusinessnews.com • Issue 1 2022

cannot be separated,” he added.

Solan Mirisim, the Minister of Forestry, stated that it was critical to use and manufacture wood in an environmentally responsible manner.

“1.6 billion people depend on the forest for their livelihood and PNG is no exception,” he added.

PNGFA managing director John Mosoro said the authority was also implementing changes, including the much-discussed log export development charge, to guarantee that revenues flow to forest resource regions.

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COMPANIES

Swire Shipping turns 150

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Reiterates commitment to decarbonisation and sustainability

wire Shipping, the oldest operating entity of the British conglomerate, the Swire Group, is celebrating its 150th anniversary this year.

The Company began as The China Navigation Company in 1872 on the banks of the Yangtze River where it operated a modest fleet of Mississippi-style paddle steamers. Last October it rebranded to Swire Shipping as part of its strategy to streamline its brands, and present customers and stakeholders with a consistent and unified experience across its product offerings.

Headquartered in Singapore today, the Company offers multipurpose liner services through Swire Shipping for the global transportation of containerised, breakbulk, heavy lift and project cargoes, whilst its Projects division provides specialist shipping services to the energy, resource and infrastructure sectors in the global project logistics market. In March 2021, it set up its integrated logistics arm providing door-to-door solutions for our customers. This provides a single point of contact for customers for the full supply chain solution.

The establishment and expansion of its product range to offer such services dovetail with its aim of enhancing overall customer experience and saving its customers’ time. For more information, please see https://www.swireshipping.com.

At the recent re-opening of its Singapore office which underwent extensive renovations, Sam Swire, Swire Shipping’s Chairman, paid tribute to its global workforce which have contributed to the Company’s success. In particular, Mr Swire acknowledged the professionalism and sacrifice of its seafarers, who have borne the brunt of the pandemic.

“I’m proud of how everyone adapted and there has been no discernible drop in safety standards,” he said. Referring to the outbreak of hostilities in Ukraine, Mr Swire said: “Our thoughts and prayers are with our Ukrainian colleagues and their families.” The Company has a substantial number of Ukrainian colleagues and is supporting them as much as possible during these difficult times.

Study in a

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Pathways to universities and Technical and Further Education TAFE.

Decarbonisation and the next 150 In the next lap, decarbonisation will continue to be a priority for Swire Shipping. “As a member of the global shipping community, we are keenly aware of the need to work with like-minded organisations and partners in developing safe and sustainable solutions. It is our intention to be on the front foot,” said Mr Swire.

Last year, Swire Shipping announced its To Page 43 >

Beautiful climate and a healthy outdoor lifestyle.

Unique culture and natural beauty.

Schools are location in Cairns, Townsville, Sunshine Coast, Gold Coast, Ipswich and Brisbane.

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Cupcakes bearing the special 150th anniversary logo of Swire Shipping were distributed at the event.

42 www.pngbusinessnews.com • Issue 1 2022

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COMPANIES

Quah Ley Hoon (CEO, Maritime and Port Authority of Singapore and Guest of Honour at the opening) flanked by Sam Swire (Chairman, Swire Shipping Pte. Ltd.) on her right and James Woodrow (Managing Director, Swire Shipping Pte. Ltd.) on her left.

A rousing lion dance was part of the celebrations. Scrolls bearing good wishes and success for continued growth were unfurled.

< From Page 42 commitment to reducing its GHG footprint, ultimately to net zero by, and preferably well before, 2050. Swire Shipping serves many communities in the Pacific which are directly impacted by global warming and with many communities at risk of disappearing, we must take action to drive change. In October 2021, John Swire & Sons Limited, Swire Shipping’s ultimate parent company, and the Mærsk Mc-Kinney Møller Center for Zero Carbon Shipping signed a partnership agreement, committing to a long-term strategic collaboration around the development of safe and sustainable decarbonisation solutions for the maritime industry.

With sustainability taking centre stage in everything it does, the Singapore office was renovated with sustainable features in mind. Materials were sourced sustainably and office equipment was re-used where possible. “We hope that the new amenities will provide colleagues with a great place to work and collaborate in,” said James Woodrow, Swire Shipping’s Managing Director. Extensive investments in technology have been made, so that colleagues get the best in a hybrid working environment.

About Swire Shipping Swire Shipping is dedicated to facilitating and growing trade in regions where it operates. Swire Shipping provides several high frequency liner shipping services in the Asia Pacific markets and specialises in providing a wide range of specialist customer solutions for project, heavy lift, refrigerated, breakbulk and mini bulk cargoes. It connects 400 ports via an extensive network of services in the Asia-Pacific and globally and maintains a worldwide agency network in addition to its own representative offices across the Asia-Pacific, Pacific Islands, North America and Europe, providing its customers with dedicated service and expert market knowledge.

For more information, please visit www. swireshipping.com.

Swire Projects provides specialist shipping services to the energy, resource and infrastructure sectors in the global project logistics market. For more information please see https://www. swireprojects.com www.pngbusinessnews.com • Issue 1 2022 43

OIL AND GAS

Feed for Papua LNG to begin June 2022

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he US$12 billion Total-led Papua LNG Project will begin front-end engineering and design in June 2022.

Total Energies Senior Vice President Asia Pacific Julien Pouget verified this, who stated that the business is dedicated to seeing that the project is completed, adding that the PNG Total Energies team, led by managing director Jean-Marc Noiray, is on schedule to do so.

He stated that the project would confront logistical obstacles, but that they are striving to overcome them.

“We have an excellent team and together with our partners we are going to make this happen as soon as possible,” he said.

Mr Noiray stated that they would begin FEED in June, with the goal of completing FID by the end of 2023. Construction will commence in 2028, with the goal of completing production by the end of 2027.

“This is an aggressive timeline, and we are still committed to delivering it.

“We are also carrying out the environmental survey liaising with CEPA to achieve our environmental

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permit hopefully by Q2/ Q3 of this year.

“We’re keen on delivering the project.

“This project is too essential for the country and the country need the project and we will try to do our best. We are not the type of company which is trying to cheat in and abuse position.

“We want to find balance, because balance agreements they last.”

In welcoming Mr Pouget to the nation on behalf of Prime Minister James Marape, Minister for Petroleum Kerenga Kua stated the PNG Government is optimistic that the project would get off the ground and into FEED, FID, and production.

He stated that the State’s interactions with the investor have been favorable, and that he looks forward to working with the operator to achieve the next milestones.

“I look forward to working with Julien. We’ve overcome a lot of milestones already but there is still a few more very significant milestones in front of us and I am hap-

py to hear Jean-Marc that we are committed to FEED and after that we will be looking at construction and all of that. Along the way irrespective of the government, this project is a political project,” Mr Kua said.

“This project underpins the dreams and vision of this country.

No state of leadership can afford not to treat this project with respect.

“So, we will continue to give the support that you need going into the election.”

Photo courtesy Total Energies

JAPAN AWARDS K15.6M GRANT TO ROUNA 3 HYDROPOWER PROJECT

or development on the Rouna 3 hydropower project in Central, the Japanese government has awarded a K15.6 million grant to Papua New Guinea.

Soroi Eoe, the Minister of Foreign Affairs and International Trade, thanked Japanese Ambassador Nobuyuki Watanabe for the funding in Port Moresby.

The K15.6 million donation, according to Ambassador Watanabe, was authorized by the Japanese government in a recent cabinet meeting and will be used to purchase electrical equipment to improve power generation, notably at the Rouna 3 hydropower project.

The award, according to Eoe, would help PNG Vision 2050 achieve its goal of reducing car-

bon emissions by 90% and generating 100% of electricity from renewable energy sources by 2050.

It will also assist PNG Power in providing low-cost generation to link families as part of the PNG Electrification Partnership and PNG Development Strategic Plan, which aims to connect 70% of households by 2030.

Despite the economic downturn and income contraction caused by Covid-19, Watanabe stated that Japan will continue to help PNG. In 2021, Japan offered K1 billion in direct budget support, K34 million in grant assistance for rural electricity, K13 million in grant assistance for construction equip-

44 www.pngbusinessnews.com • Issue 1 2022

ment to support infrastructure development in West Sepik, Manus, Milne Bay, and Enga, and now the grants for Rouna 3 and Tokua Airport.

Watanabe was reassured by Eoe’s assurance that the grant funds would be used properly and for their intended purposes.

Photo courtesy Entura - Rouna 2 Hydropower Station

ICTSI South Pacific is at the forefront of Papua New Guinea’s expanding global trade.

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COVER STORY

By Paul Oeka

Pacific Industries: The story behind PNG’s iconic manufacturer

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ince its birth in 1936 as the Gabriel Achun Bottling Co., Pacific Industries Ltd. has emerged as a catalyst for social interaction through the manufacturing of food and beverages in Papua New Guinea, mainly by producing fast-moving consumer goods and distributing leading international brands. Their products range across a variety of soft drinks, bottled water, fruit juice, cordial, snacks, and spreads.

In an interview with the current Company Director of Pacific Industries Ltd, Mr. Everett Chue, he gave a brief history of the company’s origins.

Pacific Industries has come a long way since its establishment. The founder of Pacific Industries Ltd., Gabriel Achun Chue (grandfather of Everett Chue) and his wife survived World War II from the Japanese army’s occupation in Rabaul, in which they both were prisoners of war, and developed the company exceedingly from its humble beginnings.

During WWII Rabaul, in East New Britain Province in 1941, the Australian Army entered a joint venture with Pacific Industries Founder Gabriel Achun Chue to make soft drinks and cordial for the Allied forces in PNG, and since then a factory was constructed in Rabaul to manufacture beverages. The factory was bombed and destroyed during the war and rebuilt in 1946 to again supply the allied troops.

Brands such as Gold Spot were initiated in those early years, and to this day, it remains one of the most popular soft drink brands in Papua New Guinea.

By the 1960s, the company had begun to diversify its product lines. Paul Chue (Everett’s father) took over the reins from his father in 1968 and was instrumental in monumental events that have shaped the company’s efforts. Such efforts began over 70 years ago and have since become an integral part of the Company.

While there are countless projects and initiatives started by the Company, there are some major turning points highlighted in this timeline of events: • 1941 - Pacific Industries starts manufacturing Gold

46 www.pngbusinessnews.com • Issue 1 2022

Spot Soft Drinks for allied troops in Papua New Guinea • 1969 - Pacific Industries was granted the bottling license to produce Coca Cola Products for the New Guinea Islands.

• 1979 - Pacific Industries granted exclusive distribution license for all Vita products.

• 1989 - Current Managing Director Paul Chue

Photos courtesy Pacific Industries

To Page 50 >

COVER STORY

< From Page 46 expands Pacific Industries from Rabaul and builds a new manufacturing plant in Port Moresby, 6 Mile.

• 2009 - Pacific Industries ceases production of Coca Cola products after 40 years.

• 2012 - Pacific Industries launches Gogo Cola • 2015 - Pacific Industries completes its first Ice Cream manufacturing plant in Port Moresby and starts manufacturing the Scoops range of ice cream.

• 2019 - Pacific Industries successively granted bottling license to manufacture PepsiCo Products in PNG. The Director Mr. Everett Chue has also confirmed new developments that will be taking place. He said, “Currently we have one distribution facility centre under construction in Lae, Morobe province and we also have two manufacturing facilities being upgraded in Port Moresby.”

Sustainability, diversity, and innovation are not something new at Pacific Industries, as shown by their innovative initiative to produce hand sanitizers, which were in high demand during the Covid-19 crisis. He said, “Since the start of the Covid-19 pandemic, we also started to make hand sanitisers in 3 different package sizes.”

Since the company’s establishment, its efforts have covered a wide range of product

initiatives and developments.

Pacific Industry is now a third generation-run business in Papua New Guinea and for more than 80 years it has managed to retain its popularity and keep up with the times while remaining entrenched in nostalgia.

