PNG Business News - Issue 1, 2023

YANDERA PROJECT: A REVIEW OF ITS PAST TO PREDICT ITS FUTURE

HIGHLIGHTS OF THE 16TH PNG CHAMBER OF MINES & PETROLEUM CONFERENCE 2022

STEAMSHIPS RECORDS POSITIVE RESULTS IN 2022 PAPUA LNG PROJECT ADVANCES TO FEED; LESSONS FROM PNG LNG LINGERS

COMMENTARY

PNG as resource-dependent as Saudi Arabia > 10

BUSINESS

New World Bank Report Series

Provides Economic Deep Dive into Pacific Economies > 16

PM Marape Welcomes Successful Outcomes of Australia-PNG Ministerial Forum > 18

Dept. of Commerce Finalises

NEC Policy Submission on National Gold Bullion > 20

PM Marape Visits Gabon Special Economic Zone > 22

PM Marape: Fiji, PNG Must Work Together for Greater Good of Pacific > 24

ABG President Announces Cabinet Reshuffle > 28

PNG Logistics Co. Invests to Better Service South Pacific > 30

Australian Visa Processing Facility to Open in Port Moresby > 32

RIFL Posts Strong Revenue Despite Challenging Market > 34

Steamships Records Positive Results in 2022 > 38

Swire Shipping Introduces New Fixed-Day Weekly Service to the Pacific Islands > 40

Korea – Papua New Guinea Trade Increases by 240 per cent to US$1.8 (K6.33) Billion > 42

ADB Approves $163M in Loans to Help Improve PNG Aviation Safety > 42

PM Marape Meets with France President Emmanuel Macron > 44 Parliament Passes Law to Keep Foreigners from Operating Small Businesses > 44

MINING

OK Tedi Board Announces Interim Appointment of Acting CEO > 46

Morobe Governor Frustrated by Slow Progress in Wafi-Golpu Negotiations > 46

Yandera Project: A Review of its Past to Predict its Future > 48

Highlights of the 16th PNG Chamber of Mines & Petroleum Conference 2022 > 52

PNGEITI Thanks Outgoing Mining & Petroleum Chamber Executive Director > 58

PNGEITI Position on Porgera Mine Legacy Tax Issues > 60

Department of Mineral and Energy Resources Sets Focus for 2023 > 62

OIL & GAS

Papua LNG Project Advances to FEED; Lessons from PNG LNG Lingers > 64

OIL & GAS

Papua LNG project to Minimise Economic Challenges > 68

Kumul Petroleum Holdings Progresses Fabrication Facility –Signs Operations Agreement and Design Engineering Contract > 70

Santos Achieves Record Annual Production, Sales Revenue in 2022 > 70

ENERGY

Kumul Petroleum to be Energy Solution Provider for SEZs in PNG > 72

FOREST

PM Marape Calls for Reforestation of Areas Being Logged in PNG > 74

FINANCE

PNGX Consults on New Corporate Governance Code for Listed Companies > 76

Blockchain Server Market in the Industry - The Hype has its Reasons > 80

TOURISM

The Future of Tourism in Papua New Guinea: Over 100 Cruise Liners Expected to Bring in K137.10 Million > 82

PNG Tourism Promotion Authority Launches Corporate Plan, 2023-2026 > 84

PNG Tourism Promotions Authority, Bougainville TPA Sign MOU > 86

COMPANY NEWS

LNG Camp Specialist Designs

2,500-Person Camp Complex > 90

CCW Cabinet Works: High-Quality Commercial Cabinetry Solutions > 92

The Majestic Crown Hotel Experience > 94

ENZO’s Pizza Opens 2 New Outlets in Port Moresby > 98

Grand Papua Hotel: The Latest and Grandest > 100

Modular Construction Meets Changing Needs > 102

Transportables for the Resource Sector > 108

St John Ambulance First Aid Training for Workplace > 110

WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea > 112

Weir Minerals Releases 6th Edition of Warman® Slurry Pumping Handbook, the Definitive Resource for Slurry Pumps > 114

EVENTS

PNG Industrial Mining & Resources Exhibition and Conference Event Returns for Seventh Consecutive Year > 118

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PNG as resource-dependent as Saudi Arabia

By: STEPHEN HOWES AND ALYSSA LENG

W

hen we think of resource-dependent economies, we normally think of the Middle East, and economies like Saudi Arabia. Where does Papua New Guinea fit in?Data available from the UN allows us to isolate value added in the resources sector from the rest of the economy (resource GDP). The ratio of resource to total GDP is a measure of resource dependency. This is available for 106 countries, and the top 15 are shown in the graph below by the blue bars (left hand side). The data is for the latest available year, which for most countries, including PNG, is 2021.

PNG comes in sixth place, just above Saudi Arabia.

We’ve told this story before using a different data set, based on World Bank data on resource rents. Writing in 2019, this indicator had PNG in tenth place, actually just below Saudi Arabia. But the resource rent measure is difficult to estimate as it requires estimates of the cost of production. Resource GDP is a more reliable measure as it comes straight from the national accounts. That said, some countries are missing from the UN data set: Democratic Republic of the Congo, Iraq and Angola for example.

Whatever its precise ranking, the overall message is clear: PNG is one of the most resource-dependent economies in the world.

HOW DID THIS HAPPEN?

At independence, PNG’s resource sector was represented

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by a single mine, the nowclosed Panguna copper mine in Bougainville. Looking at a graph of resource dependency over time traces out many of the key developments in PNG’s recent history (Figure 2). The ratio fell in the early 1980s as copper prices fell but rose in

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the late 1980s as those prices recovered and as the second mine, Ok Tedi, opened. The resource-dependency ratio fell again sharply in 1989 when Panguna closed due to conflict in Bougainville, but soon hit a

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PNG Business News is published for the PNG Business community. Printed in Papua New Guinea by Biz Print • Commentaries and contributed articles published in this magazine are the views of their authors and do not necessarily reflect the views of PNG Business News – our main role is to provide our readers in PNG and the region with a digest of business news in various sectors of Papua New Guinea.

new high in the mini-boom of 1993 – of 24% – due to new oil projects and the new Porgera gold mine.

Resource dependency then fell as oil production declined but increased again in the late 1990s with new oil fields and the Lihir gold mine. The 24% record of 1993 wasn’t broken though until the resource boom years of the 2000s when commodity prices skyrocketed. A new record of 27% was set in 2006. Then the ratio fell as commodity prices eased and as PNG LNG construction boosted the rest of the economy. (Construction of a resource project is not counted as part of resource output.)

The dependency ratio started on another upward cycle when liquified natural gas exports began in 2014 and reached a new record of 28% in 2019. COVID-19 caused commodity prices to fall, and Porgera was closed, so the ratio fell again, but now the Ukraine war has pushed oil

prices up and the ratio is back up to 28%.

In summary, the resource sector is a bigger part of the PNG economy than ever, and a bigger part of it than nearly all other economies. PNG really is the Saudi Arabia of the Pacific. This important finding has several implications and raises some important questions.

First, GDP is an increasingly meaningless indicator for PNG, given the high foreign ownership of the increasingly important resource sector. We should focus on non-resource GDP as a better measure of national economic activity.

Second, it helps explain many other features of the PNG economy. For example, the ‘Dutch disease‘ associated with resource dependency helps explain why PNG is a high-cost economy. When this high level of resource dependency is also combined with PNG’s low level of urbanisation (the lowest in

the world), it also becomes clear why income inequality in PNG is among the highest in the world. The benefits of resource dependency are not widely shared.

Third, one benefit of resource dependency should be government revenue generated from the resource sector. Figure 1 also shows resource revenue (the brown bars on the right-hand side), using data from UNU-WIDER. It’s clear that the amount of resource revenue collected by resource-intensive economies varies significantly.

Yet PNG’s resource revenue is noticeably low considering the size of its resource sector. It appears to be getting less out of its resource sector compared to other countries. Why this is needs to be urgently understood.

While the resource sector is no doubt important to PNG’s future, the historical trend and international comparisons shown in this blog suggest that

it is unlikely that the secret to economic success in PNG is more resource projects. If it was, the country’s economic success would be obvious for all to see.

DISCLOSURE

This research was undertaken with the support of the ANU-UPNG Partnership, an initiative of the PNG-Australia Partnership, funded by the Department of Foreign Affairs and Trade. The views are those of the authors only.

ABOUT THE AUTHORS

Stephen Howes

Stephen Howes is Director of the Development Policy Centre and Professor of Economics at the Crawford School of Public Policy, at The Australian National University.

Alyssa Leng

Alyssa Leng is a research officer at the Development Policy Centre, working on the Papua New Guinea economy

Figure 2: Resource dependency in PNG - Source: PNG Economic Database; PNG Budget Database

New World Bank Report Series Provides Economic Deep Dive into Pacific Economies

As growth returns to the Pacific, debt and inflation remain concerns

After nearly three years of economic contraction, Pacific economies can anticipate a return to growth this calendar year despite ongoing challenges, according to the World Bank.

While the recovery is expected to continue, fiscal balances, debt sustainability, and inflation will remain a concern.

Pacific nations will need to consider reforms and policies to boost equitable growth and sustainable investments, while striking a careful balance between supporting livelihoods and reducing future public debt risks.

The outlook is detailed in the World Bank’s inaugural Pacific Economic Update, a comprehensive assessment and forward-projection of 11 Pacific Island country economies – not including Papua New Guinea -- launched in Suva, Fiji.

While all Pacific countries are forecast to grow through 2023, some countries, such as Palau, will see larger rebounds of around 18 per cent growth in GDP on the back of a resurgent tourism industry. Others, such as Solomon Islands, are expected to grow more slowly with an increase of around 2.3 percent.

ECONOMIC IMPACTS FROM THE COVID-19 PANDEMIC PERSIST

The new report comes at a critical juncture for Pacific Island countries. Closure of borders from 2020-22 during the pandemic have eased after dealing a severe blow to the tourism-dependent economies of Fiji, Vanuatu, Samoa, Tonga, and Palau.

However, the region is now being buffeted by inflation and global economic uncertainty. In 2022, costs of shipping and imports rose to their highest levels in over 20 years.

Although prices have eased modestly in recent months, the shocks are still being felt by the Pacific as global uncertainty has increased.

“After being severely hit by COVID-19, and tepid signs of recovery in 2022, economies across the Pacific can expect growth in 2023, but for many people it will not feel like a return to pre-COVD-19 times,” said the World Bank’s Lead Economist for the Pacific, David Gould.

“After three years of economic contraction in Fiji, for example, growth in 2022 is estimated to have climbed to 15 per cent, yet output is expected to remain below 2019 levels until 2024.”

PACIFIC NOT IMMUNE FROM FALLOUT OF THE WAR ON UKRAINE

The report notes that the high global economic

fallout associated with the war on Ukraine led to a downward revision in growth forecasts for Pacific economies.

“Pacific Island countries have not been immune from the economic impacts of the war on Ukraine,” said David Gould. “Just as the Pacific was set to begin its post-pandemic recovery, it has been dealt another shock. Rising global energy and food prices have strained Pacific budgets, added to inflation, and ultimately increased the cost of living for families across the region.”

The report projects that inflationary pressures will peak in the first half of 2023, with consumer prices projected to fall in every

Pacific Island country except Samoa, where inflation may reach as high as 12 per cent in the second half of the year, before falling in 2024.

POLICYMAKERS URGED TO BOOST SUSTAINABLE GROWTH; MINIMIZE DEBT AND FISCAL VULNERABILITIES

The report provides an in-depth look at the challenges of fiscal and debt vulnerabilities faced by Pacific Island countries and how these were made worse during the pandemic. It offers several recommenda-

Page 18 >

PM Marape Welcomes Successful Outcomes of Australia-PNG Ministerial Forum

Prime Minister Hon. James Marape has welcomed the successful outcomes of the 29th Australia-Papua New Guinea Ministerial Forum which was held in Canberra, Australia, on February 17, 2023.

“I welcome the outcomes of the very-successful Forum which follows on from my meeting with Australian Prime Minister, Hon. Anthony Albanese, last month,” he said.

“One of the most-significant is our Ministers undertaking to ensure efficient and speedy Australian visa-issuing arrangements to help underpin labour, business and broader people-to-people connections.

“This means that at least 75 per cent of completed visitor visa applications will be processed within 14 days, with in-country visa processing in PNG.”

“This expands opportunities for Papua New Guineans to enter the Australian labour market, including increasing training and skilled labour under the new Australian Pacific Engagement Visa.

“I thank our PNG team led by Foreign Affairs Minister Hon. Justin Tkatchenko for a very-successful meeting which will be mutually beneficial for both countries.”

The Forum was co-chaired for Australia by Senator Hon. Penny Wong, Minister for Foreign Affairs and for PNG by Minister Tkatchenko.

Participating Ministers for PNG were Hon. John Rosso, Deputy Prime Minister, in his capacity as Minister for Immigration and Labour plus other Ministers whose attendance was necessitated by the agenda of the Forum.

< Page 16

tions that Pacific governments could consider to accelerate their recovery, enhance debt and fiscal sustainability, and further improve living standards across the region.

“COVID-mitigation measures led Pacific governments to expand spending. To reduce the likelihood of falling into a problematic debt situation, Pacific governments should now

This was the first Ministerial Forum following elections in both countries in 2022. It was also the first in-person Forum held since 2019, due to border closures related to the COVID-19 pandemic. The last Ministerial Forum was held virtually on September 2, 2021.

The major outcomes are: Ministers renewed their commitment to the Comprehensive Strategic and Economic Partnership (CSEP), to guide the modern partnership between PNG and Australia. They undertook to implement this partnership through coordinated, deeper sectoral engagement led by Ministers from each side, and to take forward the outcomes and commitments arising from the 2023 Annual Leaders Dialogue; Ministers reflected on the deep historical and familial connections

consider ways to sensibly reduce costs, and begin to responsibly unwind pandemic-era support,” said Gould.

“After three difficult years, the Pacific’s economic prospects are clearly improving. While challenges remain, the Pacific is well placed to accelerate its post-COVID economic recovery throughout 2023 and beyond,” said Stephen Ndegwa, World Bank Country Director for Papua New Guinea and the Pacific.

which have brought the nations together in a unique partnership, and committed to ensuring that this partnership of equal and sovereign neighbours grows to reflect contemporary opportunities and challenges;

Ministers undertook to further accelerate the integration of the two economies, including through the Australia-PNG Economic Partnership. They noted the importance of expanding opportunities for Papua New Guineans to enter the Australian labour market, including increasing training and skilled labour under the new Australian Pacific Engagement Visa.

They acknowledged that efficient and speedy visa issuing arrangements would help underpin labour, business and broader people-to-people connections and announced separately a

The World Bank works in partnership with 12 countries across the Pacific, supporting more than 95 projects totaling US$3 billion in commitments in sectors including agriculture, aviation and transport, climate resilience and adaptation, economic policy, education and employment, energy, fisheries, health, macroeconomic management, rural development, telecommunications, and tourism.

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Dept. of Commerce Finalises NEC Policy Submission on National Gold Bullion

The Department of Commerce & Industry has finalized the National Executive Council (NEC) Policy Submission on the Gold Bullion Policy and has submitted it to the Cabinet for endorsement.

The Gold Bullion Policy is an initiative of the Marape-Rosso Government to ensure the country’s non-renewable and renewable resources are properly harnessed to increase revenue streams to support the national budget, grow the rural economy and improve the quality of life for the people.

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

The submission in essence brings to reality the Government’s commitment to industrialize and downstream process of natural resources to add value to PNG’s primary commodities, including gold and precious minerals, oil and

gas, agriculture, forestry and fisheries products, which is an integral part of the policy directive deemed as “Take Back PNG,” said Prime Minister James Marape.

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

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

range of steps that would be taken to improve their respective systems. Ministers agreed to aim to process at least 75 per cent of completed visitor vias applications within 14 days.

