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MINING 12 18 20 24
CONTENTS
BOUGAINVILLE WON’T LIFT MORATORIUM GEOPACIFIC GAINS $100M FOR WOODLARK ARSENIC SEQUESTRATION IN GOLD MINE WASTES CARBON REDUCTION IN GLOBAL MINING
OIL AND GAS 30 58 60
KUMUL PETROLEUM DONATES CICU EQUIPMENT GOV’T INTENDS TO MOVE ON WITH P’NYANG PROJECT PNG LNG SETS RECORD PRODUCTION, SAFETY MARKS
COMPANIES 32 36
PACTOW PLANTS MANGROVES FOR WORLD ENVIRONMENT DAY ARK PACIFIC EXPLORING AFRICA, INDONESIA
MINING
MARAPE: CHANGE COMING TO RESOURCES REGIMES / page 10
MINING
FREEPORT-YANDERA PURCHASE INSIGHT / page 16
www.pngbusinessnews.com • Issue 2 2021
7
COMPANIES 38 42 44
A SEA CHANGE FOR PNG PROJECT SUPPORT SECTOR KINA BANK APPOINTS CHIEF OF STAFF ADRESSING SEXUAL HARASSMENT WITH POLICY
CONTENTS
FINANCE 46 56
DON’T FALLY PREY TO A PHISHING SCAM ADB ENDORSES 5-YEAR PACIFIC ISLAND STRATEGY
AGRICULTURE 50 62
COCOA SECTOR ENHANCES INTERNATIONAL STANDING COST OF PNG AGRICULTURE ‘FAR TOO EXPENSIVE’
COMMUNITY
BOUGAINVILLE SEEKS INDEPENDENCE FROM PNG BY 2027 / page 66
ENERGY
OIL AND GAS
/ page 26
/ page 19
MRA STUDY ON GEOTHERMAL
GOV’T, TWINZA OIL COME TO TERMS ON PASCA PROJECT
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9
MINING
Marape: Change coming to resources regimes, vows industry would be consulted
P
rime Minister James Marape has confirmed changes are coming to the country’s regulatory and fiscal regimes for the mining and petroleum industries, but also assured businessmen that Papua New Guinea would honor all its commitments under the law and the industry would be consulted closely for any changes. Speaking in a webinar organized by the PNG Chamber of Mines and Petroleum, Marape underscored that the mining and petroleum sector “remains our number one economic sector in our country and that is acknowledged and that will remain so.” “The government acknowledges the important contribution the mining and petroleum sector provides to the country and to the economy. Without this sector, our country would be far behind in terms of our economic performance and in terms of service delivery by the government to our people,” he said. Following recent disruptive moves to increase local participation in the Porgera gold mine and government-induced delays to gas projects, he also moved to reassure the industry that his government was still in favour of foreign investment in the sector. Under the theme ‘Resource Industry – Making It Work for PNG’ the PNG CMP webinars have consistently tried to establish a shared credible public platform to meaningfully discuss the sustainability of the country’s resources sector. Marape agreed with this and said: “My advocacy has sometimes been misconstrued. We’re not in the business of scaring our foreign investors. We’re in the business of working with them to maximise
revenues for our country: from tax, rents, rates, or from the many businesses that stem from our projects.” Any current mining projects would be protected from future changes to the country’s mining laws, the PM said to reassure miners. “Any current mining development contract will run its full course because they were executed under the current [legislative] regime,” Marape said. ‘We are a robust country, a democratic country and a country that respects the rule of law. We will honour agreements we have signed with our investors and give ample signal to our investors of any changes.” The premier noted that 2025, or the 50th year of PNG’s independence, would be the crucial year when these changes would take place. The government has been examining the possibility of introduc-
ing production sharing agreements (PSAs) into its new resources laws, which the industry is generally opposed to. Under a PSA, the State maintains ownership of its mineral resources but engages a developer to run a resources project in return for a share of production. It would represent a major shift from PNG’s current regime, where a developer controls the resources in return for paying various taxes and rents and granting the State a mandatory minority share in any project. Speaking on behalf of the PNG Chamber of Mines and Petroleum, John Chambers, Santos General Manager in PNG, warned that PSA-style regimes had been detrimental to other countries such as Bangladesh, Indonesia, and Brazil. He also warned that any changes to PNG’s current regimes for mining and petroleum would “impact near-term investment un-
To Page 12 >
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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.
10 www.pngbusinessnews.com • Issue 2 2021
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MINING
Osioco: Bougainville won’t lift mining moratorium until ‘house is in order’
H
on. Rodney Osioco, the Autonomous Bougainville Government Minister for Mineral and Energy Resources, has announced that the ABG will no longer partially lift the existing mining reservation or moratorium in selected areas of Bougainville for mineral exploration endeavors in new or “greenfield” sites until certain issues are resolved. This is in line with a fundamental aim of Bougainville’s mining strategy, which calls for a staged approach to mineral development that prioritizes long-term ecological, economic, and social sustainability above short-term profit. Osioco adds that controlling the rate of development in the mining industry is important to maintain the beneficial evolution of our social structures and cultural values, as well as the preservation of a resource base for future generations, according to the Bougainville Mining Policy. The government is cautious in its approach to mineral development, given Bougainville’s terrible mining past and recent deadly occurrences at two current exploring locations. “Let us not forget the Bougainville Conflict too soon; we saw unrest which stemmed from unattended mine-related socio-economic and environmental grievances which eventually converged with political factors and escalated into the Bou-
gainville Crisis,” Osioco said. “Already I am seeing a concerning trend, I will not see a repetition of unattended escalated landowner mining-related grievances under my watch,” he said. The government is also concerned about the lack of regulatory human resource capability in the industry. Osioco believes that mineral sector expansion should be broken down into practical, distinct, and controllable phases, allowing for the gradual development of regulatory competence. Before allowing new greenfield project development, the ABG wants to retain its support for existing exploratory projects and allow for regulatory capacity growth. “Let us fix existing problems, develop existing projects, put our house in order before we start creating more issues,” Osioco said. After five years of experience, the government has recognized the necessity for modifications to current sector law. This involves the implementation of robust grievance processes that will allow the ABG to respond to and address problems presented by local communities. “There is a need to review procedures for granting of mineral exploration licenses and other mineral licenses, particularly given that Bougainville has complex interests of land ownership, land use and land tenure in general” Osioco said.