Their head office is in Port Moresby with 9 branches nationwide, two manufacturing plants and two branches in the Autonomous Region of Bougainville. Pacific Industries prides itself in being one of the pioneers and leading companies of the FMCG industry in the country with a history that spans almost a century in Papua New Guinea.

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Photos courtesy Pacific Industries

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ENERGY

Marape thanks Warangoi landowners for hydro project

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andowners in Warangoi, Pomio, East New Britain, have been informed they would be paid K5 million for the use of their land and water for the Warangoi Hydro Power Project by Prime Minister James Marape.

In Parliament, he provided this guarantee to Pomio MP, Hon. Elias Kapavore, who had inquired about the payment schedule.

PM Marape promised landowners that they would be compensated the K5 million they requested for the usage of their land and water when he opened the K83 million 10 Megawatt Warangoi PNG Power Ltd (PPL) Hydro Power Project Major Rehabilitation Project in November.

He praised landowners in Parliament today for enabling East New Britain to utilize their land and water for 30 years to produce power.

PM Marape stated that he had discussed the matter further with the Minister of State-Owned Enterprises, Hon. It was in the KCH Work Plan for 2022, and it was written by William Duma and Kumul Consolidated Holdings (KCH).

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“That K5 million commitment is part of that work plan,” he said.

“We could not find the money last year as it was not factored into the work plan, but based on that commitment, we came back, and I am happy to announce that the K5 million is captured in this year’s work plan.

“Within this month, or next month, the minister responsible

(Duma), the KCH team and PNG Power will inform your (Pomio) team and they will do an official handover of that K5 million.”

PM Marape commended the Warangoi landowners for their patience for more than 30 years.

“They’ve shown goodwill to allow Warangoi Hydro to be functional and it is only fair that we honour them ASAP,” he said.

The water catchment area of the Warangoi PNG Power Hydro Power Project in East New Britain.

ENVOY: JAPAN SPENT K19M ON RICE PRODUCTION IN EAST SEPIK, MADANG

ince 2003, the Japanese government has provided K19.2 million to encourage rice production in East Sepik and Madang, according to Nobuyuki Watanabe, the Japanese Ambassador to Papua New Guinea.

“K11.2million was funded in the first phase of the promotion of smallholder rice production project from December 2003 to November 2008,” he said.

“Another extension of K8 million was later funded in the second phase of the project from December 2011 to November 2015 which included Milne Bay,” he added.

Rice is a basic cuisine of Papua New Guinea, according to him, although “it is primarily imported.”

“So, Papua New Guineans are aiming at improving food security in targeted provinces.

“There are 706 smallholder farmers in Madang which exceed-

ed the set project indicator of 580 farmers.

“Madang rice ‘Magic Marasin’ is packed, semi-commercialised and sold locally in Madang which is a good indication of sustainable subsistence rice farming.

“Model farmers in Madang must continue growing rice locally for their own survival and also to improve food security in the province,” he said.

Madang Agriculture and Livestock acting assistant director Joe Naram said: “With help from the Japanese Government, we can see progress with rice farming in Madang.

“There is the land in Middle Ramu that we were carrying out feasibility studies for rice farming. K2 million will be given to the Madang Provincial Administration from the National Planning Department in the next three weeks

52 www.pngbusinessnews.com • Issue 1 2022

to fund a rice farming project there,” he said.

“We are focusing on the concept of commercial rice farming for Madang.

“We will have a very big challenge in rice farming if we want to go into commercial rice farming.

“There will be arrangements made with commercial companies to get their rice supplies from our own local farmers and sell nationwide.”

PM James Marape and Japanese Ambassador Nobuyuki Watanabe.

Photo courtesy Embassy of Japan in Papua New Guinea

AGRICULTURE

Kapka: Hike in coffee export levy ‘reasonable’

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ccording to Coffee Industry Corporation Ltd (CICL) board chairman Jerry Kapka, the increase in the levy on green bean coffee exports from 10t to 20t per kilogramme is reasonable.

“The increase is not same as 10t administrative levy. With the current scenario facing the coffee industry, the board has seen the need to have a reserved funding source assigned specifically for coffee

development initiatives, including quality improvement and market accessibility,” Kapka said in a paid notice.

“The additional 10t levy will be used under strict guidelines to help exporters, processors, plantations, block holders and smallholders’ associations to develop the industry. The additional levy was approved by representatives of all sector associations on the board.

“The exTo Page 56 >

PNG to be promoted as tourist destination

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ccording to the PNG Tourism Promotion Authority, Papua New Guinea will soon be promoted as a tourist destination in the Gulf and Middle East areas.

This comes after TPA and Across Borders Travel, a Dubai-based marketing and representation organization, signed a memorandum of agreement (MoU) in Dubai, United Arab Emirates (UAE).

The deal was inked by Tourism Arts and Culture Minister Isi Henry Leonard and Across Borders Travel CEO Fabian Fernandes.

Leonard stated that PNG’s tourist business had never entered the Middle Eastern tourism market, that the MoU was a breakthrough, and that he aimed to acquire a market from the Gulf area.

“PNG’s participation at the Dubai World Expo2020 will provide the leverage to effectively market PNG as a tourism destination in light of the opening of international borders,” he said.

The Gulf Cooperation Council (GCC), a political and economic union of Arab states surrounding the Gulf, is looked after by Across Borders Travel. It was founded in 1981, with the UAE, Saudi Arabia, Qatar, Oman, Kuwait, and Bahrain as members.

Across Borders Travel was founded in 2013 and is a sales representative for seven cruise lines and 11 destination management businesses.

TPA will get tourism and marketing expertise from Across Borders Travel as part of the MOU. It will also offer TPA information on travel and tourism in the United Arab Emirates and the Middle East.

TPA CEO Eric Uvovo and marketing director Alice Kuaningi were on hand to witness the signing. www.pngbusinessnews.com • Issue 1 2022 53

AGRICULTURE

UK promoting PNG coffee

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ccording to the British High Commission in PNG, Papua New Guinea’s specialty coffee has consistently received top cupping scores for its unique and distinctive single-origin Arabica coffee.

The coffee was pushed by the UK’s trade partnerships programme (UKTP), which was provided through the International Trade Centre, Banz Kofi, and the PNG Coffee Industry Corporation, according to the commission.

The speciality coffee was presented in the center, which was chosen by smallholders from PNG’s lush volcanic soil.

UKTP has assisted coffee farmers and exporters in PNG in gaining market recognition for high-quality speciality coffee and connecting producers with buyers, benefiting whole communities along the agricultural value chain.

British High Commissioner to PNG Keith Scott said: “When the UK and PNG signed an economic partnership agreement in 2019, export promotion in targeted sectors was an important element.

“PNG coffee is the best in the world. Increasing access to the large UK speciality coffee market, and beyond, ensures new sales for participating companies and offers real benefits to local coffee-growing communities in PNG.

“UK support will also enable PNG speciality coffee to be showcased at the London Coffee Festival, the Food and Drink Expo in Birmingham (April 25 to 27) and the Speciality Coffee Association World of Coffee event in Warsaw, Poland, in June.

British High Commissioner to PNG Keith Scott said PNG coffee ‘is the best in the world.’

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AGRICULTURE

Dubai a potential market for PNG’s Robusta coffee Simon: Robusta to be selling at K10 per kilo

By Paul Oeka

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ocal coffee farmers of Robusta Coffee in PNG will now have the opportunity to export and sell their Robusta Green Beans to Dubai as talks to open trade between the two countries is set to become a reality.

PNG’s Minister for Agriculture and Livestock, John Simon, said PNG Robusta coffee will be selling at K10 per kilo, which is equivalent to the price of Arabica Coffee, which is currently selling double the price at the United Arab Emirates.

Minister Simon said he had arranged to ship the first two bags of Robusta green beans in his District in Maprik, East Sepik Province to Dubai as part of an agreement with the coffee marketer in Dubai. The minister said he travelled across the world to look for a potential market for coffee and having been told that there is a market for Robusta in Dubai is exciting news.

“Robusta coffee is not bought at the price it is worth. Because we are told that Robusta is low grade compared to Arabica, well I have news for all the Robusta coffee growers in the country that we now have a market for you”, he said.

Minister Simon stated: “Countries such as Jordan and Italy

< From Page 53 porter, processor/plantation, block holder and smallholder, including Government representatives, have seen the merit of introducing the levy for coffee development to be deployed directly to impact the industry, unlike the administrative levies “The coffee development levy will be directly fixed to projects or programmes to support exporters, processors, plantations, block holders and smallholders and not only to increase production but also provide incentives to direct interests on coffee farming activities,” he added.

CICL acting chief executive Charles Dambui said: “We cannot just expect all the time from Government/CICL to fix and address

have a demand for this coffee right now as well as other parts of the world, they need Robusta to blend Arabica.

Without Robusta there is no coffee”.

He said on his trip to Dubai he was advised that PNG’s Robusta is organic and has a much better premium quality than that of Brazil and Vietnam, the two biggest coffee growing countries in the world.

The minister said his duty now was to get policy papers to go before Cabinet and convince the government to open a trading partnership with Dubai.

Minister Simon has also called on the government to do away with the traditional trade system and address biosecurity as an effort to increase trade with other countries.

“I understand that it is a long way including issues of trade.

However, we can look at better alternatives on how to get the Market off the ground”, he said.

“We need to change from our traditional trading partners and look elswhere. We have been doing business with them for so long.

We cannot export coffee and other agricultural food to Australia because they have biosecurity issues. Australia has given us aid after aid but have not helped us with biosecurity issues”, the minister said.

He said Dubai has no biosecurity issues and are ready to market any of PNG’s agricultural products to the world.

Minister for Agriculture and Livestock John Simon

all our sector association’s issues.

“We must be seen implementing some of the policies we made on the board as representatives of the associations. We cannot talk and watch things to happen or expect the Government to fix all our problems.

“We want to know the standing of Highlands Farmers and Settlers Association who claimed to represent exporters, processors, smallholders, and plantations.

“The decision undertaken to increase coffee levy was made by

the legitimate representatives of exporters, plantations, processors, block holders and smallholders of the coffee industry, appointed by the Government through their associations,” he added.

The additional 10t levy on coffee will be used under strict guidelines, government says.

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FINANCE

CJ Valuers Limited: PNG’s cutting-edge valuation firm boosted by internationally acclaimed macroeconomist

By Paul Oeka

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hristopher Taylor Hnanguie (LM), a globally acclaimed macroeconomist, has been involved in the transformations, reforms, and development of economies in more than 30 countries around the world.

Until recently when he returned to PNG, Hnanguie was a macroeconomist of the Asian Development Bank, leading policy and structural reforms and development in Eastern Europe and across Asia-Pacific.

Hailing from the ranges of Boikin, Wewak, ESP, Hnanguie is one Papua New Guinean that has been widely involved in the development of economies internationally throughout his decorated career. His name is synonymous to the economic, banking, and capital markets sectors, as well as good governance and anti-corruption

issues.

Hnanguie worked as an Economist for the Asian Development Bank and is recognized by the ICSC as the first Papua New Guinean national to be employed by an international development financial institution as a professional member of its staff cadre.

He has worked with ADB for more than two decades across the globe before taking early retirement, when he was offered the post of Executive Chairman of the Securities Commission to return to PNG. His good intent to return to PNG and share this unique exposure and experience with Papua New Guineans was shattered by politics, which sidelined him as the Executive Chairman of the Securities Commission four years and four months after he took up the post.

The capital markets are one technical area where he could have contributed substantially to

the country’s development with his extensive experience, had politics not interfered with the opportunity.

Hnanguie did contribute briefly to the country’s capital markets and as an ex-officio Director of the Board of the Bank of PNG. He has been active in the country’s development as a practicing economist and a consultant for various government departments, and financial institutions including as the Chief Economist for the United Nations Development Program in Papua New Guinea.