Ministers agreed to open in-country visa processing in PNG. They agreed to establish a joint ministerial working group to oversee this work, including Deputy Prime Minister Marles, Foreign Minister Wong, Minister for International Development and the Pacific Conroy, with Immigration Minister Giles, and on the PNG side, Deputy Prime Minister Rosso and Foreign Minister Tkatchenko; Reflecting the significant role of business and industry in the relationship, and the importance of Australia’s AUD24.8 billion (K58.8 billion) in investment in PNG, Min isters encouraged the two business commu nities to consider how to invest in the many

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PM Marape Visits Gabon Special Economic Zone

Prime Minister Hon. James Marape says there is so much Papua New Guinea can learn from Gabon in Central Africa about Special Economic Zones (SEZs).

An impressed PM Marape said this after visiting the Gabon SEZ (GSEZ) at Nkok, a multi-sectoral industrial park established in 2010, and located 27 km from the capital Libreville.

On 1126 hectares (ha), it includes an industrial zone, a commercial zone, and a residential zone. The SEZ brings together 144 companies from 19 countries operating in 22 industrial sectors, including a cluster dedicated to wood processing which brings together 84 companies.

PM Marape was given a comprehensive briefing by Gabonese managers of GSEZ before a tour of the wood processing cluster.

The Gabon SEZ has:

• Created 16,000 direct and indirect jobs;

• Exported US$265 million worth of products exported annually;

• Processed 820,000 cubic metres (m3) of timber in 2020; and

• Generated US$1.7 billion in direct foreign investments.

“This is the path I have been envisaging since I took office and I now ask those in the forestry industry to switch to downstream. We will still stick to 2025 as cut off mark for round log exports,” PM Marape said.

“We will have four log ponds in our country

– Port Moresby, Rabaul/Gazelle, Lae and Vanimo – and State will start off by exercising its rights to get 30 per cent of all round logs harvested to feed our downstream ambitions.”

“I am aware the industry is feeling the pinch of extra taxation and there will be a meeting this month on the tax issue as well as the push for downstream and sustainable logging in PNG.”

“Logging, fisheries, livestock and agriculture

are sectors of the economy that can create more businesses opportunities and employment for our people.”

GSEZ started in 2010 as a joint venture between Olam International Ltd, the Republic of Gabon, and Africa Finance Corporation with a mandate to develop infrastructure, enhance industrial competitiveness and build a business-friendly ecosystem in Gabon.

The SEZ offers a unique fiscal status which provides a stable and competitive economic climate for companies intending to settle. Presently, the zone is home to more than 144 investors coming from 19 different countries. GSEZ is rapidly emerging as West Central Africa’s manufacturing hub.

NKOK SEZ was ranked the best industrial zone of the world in the wood sector by FDI Intelligence-Financial Times in 2020.

“There is so much that PNG can learn from Gabon about SEZs. PNG has so much forest resources in PNG, which is exported as round logs, rather than going into downstream processing as Gabon is doing,” PM Marape said.

“My visit to Gabon is very timely, given our vast forest resources, and that we are now venturing into establishment of SEZs.”

“We will be looking to draw from the experience of Gabon in establishment of our own SEZs dedicated to downstream processing of our forest resources.”

Covered 85 per cent by forest, on 22 million hectares, Gabon has a stock of exploitable wood of 130 million cubic metres (m3) of Okoumé and 270 million m3 of other species.

GSEZ has enabled the country to develop and modernise a wood sector that was previously not very promising by relying on specialisation, one-stop services and alignment with the national development strategy.

With 3.4 million m3 produced each year, Gabon has become Africa’s leading producer and exporter of tropical plywood, and the world’s second largest exporter.

The country intends to go further in adding value to its wood products by transforming GSEZ into a centre for the manufacture of “Made in Gabon” furniture by 2025.

consideration of domestic legal and constitutional aspects to enable a treaty to come into effect.

They noted the importance that PNG placed on addressing internal security and law and justice issues, and Australia’s commitment to assist. Ministers agreed to establish a joint ministerial working group – including Deputy Prime Minister Marles, Foreign Minister Wong, Minister for International Development and the Pacific Conroy, and on the PNG side, Deputy Prime Minister Rosso and Foreign Minister Tkatchenko with Internal Security

Minister Tsiamalili – to oversee deepening cooperation in these areas;

Ministers noted the two countries’

commitment to supporting regional peace, security, economic resilience and Pacific unity as the most populous members of the Pacific family and recommitted to a Pacific-family first approach to regional security needs as endorsed by PIF leaders and as we work together to implement the 2050 Strategy for the Blue Pacific;

PNG welcomed Australia’s renewed focus on climate change and Ministers agreed that Australia partnering with the Pacific to co-host the 31st UNFCCC Conference of the Parties (COP31) in 2026 would allow us to combine forces and secure ambitious climate change outcomes and help place Pacific voices at the centre of international climate discussions.

Ministers recognised PNG’s interest in

securing a greater share of international climate finance and welcomed PNG’s participation in the Indo-Pacific Carbon Offset Scheme (IPCOS). Ministers committed to sign the IPCOS Joint Action Plan as early as possible this year; and

Ministers welcomed conclusion in 2022 of the first annual CSEP Action Plan and looked forward to progress under the 2023 CSEP Action Plan, as a tool to help take forward Prime Ministerial and Ministerial priorities. The six CSEP pillars are:

• Strong Democracies for a Stable Future;

• Close Friends, Enduring Ties;

• Economic Partnership for Prosperity;

• Strategic Cooperation for Security and Stability;

• Social and Human Development; and

• Near Neighbours, Global Partners

PM Marape: Fiji, PNG Must Work Together for Greater Good of Pacific

Prime Minister Hon. James Marape says Fiji and Papua New Guinea must work together for the greater good of the Pacific Islands’ family of nations.

He said this on February 21, 2023 after a bilateral meeting with Fiji Prime Minister Hon. Sitiveni Rabuka in Suva. PM Rabuka is also Chair of the Pacific Islands Forum (PIF).

Discussions centred on economic and trade relationships between Fiji and PNG, people-to-people relationships, co-operation and exchange between public servants, military relationships, and police relationships.

PM Marape said this would be for beneficial for both countries, Melanesia and the PIF family.

The two leaders also agreed to give each other land in their respective capitals to build their diplomatic missions.

PM Marape also congratulated PM Rabuka on being re-elected on December 24, 2022 for a third time. He was first democratically elected as Prime Minister of Fiji, serving from 19921999, and again in 2002.

He alluded to the strong relationship between the two nations forged by pioneer leaders, the late Ratu Sir Kamisese Mara of Fiji, and Sir

“Mr Prime Minister, and your country, you and me walk under the shadows of great men who walked ahead of us,” PM Marape said.

“Our nations have a shared history. We, even before being grouped as countries, were living on this part of Earth. Our ancestors were travelling on high seas. We have a common heritage, a common bond, we belong to one Pacific, one Melanesia.”

“It is only proper, as you assume leadership, for Papua New Guinea to come and give our respect in that context. Papua New Guinea and

Fiji, working side-by-side, will ensure that we stabilise the canoe that is taking our people with us, will ensure that the future is bright for our people is as far as development is concerned.”

PM Marape thanked PM Rabuka, as Chair of the PIF, for bringing back Kiribati into the PIF family after it withdrew last July.

“Papua New Guinea stands ready to work in partnership, as you once again lead your country, and are ready to offer our support,” he said.

PM Marape arrived in Nausori Airport, Suva, to a red-carpet welcome on Monday night (February 20, 2023) with a colorful welcome by Fiji police and military.

He was accompanied by Enga Governor Hon. Sir Peter Ipatas, Nipa-Kutubu MP Hon. Dr Billy Joseph, Hiri-Koari MP Hon. Keith Iduhu and Kundiawa Gembogl MP Hon. Muguwa Dilu.

PM Marape also paid a courtesy call on Fiji President, H.E. Ratu Wiliame Katonivere, at the State House on Tuesday.

He then headed to the Pearl Resort Hotel, owned by PNG through Mineral Resources Development Company (MRDC), to meet and hold discussions with PNG business community.

Michael Somare of PNG.

ABG President Announces Cabinet Reshuffle

The Autonomous Bougainville Government has had a major Cabinet reshuffle with the appointment of new Ministers.

Three Ministers have been decommissioned with three new appointments to replace them and a reshuffle within the Cabinet saw several Ministers reassigned to new portfolios.

President Hon. Ishmael Toroama, in welcoming the new Ministers and announcing the reshuffle, said this was the first major reshuffle made in his capacity as the President and chairman of the Bougainville Executive Council (BEC).

The new ministers that were sworn in include Hon. Dennis Lokonai, Member for Bolave Constituency as Minister for Health; Hon. Junior Tumare, Member for Makis Constituency as Minister for Lands, Physical Planning, Environment Conservation and Climate Change; and Hon. Robin Wilson, Member for Terra as Minister for Mineral and Energy Resources.

Toroama reiterated that during past ministerial reshuffles, changes in Cabinet were required to maintain “the confidence and trust our people have in the government to effectively deliver services and to ensure our resolve for an independent Bougainville is not compromised.”

“I have said so often that change enables progress and progress is a sign of growth, maturity and independence,” he said.

President Toroama welcomed the new Ministers to the Cabinet and called on them to fulfil their new responsibilities “with commitment and pragmatic leadership.”

He further congratulated the incumbent Ministers of the BEC through the reshuffle who assumed new portfolios.

They included Hon. Amanda Masono as the appointed Minister for Public Service; Hon. Joseph Mona as the appointed Minister for Technical Services, Hon. Theonilla Matbob as the appointed Minister for Community Government; and Hon. Thomas Pata’aku as the appointed Minister for Education.

Toroama stressed that he expected the same commitment and energy that the incumbent Ministers had given to their former ministries in their new portfolios.

The Ministers were reminded that the Toroama/Nisira government has a focal point to introduce reforms and prepare Bougainville for independence, and it required innovative and committed leadership at the political level by the respective Ministers of the cabinet to achieve that.

President Toroama reiterated that the six-point strategy of his government were the

guiding principles in achieving the goal of making Bougainville independent politically, socially, and economically, and called on the Ministers to utilize them.

“Every Minister in the Bougainville Executive Council (BEC) is expected to utilize the six-point strategy to achieve your respective ministry and departments’ strategic plans and development goals,” he said. The Six Point Strategy includes:

• Political control of Bougainville’s destiny, which is independence,

• Economic Growth and Control

• Administrative Control

• Mobilizing Private Sector & Civil Society

• Long Term Vision & Planning and

• International Relations

The Ministers were reminded that the Six-Point Strategy is the basis for Bougainville Government’s prerogative to achieve political independence and at the same time improve the lives of Bougainvilleans through the effective provision of basic services and generating revenue.

He called on the Ministers to work with their Heads of Department who are their foremost advisors in political matters and the collaboration must be based on mutual trust and commitment to serving this government and the people of Bougainville.

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PNG Logistics Co. Invests to Better Service South Pacific

Papua New Guinea’s oldest business group, Steamships Trading Company Ltd, has invested millions in its Logistics Division in re-fleeting and new equipment with several million more to be expended prior to 2025.

The re-fleeting, together with changes to provide more comprehensive and intermodal end-to-end logistics solutions, ensures that Steamships has ample capacity to increasingly service the logistics requirements of not only its PNG clients but those in the broader region.

Steamships’ Logistics Division is PNG’s largest operator of transport and logistics, with a more extensive service network than any other logistics provider.

The division comprises four operating entities -- Consort Express Lines [domestic & regional shipping], EastWest Transport [general transport, customs clearance & warehousing, fuel transport], JV Port Services [stevedoring & handling, heavy equipment leasing], and Pacific Towing [harbour towage & marine services, and operates 16 offices and agencies across the country.

The division’s four operating entities have each recently made multimillion-dollar investments in re-fleeting (ships, tugs, barges, containers, trucks, fuel tankers), as well as in new machinery (cranes, reach stackers, empty container handlers, forklifts).

Central to Steamships’ capacity to service countries in the South Pacific and beyond, is its shipping business, Consort Express Lines (‘Consort’).

In addition to being PNG’s premier coastal shipper, Consort is a regional project cargo specialist and has several vessels (i.e., conventional container vessels, landing craft, and tug and barge

< Page 28

Meanwhile, President Toroama extended his gratitude to the former Minister for Police and Correctional Services Hon. Thomas Tari, Member for South Bougainville Veterans; former Minister for Technical Services Hon. Dr. Joe Kim Suamaru, Member for Kopi; and the former Minister for Mineral Energy Resources Hon. Rodney Osioco, Member for Kokoda,

sets) available for both domestic as well as international charter.

Consort has experience with all categories of project cargo, such as overweight and oversized, sensitive [including dangerous], and break bulk.

Consort works in partnership with its international shipping partner Swire Shipping, as well as ‘sister’ Logistics Division entity, EastWest Transport to provide clients – no matter where they are in the region – with a full suite of logistics services (including container packing, stevedoring, customs clearance, warehousing, storage and laydown facilities, depot to wharf transport, and others).

“Our key competitive advantage is that we focus on giving clients exactly what they need” says Thomas Bellamy, Chief Operating Officer of Steamships’ Logistics Division.

“Increasingly this means comprehensive and integrated logistics solutions.

With our network we can pick up any kind of project cargo from suppliers –no matter where they are in the world – and deliver it safely and efficiently to a client’s doorstep.”

Bellamy reports that additional competitive advantages enjoyed by Steamships’ Logistics Division are its safety and local content credentials.

“We are firmly committed to working towards ‘Zero Harm’. This means reducing injuries, environmental damage, and asset damage in the workplace through an embedded ‘Work Seif’ culture. Furthermore, Steamships is a proud Melanesian business with an exceptional track record of helping drive the development of the communities in which it operates – 98 percent of its 2,600+ staff are Papua New Guineans.

To learn more about Steamships’ Logistics Division, including its project cargo, charter, and end-to-end logistics solutions: www.steamships.com.pg.

Consort Man Wharf Ship

Project cargo specialist, Steamships Logistics Division, has a fleet of nearly 30 ships, tugs, and barges, more than 200 trucking assets, as well as an expanse of machinery and equipment. It employs more than 1,700 staff (98 % PNG nationals).

for their time and effort.

“You have served the government loyally in the last three years and I thank you for your service to the government and the people,” Toroama said.

The Cabinet Ministers have been called on to build the human resource capacity through education, improve health services through an effective Bougainville health system, provide

infrastructure to improve transportation and the movement of services to create an environment that is conducive and able to sustain growth in Bougainville’s economy and prosperity in the communities.

“These are all very achievable goals if we collaborate effectively at the political and administrative levels of the Autonomous Bougainville Government.”

Australian Visa Processing Facility to Open in Port Moresby

By: PAUL OEKA

In another milestone achievement in Australia-Papua New Guinea relations, visa issues that businesses and individuals face will come to an end as both countries agreed to set up a visa office in Port Moresby with a 14-day processing turnaround period.

The Australian visa office in Port

of PNG, the immigration minister of Australia, and we will also have the Minister for Pacific Affairs, Pat Conroy, in this committee as well,” Minister Tkatchenko said.

The committee will focus on dealing with visas on arrival or going into Australia, and also will address issues

Tkatchenko stated.

Previously, the Australian High Commission in Port Moresby had no visa function. Their office in Suva, Fiji managed visa services for clients in Papua New Guinea, which had been one of the biggest issues surrounding processing.

RIFL Posts Strong Revenue Despite Challenging Market

CEO sets sights on next growth phase for the year after challenging pandemic period in the finance industry.

By: PAUL OEKA

Established and incorporated by the PNG Banking Corporation in 1979 as Papua New Guinea’s first merchant bank, Resources & Investment Finance Limited (RIFL) is a traditional asset finance business mainly focused on commercial customers. RIFL operated as a merchant bank until it withdrew from the market in the mid to late 1990s.

The company lay dormant over the years before a revival commenced in 2012, resulting in the successful application for a new license and the acquisition and reactivation of RIFL as a licensed financial institution.

The company kept the name RIFL because it still had amity in the business community and in the marketplace. In 2015, the company reached a milestone achievement by issuing 12 million new shares for cash consideration to fund ongoing growth. The business was based primarily on commercial asset finance and has since formalized its appropriate process and structures that have now fallen more in line with traditional finance operations.