“We are also looking at scrapping the first-come-first-served colonial mineral rights award principle where we are forced to settle for whatever investor or company first applies for an exploration licence or first comes to Bougainville and deals with landowners and public servants and leaders. First-comefirst-served awarding of mineral rights encourages corruption,” Osioco said. Giving State Entities first preference in tenement applications and, if required, using transparent processes in which investors would be asked to bid for the right to operate in Bougainville under clearly defined terms and conditions are two options. The alternative of a transparent public auctioning procedure can attract cash-strapped investors and big miners while excluding junior speculators who frequently use questionable tactics to abuse the first-come-first-served system. The ABG is adamant that any partial lifting of the ban for new exploration applications for new sites will only be considered once the necessary adjustments have been made and the human resources regulatory capacity situation has improved.
< From Page 10
In the face of the arguments, the Prime Minister did appear to soften his stance on PSAs during the meeting, without committing his government to adopt the Chamber’s recommendations. He conceded that PSAs may not be the way to go and suggested that perhaps a hybrid system might work better. Marape reminded the meeting that there was no change to the regime as yet but that the intention was there, and he welcomed the healthy debate and consultation. “But, whatever form it [reform] takes, 2025 is the benchmark date,” he stated. Much is at stake in changing PNG’s regulatory regimes for both mining and petroleum. As provisional figures from PNG Extractive Industries Transparency
Initiative’s 2019 report indicate, PNG is one of the most resources-dependent economies in the world, with mining and petroleum accounting for 88 per cent of its exports, and 28 per cent of its GDP. At the same time, according to Wood Mackenzie’s Graham, there is currently significant under-investment in the industry, and it is far harder for projects to attract investment globally. The world has changed since the PNG LNG project was commissioned back in 2014, he said. With high upfront project costs and long payback periods, resources developers were only going to pursue top tier opportunities. This puts a lot of pressure on the Marape government to get any regulatory changes right.
less you can define how that new regime is going to be and articulate it properly.” To support his argument, the meeting heard from two organizations on the downside of PSAs. Chris Graham, Wood Mackenzie’s Vice-President for Energy Consulting, Asia Pacific, said that successful PSAs placed a greater administrative burden on government. Emma Beatty from MineHutte noted that 99 percent of countries with active mining industries had a royalty and tax-based system and that PSAs made projects harder to finance for miners, because lenders didn’t understand them. Due to their greater complexity, they also could exclude smaller junior mining companies, she added.
12 www.pngbusinessnews.com • Issue 2 2021
Hon. Rodney Osioco, the ABG Minister for Mineral and Energy Resources
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MINING
Ex-Marengo boss offers insight on Freeport purchase of Yandera By Jimbo Owen Gulle
O
n June 28, Canadian junior mineral exploration company Freeport Resources Inc. announced it had acquired Carpo Resources Inc. in a definitive share purchase agreement -- and thus took control of the Yandera Copper Project in Madang, within New Guinea’s rich Copper-Gold Belt. Yandera is one of the most prospected resources in PNG that has yet to be mined. Located 95 kilometers southwest of Madang, the project area was the subject of intensive, drill-based exploration programs during the late 1960s and 1970s by a number of companies, including Kennecott Copper and BHP. The historic activity, which included 102 diamond drill holes totaling over 33,000 metres, culminated in the preparation of a mining study by BHP, identifying the Yandera porphyry system as containing one of the largest undeveloped porphyry copper systems (with ancillary molybdenum and gold) in the southwest Pacific. A pre-feasibility study, completed by the Worley Parsons Group in November 2017, indicated Yandera had measured and indicated resources of 727 million tonnes grading 0.39% copper equivalent with inferred resources of 231 million tonnes grading 0.32% copper equivalent. The study also identified 541 million tonnes of probable reserves, grading 0.39% copper equivalent. Since acquiring Yandera, Era Resources Inc. – which is owned by Carpo Resources -- has completed an additional 471 diamond drill holes totaling over 144,000 metres. Era released an updated NI 43-101 compliant resource estimate in December 2016 following a 43-hole diamond drill campaign. “This latest resource is significantly strengthened compared to the 2015 estimate, with a substantial increase in size,” Era says on its website. “It also encompasses an expansion of the footprint, establishment of linkages between previously separate pits and the potential to further optimize pit designs and reduce stripping ratios.” But with Freeport -- which recently acquired Quidum Resources, which in turn controls the Star Mountain project in PNG -now taking control of Carpo/Era, Yandera seems to be a step closer to development.