He was also Senior Consultant Economist for the Department of Commerce & Industry, the National Coordination Office for Bougainville Affairs (NCOBA) and the Autonomous Government of Bougainville, leading the first of its

Christopher Taylor Hnanguie (LM)

To Page 60 >

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ENERGY - MANUFACTURING - MINING - UTILITIES 58 www.pngbusinessnews.com • Issue 1 2022

FINANCE < From Page 58 kind in PNG – the Bougainville Socio-Economic Baseline Survey; the Valuation of Bougainville’s Natural Assets; and conceptualizing the Bougainville Economic/Investment Summit.

In the private sector, this talented development economist has ventured into raising the bar in the valuation profession in the country.

He registered several business entities with the Investment Promotion Authority (IPA), including the Pacific Capital Markets Institute, the Independent Evaluation Team, and recently, together with one of the most prominent registered valuers in PNG, Ms Janet MH Yagur, they created the CJ Valuers Limited - an independent valuation company providing Property, Company/Business and Security valuations, as well as training and consultancy.

CJV Valuers aims to capture 50% of the PNG market in the next 5 years and has the eye to capture a sizable share of the valuation business in the Pacific.

Ms Yagur is a strong-willed, vibrant and dedicated female entrepreneur who has been in the valuation profession for over 20 years.

As the principal valuer of CJ Valu-

ers, Ms. Yagur has a record of over 150,000 valuations conducted across PNG, covering all aspects of the valuation profession.

Through her insights, she has welcomed the wisdom and the quality asset in the calibre of Mr. Hnanguie, who is the Managing Director/Chief Economist of CJ Valuers and provides strategic oversight and capacity enhancement of the company. He brings

60 www.pngbusinessnews.com • Issue 1 2022

in not only economic, finance, and business insights but also global best practices that only a handful of SMEs in PNG have.

At the onset, being a global banker and returning to PNG and contributing significantly to a local SME is profound for Mr. Hnanguie, who believes in upholding the rule of law and due processes.

Hence, while being the Managing Director of CJ Valuers Ltd, he

Mr. Hnanguie (right) speaks during his tenure with the Asian Development Bank in this television screen grab.

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FINANCE

www.pngbusinessnews.com • Issue 1 2022 61

FINANCE < From Page 60 is a registered Company Director with the PNG Institute of Directors – something not many SMEs in PNG are privileged to have. This brings a lot of confidence to the staff of this vibrant team, dedicated to build a successful PNG company under its own success story.

When asked what inspires him, Hnanguie noted: “Papua New Guineans are striving to be better and excel in what they do. It inspires me to see the co-founder of the company, Ms. Yagur, who laid the foundation of CJ Valuers with Yagur Property Valuations. This formed the basis for CJ Valuers to take off.”

“Whilst the COVID-19 pandemic forced many SMEs to scale back or simply wind-up, CJ Valuers was transforming, branding, and consolidating to be a powerhouse in the valuation business. They acknowledge this to an important client – the Kina Bank Limited.

“Like all businesses and sectors, we have learnt and adapted to maintain our efforts in catering for our clients and fostering new ties and relationships especially in retaining and expanding our client base”.

As the “wind beneath the

wings”, Hnanguie oversees and ensures that the competitiveness of the firm rests in the quality and timeliness in the delivery of its products and services.

While Hnanguie and Ms Yagur’s reputations bring confidence and credibility to the firm, it’s the multi-disciplinary approach with strong advanced technological tools that is giving the cutting-edge notch to CJ Valuers to stand out from other valuers or rivals falling behind.

Development of the valuation industry is also of utmost impor-

tance to CJ Valuers, especially in terms of educating and promoting women in business. The company believes that it’s also about equal opportunity and making people aware that gender empowerment in the industry is a major aspect in the overall development process of the country.

When asked about the state of the economy, Hnanguie said: “The structure of our economy is built on natural resources such as the extractive industries like mining and petroleum as well as the tree crop commodities.”

The staff at CJ Valuers.

To Page 64 >

Our purpose is to make our customers successful, every day, all around the world. We take pride in operating safely, responsibly and sustainably.

Together, these enable us to grow and create enduring value for our shareholders.

IGNITING OPPORTUNITY, DELIVERING VALUE 62 www.pngbusinessnews.com • Issue 1 2022

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FINANCE < From Page 62 “Hence its behavior is cyclic, and subject to the global demand for our commodities where we thrive when the demand for our resources is high, and we fall when the demand is low.”

“The irony is over the past 40 plus years, we are yet to understand this simple cyclic nature of our economy and adopt so that when the economy is heavily rocked by external shocks, we are able to sustain ourselves or not to fall so heavily on our face.”

In recent years, including at the peak of COVID restrictions, this was so evident, he noted.

“Major players such as the private sector were affected seriously because movement and travel had been contained causing businesses to cut back due to certain policy measures.”

“But as the situation on Covid -19 started improving, policy measures were relaxed, and travel restrictions had been lifted, and main contributors to the economy such as the private sector have gone back to business and economic activity is starting to flourish compared to the years when the pandemic had hit hard”, he noted.

“When I was with the United Nations, I was tasked to conduct the Socio-Economic Impact of COVID-19 on PNG, to look at how business as well as the vulnerable groups of society were affected, the report is now online,” Hnanguie added.

“All in all, it’s time for PNG to better prepare for rainy days. When is the Sovereign Wealth Fund going to be established? When are the Special Economic Zones going to be properly regulated? These are some areas that can help cushion the economy when it falls.”

“PNG is in its new chapter – elections are here, and the country has lost a significant number of its founding fathers, ranging from the Great Grand Chief Sir Michael Somare to Sir Paulias (Matane). The coming election would be a major

P

transition in PNG’s overall political and economic system.”

“Papua New Guineans need to look at things in a policy or systematic way on how to cast their votes, our voting system goes with whoever that provides at that particular time and day.”

When asked about what he observed to be a challenge as one of the most demanding aspects of his career as an economist, Hnanguie explained on how PNG politics has continuously interfered and hindered with economic progress.

“It is sad to see how undue political interference has destroyed the public service. When I returned to PNG, I did not get the opportunity to share some of those unique exposure and experience and global best practice in PNG, especially in building the country’s capital markets, which are the pistons of the economy and the right gear for creating wealth for our citizens.

We can’t afford to allow politics to interfere in all aspects of our economy,” he said.

Prior to getting into the valuation industry as Managing Director for CJ Valuers, Hnanguie has been recognized for his achievements and efforts in the economic and

financial sector and has received multiple awards at both the local and international level from multiple governments around the world.

These include awards from the governments of Vietnam, Laos and Kazakhstan for significant contributions to economic management.

In PNG, he was awarded PNG’s Logohu Medal (LM) in recognition for his services in Economic Management and for upholding the principles of good governance.

Hnanguie holds three Masters Degrees -- in Business Administration, in Business Economics, and in International Political Economy.

He also holds a Bachelor degree in Economics and Political Science from the University of PNG. Currently, he is also a senior Consultant Economist to the Commerce and Industry Department and the Autonomous Bougainville Government in the country.

Hnanguie also lectures in the Master of Business Administration, and the Master of Economics and Public Policy programs at the University of PNG. He is completing his book tentatively entitled “Papua New Guinea the Trillion Dollar Economy: Why So Rich Yet So Poor?”

The staff at CJ Valuers.

PUMA: CRUDE PRICES HIT IMPORT PARITY PRICING

uma Energy PNG, the country’s largest fuel and energy provider, claims that changes in crude prices have a direct influence on energy market import parity pricing. Import parity pricing is a pricing mechanism used by goods providers to establish prices for their domestic sales to domestic consumers based on the opportunity cost of a unit of imported replacement products.

The rise and fall of oil prices, according to Hulala Tokome, the country manager for Puma Energy, are being felt all across the world.

Because petroleum and diesel supplies are nearing seasonal lows, he said the physical market is tight.

OPEC continues to underperform, and constrained supply is being exacerbated by crude output limitations. “Decline in COVID-19 cases as well leading to strong pent up

64 www.pngbusinessnews.com • Issue 1 2022

demand and crude production below expectations will continue to drive prices higher in the medium term,” said Mr Tokome.

“Fuel prices surely do have an impact on any business operation.”

According to him, the average MOPS (Mean of Platts Singapore) price has a one-month lag. As a result, the market’s IPP (import Parity Pricing) is directly affected by the rise and fall of oil prices.

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Situated in the heart of Port Moresby is Crown Hotel Port Moresby with stunning panoramic views of the Coral seas and the Fairfax harbour.

Crown Hotel is perfect for either business or leisure with 151 rooms, 2 restaurants, 2 bars and conference facility that caters up to 300.

The fragrance of fresh flowers breezes through our modern Lobby, where you can browse artefacts drawn from Papua New Guinea’s diverse cultures.

Our Front Desk staffs are waiting to take your bags to your room or suite while you gaze at the ocean from Heritage bar or soak in the outdoor pool.

Rapala restaurant’s French fusion organic restaurant is complemented by a fine wine list while our casual Pondo Tavern serves comfort food on its deck.

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FINANCE

C

Capital Insurance Group opens new branch in Kokopo

apital Insurance Group Limited (CIG) recently announced the opening of its Kokopo Branch.

Located in a central part of Kokopo town, the office is managed by Mobile Sales Manager, Ms. Julie Lupai, who has a wealth of experience in the insurance industry with a solid network of clientele in Kokopo and the Niugini Guinea Islands (NGI) Region.

Key clients and guests witnessed the opening ceremony and welcomed the presence of CIG in their hometown.

The City Manager for Kokopo, Mr. Freddy Lemeki, congratulated CIG for this timely development, given that Kokopo is the fourth city of Papua New Guinea, and that the need for insurance will grow in tandem with future developments.

General Manager for Capital General Insurance Company (CGIC), Mr. Udu Vai, and General Manager for Capital Life Insurance Company (CLIC), Mr. Douglas English, were also present for the launch.

GM CGIC, Mr. Vai, affirmed to guests that this expansion is the first branch in PNG outside of Port Moresby, “which reflects our confidence in this market and that this will resource our people here in Kokopo and across the NGI region.”

GM CLIC Mr. English also added that this “is an opportune time to also look at medical service providers and increase awareness around health care insurance to help local families and communities.”

The new CIG Branch is now located at Elwel Street in Kokopo and opens on Mondays to Fridays from 8:30am to 5:00pm.

CIG is a locally owned insurer with offices in four other markets within the Pacific Region -- in Fiji, Solomon Islands, Vanuatu, and the Kingdom of Tonga -- while es-

tablishing its head o f f i c e in Port Moresby.

F o r more information visit our website: w w w . capgrp. com or contact our head office using our toll-free number: 1805678 or email service@capgrp. com

Bank of PNG launches Credit Guarantee Corporation

By Paul Oeka

T

he Bank of Papua New Guinea has launched the Credit Guarantee Corporation to help sustain and increase the growth of the small to medium enterprise (SME) sector.

Small businesses in Papua New Guinea will now leverage on the Credit Guarantee Corporation (CGC) to grow their businesses.

The Credit Guarantee Corporation launching on Tuesday 29th of March at the APEC House in Port Moresby will see it provide financial collateral as security to small businesses operated by Papua

New Guineans to grow their businesses. SMEs can now be able to secure a guarantee from the CGC to start or expand their business.

According to the Government, the CGC is a credit supplementing institution within the financial system and acts as a guarantor to SME loans.

BPNG acting Director Benny Popoitai clarified that CGC will provide loan security to financial institutions on behalf of PNGowned businesses.

Popoitai said: “The Credit Guarantee Corporation will be owned by the Central Bank and will be managed independently by the Bank of PNG under its Laws”.

66 www.pngbusinessnews.com • Issue 1 2022

The CGC was initially approved by the Government and was first announced by then Minister for National Planning Mr. Richard Maru during his presentation of the Public Investment Program in the 2019 budget press lock-up.

Prime Minister James Marape acknowledged the work of the Bank of Papua New Guinea for implementing the NEC’s decision by launching the CGC. He made a government commitment of K50 million to carry out CGC operations.

The establishment of the CGC in PNG is part of major reforms undertaken in the SME sector since 2014.

Capital Insurance Group CEO Jeremy Norton.