PANDEMIC PERIOD

Despite the pandemic’s severe economic impacts on Papua New Guinea’s financial institutions, RIFL achieved steady revenues and profits in 2021. PNG Business News recently sat down with the company’s Chief Executive Officer, Peter Boutcher, to discuss its successes and plans for growth.

Boutcher has spent the last 30 years working in PNG and is also a citizen of the country. As a seasoned banker, he has gained vast experience and has a broad understanding of the county’s financial sector while he held top posts with ANZ and Bank South Pacific (BSP) over the years prior to his current role as the CEO of RIFL.

While his current focus is establishing RIFL’s clientele base and profit margin, he revealed that for the past 12 months post-Covid, the company has also focused on its staffing, loan documentation, policies, and procedures, at the same time building a

predominantly commercial equipment finance portfolio.

“Covid gave us a great opportunity to focus internally, looking at our own processes, procedures, and our own policies on all aspects including equipment financing, financial reporting and administration, business development, operations, systems, credit risk management, policy and procedure development and training of personnel,” he said.

“We are progressing to get all these things right as we do have to be compliant because we come under the guidelines and oversight of the Bank of PNG, so from a prudential point of view our greatest achievement postCovid was focusing on our company’s mechanisms and how well we could be able to adapt our services within this period,” he added.

“It has been a struggle with Covid as a lot of our clients had issues, especially with trucking and logistics as a lot of provinces had closed their borders, and moving between these provinces became problematic for some of our clients. Travel bans were imposed and that put a lot of pressure on a lot of people over a period of time.”

“On the bright side, we sat down with these businesses and have guided them through this period and most of them are now starting to reestablish the business that they had. As mentioned, it’s also been a fairly tough twelve months post-Covid and currently, we’re exploring new markets and those existing areas that haven’t been completely dominated by other industry players,” Boutcher said.

FOCUS & STRENGTHS

RIFL is focused on four core financial aspects: Asset Finance, Insurance Funding, Financial Leasing, and Personal Loans. Their services range from providing equipment finance for commercial and consumer purposes, including motor vehicles, trucks and earth-moving machinery, and mining and construction equipment. They also specialize in funding technology assets like information technology and office equipment, software, and

telecommunications.

“We want to be a market leader in finance, with a healthy loan book and a steady growth rate over the years to come. Our response to clients is a serious priority for us. We have a strong customer base, and we ensure they are given a good turnaround time for their investments,” Boutcher said.

“We have been doing quite well with term deposits which ensure that our clients get a guaranteed rate of interest, and our growth phase is now more aligned in embarking and venturing more into this financial aspect.”

“RIFL has already grown from a small finance company over the years to a well-known competitor in the finance industry. It is important that we strengthen the management to ensure we have the necessary governance and compliance and appropriate human resources to continue this upward trend,” Boutcher said.

GROWTH PHASE

In proceeding with the growth and expansion of its services, RIFL has ensured that risk and security measures including collaterals are in place. Although risks are being taken, they are calculated based on the serviceability and sustainability of loans.

“We are a small organization, but we also have many years of data that we can use to assess and mitigate risks. PNG is a tough lending environment,

RIFL’s Chief Executive Officer, Peter Boucther

and it comes with its own challenges, however, we must persevere with our businesses,” Boutcher said.

RIFL have also been looking at growing the business, particularly with established SMEs to help them grow, consideration had been given to several SMEs and local companies that they have funded into various projects, especially in road and construction projects.

Others have diversified into agricultural projects such as palm oil, coffee, and other sectors such as shipping, but the goal is to spread the risk by investing with established SMEs instead of being too reliant on a few multi-corporate clients. That’s a significant part of the finance company’s strategy going forward.

“From a business perspective what we’re looking at is financing heavy equipment trucks and machinery, but we have also been keen on assisting people with working capital require-

“Another aspect is to look at retirees in both the public and private sector and offer long-term deposits with good interest rates and pay monthly interest similar to a pension.”

“So, for retirees opting to invest with us who have superannuation funds from K200,000 can get a constant income in their retirement. That is something that we are looking to embark on this year and hopefully attract a lot of those retiree funds, as the banks pay relatively low rates on investments,” Boutcher explained.

EXPECTED OUTCOMES

RIFL’s progress in maintaining their clients has been great as they have had some long-term loyal clients although some have had financial difficulties. The finance company has been able to go through a process with these clients by working with them based on their current and future contracts and then determining a way forward.

“In the future, we would like to get

with us that will help us with our funding,” Boutcher said.

Previously RIFL took a different approach in program alliances with vendors and committed sponsorships within the community and sports. But now they have made a collective decision and have decided to invest more into branding and brand awareness and have been progressing quite well.

“Operations of the company depends on going out and engaging with our clients so since we are a finance company based in Port Moresby, one of our focuses would be to give more emphasis on clients outside of the city in other provinces,” he said.

“Some (clients) get into situations where they need to sell assets whether that be machinery or property to try and reduce the debt burden and we try to support them as best as we can through those times,” the RIFL chief said.

“We are open to new business as well as new challenges. For us, we want to continue to grow the business

N e o m e t a s t a r t s i t s w o r l d w i d e u n i q u e p r o j e c t , w h i c h o f f e r s e v e r y o n e t h e o p p o r t u n i t y t o a l s o p a r t i c i p a t e i n t h e b l o c k c h a i n s e r v e r m a r k e t . I t w i l l a l l o w a l l t h o s e i n t e r e s t e d t o b e a b l e t o p o s i t i o n t h e m s e l v e s i n t h e h i g h l y l u c r a t i v e s e r v e r m a r k e t v i a N e o m e t a . T h i s f o r m s t h e b a s i s f o r t h e e x t r e m e l y i n t e r e s t i n g s e r v e r a n d b l o c k c h a i n m a r k e t .

N e o m e t a i s t h e p a r t n e r f o r s e r v e r s o l u t i o n s f o r a l l a s p e c t s o f t h e b l o c k c h a i n w o r l d a n d w i l l m a k e a s i g n i f i c a n t c o n t r i b u t i o n t o c r e a t i n g s e c u r e a n d e c o l o g i c a l f o u n d a t i o n s o n a n e w l e v e l

N e o m e t a i s a t e c h n i c a l s e r v i c e p r o v i d e r i n t h e p r e s e n t a n d f u t u r e , s p e c i a l i z i n g i n t h e l a t e s t b l o c k c h a i n p r o j e c t s w i t h s u s t a i n a b i l i t y i n m i n d . T h e y a c t b o t h v e r y q u i c k l y a n d i n a n e n v i r o n m e n t a l l y f r i e n d l y a n d s u s t a i n a b l e m a n n e r . F o r t h i s r e a s o n , w e f i r m l y b e l i e v e t h a t o u r s e r v e r s l o t p a c k a g e s w i l l b e l u c r a t i v e f o r e v e r y o n e a n d a s s u m e t h a t o u r p r o j e c t w i l l a t t r a c t a l o t o f a t t e n t i o n w o r l d w i d e .

Steamships Records Positive Results in 2022

Port Moresby listed Steamships Trading Company Ltd has announced a stronger than expected year in 2022, for the group, as the PNG economy recovered well from the constraints imposed because of the COVID-19 pandemic.

Year 2022 results show improved revenue across the business, as sales revenue increased 12% to K631.3 million against last year’s K563.9 million. The company declared a total dividend of 120 toea per share, in comparison to the previous year’s 100 toea.

The hospitality and property divisions saw improvement with more demand due to the lifting of COVID-19 restrictions. Pacific Palms Property experienced an increase in residential occupancy across the portfolio. Coral Sea Hotels continue to expand with the opening of new Enzo’s Pizza outlets despite food and beverage margins compressed due to rising input inflation.

The integration of Logistics businesses, compromising Consort Express Lines shipping, EastWest Transport, Joint Venture Port Services and Pacific towing continued throughout the year with the aim of offering an improved service for customers. Additional shipping, towing, and trucking capacity was added to meet the demand for services.

Despite recording positive results, the Company was not immune to the supply chain constraints and inflationary pressure that prevailed globally. These limited the progress of various property projects and new investments.

“As the effects of COVID-19 receded, businesses and the economy in Papua New Guinea slowly recovered during 2022. Demand for goods and services increased throughout the year with an anticipated post-COVID downturn not materialising,” said Chairman Geoff Cundle of the results.

“Steamships performance in 2022 was solid. Profit attributable to shareholders declined on the absence of property sales; a strong underlying performance means the company is in a good position to benefit from Papua New Guinea’s encouraging economic growth prospects.”

There is growing optimism that early-works activity for the Papua LNG project and boarder infrastructure investment should gain traction in 2023. Steamships is well positioned to benefit from the improving economic conditions. It remains committed to continuous improvement in productivity and vigilant in identifying opportunities for growth.

Managing Director Rupert Bray says: “PNG is our home and primary place of business. The anticipated openings of Harbourside South, the BSP Branch at Dobel in Hagen, and Portside Business Park this year are all exciting additions to our portfolio.”

“We remain committed to contributing to the social and economic growth of PNG and look forward to what we expect to be another strong year in 2023.”

Steamships’ new Harbourside South Development, Papua New Guinea’s premier mixed-use precinct located in down-town Port Moresby. Seamlessly interconnecting residential, commercial, and retail experiences with world-class harbour views and stunning facilities. Harbourside South will house the first Marriott Executive Apartments in Papua New Guinea which is due to open Q4 2023.

Swire Shipping Introduces New Fixed-Day Weekly Service to the Pacific Islands

Swire Shipping, a leading operator of liner shipping services in the Asia Pacific, has introduced the Pacific Weekly Express (PWX) service, a new fixed-day weekly service that connects Southeast Asia, Europe, India, and the Middle East with Papua New Guinea and the Pacific Islands.

The new service operates on a seven-day frequency to Papua New Guinea, Solomon Islands, New Caledonia, and Fiji, with connections in Fiji and Nouméa to the Pacific Islands of Tonga, Vanuatu, Samoa, American Samoa, and Tahiti.

PWX combines and expands two existing services – superseding the existing Southeast Asia (SEA) and East-Southeast Asia (ESEA) services – offering greater frequency, predictability, and speed. The new service underlines Swire Shipping’s commitment to connecting the communities of the Pacific, doubling frequency to the ports of Lae, Motukea, Nouméa, Suva, and Honiara.

Ben Pike, Chief Operating Officer for Swire Shipping, said: “As a partner of choice to many, we believe it is our duty to support our customers’ supply chains with best-in-class liner services. With this in mind, we are pleased to introduce a significant upgrade to our network by including more fixed-day weekly and fixedday fortnightly products in our key markets.”

“The PWX service will bring significant value to our customers immediately and help to support communities and trade in the region.”

PWX SERVICE ENHANCES SUPPLY CHAIN PLANNING WHILE REDUCING RISKS

With a weekly frequency, customers in the Pacific will now be able to optimise their supply chains and reduce risk. The predictability and reliability of the weekly service will enable them to reduce inventories, lower holding costs, and improve stock management, whilst reducing supply chain risk and the possibility of stock outs.

Customers will be able to standardise and repeat processes at both origin and destination locations, making it easier to plan their supply chains. They will also benefit from shorter waiting times and fewer vessel clashes in ports with better on time performance.

AN IMPROVED NETWORK OF SERVICES IN THE PACIFIC

The introduction of the PWX service enables Swire Shipping to upgrade its Papua New Guinea (PNG) Service (serving Australia to Papua New Guinea and Solomon Islands) to a fixed-day fortnightly service. These complement existing fixed-day fortnightly products on the Australia-Pacific Islands (PIS) Service and North Asia Express (NAX) Service (serving North Asia to Papua New Guinea and Townsville, Australia).

Swire Shipping’s integrated logistics division will support the network of services in the Pacific by providing first-mile and last-mile logistics services, facilitating a seamless process.

Photo: MV Rabaul Chief sailing on Papua New Guinea waters. The vessel will be deployed on the new PWX service

Korea – Papua New Guinea Trade Increases by 240 per cent to US$1.8 (K6.33) Billion

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

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

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

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

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

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

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

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

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

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

“I want to offer my country as an investment destination for Korean companies, as well as for our producers

to export to your country’s markets,” he told Mr. Byeong-seug.

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

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

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

ADB Approves $163M in Loans to Help Improve PNG Aviation Safety

The Asian Development Bank (ADB) and the Government of Papua New Guinea (PNG) recently signed two loans to fund improvements to air services in PNG.

Minister for Treasury Ian Ling-Stuckey and ADB Country Director for PNG David Hill participated in the signing ceremony.

“This innovative program will help boost economic and social development in PNG,” said Mr. Hill. “Our investments aim to improve connectivity in the country and, in doing so, drive growth in businesses and jobs.”

Loans amounting to almost $163 million were signed at the ceremony for the newly approved $171.5 million

Civil Aviation Development Investment Program Phase 2.

The program will upgrade five national airports for better safety and security, improve the power supply at Port Moresby International Airport, and enhance navigation and weather services by installing a standard automatic weather observation system.

“Major sectors of PNG’s economy such as mining, tourism, and agriculture rely on civil aviation for access to production sites and markets,” said Mr. Ling-Stuckey. “This ADB-supported program will play a lead role in enabling economic recovery after COVID-19.”

The program will pilot the upgrad-

ing of rural airstrips in four locations: Finschhafen, Hayfield, Jacquinot Bay, and Tapini. Civil aviation institutions in PNG will be strengthened through the provision of training on project management and gender inclusiveness.

The program builds on the successes of the ADB-supported Civil Aviation Development Investment Program, which was approved in 2009 and targeted sweeping improvements to 21 national airports that serve more than three million people in PNG per year.

It also strengthened the safety, accessibility, and reliability of air services, and opened new economic opportunities in regional centers.

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

PM Marape Meets with France President Emmanuel Macron

Prime Minister Hon. James Marape says his bilateral meeting with France President H.E. Emmanuel Macron is very good for relationships between France and Papua New Guinea.

He said this after the two leaders met in Libreville, Gabon, on the sidelines of the ‘One Forest Summit’ on Thursday, March 2, 2023.

It was President Macron, in fact, who invited PM Marape to attend the ‘One Forest Summit’ in Gabon – France’s former colony – during their last meeting at APEC 2022 in Bangkok, Thailand, last November.

PM Marape said the meeting covered matters of sustainable logging, climate change and France assistance to PNG in other matters. This includes defence cooperation, especially in areas of training, between the two countries.

“I am hoping for a partnership

with the France Government to see similar projects like what is being done in Gabon, including downstream processing of logs,” PM Marape said.

“The Government of France does not have any direct projects in PNG relating to forestry, conservation, biodiversity, or carbon markets. France, however, is part of the European Union (EU), and there is an existing EU-Pacific Green-Blue Alliance.”

“The EU is also preparing a new cooperation project on ‘Forest, Climate Change and Biodiversity (FCCB)’ in PNG that is in its consultation stage.”

“The new initiative is a concrete implementation of a ‘Global Gateway’ in the Pacific Region, as it will offer sustainable partnership for a green and digital transition, focusing on the ‘Green Deal.”

“It is fully in line with the EU

strategy for cooperation in the Indo-Pacific, which identifies the ‘Green Transition’ as a priority area of work with partners in the Pacific. The new project aims to support PNG in the areas of forestry, climate change and biodiversity.”

Parliament Passes Law to Keep Foreigners from Operating Small Businesses

The country’s lawmakers have unanimously voted in favor of the updated investment law passed by Papua New Guinea’s parliament, specifying the intention to prevent foreigners from operating small businesses that are reserved for locals.

This law includes measures to ensure locals remain in control of businesses such as general stores and taxi and bus services without discouraging other foreign investment.

It followed a public outcry that local businesses face increased competition from Asian migrants. PNG’s population is almost entirely indigenous, with a small fraction of Australians, Chinese, Filipinos, and other nationalities.

“It’s time our people take the lead,” said Prime Minister James Marape. “The law is a step toward protecting businesses that only Papua New Guineans can participate in.”

Dozens of business activities, from small-scale farming to owning a security company, are reserved for citizens under Papua New Guinea’s 1992 Investment Promotion Authority Act, but the law

has lacked monitoring and enforcement.