Freeport confirmed in a press statement that it does not expect to assume any material liabilities, nor will it commit the majority of its working capital or resources to Carpo or the Yandera’s development. “As a result, the transaction does not constitute a fundamental acquisition for the company, within the policies of the TSX Venture Exchange … [and] will not result in the creation of a new insider, or a change of control, of the company.” The acquisition is the second in PNG for the Vancouver-based Freeport in a year. Last October, it purchased the Star Mountains copper and gold project. The closing of the Yandera deal is pending Toronto Stock Exchange approval. PNG Business News was fortunate to interview one man who was involved with Yandera for several years -- Les Emery, who was President and CEO of Marengo Mining Inc. until April 2014. Later that year the company changed its name to Era Resources Inc. “I listed Marengo on the ASX in 2003 and then listed the Company on the TSX in 2008, as Marengo Mining Inc, delisting from the ASX soon after. In 2006 Marengo also listed on the Port Moresby Stock Exchange in Papua New Guinea,” he told PNG Business News. Following the listing of Marengo in November 2003, Emery and his management team started to look for a “company-making asset.” During the next 18 months they reviewed some 150 projects before being offered an opportunity to look at several PNG projects. “Following a visit to PNG in 2005, none of these projects were considered to be what we were looking for either; however, a chance meeting with some people in Port Moresby introduced us to the Yandera Project, which at that time was held in a private PNG company (Belvedere Limited),” he said. Following a review of data on Yandera, produced by BHP and Kennecott Exploration from the pre-1975 period, an agreement was reached with Belvedere’s shareholders for Marengo to acquire Belvedere, making it a wholly-owned subsidiary of Marengo and its PNG operating company (Yandera Mining Company Limited), Emery added. Here is the rest of our Q&A with Les Emery: PNGBN: Please describe the Yandera project. How significant
16 www.pngbusinessnews.com • Issue 2 2021
is it compared to existing PNG copper projects? To PNG mining projects in general (existing and prospective)? Les Emery: The Yandera project is a world class sized copper-molybdenum-gold deposit that will be one of the next phases of mine developments in PNG. As we know, the ‘electrification’ of the world means that the demand for copper is increasing at a rapid rate and many of the world’s current mines are seeing their reserves depleted by age, hence new mines are required. These mines are not discovered overnight and as in the case of Yandera, date back many decades to the original discovery, in Yandera’s case more than 50 years. PNGBN: How did Freeport Resources come to purchase Era Resources and thus Yandera? Were you involved in the decision? Will you still be involved with Yandera going forward? Why? Emery: Following my departure from the board of Marengo the company changed its name to Era Resources Inc and during the following year the major shareholder, a private equity company, Sentient, took over the company in full. During 2020, Sentient announced that it had exited its investment in Era Resources by
Les Emery, former President of Marengo Mining, celebrates with tribal leaders at Yandera near the mine site. Photo courtesy Les Emery
To Page 18 >
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COMMENTARY < From Page 16 way of a private transaction with an unnamed Canadian group. On 28 June 2021 Freeport Resources Inc, a TSXV company announced that it had entered into an agreement to acquire Era Resource and hence the Yandera Project from Canadian unlisted Carpo Resources Inc for shares. I left Marengo in April 2014, so I had no involvement with the Company from that time. PNGBN: Has Era’s application for the renewal of Exploration Licence 1335 been approved? Why are there questions if it should be granted by the PNG ministry? Emery: From recent enquiries it appears that the current renewal application for extension of Exploration Licence 1335 at Yandera has not yet been approved by the PNG authorities. It is my understanding that this renewal application covers a two year period from November 2019 to November 2021 and the delay in considering this is due to previous work programs/ expenditure being considered. In addition, of course COVID restrictions have delayed many administrative matters in PNG. PNGBN: From what you know, has Freeport begun contacting the community at Yandera to get them involved? How important would the project be to the community, and why is it necessary to build a partnership agreement with the local landowners? Emery: As of today (July 3 -- Editor), I have been advised by a number of landowners that no contact has been made by Freeport, or the previous owners of Era Resources. My personal view is that for any company wanting to operate successfully in PNG they need to gain the full trust and support of the community, this can only be gained by giving the community early notice of any activities that affect them, whether not be on-ground activity or corporate matters that affect the ownership of the operator and hence its future activities on site.
G
As with many jurisdictions, in PNG the rights to minerals are controlled by the government, however the land is owned by the traditional landowners, so at all times you need to have full and frank discussions with landowners as to what you wish to do on their land and how it will benefit these people, together with what effect these activities will have on them. Failing to undertake these discussions on a very regular basis will work against any group wishing to explore and ultimately bring a project to mine status. I take pride in the fact that during my time at Yandera we put a big effort in maintaining a very strong relationship with the community at all times, this paying off with total support in return. PNGBN: When would the Yandera project become fully operational? What would it take for Freeport to get it off the ground, in terms of financing, operations, etc.? What sort of revenues could the company expect yearly from this project? Emery: As it has been some years since my involvement with the Yandera project I cannot give a definitive answer, however I believe that with the current demand for copper and with the right group operating the Yandera Project, it could become one of the next major PNG mines by the end of the decade, if not before. Any operating company will however need deep pockets or a substantially-sized partner. PNGBN: Given the government’s moves to modify or change the tax regimes for mining, how would it affect Yandera? How far away is the project from getting its license to operate from the government, and what would it take to open it sooner? Emery: The recent moves
by the PNG government to see greater participation on mining projects can only assist the Yandera Project, it aligns the aims of all concerned, the company, the government, and the community. PNGBN: How has the COVID pandemic affected mining operations in PNG, and Yandera in particular? What are the opportunities and challenges for the project going forward? Emery: Although I have no direct involvement in any PNG mining operation it has been well reported that some operations have suffered shutdowns due to COVID outbreaks and restrictions. As for Yandera, there has been no effect on exploration or feasibility activities onsite as it has been reported to me that no site activity has been carried out since 2017-2018.