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COMPANIES

Rumbia Coffee Exports Ltd.: Making headways for EHP coffee farmers

By Paul Oeka

C

offee is a habit for many, it is the second most popular beverage in the world, second only to water. Every day, thousands of people wake up to a refreshing cup of coffee. In fact, people around the world consider having a morning cup of coffee a necessary part of their daily lives.

Papua New Guinea is a raw, rugged, and magical place, and coffee is the second leading agricultural cash crop in this untamed land. The majority of PNG’s coffee is grown in the Eastern Highlands Province which produces high quality organic coffee.

Coffee was once a premier cash crop pre- and post-independence, but lately oil palm has taken over since 2006 as the leader in terms of product and income generation, due to a downward trend in coffee production. Still, more than 2.5 million people work in Papua New Guinea’s Coffee industry, and the government earns a lot of money from the exportation of coffee regardless of its quality.

Goroka, the capital of Eastern Highlands Province, is a vibrant region of humility, food, scenic beauty, culture, and coffee, woven into the very fabric of life for communities in Goroka and all throughout EHP. The province is famous for its coffee and has always been associated with it; the quality of coffee here is rated among the best organic coffee in the world, but the value chain from planting, production, to exporting is unfair to the local farmers.

Small holders, coffee buyers and local coffee farmers in the country have always asked if it is even possible to change the value chain of this multimillion-kina industry in PNG. As this question lingers, the Governor from the main coffee producing areas of PNG wants to help change this process and create a fair marketing system for the benefit From left: Mr. Julian Baragu, BBM - General Manager for Rumbia Coffee Exports of local coffee Limited; Hon. Peter Numu, LLB, BA, MP - The Governor for Eastern Highlands Province; growers in his Mr. John Lewins - Chief Executive Officer (CEO) for K92 Mining Inc.; Mr. John Gimiseve - Provincial Administrator for Eastern Highlands Provincial Government; and Mr. Philip Province.

Hon. Gov- Samar - Vice President External for K92 Mining Inc. (Former Managing Director for ernor for East- Mineral Resource Authority- MRA). ern Highlands bean, everything should remain in Province Peter Numu has created Rumbia Coffee the hands of my people.

“Today, many young people in Exports, a business arm of Eastern Highlands Provincial Government, the province are losing interest in for his people to vastly improve on engaging in the coffee business bethe methods of big-name exporters cause the income generated from and competitors by providing com- coffee is too low. So, it is my goal as petitive pricing to encourage coffee governor to change this narrative growers in his province to continue to make sure those coffee farmers to look at coffee as a sustainable and the people who are involved in the coffee value chain earn betway of income.

Governor Numu stated: “In see- ter income so that it will attract the ing that Coffee has been the back- younger generation to come back bone of my province for so many into the coffee business”.

The Governor wants transparyears, I want to commercialize coffee production in Eastern High- ency in the coffee business beTo Page 79 > lands from planted seed to roasted cause agriculture and coffee have

68 www.pngbusinessnews.com • Issue 1 2022

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COMPANIES

Get over it… with PNG Forest Products’ NiuBridge

Y

ou know how they say, “Build a bridge… and get over it”? Well, with PNGFP NiuBridge you don’t have to build it, because it’s already built!

These expertly designed and engineered modular bridges are prefabricated to your specifications by PNG Forest Products.

With a design life of 50+ years and installed cost base typically under half that of equivalent concrete or steel, NiuBridge is the ideal, most cost-effective solution for bridgin¬¬g installations in Papua New Guinea.

The NiuBridge System includes deck, girders, kerbing, and accessories, and comes with a pre-applied bitumen surface.

Little maintenance is required thanks to PNGFP’s unique veneer preservation treatment, ensuring complete protection from termites and rotting.

NiuBridge is manufactured from PNG plantation pine to both AS/NZS 2269 and AS/NZS 1604 standards and exploits the advantages of natural timber, which is not subject to fatigue failure, unlike other materials such as steel and concrete.

Available in single lane, dual lane, or custom design, NiuBridge is suitable for a range of load conditions including Austroads T44 and AS 500 Bridge Design.

NiuBridge and sister product NiuDeck are widely used by local and state governments across Australia. The peak body for the timber industry in Queensland has welcomed these products as

a demonstration of the versatility and innovation of using Engineered Wood Products in bridge construction.

“Using prefabricated timber systems in bridges is gaining greater market recognition due to their inherent strength, light weight and low carbon emissions footprint compared to other construction materials”, said the CEO of Timber Queensland, Mick Stephens.

So next time you need to get over it, don’t waste valuable time and loads of money building a bridge. Buy a NiuBridge and get over it sooner and more cost effectively!

A registered tax-paying local SME with decades of extensive experience in the valuation business.

Yes “We Value Your Worth”.

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Commanding a combined portfolio of over 500,000 valuations in Property, Companies/ Businesses and Securities valuation at the local and global levels.

E: admin@cjvaluaers.com.pg

Y

MY

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K

(Left) NiuBridge installation, Rathdowney, Queensland; (Above) The Rathdowney bridge completed.

Our Services cover all aspects of the valuation profession including valuation of Properties Companies/Businesses and Securities.

We also provide training and consultancy services.

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Fb: www.facebook.com/cjvaluers

Loc: Level 2 at Kings Plaza Place, Sec.159, Lot 8, Skyview Estate, ATS Road, 8-Mile NCD PNG.

70 www.pngbusinessnews.com • Issue 1 2022

M

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(Top) NiuBridge installation in Gympie, Queensland; (right) NiuBridge on the Boluminski Highway, New Ireland, PNG.

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FINANCE

Access to quality credit: Employers benefit when staff benefit

A

ccess to affordable credit is highly valued but not readily available in Papua New Guinea. In an extremely competitive employment marketplace, businesses are increasingly assisting employees to access credit as a means to both attract and retain their top talent.

Even in the current economic downturn, there is still a ‘war on talent’ when it comes to PNG’s ‘best and brightest’. This is only set to intensify in 2022 with the Government having effectively given the green light to both the PNG LNG expansion (i.e., P’nyang) and the reopening of the Porgera gold mine.

Furthermore, despite the slow progression of the much anticipated Wafi-Golpu gold mining project, it will only be a matter of time before it too will require the skillsets of thousands of new employees.

A recent Salary Finance survey of US workers found that access to affordable credit is one of the most desired benefits not currently being offered by employers.

Human Resource professionals agree that in combination with competitive salaries, providing staff with access to affordable credit is another way to reduce the likelihood of valued employees jumping ship. It also helps position a business as an ‘employer of choice’ when it comes to recruitment.

Significantly, a key finding from PwC’s 2021 Employee Financial Wellness Survey found that 72 percent of workers who reported facing increased financial setbacks during the pandemic said they would be more attracted to another company that cared more about financial well-being than their current employer.

Savi Moni, an online personal loan service designed specifically for PNG’s corporate sector was launched in 2020.

Founder and Director Nick Keane has heard firsthand from several business leaders the concerns they have of losing key staff, as well as the administrative and cost burdens of managing employee credit programs inhouse.

Having lived and worked in

PNG for over 25 years, Keane understands the stress and hardship that a lack of access to affordable credit results in – especially when people resort to lending from unethical pay day street lenders (i.e., ‘loan sharks’).

“I’ve seen far too many people – even highly-educated people in good jobs – end up in a cycle of debt that they can’t escape” he said.

“Typically, these people find themselves with a mix of formal and informal (street lender) loans on high interest rates that they cannot afford. It is a really sad and really desperate situation for a lot of hard working and honest people”.

Keane started Savi Moni so that he could help the corporate sector help its employees.

“As someone with other business interests in PNG and someone who has managed large PNG workforces, I knew that internally managed employee credit programs are really time consuming, prone to creating workplace issues and not a good use of company capital” Keane said.

“As such, we designed our

72 www.pngbusinessnews.com • Issue 1 2022

lending product to be simple and streamlined so that there would be an absolutely minimal administrative burden for businesses”.

“We also wanted to introduce the concept of ‘responsible lending’ to the market – that is, by carrying out in-depth assessments to ensure we don’t over lend to our customers.”

“We want them to be able to comfortably manage their repayments, whilst having enough money for life’s essentials left in each pay packet.”

Central to the Savi Moni product is the recognition that employee financial wellness is not a ‘warm and fuzzy’ or ‘feel good’ employee program.

Financial wellness programs are now a ‘need-to-have’ employee benefit.

As such, Savi Moni provides not only a range of free financial literacy tools, tips, resources, and courses on its website, but it has partnered with Australian Business Volunteers (ABV) to deliver a PNG bespoke ‘Family Money Management’ two-day course for its loan partner companies.

The training is delivered at cost.

Solar Solutions, an early

To Page 73 >

FINANCE

< From Page 72 adopter of Savi Moni’s loan, offering delivered ABV’s Family Money Management course to its Port Moresby staff.

Savi Moni’s Pukari Peni, who attended the training session with them, reported: “The feedback was great. All of the staff that participated said they greatly benefited from the training.”

Port Moresby-based Avenell Engineering Systems (AES) has been impressed with the flexibility of setting their own loan parameters.

Knowing full well, the negative affects to their business of

staff suffering from high levels of financial stress, AES wanted to implement their own lending rules.

“Savi Moni really do have a ‘responsible lender approach’, with tight lending guidelines, yet we wanted to ensure even tighter rules for our staff. We set our own Debt to Income (DTI) Ratio and Savi Moni were able to implement this without a hassle”, said AESHR Manager, Maria Jesusa Garcia.

Savi Moni is a 100 percent online personal lending service with agents on the ground to assist if needed. It is delivered through a convenient and transparent digi-

tal platform that a business’ approved HR and Payroll staff log in to.

In order for employees to benefit from a Savi Moni personal loan, the employing business must first sign up as a Loan Partner -- there is no risk for Loan Partners, just benefits.

Minimal time and effort are required from Loan Partner businesses and their employees to ensure a fast and simple employee credit program. To learn more about how the corporate sector can assist employees access affordable credit and reap the business rewards of doing so: www.savimonipng.com.

www.pngbusinessnews.com • Issue 1 2022 73

COMPANIES

Ark Pacific’s increased production capacity and client growth

T

he resource sector’s preferred prefabricated modular building supplier, Ark Pacific, commenced 2022 with numerous buildings for multiple clients in its design, engineer, supply and construction pipeline.

The New Year also saw Ark’s production capacity increase by 100 percent, with its main factory now capable of producing 1,000 building modules per month due to enhanced automated technology.

Ark modular building systems were introduced to PNG in 2010 during the LNG construction phase when they were used for a 1,000-person multi-storey accommodation complex and associated support buildings. There are now thousands of Ark building modules – all assembled by local workforces – to be found across the country.

Impressively, the company grew its client base during the challenging business environment of COVID-19 impacted 2020 and 2021. An achievement due to its reputation for after-sales service, as well as for its tough and easy-to-assemble buildings, ideal for remote operations where specialist construction skills are in short supply.

General Manager Cass Ruka, who has nearly 20 years’ experi-

ence living and working in PNG, says that accommodation and administration buildings have long been the company’s top sellers, but that clients are also now sourcing more “technical” and “specialist” buildings from Ark. “Our modules have been engineered to suit almost infinite building types and configurations,” says Ruka. “This is why we’ve been able to design, engineer, supply and help construct an increasingly broad spectrum of customised and fit for purpose buildings, many of which have been for PNG resource clients.”

Ruka cites laboratories and specialist geology and crushing facilities as examples of the growing number of Ark building types to be found in PNG. A recent example of a customised building Ark designed, manufactured, and delivered for the PNG resources sector is a Minerals Laboratory Complex, comprising 11 separate labs, offices, crib room, and ablution facilities.

The project’s design phase took 12 months in partnership with the client, as well as laboratory equipment design specialists MARC, the result of which is a “gold standard” testing facility.

The modular componentry for

74 www.pngbusinessnews.com • Issue 1 2022

the laboratory was manufactured in December 2021, shipped to the client in January, with construction scheduled to commence by the end of the first quarter.