The updated law aims to improve compliance so local businesses are protected while still encouraging foreign investment in industries where Papua New Guinea needs outside capital and expertise.

A local general store owner in PNG’s capital city, Port Moresby, said the new law is long overdue. “It took the government 31 years to come up with this bill to protect us from competing with foreigners doing the same business,” said the local, who requested anonymity.

“For example, we are competing in running trade stores in the settlements,” he said, referring to the urban communities that have sprung up as more people move to towns from the country’s highlands.

Marape’s government has a policy of developing small- and medium-sized businesses for indigenous Papua New Guineans.

A Bangladeshi expatriate who runs a store in one of Port Moresby’s settlements said the shop is leased to him for K10,000 monthly from a Papua New

Guinean who was tired of family and relatives urging him for financial assistance towards customary and cultural obligations, such as bride price and haus krais (funeral expenses).

“We are doing business because the locals are not really competitive in running their own business. So, the law is good for indigenous Papua New Guineans to take ownership of their own business activities. But then they have to be committed, and their relatives should be supporting them by not asking too much for financial assistance,” the expatriate said.

Generally an influx of foreigners running small businesses reflects decisions and factors that are made by local businesses and their owners, the Port Moresby store owner said.

“Trade stores can be built, but then we rent them out to foreigners to manage due to social and cultural issues that most owners are obligated to because of their outlook and status in society. That’s how most foreigners initially run businesses that locals are supposed to run,” he added.

Ok Tedi Board Announces Interim Appointment 0f Acting CEO

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

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

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

OTML Board Chairman, Jeffrey Innes said, “We thank Mark for ensuring continuity and stability during this period and appreciate the focus of all OTML and Business Partner personnel during this transition period to safely deliver on their commitments

and to ensure the continuing success of Ok Tedi and its stakeholders.”

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

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

Morobe Governor Frustrated by Slow Progress In Wafi-Golpu Negotiations

Morobe Governor Luther Wenge has expressed frustration at the slow pace of negotiations regarding the Wafi-Golpu project, a gold-copper mining project worth billions of Kina. According to Wenge, “the provincial government’s position is

clear: mining must go ahead. We can sort everything else later.” He believes that preparations for the project should begin immediately and the special mining lease should be granted.

However, Wenge has stated that negotiations are being delayed by

the state negotiating team, who are attempting to secure the best possible deal for all stakeholders in the project. State negotiating team chairman Dairi Vele confirmed that they were trying to get the best deal for everyone involved in the K18.5 billion project.

Yandera Project: A Review of its Past to Predict its Future

By: MARCELLE P. VILLEGAS

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

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

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

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

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

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

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

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

In relation to Freeport’s recent announcement on their proposed issue of stock with the objective of raising up

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According to Wenge, the provincial government is willing to comply with the law, including paying the required 2% royalty fee. However, he also mentioned, “by law, royalties are 2 per cent but the government wants an additional 3 per cent which the developer is not agreeing to. We are ok with it as long as it’s by the law.” Governor Wenge has stated that the provincial government is ready to move forward with the project but that the state negotiating team

to C$3 million, Mr Emery shared his sentiments on the matter. He stated, “Even if they do raise the full amount, speaking from my years of experience at Yandera with Marengo, these funds will go nowhere near getting the project to the next stage.”

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

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

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

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

They stated that Yandera Project was

is delaying progress. He said, “It’s the state negotiating team who is negotiating with the developer on our behalf that is delaying this.”

Governor Wenge has also expressed his desire for transparency in the negotiations. He previously stated that 10% of the state’s 30% equity in the project would be free-carry to the Morobe government and the landowners of Babuaf, Yanta, and Hengabu. However, he recently said that the details were still not clear. He called on the government to change the law if they wished to increase

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

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

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

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

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

royalties beyond the legally required 2%. In his words, “If the Government wants more, then change the law so it’s in their favour.”

MINING

Here is another issue.

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

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

YANDERA RESOURCE OWNER CONCERNS

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

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

1. “In July 2017, the people of Yandera became agitated with the Era due to its failure to complete a Definitive Feasibility Study. At that time the Yandera LOA members raised their concerns that the Yandera Project might be put up for ‘sale’.”

2.“During the Mining Wardens hearing, in November 2017 the people of Yandera overwhelmingly objected to the renewal of EL 1335 to Era. However, recommendation to the Minister for Mining was for renewal of EL 1335 to Era for a further 2 years.”

3. “Our objection not to reissue EL 1335 to Era has grounds because the Yandera project literally came to an abrupt stop and has remained close since. We are sure that since buying Era, Freeport has gone hunting around trying to sell the Yandera project to the highest bidder.”

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

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

Acknowledgement:

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

Reference:

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

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

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

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

Highlights of the 16th PNG Chamber of Mines & Petroleum Conference 2022

By: MARCELLE P. VILLEGAS

Last year, the 16th Papua New Guinea Mining and Petroleum Investment Conference and Exhibition was held from 5th to 7th of December 2022 at Sydney Hilton Hotel. The event was hosted by the Papua New Guinea Chamber of Mines and Petroleum with the theme “PNG Resources: Securing the next wave of responsible investment”.

There were over 1,000 delegates from industries related to global hydrocarbon, minerals, and energy industries. Other participants are government officials, landowners, and those from the international investment sectors. [1]

The conference seeks to highlight investment and development opportunities that PNG can offer.

Honorable James Marape (MP)PNG Prime Minister, provided the keynote address on Day 1. Other notable speakers include Mr Anthony Smaré - President of the PNG Chamber of Mines and Petroleum, Pat Conroy - Australian International Development Minister, Honorable Ano Pala (MP) - Minister for Mining (PNG Government), and Honorable Kerenga Kua (MP)

- Minister for Petroleum (PNG

Government).

In Mr Anthony Smaré’s opening address, he mentioned that foreign investments play a significant role in the development of PNG and have a catalysing impact on the PNG’s economic development.

He stated that the country has five major projects coming up including the Papua LNG Project, Wafi-Golpu, Pasca, and the reopening of Porgera and P’nyang.

In his speech, Prime Minister

James Marape encouraged investors on PNG’s potential, and inspired partnerships in development on the ground.

He said, “We are a mineral and petroleum nation. We know how to give incentives, embrace and protect investors, and allow investors to make a fair and profitable return on their investments.”

“The next wave or first waves of responsible investments, or I would rather say ‘responsive investments’, are our big five projects that my

From top photo: President of the PNG Chamber of Mines and Petroleum Mr Anthony Smaré

Prime Minister Hon. James Marape delivering the Keynote Address at the 16th PNG Mining and Petroleum Investment Conference and Exhibition.

SPECIALIST STEEL FABRICATION FACILITY

Ready for future LNG projects

The groundbreaking ceremony for the Kumul Petroleum Steel Fabrication Facility and associated construction training academy took place in May 2022.

Artist’s Impression

government has worked on the last three years where deep in my planning office we label them as “PPPPW”.

Prime Minister Marape also mentioned that PNG is expecting positive future projections for growth and stands to reach a 200-billion-kina economy, but it must include local involvement.

“You take my gas, and you take my people with you, we will support everything you do, it wasn’t a literal statement to taking my people with you, but for the betterment of their life,” he said.

In relation to this, Mr Smare noted that PNG’s resource growth is over K30 million and is expected to grow exponentially.

“As I discussed with PM Marape yesterday, his government is now at a unique juncture in our nation’s history. It is the first time that our country is on the cusp of delivering not one, but four major resource projects of over $30 billion. Papua LNG with its $12 billion capital cost, Pnyang at $10 billion, the reopening of Porgera, and Wafi Golpu Copper-Gold project at $6 billion or potentially higher. Add the Pasca gas project at $2 billion and one can understand why negotiating all these deals at the same time has placed the government negotiation machinery under significant strain.”

Moreover, he pointed out Australia’s continued support as a development partner to PNG but highlighted that future investments projects could also include other global economies like China.

“China is a very important partner of our country. It plays a significant role in our economy currently. It has interests in a number of our mining projects – a quarter of Porgera through Zijin Mining, and the majority interest in the Ramu Nickel-Cobalt mine through MMC. China is a buyer of much of our current minerals output. China is also a significant buyer of our LNG production from the PNG LNG, and it will likely be a major buyer of gas from our new LNG developments – Papua LNG, Pnyang, and Pasca.”

Honorable Pat Conroy, Australian Minister for International Development and the Pacific, said that Australia does need to step up participation in the development of PNG.

“All of our investments in Papua New Guinea are squarely aimed at helping Papua New Guinea achieve its economic and development priorities. We’ve provided budget support loans of around $1.2 billion in 2020 and 2021, to help Papua New Guinea repair its budget out of the pandemic. And we are supporting the Papua New Guinean Government’s efforts to make Papua New Guinea a more attractive place for business activity and investment.”

The Minister noted that they are aware of how much the mining and petroleum sectors contribute to Papua New Guinea’s economy. “We are both countries with abundant natural resources. We are both countries with significant mining sectors which have been fundamental to our economic development – supporting growth, exports, and jobs.”

“Many of the Australian mining and petroleum companies represented at this conference have made significant investments in economic and social development, spanning decades

of engagement with communities from Western Province to the New Guinea Islands.”

In relation to Australia and its historic relationship with PNG, Mr Smaré acknowledged that Australia remains a vital development partner to PNG, but pointed out that the country no longer holds the position as dominant investor in PNG.

“Much of the Wau-Bulolo gold rush of the 1920s was funded by Australian capital, and Australian funded explorers and mining companies discovered and/or developed much of our most important projects – for example, Conzinc Rio Tinto found and developed Panguna, Australia’s BHP was the majority partner who developed Ok Tedi in the early 1980s, Australia’s Niugini Gold discovered Misima and Lihir, and Rio Tinto was the majority partner in the development of Lihir in the early 1990s.”

He mentioned that Australia remains one PNG’s most important investors, but for the past 15 years, the resources and energy sector has

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From top photo: Hon. Pat Conroy, MP, Australian Minister for International Development and the Pacific Minister Hon Ano Pala speaking at the conference.

seen major investments from other countries like US, Canada, France, and China through multiple large-tomega investments.

In closing, Mr Smaré’s addressed a question to the Australian audience. “So, what role will Australia play in PNG’s development going forward?”

The Papua New Guinea Chamber of Mines and Petroleum also announced that it is considering a name change to PNG Chamber of Resource and Energy (PNG Core) to better reflect the change in the commodities produced by the sector in PNG. This announcement was made by Mr Smaré during the conference.

“The Governing Council of the Chamber has resolved to change its name to the PNG Chamber of Resources and Energy (PNG CORE) to encompass a better representation of the industry that it represents, and the exports that its members will be exporting to the world.”

On the second day of the conference, the speakers discussed project updates from some of PNGs biggest resource companies.

ExxonMobil PNG’s Senior Vice President of Production, Scott Sandlin, gave updates on the progression of the multi-billion Kina PNG LNG project. The project aims to achieve long-term economic development.

For the next 11 years, nationally owned Ok Tedi Mining Limited is expected to generate over K19 billion in benefits for Papua New Guinea. OTMLs General Commercial Manager Cameron Clark said: “The outlook for Ok Tedi is a positive one. The Company has tripled its value in the last 6 years and extended mine life by 7 years. This has been made possible by a combination of technical improvements, cost improvement, accelerated mining rates and internal investment in key strategic projects”

Moreover, Simberi St Barbara has been given the permit for sulphides expansion which adds at least another 10 years of mine life from 2024 - 25 when oxides are depleted. The sulphide expansion is under a strategic review by operator St Barbara Limited. Simberi is pursuing cocoa and fisheries (with partners) as its best opportunities for sustainable development.

Petroleum Minister Kerenga Kua stated that PNG’s petroleum sector is “in a robust state” with 94 active licenses. He believes that having 58 prospecting licenses and 10 PDLs as well is a good starting point for PNG towards a prosperous future.

During his speech, Mining Minister Hon. Sir Ano Pala mentioned that the Mineral Resources Authority (MRA) is processing and monitoring over K45 million worth of new capital investments in mining projects, and about K10 billion worth of investments in sustaining capital expenditure on existing mines. [2]

He noted, “I’m very pleased to announce that some very important mining projects had already been permitted whilst others are currently going through the permitting process. These projects are worth a total of K13 billion of potential new capital investment. Projects going through the permitting process are the K5.3 billion Wafi Golpu Copper project, comprising K 2.5 billion sustaining capital expenditure, and the K7.2 billion Freda River copper and gold project.” [2]

The projects that have been permitted are the Woodlark Gold Project and K3.331 billion Central Lime Cement Project. Additionally, Ramu Nickel Cobalt mine will be undertaking a K1.5 billion expansion program.

Hon. Ano Pala also mentioned that the government had granted the approvals for the conversion from oxide to sulphide ore processing for the Simberi project. The government also granted the extension of the Mining Lease for the Hidden Valley Project.

The application for extension of the Special Mining Lease for Ok Tedi Mine and K92 Mining Lease have recently been processed.

He said, “We are confident of permitting Wafi and Freda River projects upon completion of negotiations in the coming weeks. Wafi is going well. The gaps in the negotiations are narrowing now, and we are confident that in the coming weeks, we will make the announcement. These mega projects will off course take 5-7 of years of construction and we hope to see this mining projects operationalized well before 2030.”

Photo credits: PNG Chamber of Mines and Petroluemhttps://pngchamberminpet.com.pg/ media-centre/news-releases

Mineral Resources Authorityhttps://mra.gov.pg/2022/12/07/16thpng-png-chamber-of-mines-petroleum/

Reference: [1] PNG Chamber of Mines and Petroluem - Media Releasehttps://www.pngchamberminpet. com.pg/index.php/media-centre/ news-release-view/2022-16th-pngmining-and-petroleum-investmentconference-and-exhibition-programme

[2] Mineral Resources Authority (7 Dec. 2022). “16th Papua New Guinea Mining and Petroleum Investment Conference and Exhibition”. Media Release. Retrieved from - https://mra.gov. pg/2022/12/07/16th-png-png-chamber-of-mines-petroleum/

Hon. Kerenga Kua - Minister for Petroleum

PNGEITI Thanks Outgoing Mining & Petroleum Chamber Executive Director

The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) has thanked Dr. Albert Mellam, the outgoing executive director of the Papua New Guinea Chamber of Mines and Petroleum, for his valuable contribution to the group.

“The PNGEITI had the good opportunity to benefit from Dr. Mellam’s professional demeanor and credentials to progress EITI work in the PNG,” Lucas Alkan, Head of PNGEITI National Secretariat, said.

“We thank Dr. Mellam for his strong support for EITI activities and wish him every success in his next career move,” Mr. Alkan said.

He said Dr. Mellam’s contribution at the Multi Stakeholder Group (MSG) level in his capacity as Executive Director was valuable.

“Dr Mellam represented the Chamber well at the PNGEITI MSG -- the peak body responsible for oversight and guidance to implement-

ing the EITI principles for greater accountability and transparency on how PNG authorities and companies interact in managing and operating PNG’s rich mining and petroleum resources.”

“On behalf of the members of the PNG MSG, I thank Dr. Mellam for his valuable contribution to EITI implementation -- especially when PNGEITI was working on important projects such as the work on the PNG Extractive Industries Transparency Commission Bill that aims to transition the PNGEITI National Secretariat into a statutory commission,” Mr. Alkan said.

“The considerable progress we’ve made so far in implementing EITI in this country speaks of the utilization of combined expertise and advise of leaders like Dr. Mellam at the MSG pool.”

“As Dr Mellam makes his exit, we hope to welcome a new Chamber representative to represent the industry

companies at the PNGEITI MSG and we look forward to that,” he said.

The Chamber, which is the industry peak body that represents business interest of mining and petroleum entities operating in PNG, announced the departure of Dr. Mellam during the quarter.

Dr. Mellam was the first Papua New Guinean to occupy the executive director’s position where he served for the past five years.

PNGEITI Position on Porgera Mine Legacy Tax Issues

The Papua New Guinea Extractive Industries Transparency Initiative (PNGEITI) commends The National newspaper for attempting to bring to light what appears to be the final outstanding issue (among others) in the Porgera Mine recommencement negotiations (more on this in footnote). We’ve noted from the reporting that taxation matters are legacy issues that appear to be standing in the way for the multimillion-kina Porgera Gold Mine to re-open.