In this photo from 2014, as helicopter makes a supply drop for the main camp of the Yandera Copper Project. Photo courtesy Les Emery
GEOPACIFIC GAINS AU$100M FOR WOODLARK
eopacific Resources Ltd has received funding of AU$100 million (K257.5 million) for the construction of its gold and silver mine on Woodlark Island in Milne Bay, Papua New Guinea. Chairman Ian Clyne stated that the money will come from a loan facility. He expressed gratitude to the Mineral Resources Authority for assisting in the successful development of the Woodlark Island gold mine.
He said that it allowed Geopacific Resources to obtain “complete finance” to begin development, with the goal of pouring the first gold next year. According to Clyne, the Kula Gold legacy of huge losses for international investors meant that there was less demand for the Woodlark Project in particular. Despite substantial marketing efforts to banks and speciality industry lenders, loan demand remained severely restricted.
18 www.pngbusinessnews.com • Issue 2 2021
The international worry about PNG’s political danger was a key issue. The effective and timely implementation of an agreement, according to Clyne, is a key confidence builder for foreign investors. “The professionalism of the PNG Government teams was a major factor,” he said. “This was an extremely difficult project to get funded, especially given the PNG/BSP perspective of historic international investor and lender appetite.”
OIL AND GAS
Gov’t, Twinza Oil come to terms on Pasca A royalty agreement
T
he Government and Twinza Oil Ltd. have come to terms on the royalty agreement for the K2.7 billion (US$800 million) Pasca A gas project in the Gulf Province. Talks in early July between the State Negotiating Team (SNT) and Twinza produced a deal that Petroleum Minister Kerenga Kua described as “the best by far in terms of petroleum resource development in the country.” “We delivered an agreement within the petroleum space, which is a new precedent from the existing projects,” Kowa told The National. The deal would give the Government a total benefit package of 55 percent calculated on a nominal cash flow basis, Kua said. The project’s lifespan will be about 12 years, Kua said, and the 55 percent figure was based on the current oil price of US$50 (K171.47) per barrel. As of press time, no date has been announced for the formal signing of the deal for the project 95 kilometres south of Gulf, and 100 meters under the surface. The volume of gas reserves at Pasca was 400 million cubic feet, the petroleum minister said. Prime Minister James Marape had said the project would produce rich-liquids in the first two-year phase (phase one) and gas thereafter (phase two) for an estimated project life of 12 years. “For the Pasca A project, the SNT was tasked to achieve a State take of no less than 55 percent and above on a nominal basis, and 50 percent and above on a discounted cash flow basis,” he said. Twinza Oil Ltd. director Erick Kowa also hailed the agreement, which showed Papua New Guinea “can negotiate better terms for the country from its resource projects.” “It’s been a long and challenging process on both sides amidst the backdrop of the Covid-19,” he said in a report by The National. “We have a very strong Prime Minister and a very strong petroleum minister (Kua). We pushed hard to try and reconcile the challenges of stepping into a pioneer offshore environment in the petroleum sector in this country, but, at the same time, we received a firm stance on the other side (SNT). It just goes to demonstrate that Papua New Guin-
ea has come of age in what it wants for its people,” said Kowa. The 55 percent is made up of 2 per cent royalty, according to the Oil and Gas Act of 1998. There is no specific landowner, as the resource is offshore, but benefits will go to the Gulf provincial government. “One thing about the 2 percent royalty is that unlike existing projects, it’s the net after other deductions that landowners are given the remaining or nothing at all in a year. This won’t happen in this project,” Kua said, noting that the share will come from the gross production, not net of deductions.” Other benefits for the government include five percent production levy from gross revenues; two percent development levy on gross revenues; 15 percent additional profit tax at 15 percent accumulated rate; 5 percent LPG for domestic market obligation; and 30 percent corporate tax. Twinza country manager Roppe Uyassi told The National the project’s front-end engineering design (feed) should begin in the third quarter of the year. “Final investment decision (FID) should be made in the fourth
quarter of 2022 with the first production planned for the third quarter of 2025,” he said. Hearing the news of the deal in Port Moresby, Kowa added: “Papua New Guinea is blessed with a lot of resources on the ground and in the sea, and the Pasca A project will mark the commencement of a new development environment in the petroleum sector. “It is a small project, and at the same time during the negotiation, I have to acknowledge my shareholders, the Clough family, Clough and Kerogen Capital, for putting money into this country and everyone who stood behind us to give us something to negotiate about,” he added. Papua New Guinea is “a place for patient capital,” the Twinza director noted. “It is not a place, for someone to come in and for three years and expect to exit with the deal all of a sudden. The Pasca development has been a trademark of that investment characteristic in the country. There’s a clause in the gas agreement that gives us a time limit to develop the project, and we will stick to that,” he said. www.pngbusinessnews.com • Issue 2 2021 19
MINING
A study on arsenic sequestration in gold mine wastes By Marcelle P. Villegas
H
ere is a recent study that investigates the mechanisms of arsenic partitioning into, or out of, streambed sediments downstream of the Porgera Gold Mine in Papua New Guinea. [1] Arsenic (As) is a metalloid element with atomic number 33. Arsenic is known to be released in the environment during gold mining activities. Preventing toxic contamination of soil and water in mine sites is important in a mining operation. This is possible with the application of various techniques on effective arsenic sequestration. A recent study titled “Arsenic sequestration in gold mine wastes under changing pH and experimental rewetting cycles” was done by Beth Hoagland, Luke Mosley, Tess Russo, Jason Kirby, Cecilia Cullen, Matthew S. Fantle, Mark Raven and Joshua Fisher. Their study was featured by Science Digest website last January 2021. Why is this study important in protecting the environment and in assuring health and safety to humans? “The discharge of mine-derived hard rock and liquid tailings waste can alter water and sediment chemistry and release contaminants that pose risks to the functioning of aquatic ecosystems and human health (Nordstrom, 2011; Hudson-Edwards, 2016). Mining companies typically manage these risks by adding lime (Ca(OH)2, CaO) to tailings waste to increase alkalinity and pH and precipitate or co-precipitate metals out of solution. However, such approaches may not be as effective for metalloids (oxyanions), such as arsenic (As), whose response to liming is different than metals such as iron (Fe) (Jones et al., 1997; Smedley and Kinniburgh, 2002). Arsenic, a naturally-occurring metalloid associated with gold-bearing sulfide deposits (Corkhill and Vaughan, 2009; Nordstrom, 2011), is less strongly sorbed to minerals such as Fe-oxides at neutral-alkaline pH compared to metals such as zinc (Zn) and lead (Pb) (Jones et al., 1997). Thus, the efficacy of using lime to remove As from wastewaters is potentially limited as an As remediation strategy and depends on geochemical conditions in addition to pH (Moon et al., 2004; De