Like others in the construction sector, Ruka is positive about the predicted 2022 upswing in PNG’s resources sector.

“The timing is pretty well perfect for us because of the increased capacity of our main factory, which we are working to increase further throughout 2022. A compounding advantage for us when we look at the inflated freight price increases over the last couple of years, is our very low freight footprint in comparison to our competitors.”

Ruka says clients can save up to 75 percent on their freight costs because Ark’s modular componentry is specifically engineered so that six of its flat pack units are equivalent to a single 20-foot shipping container when stacked together, ready for transport.

“Another way to look at this,” explains Ruka, “is that instead of using five, six or seven trucks to get our units to the job site, the client only needs one.”

To learn more about Ark Pacific, including its diverse range of fit for purpose buildings and advantages of its unique building systems: www.arkpacific.net

Ark Pacific continues to supply the resource sector with camp and administration facilities but is increasingly called upon to provide its clients with customised technical and specialist facilities, including minerals testing laboratories (pictured).

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COMPANIES

Epiroc introduces DM30 XC blasthole drill for maximum productivity “The DM30 XC is built tough for the most demanding jobs, and high quality at an excellent value is what sets it apart from other drills in its class.”

— Mark Stewart, Regional Business Manager, Epiroc Surface division

E

piroc, a leading productivity partner for the mining and infrastructure industries, introduces the DM30 XC blasthole drill that is suitable for a variety of multi-pass rotary and down-the-hole (DTH) drilling applications. Built off the same proven, reliable platform as the Epiroc DM30 II, the new DM30 XC offers 33% more power and many benefits to customers.

The DM30 XC is designed for maximum productivity and efficiency due to increased rotary torque, increased pulldown, and a larger hole range capability. The DM30 XC is built to handle a 4- to 6-in (101 - 159 mm) drill pipe and has a weight on bit up to 44,000 lb (20,000 kg). The heavy-duty, crawler-mounted, hydraulic top head drive drilling rig features a 30 ft (9.1 m) drill pipe change and a standard carousel.

“The DM30 XC is built tough for the most demanding jobs, and high quality at an excellent value is what sets it apart from other drills in its class,” said Mark Stewart, Regional Business Manager, Epiroc Surface division.

“The drill is designed for mining so the structural components will hold up to the heavy-duty cycles

required in a mining drill. The robust frame and tower weldments are manufactured to last the lifetime of the machine.”

With a starter rod under the rotary head, the DM30 XC can achieve a total clean depth capacity of 148 ft (45.1 m) for multi-pass applications and 28 ft (8.5 m) for single-pass applications.

High efficiency and a 300-gallon fuel tank allow the rig to run for up to 16 hours before needing a refill for continuous operation.

In addition, the smaller, compact footprint of the DM30 XC makes it easy to manoeuvre on tight benches and simple to transport over between pits.

No matter the customer’s need, the DM30 XC offers options to suit any application. Customers can choose a low- or high-pressure compressor to create the right configuration for their drilling operation. A spacious one-piece FOPS (Falling Object Protective Structure) rated cab with electric over hydraulic controls offers enhanced safety, visibility, and operator comfort.

The DM30 XC is easy to operate, especially for drillers who have experience in other DM series

76 www.pngbusinessnews.com • Issue 1 2022

machines. The ergonomic controls layout allows immediate switchover from drilling to tramming mode, maximizing time available to drill.

The DM30 XC is equipped with an Electronic Air Regulation System (EARS) that provides low load start up and easy adjustment of bailing air to save horsepower and lower fuel consumption, extending power component life and decreasing total cost of ownership.

Customers can add even more flexibility to their DM30 XC with Epiroc’s Rig Control System (RCS) Lite, which offers several safety and productivity features. It also provides a convenient foundation to add more functionality and technology options in the future without a major rebuild of the machine.

RCS Lite allows all Epiroc rotary drills to have the same onboard display and system for consistent operator training and service. RCS Lite offers customers three different packages to choose from. It is a modular solution that delivers efficiency now, along with the opportunity for customers to enhance their equipment down the road as their mining requirements grow.

Epiroc’s blasthole drills are de-

To Page 77 >

COMPANIES

< From Page 76 signed for safety, productivity, and reliability for rotary or DTH drilling applications. Enhancing profitability for customers’ businesses and offering advanced performance, Epiroc blasthole drills are your drilling solution.

About Epiroc Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers. With groundbreaking technology, Epi-

roc develops and provides innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. The company also offers world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification. Epiroc is based in Stockholm, Sweden, had revenues of SEK 36 billion in 2020, and has 15 000 passionate employees supporting and collaborating with customers in more than 150 countries. Learn more at www.epi-

rocgroup.com.

Epiroc’s Surface division develops, manufactures and markets a wide range of rock drilling equipment for use in surface mining, exploration, construction, quarries, as well as water well and energy applications worldwide. The division has production in Sweden, the United States, China, India and Japan. Please see www.epiroc.com for product offerings.

www.pngbusinessnews.com • Issue 1 2022 77

COMPANIES

T

TWM granted highest level of permit under Environment Act

WM Group, a local SME business in the waste and environmental services sector operating in PNG, was recently presented with a Level 3 Environment Permit (EPL-485) by the Conservation and Environment Protection Authority (CEPA). This is the first of its kind to be issued to a waste management company in PNG and of this scale.

L3 environment permits are applied where the greatest level of environment and social protection are necessary – generally granted to the large corporates within the oil, gas, and mining industries.

TWM’s environment permit has more than 127 conditions, reflective of the highest levels of scrutiny to be applied by CEPA, as the Regulator on Environment Protection.

Established in 2011, TWM Group has been operating under a Level 2 (L2) Environment Permit administered by CEPA. The company has grown its core business in waste management and is now delivering other integrated technical services including Industrial Services, Environmental Advisory Services, Renewables and Skilled manpower services (Training and placements) all of which have contributed toward the development of TWM’s Integrated Waste Management Facility (IWMF) in Central Province.

With a greater range of services, TWM Group acknowledged the further responsibilities to both the environment and community, therefore a L3 Environment Permit was essential to meet these corporate obligations.

The L3 Environment Permit defines a suite of control measures intended to ensure potential for environment harm is avoided and/ or minimized. It prescribes many commitments that TWM must meet for monitoring and measurement of environment aspects (i.e., air, water, noise, dust) and it stipulates a stringent record-keeping reporting requirement to CEPA. “The L3 Environment Permit recently granted to our business will allow us to construct and safely operate our Integrated Waste Management Facility (IWMF) to worldclass standards. This is the first of its kind in PNG and for the Pacific island’s region”, said Kori Chan, Managing Director of the TWM Group.

“This environment permit is reflective of the evolving legislation

and increasing regulatory oversight and indicative of the increasing social expectation for companies to operate in a manner that is socially, environmentally, and ethically responsible and aligned to the United Nations Sustainable Development Goals (SDG’s)”.

The Permit issuance is the culmination of a year’s worth of environment and social studies to develop the Environmental and Social Impact Assessment; significant financial investments in understanding the existing conditions, establishing facilities and controls to safeguard the environment beyond the projected 25+ years of operation; TWM Group’s activities passing the highest level of scrutiny by eminent social and environmental specialists from industry, government and educations sectors; and extensive public, government and community stakeholder engagements and consultation.

“I see the issuance of the Level 3 Environment Permit to TWM as an enabler to other development partners in PNG; they now have an in-country waste services facility that has the necessary statutory approvals for challenging waste streams”, said Michael Wau, Direc-

78 www.pngbusinessnews.com • Issue 1 2022

tor of CEPA (Non-Renewable Resource Division - Environment Protection Wing).

“TWM Group has raised the bar as the first in the growing waste industry in PNG, and CEPA is equally proud in partnering in the journey”, Wau said.

The L3 Environmental Permit will allow TWM Group to undertake construction of the IWMF at Roku (a first and only such facility in PNG and the Pacific islands region) and conduct industrial wastewater treatment, quarrying and rock extraction; operate a full engineered landfill, design world-class standards capable of receiving municipal, construction and demolition and hazardous wastes; waste incineration including industrial and biomedical wastes; bulk waste storage, reprocessing, fixation and treatment including hazardous solids and liquids and material recovery and recycling (including glass, oil, organics, metals, paper and cardboard, putrescible materials and plastics).

The grant of the L3 Environment Permit places TWM Group among the mining and oil and gas majors that hold such permits in PNG.

From left: Rob Batterham (TWM Group Special Projects & Environment Manager), Michael Chan (TWM Group CEO), Michael Wau (Director – CEPA Non-Renewable Resource Division, Environment Protection Wing); Fabian Taimbari (Acting Manager – CEPA Oil and Gas Branch) and Steve Nicholls (CEPA Technical Advisor).

COMPANIES < From Page 68 been the main income generation avenues for his people and province. While coffee farmers’ income in Eastern Highlands have fallen in recent years, coffee industry sales in the country has been increasing; this is one of the main reasons why Governor Numu wants to make the coffee trade fairer in order to keep money in the pockets of his local farmers.

Most organic coffee producers in Eastern Highlands Province are subsistence farmers that live in remote areas, which is why exportation of quality organic coffee is a market which Rumbia Coffee is adamant to explore. But at times. most organic coffee produce have not made it to buyers in Goroka town due to road conditions.

Since the establishment of Rumbia Coffee in 2019, Governor Numu has subsidized airfreight to these remote areas in order for them to sell their coffee as well as fresh produce. Rumbia Coffee buys their coffee at a higher price; previously, parchment coffee was bought at a price of K2.50 per kilogram, but since Rumbia coffee’s inception, they have started buying at K4.50 per kilogram, which was eventually increased to the current price of K7

prompting, other coffee buyers and exporters to do the same.

In time, Rumbia aims to increase the price to K10 to allow local farmers all throughout the province to earn a better income.

Rumbia Coffee Exports initially exported green coffee beans with a first shipment of 300 bags at the value of K250,000 to South Korea.

Rumbia coffee has also exported to China and USA as well.

Jullian Baragu, General Manager of Rumbia Coffee, stated: “We are also in the preliminary stages of exporting to India and the Philippines as well. Our main objective is to help our hardworking coffee farmers in remote locations throughout EHP where it has very good quality organic coffee and are willing to export quality green beans to the overseas market”.

Rumbia Coffee also aims to rehabilitate coffee plantations in the province as they are accessing more markets for large-scale cof-

fee export. The former plantations owned and managed by expatriates were returned to customary landowners during the 1970s and 1980s.

Rumbia’s General Manager Mr. Baragu said: “In the coming year we plan to successfully operate these plantations to produce premium quality coffee, as there is an international market that sought-after PNG coffee but currently the quantity of supply that is exported is much less”.

Rumbia Coffee exports have the support of the Governor, the Prime Minister, and all stakeholders such as the Department of Agriculture and Livestock and Coffee Industry Corporation to manage and operate these plantations.

The processing and roasting of organic coffee will eventually be done in the province of production rather than in other countries. The result will be the export of high-quality finished product straight to the buyers in oth-

(Photo left) Rumbia Coffee Exports Launching, Goroka National Park.

(Photo right) Roasted coffee beans from Rumbia Coffee.

To Page 80 >

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www.pngbusinessnews.com • Issue 1 2022 79

COMPANIES

New dedicated harbour tug for PacTow

P

acific Towing (PacTow) has expanded its fleet with the purchase of a dedicated harbour tug ‘Koranga’ from Singapore.

Koranga is scheduled to arrive in Lae in March where she will be permanently stationed to better serve the increasing number of large vessels that berth in Papua New Guinea’s main port. The new tug is one of several tugs purchased as part of PacTow’s re-fleeting program.

Although PacTow is increasingly servicing PNG’s oil and gas sector, harbour towage remains PacTow’s core business.

General Manager Neil Papenfus reports that his vessels were involved in excess of 3,000 harbour assists in 2021.