We have observed that the Government was on track to conclude negotiations and reopen the Mine by June last year, however this did not eventuate as anticipated. Attempts to reopening the Mine in the second half of last year was not feasible due to the national general elections and the formation of government. It appeared that all negotiations were concluded, and a new Porgera Mining Agreement Framework was in place for the Mine to be reopened in the first quarter of this year.

Surprisingly, we learn that an old Porgera Tax liability dispute is standing in the way for the Mine to be reopened. The early recommencement of the Mine, preferably within the first quarter of this year is critical for the country as the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back into its full operating capacity would be a significant challenge. On this, we are aware there are also discussions going on with the developer and the government as to who is going to meet the startup cost but we understand Barrick Niugini Limited might meet the full cost of starting up the Mine and government would refund later but unsure as to whether this understanding has been reached or not yet.

With regards to the current standoff, the EITI based on its global best practice principles is of the view that the existing law governing taxation matters must dictate or take precedence over any political intervention. We do not know the specifics of the on-going tax matter but understand that it is related to a tax dispute concerning the ‘old Porgera Mine’. If it is a significant

The PNGEITI Head of Secretariat, Mr. Lucas Alkan, says all parties to the Porgera Mine must adhere to rules governing the extractive industry, particularly when dealing with fiscal matters that must be administered and observed according to law. His comments follow a news article citing the Internal Revenue Commission (IRC) that unmet tax obligations of the Porgera mine stood in the way to expedite the mine reopening process. Mr. Alkan says a workable and timely strategy that does not impinge on basic laws is a way forward. Below is his full comment on this issue.

amount of tax owed by Barrick to the Government based IRC’s audit in 2013, then it is a legal tax obligation that Barrick and its joint venture partners need to settle as required by law.

We fail to understand as to why the old Porgera tax obligation/liability clause was inserted into the new Porgera Mining Framework Agreement making it a condition to resolve this legacy tax issue before reopening the Mine. If whatever was reported and commented by PM Marape recently is true then Barrick Niugini Limited and the State need to speed up the negotiation process and resolve this dispute immediately. Both parties should exercise good faith – Barrick Niugini Limited should not pull strings on this old Porgera tax liability matter and delay the re-opening of the Mine. It is understood the State (IRC) may not easily forego if there is a substantial amount of tax liability to be paid by the operator.

Whatever the parties decide to do, they should resolve the tax liability issue through the due process of law but allow the Mine to re-open immediately under the New Porgera Framework Agreement. Political intervention is not recommended to resolve this dispute as this can undermine investor confidence, set bad precedence for the Government and create an uneven playing field for project developers. Barrack Niugini Limited should not put undue pressure on the State to resolve this matter politically in order to re-open the mine as it is not a best business practice.

All stakeholders and the citizens have the right to know the specific issues or the nature of this tax liability

issue between Barrick Niugini Limited (BNL) and the Internal Revenue Commission (IRC) as the continued delay in re-opening the Mine continues to have negative consequences on the economy. The prolonged delay has not only resulted in significant revenue loss to the Government (including the provincial and local level governments in the impacted resource area) but also loss of employment, business opportunities and spin-off benefits to the landowners and the wider communities.

The shutting down of the Mine 3 years ago has had significant negative consequences on the economy including the current foreign exchange shortage that has constrained business operations in the other sectors of the economy. Porgera Mine had been a good source of foreign exchange inflows and its continued shutdown will definitely not contribute to the 4% economic growth (that was largely to be driven by the extractive sector) projected for by the World Bank for last year and the real GDP growth of 4% projected for this year in the 2023 National Budget.

PNGEITI commends the transparent negotiation process to date that took substantial amount of time and effort to ensure the interests of all parties were reflected in those agreements. We encourage all parties to continue to respect and observe the laws of the land in this dispute resolution process to address the tax liability issue. We believe that a win-win situation for both parties (Government and Barrick) is to re-open the mine first and work together to resolve the outstanding tax liability dispute later going forward.

Department of Mineral and Energy Resources Sets Focus for 2023

The Department of Mineral and Energy Resources (DoMER) has set its strategic objectives for the next five years, according to Secretary Mr. Peter Kolotein.

These are being captured in the Bougainville Integrated Strategic Development Plan (BISDP) 2023-2027 and the DOMER Strategic Plan 20232027 to be launched this year.

Mr Kolotein said in 2022, the Department reviewed existing strategic directions around the departments three core functions which are; mineral resources development, energy resources development, and geohazards management.

The revised strategic directions include:

• Mineral and energy sector contribu tion to the Toroama-Nisira Govern ments Six-Point Strategy and vision for Economic Growth and Control.

• To provide sustainable development policy and regulatory frameworks with best practice social, environ mental, technical and safety expec tations.

• Building organizational and strategic capacity to acceptable standards.

• Promote good governance, account ability and transparency in adminis tration of the sector.

• Strong popular support for the develop ment of the mineral and energy sector.

• Ensure government and the resource owners effectively participate and benefit from the development of the mineral and energy resources.

• High quality, up to date geological information available at the department

• Establishment of geohazards man agement functions.

Mr Kolotein said the Department has redirected its focus towards delivering on the Toroama-Nisira government’s economic growth priorities.

“The strategies also show commitment to reviewing and developing our laws consistent with international best practice in the sector and there is commitment to enhancing the organizational capability of DOMER,” Secretary Kolotein said.

“The new strategies further provide the basis to improve on good governance, accountability and transparency and acknowledge the importance of

local stakeholders and local content and revenue management considerations in fully realizing resource-sector derived social and economic development in Bougainville.”

“In 2019 we all voted 98% in favor of Independence, the economy needs to support this and a high impact economic development project is the required catalyst. Bougainville is blessed with natural resources including minerals, energy, agriculture, fisheries, to name a few. Each of the responsible ABG departments have been tasked with looking at their respective sectors for economic development opportunities to tap into for Bougainville’s benefit,” Kolotein added.

He said for the minerals sector, the most viable development potential lies in Panguna mine redevelopment. 2021 and 2022 have seen some positive progress on Panguna mine dialogue between the ABG and landowners. In 2023 there will be ongoing dialogue with landowners and other key stakeholders towards realizing this mineral sector development opportunity.

On small-scale mining, Mr Kolotein says the strategies are to enhance the economic benefits for those involved in

the sector and to reduce the negative social and environmental impacts of small-scale mining.

He says ideally, it would be good to not have this activity in Bougainville at all, but the reality is that our people in those communities are involved in this activity, some depend on it even, so it an issue that needs to be addressed. The ABG is also pursuing strategies to ensure government is able to realize revenue from small-scale mining gold that leaves Bougainville.

Speaking on good governance, Secretary Kolotein appealed to mineral sector decision makers and stakeholders to respect the laws of Bougainville, especially Bougainville’s mining laws.

“Our laws set the standard and draw the line between what is acceptable and what is not acceptable in Bougainville. Investors who are not able to meet standards set by law will not be entertained.”

“I appeal to landowners and key local stakeholders to work with the Department to ensure Bougainville is established as a place with high standards so we can also attract credible investors and credible development,” he urged.

Panguna MineCredit: Ilya Gridneff/ AAP

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Papua LNG Project Advances to FEED; Lessons from PNG LNG Lingers

By: EDISON MATING

On March 07, 2023, in separate announcements, Santos, TotalEnergies, and Exxon announced the Papua LNG project had launched the first phase of a fully integrated front-end engineering and design (FEED) for the Papua LNG project in Papua New Guinea.1

This follows a formal announcement by Prime Minister Hon James Marape a day earlier at the APEC House in Era Kone, PNG.2 Last December, PM Marape pressed mining and energy giants in the country to advance projects.

Papua LNG is one among the five gas and mining projects that are seen to expand the country’s economy to 200 billion kinas (US$55 billion) by 2029.3

Papua LNG is expected to contribute 75 billion kinas to both the local and national economies over the next 20 to 25 years of production, according to Petroleum and Energy Minister Kerenga Kua. This is from an investment of US$10 billion (K35.2 billion) project.4

With so many billions of dollars at stake, the front-end engineering design is a significant milestone towards a Final Investment Decision (FID), its eventual construction, and finally into production.

THE PROJECT

Papua LNG is a liquefied natural gas (LNG) production project with a gas resource estimated at over 1 billion barrels of oil equivalent. The LNG export volume is expected at 5.6 million tonnes per year (Mt/y). The project comprises 9 production wells, one water injection well, 1 CO2 reinjection well and a gas processing plant. A 320 km pipeline will be laid out (out of which 60 km is onshore) from the processing plant to the liquefaction plant in Caution Bay, close to Port Moresby. 5

The FEED is expected to be followed by a Final Investment Decision (FID) later this year or early in 2024. If favorable, construction of the project will commence, and production is expected in late 2027 or early 2028.

MAJOR PLAYERS

TotalEnergies (LON:TTE) holds 40.13% interest in Papua LNG and is the operator. TotalEnergies SE is a multi-energy French company, which produces and markets oil and biofuels, natural gas and green gas, renewables and electricity. 6

Santos (ASX: STO) holds 22.83% of interest in Papua LNG Project. Santos is an energy pioneer since 1954 and is one of Australia’s leading gas producers. The company commenced oil and gas exploration and production in Papua New Guinea in the late 1980s.6

ExxonMobil (NYSE: XOM) affiliates holds 37.04% and has been in Papua New Guinea since the 1920s. As well as being responsible for the construction and operation of the US$19 billion PNG LNG project (33.2 percent interest).

ExxonMobil is the parent company of ExxonMobil PNG Limited, the operator of the PNG LNG project, who successfully and safely delivered PNG’s first LNG project in April 2014. 6

Kumul Petroleum Holdings Limited (formerly NPCP Holdings Limited) is a company incorporated under the laws of Papua New Guinea with all of its issued shares beneficially owned by the Independent State of Papua New Guinea through Kumul Consolidated Holdings (KCH) (formerly, Independent Public Business Corporation of PNG).

Kumul Petroleum may exercise a back-in right of up to 20.5 percent participating equity interest in the Papua LNG project, at the time of grant of the Project’s Petroleum Development Licence.6

Mineral Resources Development Company Limited (MRDC) is a 100 percent State-owned company. It was incorporated in 1975 under the Companies Act to hold and manage State and Landowner equity interests in mining and petroleum development projects in PNG.

MRDC may exercise a back-in

right of up to 2 percent interest in the Papua LNG project, at the time of grant of the Project’s Petroleum Development License.6

PM James Marape has been pressing for PNG to receive a bigger share of the benefits from mining and energy projects since he first became prime minister in 2019, and so far, has succeeded in renegotiating deals with energy giants ExxonMobil Corp (XOM.N) and TotalEnergies on their gas projects. 3 In Papua LNG, PM James Marape says that the government has secured a 5% stake in the Papua LNG project for domestic market gas. 7

FRONT-END ENGINEERING DESIGN

Globally, liquefied natural gas (LNG) has drawn interest as a green energy source in comparison with other fossil fuels, mainly because of its ease of transport and low carbon dioxide emissions. However, LNG production is an energy- and cost-intensive process because of the huge power requirements for compression and refrigeration. Therefore, a major challenge in the LNG industry is to improve the energy efficiency of the LNG processes through economic and ecological strategies.8

Map showing 260 km of offshore pipeline and 60 km of onshore pipeline extending from Elk and Antelope fields to Caution Bay.

Photo Credit: Papua LNG

The FEED used 4 electric LNG trains with a cumulative capacity of 4 Mt/y, to be developed within the existing liquefaction plant in Caution Bay. It has secured up to 2 Mt/y additional capacity. The Project opted for 4 innovative electric liquefaction trains of 1Mt/y capacity each, a more modular solution that will reduce the Project’s carbon footprint when combined with renewable energy.5

PNG Petroleum Minister Kerenga Kua said the Papua LNG venture will “build four small electric trains, four smaller ones, that’s to spread the risks, minimise costs and minimise risks of downtime.”9

Another special feature is that a system for storing so-called “native” CO2, i.e. CO2 produced with natural gas, was designed to be operational on the first day of operation. The CO2 will be separated and reinjected into one of the two reservoirs to reduce the GHG emissions by circa 1 Mt/y. 5

LESSONS FROM PNG LNG

According to PwC, Papua New Guinea has been exporting crude oil since the early 1990’s. Although production is modest and has relatively reduced overtime, it is one of the country’s major exports. In 2014, PNG launched the commercial operation of liquefied natural gas, boasting as the country’s top revenue-generating export product. The combined contribution of crude oil, LNG, and condensate will potentially comprise around 60% of the nation’s export revenues in the near term.10 It is but fitting and proper that the PNG government maximizes returns from these investments.

PNG is not a new LNG country, says PM James Marape. He added that the country has gained experiences from PNG LNG on how to deal with landowners, and local and provincial governments. PNG LNG took 16 months from FEED to FID thus setting a benchmark for other LNG projects. 2

On the issue of local employment, Carmen Voigt-Graf and Francis Odhuno cited that while national employment figures in the formal economy grew substantially during LNG construction, many jobs were held by foreign workers. The major LNG developers have been criticized for not providing more training opportunities

for local workers and instead heavily relying on foreign workers.

Many PNG government departments were taken by surprise by the project, and training institutions were not ready to provide training in relevant areas. They further illustrated the case of welders where according to the PNG Department of Labor and Industrial Relations (DLIR) had 600 licensed welders, but more than 5,000 were needed when construction began, so large number of specialist welders were imported, mostly from the Philippines.11

Local employment is a direct impact benefit that citizens gain from any project. The issue of appropriate skills and training for such projects should not be taken lightly even to the extent that the company itself needs to train locals. While in cases where foreigners are required, they should work with an apprentice to ensure that they train someone behind to take over since PNG’s liquified natural gas industry is here to stay for the long term.

Investment share and employment along with other hard-earned lessons in PNG LNG will for sure be under the watch of Papua New Guineans to ensure these lapses will not be repeated then they and the government can truly say “we are better now.”

References:

1 TotalEnergies. (2023, March 07). Papua New Guinea: TotalEnergies launches integrated engineering studies for the Papua LNG project [Press Release] https://totalenergies. com/media/news/press-releases/papua-new-guinea-totalenergies-launches-integrated-engineering-studies

2 Marape, J. (2023, March 06).

Statement By Prime Minister Hon. James Marape on the Occasion of the Formal Announcement of the Papua Liquefied Natural Gas (Lng) Front End Engineering Design Phase, PM James Marape News Page. https:// pmjamesmarape.com/pm-marapeannounces-papua-lng-project-feeddesign-phase/

3 Needham, K. (2022, December

Milestones in Papua LNG Project. It could take 20 years or more from discovery to production.

Photo Credit: Papua LNG

Interest shares before and after final investment decision (FID) that comes after FEED is completed.

Photo Credit: Papua LNG

Papua LNG project to Minimise Economic Challenges

By: PAUL OEKA

Petroleum Minister Kerenga Kua has recently stated that the Papua LNG project is critical in addressing some of the economic challenges that are currently faced in the country. He said about K75 billion will be generated over a 15 year period when the project is in progress. He added that the initial stages of the project has commenced with K500 million said to be inputted into PNGs foreign exchange capacity in 2023.

During a press conference on Thursday the 9th of March, The Petroleum minister highlighted the progressive stages of the Papua LNG project and emphasized the importance and significance of the benefits that the project will provide. According to studies the project life is expected to operate over a 15 year period that will generate about K75 billion and significantly boost Papua New Guinea’s struggling economy.

“The K75 billion benefit is inclusive of what comes to the state directly as levies, to Kumul Petroleum, to the landowners as royalties and the provincial governments. All of us put together are going to be collecting and sharing that benefit in the next 15 to 20 years”, Kua said.