Andrade et al., 2008; De Klerk et al., 2012)” [1] How do we determine the treatment options for the removal of arsenic from mine wastes? For this, the geochemical conditions of the receiving environment must be considered. “The background conditions of the environment receiving the wastes can influence the aqueous concentration, speciation (e.g. arsenite (As(III)) and arsenate (As(V)), and partitioning of As between water and sediment phases (Smedley and Kinnibrugh, 2002; Cheng et al., 2009). Such conditions include climate, the mineralogy of interacting sediments, and the chemMap of stream water and streambed sediment sampling sites in the istry of interacting waters Porgera Watershed. Shaded areas represent areas of concentrated gold mining activity mapped using Google Earth. Background colors correspond (e.g. pH, Eh, and other to surface elevation above mean sea level (m) determined from the SRTM chemical constituents 30m digital elevation model. present in solution).” [1] The inset map highlights major watersheds of Papua New Guinea and With regards to the location of the Porgera catchment in the greater Strickland River location of the study, its the watershed. The Anj-Kai label represents the confluence of the Anjolek and geographic and climatic Kaiya Rivers. The Red-Up, Red-Mid, and Red-Pog represent sampling sites features, the Porgera at the upstream and mid-stream locations in the treated wastes, and the catchment is located in confluence point of the treated waste stream and Pongema Rivers. the headwaters of the Note that Yakatabari Creek, or the open pit runoff site, is a small tributary of Kakai River and the stream reach is not depicted on this map. Strickland Watershed The Yakatabari Creek sampling location is marked adjacent to Kakai River in the Enga Province of and upstream of the confluence point of these two reaches. the Papua New Guinea highlands (5°27´ 47.83˝S, tralizes associated wastewaters 143° 8´ 45.62˝E). and waste sediments with lime “Mean annual temperature in (Ca(OH)2, CaO). The treated Porgera is 15.5°C. The long-term waste is discharged into the mean annual precipitation is 3750 watershed and creates a braided, mm and the long-term daily mean rocky channel known colloquially precipitation is 10.4 mm, where as the Red River.” precipitation events occur more From the initial part of the than 300 days per year (Ross, study, they reported that “arsenic 2012).” With the tropical rainfall release related to gold mining that happens almost daily in activity can alter surface water Porgera, the mine-derived sedand sediment chemistry. Howiments then interact with dilute ever, the toxicity of As in mine rainwaters. wastes, which is controlled by the The kind of rocks present in the speciation, concentration, and highlands are underlain by ignebioavailability of As, depends on ous and sedimentary rocks, which the geochemical conditions of the host a suite of sulfide minerals impacted environment (e.g., pH, such as pyrite (FeS2), sphalerite climate, mineralogy, etc).” [1] ((Zn,Fe)S), and galena (PbS).” “This study investigates the These sulfides have submimechanisms of As partitioning croscopic gold content, (pyrite into, or out of, streambed sediand arsenical pyrite). These are ments downstream of the Porgera extracted using acid-pressure Gold Mine in Papua New Guinea.” oxidation and recovers using conThe use of lime as treatment ventional cyanidation techniques for mine tailings and then dis(Fleming et al., 1986; King and charged directly into the waterKnight, 1992). shed makes the interaction prone “After extraction, the mine to interaction with rainwater. This separates the slurry from the To Page 21 > reduces groundwater or acid rock gold-bearing solids and neu-
20 www.pngbusinessnews.com • Issue 2 2021
MINING < From Page 20 drainage if it were to develop post mine-closure. [1] One of the things to consider about the use of lime in the treatment of the mine tailings is that this practice increases the pH. This in effect triggers the precipitation of some trace metals that were derived from wastewaters. With an overall spike in pH, arsenic can now become more soluble. For the study, the group conducted batch reactor experiments to bring out the effects of changing pH (ranging from 4 to 10) and wetting/drying cycles on arsenic interactions with lime-treated tailings. Another objective of the experiment is to understand the potential arsenic behavior following mine closure. [1] “Across the pH range investigated, lime-treated waste sediments and streambed sediments located downstream of the open pit mine effectively scavenged As from the water column,” according to the study. More specifically, tailings that were treated with lime buffered the pH. This reaction enhanced the interactions between dissolved arsenic and sediment surfaces via surface complexation reactions on amorphous iron oxides, “ as suggested by surface
complexation modeling and batch reactor experimental results.” This “arsenic scavenging mechanism” further controlled and counteracted the increased solubility of arsenic at high pH. Another aspect of the study was conducting a wetting/drying cycle experiment. From this, the group was able to infer that lime-treated tailings that are subjected to repeated wetting/ drying cycles rapidly desorbed arsenic during the onset of rewetting, “but sorbed arsenic via an aluminum-bridging mechanism in subsequent wetting/drying cycles.” [1] What useful information can we derive from these results? In general, these results highlight the importance of continued lime treatment in order to lower the arsenic mobility in mine wastes following mine closure. This is applicable particularly for mine sites where wastes are released directly to the watersheds with no containment infrastructure to gather or filter out the outflow. These results highlight the importance of continued lime treatment to reduce As mobility in mine wastes following mine closure, particularly for mine sites where wastes are released directly into watersheds with no containment infrastructure.