Koranga will further increase the company’s harbour towage capacity and thus benefit PNG’s broader transport and logistics sector, the efficiency and effectiveness of which is in part reliant on the quick and safe berthing of vessels.

Originally named ‘Neon’ the new tug has been christened ‘Koranga’ after a Morobe volcano. She is an Azimuth Stern Drive (ASD) tug, the propulsion system of which makes her more manoeuvrable than conventional tugs. By 2025 when PacTow’s re-fleeting programme is complete, the company will own a total of 11 ASD tugs.

Koranga is one of the largest of PacTow’s tugs. Nearly 30 metres long, she has a bollard pull of 60 tonnes and braking horsepower of 4,436, enabling her to singlehandedly assist almost any vessel requiring harbour towage in PNG. “We have already purchased other tugs under our re-fleeting programme for the purpose of increasing our oil and gas, salvage and open ocean towage capacity, but Koranga will be used solely for harbour towage” said Papenfus.

“Like our other tugs, she will be

< From Page 79 er countries, cutting any interference from competitors who may decrease the buying price.

“This will be an economic boom for the province, creating new jobs and allowing the profits to remain in the province. I will create a platform for consumers and coffee buyers to deal directly with coffee farmers in Eastern Highlands through Rumbia coffee. It’s one way to increase provincial internal revenue and keep the money in the hands of the people”, Governor Numu said.

“PNG coffee relies on a smallholder driven supply chain so efforts for development within the coffee industry must be largely

captained by one of our very experienced PNG Masters and have an expert PNG crew.”

Koranga will journey to PNG from Singapore under the stewardship of a PacTow captain together with a seven-person PNG crew.

The voyage is anticipated to take 14 days and will cover approximately 1,800 nautical miles. Koranga will be sailed through the Java and Flores seas, and then through the Torres Strait to Port Moresby where PacTow is headquartered at its dedicated tug base and camp. The new tug will be re-flagged in Port Moresby prior to being despatched to Lae. Not only will Koranga provide vital harbour towage services, but she will also provide important training opportunities to some

of PacTow’s youngest seafarers.

Male and female Deck and Engine cadets from the company’s two cadetship programmes (one in partnership with the Australian Government, Swire Shipping and Consort Express Lines) will undertake sea time on the vessel as her crew helps tow, berth, and moor hundreds of vessels every year.

PacTow delivers excellent, reliable, and safe marine services through PNG and the broader Pacific. A well-maintained fleet, as well as a dedicated and exceptionally trained team underpin PacTow’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: www.pacifictowingmarineservices.com.

focused on them. The major problem facing the local coffee farmers is the inconsistency in the buying price per kilogram so making the value chain of coffee production transparent and fair to coffee farmers and marketing it at international level is a big goal and that is what Rumbia Coffee Exports is progressing to achieve”, said the Governor.

Rumbia Coffee wants to pave the way for a major change in the mindset of smallholders and local coffee growers by showing them the actual worth of their labor with possibilities of a better future for the younger generation.

More important, small holders, coffee farmers, government agen-

cies such as CIC and DAL must devise appropriate ways to support their initiative to rehabilitate the coffee industry in the Province, as Eastern Highlands Province was once the main source of high-quality coffee exports.

In time, Rumbia Coffee Exports Ltd. have made it their intention to promote and showcase the quality of Eastern Highlands Coffee to the international market to create awareness on the high-end organic coffee that is produced in the province to the world market, so interested buyers and importers will pay a higher price for the coffee they enjoy and ensure that the supply is constant -- and those who produce it will earn a fair income.

80 www.pngbusinessnews.com • Issue 1 2022

Built in Singapore, Pacific Towing’s newest ASD tug ‘Koranga’ (60 tonne bollard pull; 4,436 braking horsepower) will be dedicated to harbour towage in Lae. The company also provides numerous services to PNG’s oil and gas sector.

17 & 18 August 2022

Sir John Guise Stadium, Port Moresby, PNG

A premier industry event for PNG the 2022 PnG Industrial & Mining resources Exhibition & Conference will showcase over 100 local, national and international manufacturers and suppliers with the latest innovations in the supply of services and equipment for the industrial, mining and oil & gas sectors. the two-day exhibition is the premier meeting place to connect and network with thousands of industry decision makers across a broad industry reach, including senior management, procurement, government personnel, engineers, contractors and trade technicians.

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COMPANIES

M

Vulco® R67 mill lining rubber compound is revolutionizing mine site mill operations

ELBOURNE, Australia – Vulco® rubber is renowned throughout the mining industry for its exceptional wear life and reliability in mill lining systems. These abrasion- and impact-resistant rubber compounds have been developed with advanced technologies by the Weir Minerals’ team of expert engineers and material scientists who are continually refining Vulco® rubber products to keep them at the forefront of mill lining systems technology.

Having identified a need for higher-wearing rubbers for mill lining systems, the material science experts commenced developing an industry leading, premium-grade rubber compound with superior wear life and performance in mill lining applications. The result was the Vulco® R67 rubber – an optimum material which is manufactured with proprietary new compounds and innovative methods of processing to deliver outstanding wear life and longer uptime.

Extensive field research, compound testing and site trials were conducted to ensure that it was not only able to withstand severe abrasion in typical mill system applications, but that it is best in class. In fact, it has been the most wear-resistant rubber compound that Weir Minerals has ever developed for mill lining applications. The R67 compound boasts a high hardness, elongation, tensile and tear strength, and is suitable for lifter bars, head/shell plates and grates. When it’s utilised in

conjunction with metal cap mill liners, the result is a versatile, economical and efficient product that weighs up to 50% less than steel alone. The added benefit is a lighter product that’s faster, easier and safer to install.

Revolutionising wear lining Since its launch in 2018, many mining operators from around the globe have implemented the R67 compound into their mill lining systems. They have reported as much as 20-40% improvement in wear life, which is resulting in fewer mill lining replacements and longer mill campaigns. This reduction in shutdowns has a dual benefit of increased cost savings and improved plant availability.

What are the benefits for the mill operators?

With a liner that can run significantly longer, operators have

82 www.pngbusinessnews.com • Issue 1 2022

experienced a wide range of benefits including: • Improved wear life • A measurable reduction in mill downtime • Increased uptime and processing • Easier and safer installations • Reduced maintenance costs In addition to this, the mines benefit from having an experienced and dedicated team from Weir Minerals who custom-engineer the liners to suit each mill’s unique requirements for optimal wear life.

Global in-field success The R67 elastomer compound is changing the way mills operate - with exceptional results. Extensive global trials and commercial installations in the market have resulted in a number of successful outcomes across a variety of different grinding applications. From mines in the USA to Chile, the R67 has proven its outstanding performance consistently.

As an example, a high-grade nickel and copper mining project in the USA had a problem where the liners in one ball mill were wearing out too quickly, leading to continued downtime and reduced processing. They were looking for a product significantly superior to the elastomer that they were using. Initially there was reluctance from the mine, as they had loyalty to their original mill supplier, however after Weir Minerals conducted a series of trajectory simu-

The unique Vulco® R67 rubber compound combines state-of-the-art technology with advanced raw materials to deliver extended wear life, increased uptime and lower total ownership costs.

To Page 83 >

COMPANIES < From Page 82 lations and discreet modelling - to optimise the design and deliver the best process performance for the mill, they agreed to trial the R67 liners.

At the end of the trial the R67 showed 30-40% better performance than the incumbent liners and the customer installed a full set of R67 liners in their mill.

Another trial in the USA took place in an iron ore mine with several dozen ball mills in operation.

Here, Vulco® R67 liners delivered a 17% increase in life compared to the failed shell plates from the mine’s original mill lining system supplier. The company was extremely impressed with the results and installed a complete shell liner in their ball mill.

Moving to Chile, a copper mine was keen to trial the R67 compound to see if they could improve the wear time of a competitor rubber liner. After a three-month trial, all liners were physically measured showing that the Vulco® R67 liners fully worn wear life projected from the actual wear would be 80% longer compared to the incumbent liners.

Another copper processing plant in Chile trialled R67 composite liners in their SAG mill against two other compounds that are com-

monly used in the industry. After 12 months, there was a 48% and 62% wear life improvement on the other liners – proving that the R67 composite liners could withstand the highly abrasive environment.

Helping customers optimise their process As leaders in material technology, Weir Minerals are continuously undertaking research and development to provide best-inclass products to mining customers, while helping them improve their bottom line. When using Vulco® R67 rubber compounds, our customers can feel assured they have a market-leading product that is backed by decades of

experience, expertise, and proven effectiveness.

This innovative rubber compound not only delivers superior physical and viscoelastic properties but is also a lighter and safer material to use.

Where can you find Vulco® R67?

Vulco R67® mill liners are made exclusively at Weir Minerals facilities in North and South America, Australia and South Africa, with plans to expand production into more regions in the future.

For more information about Vulco R67® please visit: https:// info.global.weir/vulcor67

Inside the discharge end of a ball mill being fitted with spiral lifters and rubber grates. Vulco® R67 mill liners last significantly longer and deliver a measurable reduction in mill downtime, installation, and maintenance costs.

✔ Regulators of Exploration and Mining in

Papua New Guinea.

✔

Website: www.mra.gov.pg

Managers of Minerals Resources.

Email: info@mra.gov.pg

www.pngbusinessnews.com • Issue 1 2022 83

COMPANIES

Black Swan International appoints new GM Shane Harden

By Paul Oeka

B

lack Swan International has appointed and announced Mr. Shane Harden as their new General Manager in February this year.

Mr. Harden’s appointment as General Manager of Black Swan International brings a wealth of senior management and security expertise, as he has a great track record built on his experience in the Australian Army, followed by a strong Security Management Background with senior leadership roles in Papua New Guinea.

Most recently, Harden has held senior appointments in security management for a global conglomerate, both in Bangladesh and Indonesia. This experience has seen him make a smooth and effective transition into enhancing Black Swan International’s operations in ensuring their clients’ expectations are exceeded while growing the business in line with BSI’s reputation across PNG. When asked about the progress of BSI, Harden expressed: “Essentially our clients are among the largest commercial

and government entities in PNG and they expect us to be responsive as their circumstances may change. It has been a challenging time not only for BSI, but for our clients as well. We have tried to adapt our way of working, to enable us to maintain our high standards”.

He also stated that despite the challenges of the Covid-19 pandemic as with all industries, the security industry has also had its challenges, but it has also brought some positives by enhancing the standards across the industry relating to health and safety.

During the peak of the Covid-19 pandemic last year, Black Swan International adapted to the ‘New Normal’ and maintained a high level of service without jeopardizing the health and safety of their staff and clients.

One of Harden’s priorities is to establish a PNG Security Committee within the security industry in PNG. “It is something that I was part of in both Indonesia and Bangladesh. I find security companies need to stop working against each other and come together as an industry and help the fight against non-compliant security

84 www.pngbusinessnews.com • Issue 1 2022

companies who are cheating the government out of key revenue not only for the country but for its people (employees)”.

Compared to other developing countries, Harden noted the PNG security industry has a great base and is well-regarded against other developing countries.

With over 800 registered security companies within PNG, he said the question needs to be asked: Of those 800, how many are paying their staff correctly, paying the correct entitlements, and how many are paying the correct taxes and GST to the Government?

Harden comes home to PNG with his wife, who is a long-term resident of PNG, and two sons.

He expressed his delight at being appointed as the General Manager of Black Swan International and acknowledged all Black Swan employees across the country.

“As the new General Manager for Black Swan International I would like to thank each and every one of you for your outstanding work over the past two years, during what will likely be the hardest two years in our lifetime. Tenk yu tru olgeta!”

Black Swan officials (standing from left) David Martin, Clinton French, Shane Harden, Ewald Isaak, Michael Koupere, (seated from left) Gaynor Reggie, Joanne Hisiu.

BizPrint & Scan

PNG’s Only dedicated Scanning hub

e all know that Technology is changing at a great rate, affecting how we do a lot of things today, not the least of which, our work. In the business world, we have seen some office equipment and devices quickly become obsolete, superseded as we transform our work spaces to improve efficiency and save money. This technological evolution has seen a rapid increase in the number of organisations that are going paperless, and so digitising documents and paper- based records has become the order of the day.