Minister Kua said that studies for the Papua LNG project began in 2004 following the discovery by Interoil, the resource estimate is in the range of 6 trillion cubic feet of

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05). Papua New Guinea PM Marape presses mining, energy giants to advance projects.Reuters. https:// www.reuters.com/world/asia-pacific/ papua-new-guinea-pm-marapeurges-miners-go-ahead-with-projects-2022-12-05/

4 Esila, P. (2023, March 13). Papua LNG set to bring in K75bil. The National. https://www.thenational.com. pg/papua-lng-set-to-bring-in-k75bil/

5 Papua LNG. (2023). Project. https:// papualng.com.pg/papua-lng/project/?amp=1

6 Papua LNG. (2023). Partners.https:// papualng.com.pg/papua-lng/part-

gas and 98 to 100 million barrels of condensive oil.

The benefit of this project is immense and a positive component is the national content which is expected to positively impact GDP, export earnings, forex, revenue to impacted levels of government, landowner benefits and Job opportunities.

Minister Kua said the project developer Total Energies will inject K500 million into the PNG economy in 2023.

“The Papua LNG project is a project of national significance for Papua New Guinea and will stimulate business confidence and will provide a significant impetus for our economy”,

“The Marape-Rosso government places high priority on the delivery of the Papua LNG project, we have an improved deal for our people, and improved contribution for our national contractors and workforce. The government strongly supports the Papua LNG project and encourages all stakeholders including project partners to work diligently to deliver the project on time and on budget”, Minister Kua said.

Petroleum Secretary David Manau was also present at the conference, he highlighted that the petroleum department will work closely with impacted provincial governments and landowners as this is important in ensuring that all stakeholder grievances are discussed and addressed. In

ners/?amp=1

7 Luma, D. (2023 March 08). Five

Percent Space for Papua LNG Domestic Market. Papua New Guinea Post Courier. https://postcourier.com. pg/five-per-cent-space-for-papua-lngdomestic-market0/

8 Qyyum, M. A., Qadeer, K., & Lee, M. (2017). Comprehensive review of the design optimization of natural gas liquefaction processes: current status and perspectives. Industrial & Engineering Chemistry Research, 57(17), 5819-5844. https://pubs.acs.org/doi/ abs/10.1021/acs.iecr.7b03630

9 Energy Voice. (2022, December

12). TotalEnergies’ Papua LNG to use electric liquefaction trains in net

light of this, a development forum is expected in the third quarter of this year.

Meanwhile, Kua also revealed a unique aspect of the upcoming project which will mitigate the project’s carbon footprint and is set to make PNG in  becoming the first country in the Asia Pacific region and only the second on the world to re-inject carbon dioxide back into the well pad in a LNG project.

He said the re-inspection of carbon dioxide into the well pad is a significant step towards reducing the project’s carbon footprint and will help mitigate the environmental impact of the project and contribute to Papua New Guinea’s efforts to combat climate change.

The Papua LNG project is a joint venture between the PNG government, TotalEnergies and Exxon Mobil. It is one of the largest investments in the country’s history and is expected to generate significant revenue for PNG’s economy.

Total Energies holds 40.1 percent interest in Papua LNG, along with its joint venture partners Exxon Mobil (37.1 percent) and Santos(22.8 percent). The Papua New Guinea government may exercise a back-in right of up to 22.5 percent interest at the Final Investment Decision (FDI) planned by end of 2023 to early 2024 and production will be scheduled for four years later.

zero push. Total Energies. https:// www.energyvoice.com/uncategorized/468886/totalenergies-papualng-to-use-electric-liquefactiontrains-in-net-zero-push/ 10 PwC.Oil & Gas. https://www.pwc. com/pg/en/industries/industries-oiland-gas.html

11 Voigt-Graf, Carmen and Odhuno, Francis Odongo, Assessing the Labour Market Impact of the PNG LNG Project and Implications for Future Projects (March 26, 2019). Development Policy Centre Discussion Paper No. 78, Available at SSRN: https://ssrn.com/ abstract=3360134 or http://dx.doi. org/10.2139/ssrn.3360134

Kumul Petroleum Holdings Progresses Fabrication Facility – Signs Operations Agreement and Design Engineering Contract

On the 10th of March,  Kumul Petroleum Holdings Limited and Fabtech International, a Dubai based Fabrication Facility Operator, signed a management and operations agreement for a Fabrication Facility to be established in Port Moresby, in preparation for the construction phase of the Papua LNG and subsequent LNG and mining projects.

Mr Sonk said, “This Facility is expected to have a capacity of 20,000 tonne per year, producing steel, mechanical, piping and electrical modular packages. It is expected to provide direct employment for 1000 skilled Papua New Guineans and indirect jobs for up to 3000 more people when it is operating at full capacity. The number of jobs could double if the facility is run 24hrs per day.”

In addition, on the same day Kumul Petroleum Holdings also signed a design and engineering contract with A2Z LLC, a Dubai

based engineering company with significant experience in the design and engineering of heavy fabrication facilities globally.

“Kumul Petroleum and it’s investors are expecting to work with the Papua LNG Project’s EPC contractors to start using the Facility when the project achieves FID and enters the construction phase later this year or early next year.”

Mr Sonk outlined that the Facility is designed to meet national content requirements for petroleum, energy, mining and major infrastructure construction in the country. He added that it was likely that work orders could also come from elsewhere in the the region, since in relative terms, PNG will have highly skilled labour force, cheap domestic gas-powered electricity, resulting in a competive cost per unit that will drive efficiency.

Mr Sonk noted,” Site works for the construction of the Facility have already begun, located close to

Santos Achieves Record

Sales Revenue in 2022

Santos Managing Director and Chief Executive Officer

Kevin Gallagher said Santos delivered record annual production and sales revenue in 2022, as strong base business performance positioned the company to benefit from higher commodity prices.

Free cash flow of around US$3.6 billion was also a record and reduced gearing to approximately 18.7 per cent at the end of the year. This strong free cash flow positions the company to provide higher returns to shareholders and in December, we announced a further US$350 million increase in the on-market share buyback to up to US$700 million.

the existing ExxonMobil managed LNG plant.”

“Kumul Petroleum will soon be advertising for recruitment of trainees for the Facility, through the KPHL job search and advertisement software portal (www. wanpng.com) and other agencies.

KPHL is encouraging interested job seekers to start applying and posting expressions of interest at this portal.”

Annual Production,

“Our increased LNG position in Papua New Guinea following the Oil Search merger has driven our record performance. The LNG business is expected to remain strong with energy security being a top priority for our trading partners in the region,” Mr Gallagher said.

“We remain committed to supplying the domestic market at reasonable prices. Average realised price for east coast domestic gas for the quarter was US$7.74/GJ, less than half the average realised price for LNG.

“Given the strong customer demand for our product now and into the future, we will seek to backfill and sustain our core assets to deliv -

er the critical fuels the world needs into the 2040s. But we will also seek to decarbonise these critical fuels, in-line with our emissions reduction targets, and produce clean fuels as customer demand evolves.”

KPHL managing director, Mr Wapu Sonk with Dr Harry Moraes, founder and chairman of Fabtech International

Kumul Petroleum to be Energy Solution Provider for SEZs in PNG

Kumul Petroleum Holdings Limited (KPHL) signed a Memorandum of Understanding (MOU) recently with the Ministry and the Department of International Trade and Investment to establish a long-term collaborative relationship where KPHL will be the energy solution provider to support the development and operation of all the Special Economic Zones (SEZs) in Papua New Guinea (PNG).

Minister for International Trade and Investment, Hon. Richard Maru during the signing said that securing reliable and affordable energy supply to the SEZs was a critical foundational input to the commencement and development of the SEZs.

“Our country is known by most of the investors as one of the most difficult and expensive places to do business and one of the primary reasons is because we have very unreliable power and the most expensive cost of energy. Even the cost of producing goods in PNG is ten times more when we are competing with other countries like Thailand, Vietnam, and Malaysia,” said Minister Maru.

“The vision of the Marape-Rosso Government is clear, we want to replace all food imports, we want to process everything that we currently produce into final products, and we want to grow our

exports, but we cannot do that without cheap, reliable, and clean energy.

“Without innovative solutions to our electricity to bring the cost down and make power more reliable, we will never succeed as a country to develop this nation because we are living in a global community where we need to compete with the rest of the world.

“It is our job as the Government to make sure that the country has cheap and reliable and clean energy. The time has come for us to stop pretending that everything is well, accept the responsibility and look at organizations like KPHL who have the mandate to provide energy so we can attract investors.

“We can dream about all the big projects, but they will only be dreams unless we find real solutions to electricity and all the other factors that attract investments and investor confidence in our country.

“There are other inputs too like the freight cost but for now electricity is one of the biggest hinderance to our economic growth and to our ability to process and to compete with the rest of the world,” added Minister Maru.

Minister Maru said the Ministry and the Department of International Trade and Investment had made a deliberate choice to partner KPHL as their part-

ner of choice to help them find energy solutions to power up all the economic zones into the future.

This is because “they have the financial muscle, they have technical competence, they have energy, they are the producer of energy, and they have a record where they constructed and operated a gas fired 58MW power generation facility in Port Moresby under a 50/50 ownership arrangement with an experienced international operator at zero loss of time and zero incidents.”

“KPHL has already started to be a player in the energy market, not only to produce the resource but to supply electricity. Our country needs innovative solutions providers and we have decided to partner KPHL because we have the agenda to announce the SEZ Masterplan by May this year,” said Minister Maru.

Minister Maru said the Ministry and the Department of International Trade and Investment was determined to partner KPHL to help them find solutions for Madang and East Sepik Province as a matter of priority.

“I am looking forward to working with the Board and Management of KPHL to start with these two provinces where we have the proposed PMIZ and the Sepik Plains SEZ,” said Minister Maru.

PM Marape Calls for Reforestation of Areas Being Logged in PNG

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

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

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

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

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

“You can grow 1,000 balsa trees on one hectare of land, with one cubic metre of balsa earning K400, which means a family can make up to K20,000 per year from one hectare. This K20,000 is more than the

pay of people working in towns and cities. There is money on the land.

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

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

PNGX Consults on New Corporate Governance Code for Listed Companies

PNGX, Papua New Guinea’s national stock exchange, has recently released a proposed new Corporate Governance Code for Listed Issuers for public consultation.

PNGX is proposing to introduce a new Corporate Governance Code for the guidance of Boards of listed issuers.

The proposed Code contains 17 Standards. Within each of the 17 Standards are several Recommendations.

Each PNGX listed company is required under the Listing Rules to have corporate governance policies which are appropriate having regard to the nature and scale of its operations.

Each company should address each Recommendation set out in the Standards. It is also required to include in its annual report a corporate governance statement or the URL of the page on its website where a corporate governance statement is located.

While the proposed Code has been developed by reference to global standards and practices adopted in other markets, it has been adapted to have regard to the characteristics of the PNG market and to be fit for purpose for the country.

The Standards and Recommendations are not prescriptive. Each company is at liberty to either adopt the Standards and Recommendations or not.

However, as they are standards of expectations established through a mechanism of industry and stakeholder consultation, it is expected that directors should disclose in the company’s annual report the extent to which the company has adhered to the Standards and Recommendations, and where there has been no or partial adoption, to give reasons. This “if not, why not” approach is common in markets globally.

While the scope of the Code is limited to listed companies, it is hoped that the governance standards become a benchmark for corporate governance by the private sector in PNG generally. They may also have relevance to governance of SOEs.

The draft Code has been developed based upon the existing PNGX corporate governance standards and with the assistance of the International Finance Corporation (IFC) and the UN Sustainable Stock Exchanges Initiative, which PNGX joined in April 2022.

IFC has provided an expert education program relating to the development of environmental, social and governance (ESG) rules to help create appropriate disclosure standards for PNGX and its companies. Expert training on board gender diversity was also provided.

This laid the foundations for a new corporate

governance code that, importantly, factors in gender and other elements specific to PNGX. The IFC input has been integral to aligning the proposed standards with international best practice for developing markets and the revised OECD Principles of Corporate Governance to be issued in 2023.

PNGX has solidified its commitment to transparency and sustainability by becoming a partner exchange of the Sustainable Stock Exchanges Initiative which brings together over 110 stock exchanges around the world that are committed to promoting sustainable devel opment. This supports PNGX to help develop the Papua New Guinea capital markets and support the sustainability of the PNG economy.

The Pacific Private Sector Development Initiative (PSDI) also contributed to the devel opment of the corporate governance standards. PSDI is an Asian Development Bank (ADB) technical assistance program in partnership with the Governments of Australia and New Zealand.

PNGX recognizes the number of sustain ability challenges that an emerging economy like Papua New Guinea face, which include ac cess to capital for SMEs, corporate governance and transparency, climate change, gender equality, gender-based violence, and environ mental sustainability. Addressing sustainability factors is of increasing importance to obtaining access to finance in today’s world and PNGX is committed to it.

The majority of the Recommendations are directed towards matters specific to internal governance and controls of listed companies consistent with international practices.

In addition, they include a number of recommendations relating to social challenges within Papua New Guinea including policies supporting equality of gender representation and remuneration, return to work practices and gender-based violence.

PNGX Chairman, Mr David Lawrence, said “Efforts to enhance the corporate gov ernance standards in PNG are one contribu tion PNGX can make, in partnership with

Blockchain Server Market in the Industry - The Hype has its Reasons

I MY NEOMETA

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The global blockchain server market size is expected to reach $1.6 billion by 2026, growing at a CAGR of 52.6% during the forecast period. The market growth can be attributed to the increasing adoption of blockchain technology in various industries, including finance, healthcare, and logistics.

One of the main advantages of blockchain technology is its decentralized nature. Transactions are recorded on a distributed ledger that is maintained by a network of computers, rather than being controlled by a single entity. This makes the system more secure, as there is no single point of failure or vulnerability. Additionally, the transparency of the blockchain allows for greater accountability and trust in transactions. It has already proven itself as a technical solution in the field of recording peer-to-peer payments with digital currencies.

The potential of blockchain for supply chain or logistics applications (land, sea and aviation) has been recognized by several industry giants for some time now. For example, they have developed

are currently developing servitisation strategies, blockchain offers promising advantages.

Servitisation means changing the existing portfolio of offers – away from pure material goods towards a combination of product and service. Most strategies are based on a large number of small and very small transactions in machine-tomachine communication. The blockchain logs this, verifies the authenticity of the data and makes it available for service offers. The blockchain area of application seems almost unlimited, especially with regard to Industry 4.0 or supply chain management. No wonder that “Neometa”, a company that is explicitly concerned with how blockchain technology can be used sensibly and profitably, is also involved in the blockchain server market.

Neometa starts its worldwide unique project, which offers everyone the opportunity to also participate in the blockchain server market. Pre-registration is currently taking place for everyone as there is no registration fee and no qualification or self-ordering required. It will allow all those inter-

nently from the fastgrowing economic segment of the blockchain industry. We see great potential for expansion here. Neometa is the partner for server solutions for all aspects of the blockchain world and will make a significant contribution to creating secure and ecological foundations on a new level.

Neometa is a technical service provider in the present and future, specializing in the latest blockchain projects with sustainability in mind. They act both very quickly and in an environmentally friendly and sustainable manner. For this reason, we firmly believe that the server slot packages will be lucrative for everyone and assume that the project will attract a lot of attention worldwide

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Over 100 Cruise Liners Expected to Bring in K137.10 Million

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

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

Uvovo outlined TPA’s strategic

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

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

Plan and Vision 2050.

“Our strategic priorities seek to amplify our role as defined in the TPA Act (1993) and the Tourism Sector Development Plan 20222026 as aligned with the national government’s economic development objectives as captured in the Medium-Term Development Plan and Vision 2050,” said Uvovo.

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

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PNG Tourism Promotion Authority Launches Corporate Plan, 2023-2026

The Tourism Promotion Authority proudly launched its four-year Corporate Plan 2023-2026, at The Stanley Hotel in Port Moresby, last week Friday 17th March, 2023.

Minister for Tourism, Arts and Culture, Hon. Isi Henry Leonard, was present at the momentous occasion to officially launch the newly developed Corporate Plan.

“The country’s tourism industry is a thriving sector that has so much potential and is integral to PNG’s development agenda.  Being the statutory body established by the Government to manage and promote the country’s tourism interest to the world, PNG TPA needs a clear directive to achieving its mandated tasks; and this policy document has been produced to direct its mission and purpose to achieving just that,” Minister Leonard said.