In conclusion: • Gold mine wastes treated with lime facilitated As removal via surface complexation. • Lime-treatment enhances As sequestration by mine tailings from pH 4 to 10. • Mineral saturation and Al-bridging influence [As] during wetting/drying cycles. Reference: [1] Hoagland, Beth et. al. (January 2021). Science Direct - Applied Geochemistry. Volume 124. “Arsenic sequestration in gold mine wastes under changing pH and experimental rewetting cycles”. Retrieved from - https://www. sciencedirect.com/science/article/ pii/S088329272030281X Other references: • Department of Geosciences, The Pennsylvania State University, University Park, PA, USA • Acid Sulfate Soils Centre, The University of Adelaide, Adelaide, SA, Australia • Earth and Environmental Systems Institute, The Pennsylvania State University, University Park, PA, USA • CSIRO Land and Water, Contaminants and Biotechnology Program, Urrbrae, SA, Australia • The Earth Institute, Columbia University, NY, NY, USA
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Tel: +675 70654207 +675 78155946 www.pngbusinessnews.com • Issue 2 2021 21
GREAT EXPECTATIONS
When Papua New Guinea’s most esteemed property developer builds new luxury apartments in Port Moresby’s prime location, it’s not unreasonable to presume great expectations. Airways Residences again leads the way with an expansion project that raises the bar with affordable luxury apartments only minutes from downtown Port Moresby. The C Residences 8 project offers fully serviced, well-appointed residential apartments with spectacular outlooks of Bootless Bay and the distant Owen Stanley ranges. Complete with modern amenities, these gorgeous apartments amongst beautifully kept parklands add practical conveniences such as a private Recreation Park, a mini supermarket, pharmacy and a bank/ATM. Sharing the gated garden estate is the South Pacific’s most awarded five-star resort Airways Hotel. Hotel guests and residents can savour various top-class restaurants and bars, swimming pool, Airways Health Club and award-winning Bliss Day Spa. Recognised for its unique design and high-level standards and facilities, C Residences 8 Residential Apartments recently became the International Award Winner with Asia Property Awards. With completion due in August, flexible leasing terms have opened for their 20 three-bedroom and four two-bedroom spacious apartments. “It’s the extraordinary value of living complete with ultimate amenities at your doorstep that makes us distinct and popular,” explains Kevin Wells, General Manager Airways Residences. Residents live safely and securely in an oasis of natural landscapes that fosters social distancing. And all residences and exclusive on-site facilities are hygienically cleaned regularly. C Residences 8 builds on Airways Residences longstanding success of providing its Residents comprehensive lifestyle solutions. And in this day and age, to live how you want, without sacrificing safety and living standards, should not be a privilege but rather a necessity for everyone. Find out more contact Airways Residences General Manager E: kevinwells@airways.com.pg
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MINING
New report IDs major carbon reduction breaks in global mining
T
he global mining industry must move away from legacy systems and processes if it is to meet the challenge of decarbonisation, according to a new report released today which calculates mining’s share of global energy consumption and identifies ways the industry can aid the transition to net zero emissions needed to limit temperatures in line with the Paris Agreement. The report, commissioned by the Weir Group plc, analyses mine energy data from over 40 published studies to give a comprehensive understanding of where energy is consumed in mining and minerals processing. It shows that the total amount of power used by the mining industry – which plays an essential role providing the metals used at the heart of the modern economy – is equal to c.3.5% of global energy use. The metals produced by mining are critical for enabling the global transition to low-carbon infrastructure. But without action, energy use in mining itself is set to trend higher in the coming years as demand increases for metals like copper, nickel, and zinc. The report suggests there are technologies available today that could make a significant difference to this trend. For example, it highlights that comminution – i.e. crushing and grinding processes – is the single biggest user of energy at mine sites, typically accounting for 25% of mining’s final energy consumption. This is equivalent to the power used by 221 million typical UK homes, or c.1% of total consumption globally. Comminution is therefore a natural target for the most impactful energy savings opportunities. Small improvements in comminution technologies can lead to relatively large savings in both energy consumption and greenhouse gas emissions. For example, a 5% incremental improvement in energy efficiency across comminution could result in greenhouse gas emissions reductions of more than 30m tonnes of CO2-e. The replacement of traditional comminution equipment with new grinding technology also reduces indirect emissions in the mining value chain, for example by removing the need for the manufacture of emission-intensive steel grinding balls. Of the remaining energy consumption by the mining industry, diesel in varied forms of mobile