That’s where BizPrint & Scan comes in.

We understand the importance of staying up-to-date with technology and providing our growing list of corporate customers with the very latest digital solutions in print and document management. Apart from providing the best commercial printing products and services in Papua New Guinea, BizPrint & Scan now offers state-of-the-art digital scanning operations at our Konedobu Headquarters.

As our corporate customers move away from their old paper-based systems, they are becoming more and more reliant on digital business operations, every day. Our Scan Bureau is a dedicated, highly secure scanning hub, offering state-of-the-art imaging software and a highly trained document management team. The first in the country to offer a complete end-to-end solution to fully

digitise all your documents, we can collect all of your paper files, then scan, repack and deliver them back to your office, scanned to a safe and secure hard drive.

Digital Scanning is a highly effective, quick, easy and secure method of maintaining your critical documents, helping to improve your organisation’s workflow and efficiency. Your old records can also be enhanced to make them easier to read, your documents can be stored for easy retrieval, rather than have you hunting through the dozens of file cabinets or mounds of paperwork that currently clutter your office.

• Immediate retrieval. Digital documents can be found quickly and easily with a simple keyword search.

• Eliminate the risk of losing important information if paper documents are damaged or lost due to fire, flood or theft.

• Scanned documents last forever and don’t deteriorate in time as do paper documents.

• Save huge amounts of money in floor and office rentals.

Don’t forget, BizPrint and Scan’s Specialist Scan Bureau offers you record and document management options for your critical data. Our scanning services save you time and money, boost your productivity, enhance your document security and help you retrieve critical data anywhere, at any time.

Sound like something your business will benefit from? Contact our team of professionals to scan and digitise all your documents. Call us on 321 3500 or send us an email at: sales@bizprint.com.pg

The benefits of using our scanning services include: • More storage space & savings.

• Remote access to data online.

• Optimise your business processes & efficiency.

• Increase document security & control access.

• Improved staff collaboration.

Digitise all your documents HIGH-SPEED SCANNING INDEXING AND ARCHIVING FOR EASY RETRIEVAL SECURE STORAGE & HANDLING Don’t delay, call one of our specialists to discover the benefits of digitising your business.

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COMPANIES

L

BCFW Certificate IV Leadership, Management Course goes online

aunched in 2015, the Certificate IV Leadership and Management Course has positively strengthened and impacted the professional careers of 299 Papua New Guinean women who are employed across different industries.

The course has grown from strength to strength. This year, the course will be delivered online in partnership with Tafe Queensland, a move that will not only enrich the digital skills of the participants but also increase further professional opportunities for them.

Delivering the course online means participants have the flexibility of attending work and carrying out their day-to-day official duties, while at the same time taking up the course. The course will be conducted 2 days per week with a 3-hour contact period for each day.

Participants will have access to the Tafe Queensland online library, where they can gather resources and tools for assignments and research.

Through the Business Coalition for Women (BCFW), PNG’s corporate sector is working to develop women into leadership positions across PNG’s public and private sectors.

Businesses recognize the value their female staff bring to the company and admit that gender equality is good for business, thus the growing demand for

BCFW’s leadership course, the Certificate IV Leadership and Management Course.

“My confidence increased, I am assertive and make sound decisions, my ability to carry out operational plans has been strengthened and I have better problem-solving skills,” said Mary Debola, Certificate IV Leadership and Management Cohort 17 participant.

The course covers key competencies, essential for emerging female talent serving in or preparing for their first management roles.

These competencies include: • Communication strategies • Developing personal work priorities • Developing and using emotional intelligence • Demonstrating leadership in the workplace • Coordinating business operational plans • Organizing business meetings • Applying risk management; and • Building and maintaining business relationships “This course transformed me.

Prior to the course, I did not know how to resolve problems within the team but after acquiring these new skills, I am mastering the art of conflict resolution,” added another participant, Raysie Walevo.

Business leaders acknowledge it is critical and is of business val-

86 www.pngbusinessnews.com • Issue 1 2022

ue to have women as leaders and decision-makers at all levels.

“Continued education is vital in developing the skills of all our employees, and the Coalition’s Certificate IV Leadership & Management Course helps us do exactly that. We are extremely proud of the growth shown by our team that have gone through the program. This sends an important message to our female staff that there is a real opportunity for significant career development here at Digicel PNG. This course is recommended to any business in PNG,” said Colin Stone, CEO of Digicel PNG. “BCFW has helped the corporate sector identify, train and promote female leaders through its leadership programs and we remain committed to helping businesses achieve their gender equality goals,” said Evonne Kennedy, Executive Director of BCFW. BCFW is the leading voice in Papua New Guinea advocating for gender equality within the business community. It provides a range of practical advisory services and tools based on international leading practices to help PNG businesses unlock their economic potential through gender equality initiatives. Its “made in PNG for PNG” approach results in sustainable services that are tailor-made for the PNG business environment, and which matches the needs of its members.

The Certificate IV Leadership & Management Course has successfully run 19 Cohorts in Port Moresby, Lae & Autonomous Region of Bougainville, impacting 294 professional women.

Image source – Adventurebagging.co.uk

We invite you to attend the 37th Australia Papua New Guinea Business Forum & Trade Expo 23rd to 25th May 2022 Brisbane Convention and Exhibition Centre, Brisbane, and Online Australia Papua New Guinea Business Council - w: www.apngbc.org.au | e: info@apngc.org.au | p: +617 3348 5142 Business Council of Papua New Guinea - w: www.bcpng.org.pg | e: executive@bcpng.org.pg | p: +675 3238465

Delegate registration open now.

https://events.apngbc.org.au/event/37APNG/ www.pngbusinessnews.com • Issue 1 2022 87

COMPANIES

Maxitool Group: Serving PNG’s mining and industrial sectors

The various crews of Maxitool Group in action.

M

axitool Group is a multifaceted enterprise that specialises in the delivery of services to the mining and industrial sectors, including: • Process plant outages (planning, managing, and resourcing) • Mill reline services • Design and manufacturing of specialised equipment and components • Dredging and desilting • Labour Hire (Specialists and Trades) • Equipment rental and sales (lighting towers, cranes, welding equipment, gensets) • Fire Suppression systems - installation and maintenance (CHUBB) Based in North Queensland, Maxitool Group operates Australia wide and internationally.

In Papua New Guinea, we are represented by Maxitool PNG Limited with an in-co¬¬untry management team that has decades of experience in executing projects in PNG. Maxitool Group and its associated entities, having worked with all the major PNG mine operators in some capacity, are very familiar with the many

challenges of executing projects in remote and sometimes difficult locations.

The Maxitool mantra is to deliver certainty for all our stake holders: “Certainty in Safety, Certainty in Quality and Certainty in Value”.

The safe execution of projects, with no surprises, is our focus and is the reason we are invited back.

To support our continued growth in Papua New Guinea, Maxitool PNG Limited is es-

88 www.pngbusinessnews.com • Issue 1 2022

tablishing an operational base in Port Moresby. Supported by our Group headquarters in Cairns, Maxitool PNG Ltd is uniquely positioned to react quickly when required.

With the waning of the COVID pandemic and the significant rise in energy and resources prices, we believe that Papua New Guinea is uniquely positioned for a period of significant investment and growth, and Maxitool Group is investing to support that growth.

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Australia opens its doors to international students

By Marcelle P. Villegas

I

nternational students are an important part of the Australian community, and we are excited to welcome them back to our classrooms, campuses and communities.”

This was the announcement posted on their website by the Australian Government last February to herald the reopening of international travel to students.

“Australia’s borders are open to fully vaccinated international students and Temporary Graduate (subclass 485) visa holders.”

[1] “From 21 February 2022, all visa holders who are fully vaccinated for international travel purposes can travel to Australia without a travel exemption.

Unvaccinated visa holders will still need to be in an exempt category or hold an individual travel exemption to enter Australia.” [2] The Australian Government said that international students will be subject to Australian Government border restrictions and any State and Territory quarantine and testing requirements.

Quarantine and testing arrangements for State and Territories are frequently changing.

Therefore, international students are advised to visit www.Australia.gov.au/states to be updated with the latest information and announcements of the Australian Government.

In relation to this, the Department of Education, Skills, and Employment has developed a “factsheet on the reopening of international travel to students” which is available for downloading from the website. [3] “All visa holders who are fully vaccinated in accordance with Australia’s international border entry requirements are able to arrive in Australia without needing an approved travel exemption. This includes fully vaccinated international students.” [1] Here are more important reminders from the Australian Government: People who do not meet Australia’s vaccination requirements for international travel must apply for a travel exemption to travel to Australia unless they are in an exempt category.

Visa holders who arrive in

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Australia may have their visa cancelled and be detained and removed if they: * are not fully vaccinated for international travel purposes in accordance with Australia’s border entry requirements; * or do not have a medical contraindication to a COVID-19 vaccine as defined by the Australian Government; * or are not in an exempt category or hold an individual travel exemption.

To be considered as “fully vaccinated for international travel purpose” to or from Australia, one should have completed a primary course of a vaccine approved or recognized by the Therapeutic Goods Administration (TGA). This includes mixed doses. The currently approved or recognised vaccines for travel are the following: Two doses at least 14 days apart of AstraZeneca Vaxzevria, AstraZeneca Covishield, Pfizer/ Biontech Comirnaty, Moderna Spikevax or Takeda, Sinovac Coronavac, Bharat Biotech Covaxin, Sinopharm BBIBP-CorV (for people under 60 years of age on arrival in Australia), Gamaleya

Image Courtesy of Education Queensland International, Queensland Government

To Page 91 >

COMPANIES < From Page 90 Research Institute Sputnik V, Novavax/Biocelect Nuvaxovid.

Single-dose dose of Johnson & Johnson/ Janssen-Cilag COVID Vaccine are also in the list of approved and recognized vaccines.

“At least 7 days must have passed since the final dose of vaccine in a course of immunisation for you to be considered fully vaccinated for international travel purposes. Mixed doses count towards being fully vaccinated as long as all vaccines are approved or recognised by the TGA.” How about exceptions for vaccination requirements and arrangement for children?

“People with acceptable proof they cannot be vaccinated for medical reasons, and children under 12, can access the same travel arrangement as people who are fully vaccinated for international travel purposes.”

Moreover, temporary visa holders who are younger than 18 years old at the time of departure for international travel to Australia do not require an approved travel exemption when the child is travelling with at least one adult who is fully vaccinated for international travel purposes.

“Unvaccinated or partially vaccinated children aged 12-17 years old entering Australia may be exempt from passenger caps and eligible for reduced quarantine requirements. Travellers should always check the quarantine requirements for the state or territory they plan to travel to, or transit through, prior to arranging their travel.”

“If the child is travelling with unvaccinated adult family members, then the entire family group will be subject to managed quarantine and passenger caps.”

For more information on vacci-

nation travel requirements, quarantine rules, and other related matter, visit https://covid19.homeaffairs. gov.au/vaccinated-travellers.

Reference: [1] https://www.dese.gov.au/ reopening-international-travel-students [2] https://covid19.homeaffairs. gov.au/vaccinated-travellers [3] Factsheet on the reopening of international travel to students https://www.dese.gov.au/reopening-international-travel-students/ resources/factsheet-reopeninginternational-travel-students

Image Courtesy of Education Queensland International, Queensland Government

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COMPANIES

C

Grand Papua Hotel joins Radisson Individuals

oral Sea Hotels has announced an exciting new partnership with Radisson Hotel Group for Grand Papua Hotel to become a member of Radisson Individuals. As a member of Radisson Individuals, Grand Papua Hotel will be integrated into Radisson Hotel Group’s extensive global sales and distribution network.

Guests will also benefit from being able to join Radisson Rewards, an industry-leading hotel loyalty program that offers exclusive benefits to millions of guests worldwide, linking to global frequent flyer programmes.