He added, “The previous Corporate Strategy expired in 2014, which means the agency has been operating over the last eight years without one in place”

“The re-emergence of a new Corpo-

rate Strategy demonstrates a renewed and stronger commitment by PNG TPA to make a positive difference in growing the tourism sector”

Hon. Isi Leonard further stated, “The PNGTPA Corporate Plan 2023-2026 sets a clear vision for the agency and articulates well what PNGTPA will do in the next four years, consistent with the Tourism Promotion Authority Act and the Tourism Sector Development Plan 2022-2026.”

Minister Leonard also recalled the devastating impact of the COVID-19 global pandemic on the travel industry worldwide, especially the resulting loss of trillions of US dollars in international tourism receipts.

He also pointed out PNG TPA’s shift in focus of its promotions towards domestic tourism, declaring that the Corporate Plan will be able to assist and guide the organisation in developing this overlooked area of destination marketing.

Chief Executive Officer of the PNG TPA, Mr. Eric Mossman Uvovo, opened

the event with an official welcome to the Tourism Minister; including the heads of PNG TPA’s sister agencies under the Ministry of Tourism Arts and Culture: the National Cultural Commission and the National Museum and Art Gallery; as well as other distinguished heads and representatives from PNG’s tourism industry, and its stakeholder partners from the private and public sector.

In his speech, CEO Uvovo emphasised how his organisation’s four-year Corporate Plan was developed to align itself with the Tourism Sector Development Plan 2022-2026, which was launched last year.

“The Corporate Plan is the operation plan of the bigger plan – the Tourism Sector Development Plan 2022-2026.   The Corporate Plan 2023-2026 is a small strategic plan that spins the wheels of the bigger plan – the TSDP 20222026,” explained Mr. Uvovo.

He stressed that his responsibility as CEO, and that of the senior management of the PNG TPA, was to successfully implement the corporate plan.

Group photo with the Tourism Minister and agency heads of the NCC and NMAG, including the board, management and staff of the PNG Tourism Promotion Authority. Credit: Roan Paul Photography

PNG Tourism Promotions Authority, Bougainville TPA Sign MOU

The Department of Commerce, Trade and Industry reached another milestone recently when it signed a Memorandum of Understanding (MoU) with the Papua New Guinea (PNG) Tourism and Promotions Authority (TPA).

The MOU paves the way forward for both parties to continue bilateral partnership based on the understanding of tourism and promotions in Bougainville.

The MOU was signed by the PNG TPA and the ABG Department of Commerce, Trade and Industry on the understanding relating to a partnership for the protection and preservation of tangible and intangible culture, development and promotion of tourism, contemporary culture and the arts and sustainable tourism in the autonomous region of Bougainville.

ABG Vice President and Minister for Commerce Trade and Industry, Hon. Patrick Nisira (MHR) acknowledged the PNGTPA for its tremendous support so far since the first MoU was signed in 2016.

The support has cemented many agreements already signed and has proven that Bougainville is truly a tourism destination that is worth investing time and money on.

Mr. Nisira acknowledged the PNG TPA officers for their continuous negotiation with the Bougainville

< Page 84

Mr Uvovo also mentioned in his speech that the PNG TPA’s priority for the year 2023 is dedicated to reviewing the current National Tourism Policy 1995, and formulating a new National Tourism Policy Framework that will guide PNG’s tourism growth into the future.

The new PNG TPA Corporate Plan has seven strategic priorities, these are:

• Expanding Global, Regional and Domestic Reach

• Accelerating Tourism Investment through SMART Policies and Plans;

• Raising the Levels of Tourism Service Education and Management;

• Maximizing Value from Tourism

partners in pushing for significant income generating programmes to proceed in the region.

“Standing here today it gives me great pleasure to witness and participate in this significant event that will go down in history books of this nation to be. We are here today to mark this important event on the signing of the MOU between my ministry and the department of national government and PNG Tourism Promotions Authority (PNG TPA).”

This agreement adds value to our collective vision, ideas and consultations that the local tourism and cultural practitioners in both government and private sectors, he said.

“As a way forward the agreement presents a realistic and workable approach to tourism development and its sustainability in the region.”

“The MOU also sets out a framework for future development for tourism emphasizing on effective and determined and holistic approaches.”

He said that the agreement generally outlines the pros and cons of tourism development in Bougainville and the framework and strategy of reaching the targeted goals

and vision earmarked to reaching the overarching goals of economic building and development.

Deputy Chief Secretary for Operations Anthony Koiri approved and signed the MOU on behalf of the Bougainville Public Service Chief Secretary who is on sick leave at the moment.

The signing was witnessed by the staff of the PNG Tourism Promotions Authority (PNGTPA), Department of Commerce, Trade and Industry, senior officers and a small crowd at the Bel Isi park.

Research and Monitoring;

• Strengthening Tourism Product Development for Sustainable Tourism;

• Maintaining Excellence in Corporate Governance and Performance; and

• Providing Effective Services through Human Resource, ICT and Financial Management.

These seven priorities are also derived from the Tourism Sector Development Plan 2022-2026.

The Corporate Plan 2023-2026 is available for download online via the PNG TPA’s corporate website: www.papuanewguinea. travel/corporate-site

LNG Camp Specialist Designs 2,500-Person Camp Complex

Modular building specialist Ark Pacific (‘Ark’) has delivered 1,800 camp rooms and a multitude of building types for PNG’s resource sector.

Most recently, Ark has finalised the design of a 2,500-person camp complex for the imminent Papua LNG project. The company also has two other LNG camp complexes (i.e., another 1,000 rooms) in the design pipeline.

Ark’s building systems are engineered for ease of assembly as well as transportation, making them ideal for remote development sites.

Ark’s modular building systems were first introduced to PNG in 2010 during the PNG LNG construction phase, with the design, supply, and installation of both the pioneer and main camps for construction of Komo Airfield.

A 1,000-person, multi-storey accommodation complex and support buildings were delivered utilising a 99-percent local workforce in less than one year.

Numerous and diverse Ark buildings have since been delivered throughout PNG. Many of these buildings are on the gold mining island of Lihir, where Ark has successfully delivered projects (including 800 camp rooms) for the last six years.

Currently scheduled projects on Lihir will see Ark delivering another

15 buildings, as well as a further 800 camp rooms over the next three years at least.

Ark’s 2,500-person camp complex design for the Papua LNG development is based on its flatpack building system. The system can be likened to “Lego” in that its individual modules literally “click together” (both horizontally and vertically), providing clients with virtually endless building configurations.

The Lego-like nature of Ark’s flatpack system has the following advantages:

• Rapid assembly: Ten camp rooms can be assembled in just one day by four workers.

• Unskilled workforces: Local unskilled workers from footprint communities can easily assemble Ark buildings – maximising the client’s local content and benefiting local economies.

• Repurposability: Buildings can be disassembled once they are no longer needed and transported elsewhere to be used for diverse purposes, such as for schools or medical clinics.

A significant feature of Ark’s product is its extremely low freight footprint (up to 70 percent less than competitors). Ark’s flat-packed rooms are designed to be transported to remote development sites quickly

and cost-effectively, with minimal environmental impact.

Unlike competing products, six of Ark’s flat pack units are equivalent to a single standard 20-foot shipping container when stacked together ready for transport – this means less ships, trucks, and barges, etc., when building with Ark.

Not only are freight costs drastically reduced when building with Ark’s building systems, so too are carbon emissions. Furthermore, degradation of local road networks is reduced, and in the case of the Purari delta and river system which will be used for the Papua LNG project, local shoreline communities will be subjected to less water traffic and hence less vessel wake erosion.

The sustainability of Ark’s buildings extends beyond their low freight footprint, repurposability, and utilisation of local workforces. Ark has invested in solar technologies and is now providing its resource clients with high-quality and fit-for-purpose solar systems, further assisting them to both drastically reduce their emissions and minimise their energy costs.

To learn more about Ark Pacific, including its LNG camp expertise and the advantages of its unique building systems: www.arkpacific. net

Due to its ‘Lego-like’ ease-of-assembly, Ark estimates that the 2,500-person camp it has designed for the Papua LNG project can be assembled in less than one year like the Komo Airfield camp (pictured) it delivered for the PNG LNG project.

CCW Cabinet Works: High-Quality Commercial Cabinetry Solutions

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- Industry experience and high reputation

- Competitive pricing

- Ability to meet tight deadlines

Contact us today to discuss your commercial cabinetry needs. We look forward to working with you. Enquiries at: info@ccwcabinetworks.com.

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The Majestic Crown Hotel Experience

By: MIRIAM MANDIBI

Situated at a hilltop haven at the centre of Port Moresby overlooking the Seaview of Ela Beach is the remodelled, prestigious, and modern five-star Crown Hotel welcoming international guests, business professionals, or those on a holiday getaway experience.

The Hotel was established in 1978 and is renowned for housing public figures and celebrities around the world in world-class standard accommodations, with its historical aspect in Papua New Guinea’s road to development, which puts Crown Hotel on its reputable status.

General Manager for Crown Hotel Mr. Shankar Ghoshal said the Hotel prides itself in providing the best hospitality services for its

en the current renovation done to all the sections of the Hotel, giving it a new, improved look,” said Mr. Ghoshal.

“So far, Crown Hotel has been awarded three prestigious awards (last year), including International Travel Award-Best Boutique Hotel 2022, World Luxury Hotel Award - Luxury Business Hotel 2022, and Luxe Global Awards-Best Luxury Hotel & Conference Center 2022.

The Hotel property itself offers an outdoor pool, a day spa, two restaurants, and a cocktail bar. Crown Hotel is a 5-minute walk from Ela Airport and the National Museum

p r o j e c t , w h i c h o f f e r s e v e r y o n e t h e o p p o r t u n i t y t o a l s o p a r t i c i p a t e i n t h e b l o c k c h a i n s e r v e r m a r k e t I t w i l l a l l o w a l l t h o s e i n t e r e s t e d t o b e a b l e t o p o s i t i o n t h e m s e l v e s i n t h e h i g h l y l u c r a t i v e s e r v e r m a r k e t v i a N e o m e t a T h i s f o r m s t h e b a s i s f o r t h e e x t r e m e l y i n t e r e s t i n g s e r v e r a n d b l o c k c h a i n m a r k e t . N e o m e t a i s t h e p a r t n e r f o r s e r v e r s o l u t i o n s f o r a l l a s p e c t s o f t h e b l o c k c h a i n w o r l d a n d w i l l m a k e a s i g n i f i c a n t c o n t r i b u t i o n t o c r e a t i n g s e c u r e a n d e c o l o g i c a l f o u n d a t i o n s o n a n e w l e v e l .

N e o m e t a i s a t e c h n i c a l s e r v i c e p r o v i d e r i n t h e p r e s e n t a n d f u t u r e , s p e c i a l i z i n g i n t h e l a t e s t b l o c k c h a i n p r o j e c t s w i t h s u s t a i n a b i l i t y i n m i n d . T h e y a c t b o t h v e r y q u i c k l y a n d i n a n e n v i r o n m e n t a l l y f r i e n d l y a n d s u s t a i n a b l e m a n n e r . F o r t h i s r e a s o n , w e f i r m l y b e l i e v e t h a t o u r s e r v e r s l o t p a c k a g e s w i l l b e l u c r a t i v e f o r e v e r y o n e a n d a s s u m e t h a t o u r p r o j e c t w i l l a t t r a c t a l o t o f a t t e n t i o n w o r l d w i d e .

covered on-site parking, and a tour desk. One can relax on the sun loungers alongside the pool or unwind with a massage or facial at the Jane Spa.

The air-conditioned accommodation options include private rooms and suites. All offer a satellite TV, a refrigerator, and tea/ coffee-making facilities. Each has a private bathroom with a shower or bathtub, a hairdryer, and bathrobes.

Rapala Restaurant and Cafe Restaurant offers a grill menu, an international buffet, and a selection of fine wines, while the Pondo Tavern offers international cuisine and boasts a patio deck offering sea views. If guests would like to

indulge themselves, the Heritage Bar promises to provide homemade freshly brewed beer to quench the taste buds of beer lovers.

Guests can relax on the sun loungers alongside the pool or

unwind with a massage or facial at the Jane Spa.

So far, guests who were housed at the hotel have given an excellent rating on their stay with Crown Hotel.

ENZO’s Pizza Opens 2 New Outlets in Port Moresby

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

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

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

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

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

The proven, trusted industry leader for unrivalled performance and innovation – always. When it comes to specifying your next pump or pump upgrade, it’s not a question of whether you can afford Warman®, it’s whether you can afford not to. alwayswarman.weir

Grand Papua Hotel: The Latest and Grandest

The Grand Papua Hotel certainly lives up to its name as the latest and grandest of the three Papua hotels that have stood in this location in the centre of downtown Port Moresby since the early 1900s.

The Grand Papua Hotel has always been at the cutting edge of innovation – at various times being the first to have stabling for guest’s horses, electricity, hot water, motor vehicles and air conditioning. To differentiate it from the only other establishment in town at the time it was known as the “top pub.”

General Douglas McArthur was one of the first “guests” of the second Grand Papua Hotel during World War Two, when it was commandeered as his headquarters, before it was officially opened in September 1947, with 44 bespoke rooms and a dining room seating 120.

The Grand Papua Hotel was the height of tropical pampering and was always renowned as being one of the best places in town to eat. In fact, the late Queen Elizabeth II dined here during one of her royal visits in the 1950s.

Today’s Grand Papua Hotel is no different – it is a modern, upscale boutique hotel hosting luxurious short and long-stay apartments, as well as more than 100 above-premium hotel rooms, clustered around the fine dining Grand Brasserie restaurant, rooftop Under the Shade, executive lounge, swimming pool, the Grand Spa, conference facilities, and the atmospheric and exclusive Grand Bar.

The Grand Papua Hotel has all the expected communication and entertainment facilities and is a member of the Radisson Individuals. If you just like to enjoy a coffee and a pastry then Grand Café, with its direct access to Douglas Street, is perfect.

Admired by the Coral Sea, the Grand Papua Hotel sits on a ridge that on one side has views over Ela Beach and Walter Bay, and on the other enjoys a vista of the previous wharf area, Fairfax Harbour and nearby downtown offices of many banks and business houses, all within easy and safe walking distance.

If you want a central location for a

business meeting or conference, with secure underground parking close to everything in town, top-class catering and a bar for quiet drinks and confidential networking afterwards, then the Grand Papua Hotel is an ideal choice.

Although built in 2011, the Grand Papua Hotel will from February 2023 undergo a makeover inside and out, involving a major rejuvenation of its restaurant, bara, lobby, guestrooms, and facilities, such as the top floor executive club lounge, positioned to have magnificent sweeping views over Ela Beach and Fairfax Harbour.

For the frequent traveller, the Grand Papua has 51 serviced,

balconied apartments and residences suitable for those who may wish to stay in Port Moresby for longer periods and still want access to all the comforts and facilities that the hotel has to offer.

For those with a yen for a bit more luxury, on the 16th floor there are four Grand Junior and four Grand suites.

The Grand Papua is, at many levels, still the “top pub” – Papua New Guinea’s upscale boutique hotel, ideal for first-class accommodation, small and large business meetings, and conferencing. Celebrate individuality with the grandeur of Papua New Guinean hospitality!

Grand Papua Hotel in Port Moresby –Member of Radisson Individuals

Modular Construction Meets Changing Needs

By: PAUL OEKA

Papua New Guinea’s resource-rich areas are located at some of the most rugged, mountainous, and treacherous terrains, and the designing, building, and maintaining of project site facilities in these resource areas require constant upkeep.

The process of creating fabricated units that can be quickly assembled has shifted as developers become more innovative in building structures faster and getting better quality control while reducing waste and carbon footprint.

Since the inclusion and start of the PNG LNG project in 2012, a number of prefabricated and modular building providers have emerged, notably PNGCR (formerly known as RED SEA Housing Company), Ark Pacific, PNG Forest Products, and Oilmin Ltd.