equipment accounts for 46%, electricity in mining (ventilation) 15% and “other electricity” 14%. Other significant opportunities identified by the report for reducing mining’s energy consumption include optimisation, big data, and artificial intelligence. In addition, if zero emissions energy sources are deployed for mining equipment – e.g., renewable energy, energy storage and alternative fuels – then the industry may well be able to achieve zero emissions, leaving a relatively small role for offsets and carbon credits to play. The report comes as the mining industry is under ever-greater pressure to produce essential minerals that support some of the biggest global structural trends, from population growth to urbanisation and decarbonisation. Copper, nickel, steel, and lithium are core components of electricity transmission and storage, electric vehicles, and renewable energy infrastructure. The move to a decarbonised economy will result in increased primary consumption of these mined commodities, even after factoring for recycling, so it is important that mining itself becomes more sustainable. Commenting, Weir Group Chief Executive Jon Stanton said: “The mining industry is central to economic development globally, with critical minerals enabling the low-carbon transition required in the rest of the economy. But the environment in which it will operate in future will be very different from the past, requiring comprehensive change and investment. In short: mining needs to become more sustainable and efficient if it is to provide essential resources the world needs for decarbonisation while reducing its own environmental impact. This report is an important contribution to that debate which we hope will spark thoughtful conversations around the world on the way forward.” Alison Keogh, Chief Executive of the Coalition for Energy Effi-
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cient Comminution, said: “This report highlights both a challenge and an opportunity to revitalize cross-industry discussion and actions on decarbonisation and ESG solutions. We invite industry leaders to actively contribute and collaborate through mining-vendor-research partnerships and share knowledge. Together, we can accelerate improved energy, emissions and water footprint across industry faster.” Ricardo Garib, Weir Minerals Divisional President commented: “Weir Minerals is focused on making mining more efficient and sustainable by leading technology change in the industry. Our Enduron HPGRs are increasingly replacing conventional milling systems in comminution (crushing, screening, and grinding) circuits because of their substantially lower energy consumption, finer rock reduction requiring less water downstream and potential for significant total cost of ownership reductions.” Stuart Hayton, Managing Director of Weir Minerals Netherlands, where the Enduron® HPGRs are designed and manufactured, added: “Not only do Enduron HPGRs require as much as 40% less energy than traditional alternatives, their wearable components last much longer and the maintenance time required to replace worn out parts is significantly lower. The estimated carbon saving of each Enduron HPGR in operation is equivalent to taking more than 3,600 petrol fuelled cars off the roads each year.” Download the independent Mining Energy Consumption 2021 report here: www.energysavingsinmining.com
Wind and solar farm, Australia: Mining and METS (mining equipment, technology, and services) companies are increasingly switching to renewables or hybrid energy supply to decarbonize. Image courtesy of ENGIE
ENERGY
MRA’s recent study on geothermal energy and its potential By Marcelle P. Villegas
A
recent study by Mineral Resources Authority (MRA) explores the potential of geothermal energy as a possible source of sustainable energy for Papua New Guinea. The Geological Survey Division, Mineral Resources Authority published “Geothermal Energy Resources of Papua New Guinea: Country Update” -- a study done by Maxine M. Lahan, Gener Villafuerte and Lynell Stevens. This study points out the geothermal energy is a good prospect as a potential source of energy in PNG. According to the researchers, “This paper aims to provide an overview of the preliminary geothermal studies initiated and conducted by the Mineral Resources Authority’s Geological Survey Division since 2009 including recent government policy initiatives.” [1] Like any energy project, each country has its set of hurdles and challenges. For geothermal energy in Papua New Guinea, the
study mentioned that the development of geothermal energy here is somehow hindered by lack of policy and further exploratory work. The study aims to identify the pervading problems and the possible solutions for the successful development of geothermal energy utilisation. Alexander Richter from the Think Geoenergy website wrote on his article, ““Lack of policy and additional exploratory work required hampers potential geothermal investments in Papua New Guinea.” [2] He notes that this study released by the Mineral Resources Authority last 23 February 2021 “aims to bring the topic of geothermal energy back on the table in the country.” [2] The idea of developing geothermal energy is not a new concept. There was early historical research on potential geothermal resources that were done in the 1960s until the 1970s, and some recent ones by MRA in 2009 until 2016. The study reported that currently, there are 55 known, identified
and recorded geothermal sites. However, only seven regions have been mapped and sampled. Where are they located? “The prospects identified are Talasea along the Willaumez Peninsula on New Britain Island, Kasiloli prospect at the active volcano of Pago on New Britain Island, the Silanga propsect also at the Pago Volcano on New Britain Island. Other prospects are Deidei on Fergusson Island, part of the D’Entrecasteaux Islands in Milne Bay Province, Rabaul at the active Tavurvur volcano and some
Figure 1: Location of PNG and Lihir Geothermal Power Plant (red polygon). [1]
To Page 28 >
✔ Regulators of Exploration and Mining in
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Website: www.mra.gov.pg
26 www.pngbusinessnews.com • Issue 2 2021
Managers of Minerals Resources.