The 16-storey, 156 room and suites Grand Papua Hotel, overlooking the harbour and the Coral Sea, has a strong reputation as one of the country’s most popular and upmarket places to stay. It is an ideal fit for the Radisson Individuals brand, which is a curated collection of hotels that retain their individual personality, giving guests unique experiences that reflect the spirit of the locale, supported by the group’s “Yes I Can” service philosophy.

“We’re delighted to become a part of Radisson Individuals. We’re always looking at ways to improve our guest experience and reward loyalty” said Peter Laigaard Jensen, Group General Manager of Coral Sea Hotels. “This partnership will give our guests access to an internationally recognised loyalty programme whilst also maintaining the upscale boutique experience that they have come to value when staying at Grand Papua Hotel”.

The team at Grand Papua Hotel are busy preparing for the launch on 1 April 2022. “Our team is undergoing extensive training and there’s a lot of energy behind the opening” said Robert Cohen, General Manager of Grand Papua Hotel.

“We’re looking forward to welcoming guests from 1 April and to showcase the new standards”.

As Papua New Guinea reopens, Grand Papua Hotel is well positioned to benefit from business meetings and conferences returning to Port Moresby. This landmark hotel has a selection of nine function rooms, ranging from intimate boardrooms to large, flexible spaces that can house up to 230 delegates, setting the stage for a wide variety of corporate meetings and social occasions.

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“It gives me great pleasure to welcome the Grand Papua Hotel into our rapidly expanding portfolio in Asia Pacific. This is a prime example of how Radisson Individuals is enabling Radisson Hotel Group to enter emerging markets while allowing owners and developers to take advantage of our international expertise. Grand Papua Hotel is a respected hotel in Port Moresby, and I look forward to helping it 2 reach even greater heights in the coming years,” said Katerina Giannouka, President, Asia Pacific, Radisson Hotel Group.

Peter Laigaard Jensen, Senior Vice President & Group General Manager - Coral Sea Hotels & Hospitality

SUPPLYING GLOBAL MARKETS SPECIALISING IN: GENSET FURNITURE FIT OUTS PORTABLE OFFICES & HOUSING SAFETY EQUIPMENT

HARBOUR LIGHTS LIMITED www.harbourlightsltd.com PREFERRED HOSPITALITY PROJECTS INC. www.phpinc.com.au

COMMUNITY

The disruptions caused by the COVID-19 pandemic means worldwide and in PNG, more people are dying from TB, fewer people have been diagnosed with TB, and fewer people have been treated for TB.

< From Page 95 community at large. It’s a real win-win.

In 2022, my request is for your time, to read on and call me to obtain a more detailed understanding of how, by helping us, we can help you and all Papua New Guineans.

Measurably.

Perhaps the most productive assistance I can provide is to conduct a charge-free presentation to your senior management team. I believe that I will have no trouble persuading you of the benefits of joining with us in ending the blight of TB. The figures and returns you can enjoy will astonish you. I even have some case study examples of organisations, like yours, which have already invested in eradicating TB and are profiting demonstrably and consistently.

Yes, I confess, once you understand ‘what’s in it for you’ I will ask you to make a financial investment. And the bigger you are, the more I will want.

The ‘real world’ is that the smaller end of the private sector, shop owners and their like, do not have the capacity to provide the type of HR services that the bigger end does. Yet their interests are no less important, as is their participation in the cause.

B4H has to be the most efficient NGO in PNG. There is not a single member of our team who is not engaged “at the coal face”. Unlike others, we do not have teams of people solely engaged in the incredibly inefficient pursuit and administration of funding from

government and international donors. As a result, unlike others, we are not so obsessed with procedure as to render ourselves almost incapable of achieving our mission.

Your investment also covers the costs of running our awareness programs like the #COVERYOURCOUGH campaign and the toll-free TB info line, as it also promotes your organisation’s commitment and support.

Simply put, your money is needed to help us make sure everyone knows coughing is not normal.

We can train your people in early TB-case-finding. And we can provide support for your people to master the long and complex pathway to testing and curing every case of TB, at zero cost to the TB patient.

At Businesses for Health (B4H), we use your money to maintain links and relationships with provincial TB services, to ensure efficient service delivery.

We support you to ensure your employees return to work in the shortest time possible, with documentation to show they have been tested and treated correctly.

We then need your sustained effort to help us help your team members to find, test, treat and support every case of TB in your workplace. Once you are finding cases of TB at work, your TB trainees - we call them TB wardens - can ensure that every person they find with TB, knows how to get their family members screened and their children protected from getting sick too.

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Sadly, if the entire family isn’t cured, there will inevitably be more, expensive TB cases to support next year, and beyond.

So, what are we going to do about it?

By helping us, we can help you and all Papua New Guineans.

This World TB Day we need a year-long program.

From March 24 onwards, we would like to every business, every government office at every level to understand that failure to address TB in all your workplaces or services is careless.

We call on the Government and the health minister to explain to the public how much of the national health costs are attributable to just one disease – Tuberculosis. We call on the Prime Minister and all his Ministers to talk about TB often, loudly and to proudly demonstrate their support for people to access local TB services.

We need everyone to know that the hospitals are not ‘General’ Hospitals but that they largely function as TB treatment hospitals for very serious cases of TB. These patients are often people whose illness was ignored, people who previously had TB and were not supported to complete their treatment years ago.

In this election year, we need the Government to assess and raise the alarm about the costs of TB on its economy and the threat TB places to PNG’s thriving on the world’s economic, sporting or culture stages.

We look forward to ensuring your investment in us will help to end TB and saves lives.

Dr Ann M Clarke Email: annmclarke@ businesses4health. com Website: www. businesses4health. com World TB Day and the PNG TB Year Ahead #InvestToEndTB #March4TB #coveryourcough #EndTB

COMPANIES

Need help to live, work and study in Australia and with student enrolments in EQI accredited schools?

M

Ask Migration Plus!

igration Plus is a leading migration firm in Cairns, in the Far North Queensland region of Australia, providing professional migration advice to students, individuals, government, businesses, and corporate groups, including the mining, hospitality, tourism, agricultural, and air services industries.

Migration Plus are also Education Agents with Qualified Education Counsellors on their team and they represent several reputable universities and colleges across Australia, including Education Queensland International (EQI) for student enrolments.

They work closely with EQI and have successfully assisted PNG students enrol in schools across Queensland and have assisted with visa applications for the students for many years.

With Australian borders opening to international visitors, temporary workers, and international students, Migration Plus can assist you with all migration matters for your business and family to visit, work or study in Australia. Now is the time to start your children’s enrolment to study in any of the EQI’s accred-

ited schools from Prep to Year 12.

Education Counsellors at Migration Plus can assist your children’s enrolment for Year 10, Semester 2, the important pathway into senior high school subjects through the Senior Education and Training Plan. Semester 2 commences in July 2022.

With an in-depth knowledge of migration law, the Migration Plus specialist team provides a complete solution to your migration requirements and coordinate all facets of your migration needs.

The Migration Plus team is very passionate about what they do – the rewards of being able to assist in changing lives and helping clients achieve their goals is first and foremost. With over 90 years of combined experience available to you, you can count on their highly specialised team for accurate advice.

Contact the Specialist team for further information.

Email: visa@migrationplus.com.au Phone: +61 7 40412620

LAE CHAMBER OF COMMERCE INC LAE... PNG’s Central hub of: ●

Industry ● Commerce ● Manufacturing ● Transport ● Shipping

Tel: +675 472 2340 Fax +675 472 6038 Email:admin@Icci.org.pg www.Icci.org.pg www.pngbusinessnews.com • Issue 1 2022 95

COMMUNITY

Advertisers’ Index AAM Group Agmark Machinery APNG Business Expo Ark Pacific Atlas Steel PNG Bishop Brothers BizPrint & Scan Brunel BSP Business Coalition for Women Business For Health Capital Insurance CJ Valuers Consort Express Lines Coral Coast Migration Services Crossroads Hotel Crown Hotel Digicel Digitec Don Kyatt Group / Terrain Tamer East West Transport Education Queensland International Epiroc Express Freight Management Fincorp GFS Limited Grand Papua Hotel Holiday Inn Hornibrook NGI Hydroflux ICTSI South Pacific IHG Crowne Plaza Industrial & Mining Resources Expo iPi Group KPMG Kumul Petroleum Lae Chamber of Commerce Mapai Transport Maxitool Migration Plus Moni Plus MRA Orica Pacific Industries Pacific People Solutions Pacific Towing Peopleconnexion PNG Air PNG Business News PNG CR PNG EITI PNG Energy Summit & Exhibition PNG Forest Products Preferred Hospitality Projects QED Steamships Swire Shipping Total Waste Management Tower Insurance Trans Niugini Tours UMW Niugini Weir Minerals Westpac

31 35 87 55 41 11 85 9 4 7 91 77 70 63 18 IFC 65 33 29 79 57 42 14-15 59 26 6 51 47 OBC 17 45 21 81 27 43 22-23 95 25 53 68 2-3 83 62 48-49 58 61 60 8 89 13 71 69, 75 28 93 5 37 73 19 67 54 IBC 39 1

Proudly printed in PNG by

T

World TB Day 2022 offers opportunities for business to invest and profit

he theme for World TB Day this year is ‘Invest to End TB. Save Lives.’

World TB Day was established to mark the discovery, in 1882, of the bacteria that caused Tuberculosis. In 2022, it is unacceptable that PNG has rates of TB which are worse than rates of TB in the UK, US or Australia in 1900, more than 100 years ago, when 100 percent effective treatment was not available.

The statistics Worldwide in 2020, WHO estimates 1.5 million people died from TB and 10 million people fell sick with TB. TB is PNG’s deadliest infectious disease.

Today in PNG, 10 people will die of TB. • About 40,000 people in PNG were sick with TB last year.

• A quarter of them are children.

• Most people sick with TB are of working age.

• Over 4,000 people died last year from TB. • 1,000 of them were in the NCD. Poor management of TB cases in the past means in PNG we are also facing a drug-resistant TB crisis. Luckily, most cases of TB are drug sensitive and still 100 percent treatable and curable.

However, drug-resistant TB is often a consequence of poor management and lack of support to adhere to the full course of treatment.

In PNG, over 5 percent of all new cases of TB are now drug resistant.

Survival from this more deadly form of TB, even with treatment, is NOT 100%.

Therefore, preventing the spread of every case of TB is urgent.

And then, along came COVID 19 COVID has resulted in the world facing tough economic times and PNG is no different. In such tough circumstances, the most vulnerable in our community are most affected.

On World TB Day this year we also acknowledge that the rights of people with TB have been even more stressed by the impact of the Global Pandemic.

The COVID-19 pandemic has also caused enormous health, social and economic difficulties for TB services.

COVID 19 has had a severe impact on B4H’s work to ‘End TB’ in workplaces in PNG. Unfortunately, resources which might otherwise have been directed towards our TB efforts have

96 www.pngbusinessnews.com • Issue 1 2022

By Dr. Ann M. Clarke been diverted instead into dealing with COVID-19.

The disruptions caused by the COVID-19 pandemic means worldwide and in PNG: • More people are dying from TB; • Fewer people have been diagnosed with TB; and • Fewer people have been treated for TB. Who is B4H, and what are we doing about TB? At Businesses for Health our charter is to reduce the burden of disease in PNG, through the private sector. The TB Day theme of “Invest to End TB. Save Lives” accurately reflects our clear and immediate focus. Which, for one day each year, the global community shares.

The simple truth is, we cannot end the terrible scourge of Tuberculosis without each and every community member, including you – the business operators, investing just some of your time, money and effort in the cause.

For any enterprise in PNG, it makes good business sense to understand, and work towards, reducing the enormous costs associated with the high rates of sickness and deaths from TB. The undeniable, ‘bottom line’ is that ‘a healthier TB-free workforce is a more productive workforce.’ Not only is this in employer’s best commercial interests, but the knowledge so gained by their employees has a very significant flowon benefit into the To Page 94 >