These companies are pioneers in this industry and have been servicing the mining and oil & gas sector by providing infrastructure to campsites all over Papua New Guinea. Their core services are designing and building campsites in which all supplied modular buildings are installed locally.

According to PNGCR, the intensity and rate of modular building providers have provided logistics and operation to PNG’s petroleum sector by adapting to their changing nature of activities day to day in most campsites, from managing routine maintenance projects to emergency situations.

Over the years, these pioneers’ achievements have seen them bring in more manufacturing on campsites while

combining it to benefit the landowners of project-impacted areas as well.

Apart from servicing tier-one clients of the oil & gas sector, partnerships have seen the companies provide and supply infrastructure for law and order, health, and other public sectors on various refurbishment and building projects throughout the country alongside other government entities.

Transitioning and adapting have been a big part of modular building providers. During the peak of the Covid-19 pandemic, their flexibility to adapt their services saw most of these companies change their product lines to adapt to the business demand by moving their core services of supplying camps in the oil & gas sector to providing structures across different economic sectors.

PNGCR

For instance, PNGCR provided all the support and infrastructure to the Australian Government and St. Johns to send mobile and testing clinics throughout the country, especially to remote areas.

The company has a strong partnership with St. Johns as well, in which they provide medical services for landowners of resource areas that live close to project-impacted areas.

PNGCR’s Managing Director, Mr. Allen Tyson, who has been in PNG most of his life, said projects must support local businesses and focus more on driving local and national content, because most local companies who have been here

since the LNG project started have been investing in the community and are still in business after PNG LNG.

Most have been through the difficult period of Covid, and it would be disappointing if upcoming projects do not provide opportunities to such local companies, he added.

“It’s really going to come back to the project owners. There’s a lot of really good companies here in PNG who are able to service these projects that have stuck it out through the good times and the bad and have done it tough through the Covid period, and it would be great for these companies to rebound for the benefit of Papua New Guineans,” Mr. Tyson said.

“Most companies that come in for resource projects disappear when the projects are over, and this does not create long-term employment for Papua New Guineans,” he added.

For the past 12 years, PNGCR transitioning from RED SEA has consistently

From top photo: Some of PNGCR’s significant Projects over the years

Local workforce installing Ark Pacific building units for a replacement camp at one of PNG’s biggest mines. The camp encompasses 800 rooms in 16 two-story accommodation blocks.

PNG Premium Fish Producers and Expor ters

Our Vision: Supplying the World with Premium Fish Products

Our Mission: We commercially produce, market and distribute PNG Premium Fish consumption.

Launching of Zavath Seafood Limited in Singapore

employed between 250 and 300 people and has been one of the country’s leaders in manufacturing and supplying modular buildings.

ARK PACIFIC

With LNG projects about to take off in 2023, Ark Pacific’s Flat Pack modular building range has become sought after by the oil & gas sector given the remoteness of project locations, some of which are only accessible by river.

Ark Pacific’s low freight footprint -up to 75 percent less than other prefabricated alternatives – is a key factor in the popularity of its building systems.

Ark Pacific’s General Manager, Cassius Ruka, also a longtime resident of the country, in a commentary last year said: “Due to its simple flatpack design, this means that unskilled workers in remote footprint communities can be used to assemble Ark buildings, which is, of course, beneficial to these workers and their families, and therefore to resource clients wanting to achieve their local content objectives.”

This also meant that construction sites installing Ark buildings during the peak Covid-19 period were relatively

unaffected by travel restrictions, as majority of staff are local and not FIFO (fly in fly out).

Modification and the repurposeability of buildings are highly valued features of Ark’s building systems.

“Particularly significant when building in PNG,” says Ruka, “is the fact that our buildings can easily be reconfigured and relocated to benefit footprint communities as schools, clinics, or libraries once clients no longer require them.”

PNG FOREST PRODUCTS

PNG Forest Products, a major player in developing this sector since 1954, have also been a dominant force throughout the years in providing transportable units with simple solutions for mining, gas and petroleum camp relocation. Its innovative products and services include their modern Duplex with an ensuite. This product has been found to be reliable and comfortable by its clients.

Recently, K92 Mining Ltd., who have been acquiring the services of PNGFPs, pointed out the significance of its modular units and how it has helped them minimize costs, time management and construction difficulties in a mining camp.

K92 Mining’s Project Maintenance Superintendent, Reis Colley, highlighted: “As operations at K92 mine grew different accommodation options were considered until PNGFP proposed their transportable 2-bedroom individual ensuite unit with a verandah. We agreed and initially purchased 18 of these units and installed this established infrastructure, which allowed us to minimize disruption to existing camp rooms.”

“As the modular unit is built in PNGFP’s factory offsite, once delivered it only had to be lifted onto the footings and connected to plumbing and electrical services,” Colley explained.

PNGFPs Duplex installed at K9 Mine.

OILMIN FIELD SERVICES

Oilmin’s Construction Division are providers and distributors of the Ezy House Units, which are multi-functional modular building systems, manufactured to the highest international and applicable local standards. The Ezy House construction system uses prefabricated components to build camps and other structures.

The units are designed for a variety of applications, with the product found in various industries including government, construction, private and exploration sectors. Currently, their partnership with Ezy House is in line with their commitment to provide innovative and cost-effective building solutions for their clients.

Ezy House is a versatile solution for a wide range of scenarios. Some of the advantages of using Ezy House include faster construction time, affordability, assured highest quality, and increased flexibility. This means Ezy house components can be customized to meet specific requirements, and can be adapted to different building designs.

The Ezy House concept can be used in housing developments, remote locations, temporary structures, mining camps, and disaster relief. Oilmin’s partnership with Ezy House is a testament to their commitment in providing innovative and cost-effective solutions for their clients.

WHAT TO EXPECT

Consistent with their strategies, these companies’ next stage of growth will be targeted towards adapting to any unexpected changes and focusing on local and national content, while supporting infrastructure for new and upcoming resource projects in the country.

The resource sector in PNG has seen great change over the past year. The rise and establishment of new resource projects seem to be the biggest forecast for future projection.

While service providers for this important sector may not have a certain projection of what the future will look like, there’s no other industry that can adapt to these sudden changes better than the modular construction industry, as these companies have proven.

Transportables for the Resource Sector

PNG Forest Products has produced an innovative range of transportable, modular solutions for mining, gas and petroleum camps that provide instant accommodation without the need for on-site construction. Each unit in the range is affixed to a steel chassis skid frame with lifting eyes for easy craning onto trucks for transport to site.

Projects Maintenance Superintendent at K92 Mine Site, Reis Colley, explains why these modular units are a real game changer for mining camps.

“As K92 Mine is growing and expanding we were considering different accommodation options when PNGFP proposed a transportable 2-bedroom individual ensuite unit with a verandah. I presented this to the Management team as a quicker option than the traditional timber long houses we have been installing.”

“We initially purchased 18 of these units and installed them near existing accommodation units, which allowed us to use established infrastructure and minimise disruption to current camp rooms. When the first units were

installed and inspected it was agreed to continue with the purchase and installation of these units as they provided 2 ensuite rooms with a verandah on a footprint about the same size as a 20ft Container.”

“As the modular unit is built in the PNGFP factory offsite, once delivered it only had to be lifted onto the footings and connected to the plumbing and electrical services, so we could have rooms available quickly. This also allowed for us to hand over completed sections and continue with more footing and infrastructure installation for the next deliveries.”

The Transportable Duplex with Ensuite provides comfortable accommodation for two with each unit containing a bathroom, hot water heater, air conditioning and all internal plumbing and electrical fixtures & fittings. Including verandahs, this duplex is priced from K69,000.

There is also a Transportable 4-Man Duplex without ensuite, which accommodates two persons per unit and is priced from only K62,425. Supplementing these are Transportable Ablution

Blocks which come in a number of configurations including: Male/Female with three toilets each side; a six-toilet unit; a six-shower unit; or a three-toilet/ three-shower unit, all with four handwash basins.

Priced from K64,600, these ablution blocks are also ideal for rural schools, health clinics and aid posts around the country, and come with the option of a septic tank kit. For situations where space is an issue, PNGFP have designed a 3-Storey stackable duplex with ensuites, priced from K295,000. All prices quoted are ex-Lae and ex-GST.

As with all PNGFP Engineered Wood Products, the timber and plywood components are produced from durable, lightweight, pressure treated PNG plantation pine, manufactured to Australian and NZ standards.

PNGFP’s unique preservative pressure treatment method ensures full protection from rotting and termites, so you know these units are built to last. For more information contact the NiuBuild team on 478 8111 or 478 8100 or email buildingsales@pngfp.com.

Stackable transportable duplexes. Transportable duplex with ensuites. Duplex unit with ensuite.

St John Ambulance First Aid Training for Workplace

The St John ambulance service responded to over 21,000 emergencies across Papua New Guinea in 2022. In addition to being Papua New Guinea’s main emergency ambulance service, St John is the nation’s leading first aid training provider equipping thousands of workers with essential first aid skills and knowledge.

With just one day of training, St John’s expert first aid trainers can equip your workers with the basic skills to handle all kinds of first aid emergencies.

Workplace accidents and injuries are a common occurrence and it is essential for employers to have a competent workforce that can respond effectively to emergencies.

St John’s workplace first aid courses ensure your workforce is equipped with the first aid training to assist a sick or injured person.

It also helps organizations comply with legal requirements, reduce workplace injuries and fatalities and promote a culture of safety and preparedness.

The Papua New Guinea St John Ambulance provides training routinely in Port Moresby and Lae, and can facilitate training at any location in PNG, which makes it easy for workers to gain or maintain their first aid qualifications.

St John’s first aid trainers come from a variety of backgrounds, enabling them to contribute real-life experiences to the training environment.

Each course, based on St John Ambulance Australia’s training resources, goesthrough rigorous appraisal by training and health specialists including St John’s Papua New Guinea’s medical expert advisory panel - made up of some of the industry’s leading physicians and health professionals,

who ultimately endorse the clinical training content components of the first aid courses. St John CEO Matt Cannon said, “this rigorous appraisal process gives clients the confidence of St John’s commitment to delivering the highest quality in training content and delivery in Papua New Guinea.”

Workplace first aid courses cover a broad range of topics, including basic life support, wound care, bandaging, splinting, CPR and using an AED.

Participants learn how to identify and manage different medical emergencies such as heart attacks, strokes, burns, fractures, and poisoning.

Each training program is designed to be flexible and can be delivered onsite or at one of our training centres.

If you want to ensure that your workplace is prepared to respond to emergencies, contact St John today to learn more about our workplace first aid training.

WanPNG: The Skills Development and Jobs Platform for the People of Papua New Guinea

Wan PNG is a platform and community ded icated to expanding opportunities for local Papua New Guineans. Its goal is to increase the development and sustainable employment of local PNG talent, so everyone in our great nation can share in newfound resources and growing prosperity.

With the goal of empowering individuals and businesses with the skills and people they need to succeed in the 21st century world, the Wan PNG platform spans three core areas for job seekers:

Employment opportunities: Gain experience with intern ships, start earning with entry positions, or upgrade your career with the next big job.

Career advice: Advance your career with expert advice and professional resources, and stay up-to-date on the latest news.

Education and training: Expand your employment pros pects by upgrading your knowledge, skills, and competencies through courses.

For employers it provides:

Free access to upload jobs and find the best talent.

Smart matching between jobs and candidates.

Diversity promoting candidate suggestions reaching a wide pool of talent.

The platform’s primary objective is to promote lifelong learning and employment and simultaneously bridge the skills gap in Papua New Guinea by providing accessible training opportunities to all its citizens. WanPNG believes that by investing in the development of its people, Papua New Guinea can unlock its full potential and become a more prosperous nation.

WanPNG is now available for job seekers and employers. Visit the website now at www.wanpng.com to learn more.

Boost Your Sales by 300%

Quoted by Shari Levitin: Keynote speaker for the Levitin Group, and author of Heart and Sell.

"Boost Your Sales by 300% more by using VIDEO. In fact, research shows that video increases your open rate by up to three times"

Elevate your marketing with a captivating video in two prime locations: your online advert and the PNG Business Newsletter Reach over 12,523 subscribers weekly and showcase your brand for maximum impact.

Don't have a video yet? No problem. Simply send us your words, photos, and company logo, and our team will create a stunning slideshow video for you FOC (conditions apply).

ADVERTISING PACKAGE

Print and digital magazine

PNG Business News offers both print and digital advertising The online digital magazine is interactive and read by thousands Your company advert will be hyperlinked to your website, as well as the option to embed a corporate company video

Weekly interactive newsletter Website

PNG Business News currently has 12,523 weekly newsletter subscribers Each newsletter is interactive and all of our advertising partners have their company logo shown with a hyperlink to their website

Our website had over 190,000+ views in 2022! All advertising partners have their company logo on our website, which is hyperlinked to their website

Social media exposure

PNG Business News offers social media exposure to our advertisers PNG Business News had a total of 1,149,543 social media impressions in 2022! As of March 2023, Our LinkedIn has 18,011 followers and Facebook page has 8,700 + followers Our social media accounts are updated daily with the latest business news in PNG

Weir Minerals Releases 6th Edition of Warman® Slurry Pumping Handbook, the Definitive Resource for Slurry Pumps

Weir Minerals, manufacturer of the industry-leading Warman® slurry pump, has released the latest edition of their coveted Warman® Slurry Pumping Handbook. The 6th edition, compiled by the most trusted name in slurry pumps, features detailed engineering data required for most slurry pumping applications.

Drawing on decades of Weir Minerals’ inhouse expertise in innovative engineering and slurry pumping technology, the new handbook has updated reference material based on new learnings, improved understanding and technological developments within the mining industry.

With customers always in mind, the handbook aims to empower engineers to achieve optimal performance from their Warman® slurry pumps. An increased global focus on the environment, energy consumption and water conservation will influence slurry pump design and considerations – making this latest handbook an essential tool for all current and future pump engineers.

“Pumping slurry has many challenges and I’m excited to publish

our latest handbook, packed with fundamental theory, application advice, standard practices and latest Warman learnings from the field; all aimed to help our customers, present and future, deliver with excellence,” says Marcus Lane, Director, Slurry Pumping Technology Group

Weir Minerals are continually striving to shape the next generation of smart, efficient and sustainable solutions with cutting-edge science and innovation. The comprehensive handbook includes over 140 pages of detailed information, including performance charts, impeller design, part configuration, assembly and slurry considerations – fully supported by accurate technical renders and specifications.

“The high quality of the reference material in this essential resource reflects the leading status of the Warman slurry pumps. As the industry leader, we have a responsibility to develop our future engineers; we will make the latest version of the Warman Slurry Pumping Handbook available not only to our customers, but also to the leading schools world-

wide, so they can learn from the best in the industry,” says John McNulty, Vice President Global Engineering & Technology.

As part of Weir Minerals’ commitment to investing in STEM education and developing the next generation of engineers, copies of this essential resource will be gifted to the leading mining and engineering educational facilities around the world, including the winner of the 2022 Warman Design & Build competition, Deakin University in Australia.

Learn more about Warman® slurry pumps at: https://www.global.weir/ brands/warman/

The most trusted source of information on slurry pumping for engineers of today and tomorrow..

The Warman Slurry Pumping Handbook is the definitive guide for most slurry pumping applications.

PNG Industrial Mining & Resources Exhibition and Conference Event Returns for Seventh Consecutive Year

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

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

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

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

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

“It’s rewarding to be regarded as a longstanding

resource for these businesses as we continue to create further awareness about the possibilities available when each country has the ability to work together.”

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

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

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

ENTRY IS FREE!

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

WHEN: 21 and 22 June, 2023

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

You can learn more about the PNG Industrial and Mining Resources Exhibition and Conference or book your stand at www. pngexpo.com.

The 2023 PNG Industrial & Mining Resources Exhibition 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. In 2023, exhibitors will have the opportunity to attend a free Seminar, and give a short presentation on the Conference Stage on the exhibition floor over the two days.

An Industry Networking Event will also run in support of the trade show. A Gala Dinner will be held on Wednesday evening and includes the presentation of Best Exhibit Stand Awards and entertainment.

All those companies wanting to be part of the exciting growth of Papua New Guinea