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ENERGY
Figure 2: Total installed electricity capacity: 797 MW (source: APEC Energy Outlook, 2019)[1]
< From Page 26 other smaller prospects.” [2] As mentioned earlier, the study mentioned that geothermal energy has great potential in providing alternative energy source for the country. Lihir Island has an operating geothermal power plant with notable high-temperature and permeability options. [2] Creating the power plant was done in three stages / phases that started with a 6 MW backpressure plant in 2001. This was proceeded by a 30 MW expansion with a single flash plant in 2005. Finally in 2007, it had an additional 20 MWSingle Flash plant. There are, however, only 9 MW of the 30 MW that is operating. And only 2 MW of the 20 MW plant are operating as well. This report was given by the Papua New Guinea country update for the World Geothermal Congress 2020+1 in Reykjavik, Iceland last April 2021. Moreover, Richter noted in his article that there was increased interest in the geothermal energy in 2016, but “things have been pretty much idle since then.” He wrote, “In 2016 and again in 2020, the lack of policy for geothermal development was described as a key hurdle for the utilization of geothermal in PNG. While a new regulatory and supervision scheme seems to be set up for renewable energy development in PNG, there are not concrete plans for a boost for geothermal energy development. To develop the geothermal resources of PNG, “more exploratory work is required to collect additional information on the prospects already identified by MRA and others.” (See Figure 1) Now, let us look deeper into the study. The initial discussion first introduced the geological features of Papua New Guinea. “Papua New Guinea is characterized by quaternary volcanic
Figure 3: Institutional and regulatory arrangement for the energy sector in PNG. The Electricity Management Committee comprised of relevant government departments makes decision for the renewable energy development (source: DPE). [1]
islands with potentially low to hightemperature geothermal resources that are yet to be systematically investigated for development and utilization,” according the study. A 50MW geothermal power plant on Lihir Island was installed. This is owned and operated by Newcrest Mining Limited within its gold mining lease. It was observed that the research and development of geothermal energy and other renewable energy sources has been hindered by lack of political will and support for the development of policies and legal frameworks and finance that will accelerate the development of geothermal power plants. This goes the same for the development of other renewable energy resources. [1] The study enumerates that PNG has abundant untapped renewable energy resources like hydro, geothermal, biomass, solar, wind, and tidal wave. However, due to the country’s cultural diversity, land tenure system, rugged terrain and largely rural popular, developing these sources of renewable energy is difficult and challenging. At the moment, hydro is the primary source of energy and provides just half of 797MW total electricity generation capacity. One-third of energy comes from diesel generators. Other energy sources like gas, geothermal and biogas generation “represent most of the balance with the bulk of this energy used for mining.” [1] Here are more key points from the study: • Diesel is dominant in off-grid applications. • The total electricity output in 2015 was 4324 GWh, comprising hydro-electric (23%), petroleum products (56%), natural gas (11%), and geothermal (10%) (APEC Energy Outlook, 2019). • The total installed capacity estimates for 2016 was 797MW sourced from hydropower (432
28 www.pngbusinessnews.com • Issue 2 2021
MW), thermal (223), gas (85MW), geothermal (50MW) and biogas (7MW) according to the APEC Energy Outlook (2019). • The gross production from the geothermal power plant on Lihir Island is currently 96 GWh/yr. from 11 MWe generation capacity. • About half of the country’s total installed capacity is from the private sector mainly for the mining sector. • The rest serves businesses and about 13% of the total population that live in Port Moresby and other urban centers in the country. • The majority rural-based citizens (87%) including urban settlements do not have access to electricity and continue to rely on traditional wood burning for cooking. • Portable off-grid solar energy is reaching many rural homes and urban settlements these days for lighting and phone charging and is having positive impacts on peoples’ lives (APEC Energy Outlook, 2019). (See Figure 2) More on the geological background of PNG, it has a unique geology with rich amounts of mineral resources and geothermal potential. The study notes that this is because PNG is located on the “Pacific Ring of Fire”. PNG is located on an active tectonic region or a collision zone between the ff. plates: • north-ward moving Indo-Australian plate • west-northwest moving Pacific plate • eastward moving Caroline plate. “The geothermal resource policy is yet to be passed in Parliament; however, the government has recently approved the National Energy Policy (2017-2027) which lays out the plan for the establishment of the new National Energy Authority and Energy Regulatory Commission which will be mandated to administer and regulate
To Page 30 >
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OIL AND GAS
O
Kumul Petroleum presents specialist medical equipment to Cardiac Intensive Care Unit
n 19 August 2020, Kumul Petroleum Holdings Limited (Kumul Petroleum) signed an MOA with the Ministry of Health and Port Moresby General Hospital to support the improvement of the Port Moresby General Hospital National Heart Centre. On 21 May 2021, nine months later, Kumul Petroleum follows through on this commitment with the presentation of the first set of specialist medical equipment to the value of K656, 505 to the Cardiac Intensive Care Unit of the Port Moresby General Hospital. Managing Director of Kumul Petroleum Wapu Sonk said the specialist equipment, purchased by the organisation with consultation by specialist doctors at Port Moresby General Hospital’s Cardiac Intensive Care Unit will support the
treatment of Papua New Guinean’s who suffer from heart disease and other lifestyle diseases that result in heart attacks. According to Dr Paki Molumi, Chief Executive Officer of Port Moresby General Hospital as of beginning of 2000 the Internal Medicine hospital admission data beginning to showed significant shift from predominantly Infectious Diseases to almost equal with Life Style Disease. And these Life Style Disease includes Hypertension, Cholesterol, COPD or Chronic Obstructive Air ways Disease, Diabetics, Kidney Disease, Cancer, CVA-Stroke and Coronary Artery Disease. Hypertension will associated with high cholesterol, Diabetic and they result in either Heart Attacks (CAD), CVA-Stroke or Kidney Disease, so the patients have more than one of
Lihir Mine and the geothermal steam field. The power plant is located at the bottom left corner of the photograph where the built up infrastructure area. [1]
< From Page 28 the energy industry. This policy provides for the development of various policies for geothermal and other renewable energy sources to develop sustainable renewable energy.” [1] (see Figure 3) Looking at the future development and installation, what can we expect in the future? The study reveals that currently there is no plan for new geothermal power plant installations in the next 5 to 10 years. The study suggests that more exploratory work is required at this stage to collect more information on the prospects identified by MRA and others. [1] However, there is still hope in the future, perhaps with the help
To Page 32 >
Lihir geothermal model (Source: Newcrest Mining Limited [1]
of the National Energy Policy 20172027. “The recent policy initiative through the National Energy Policy 2017 – 2027 is a positive step towards the development of geothermal and other renewables as the new proposed National Energy Authority develops the policy and regulatory frameworks that would encourage geothermal exploration in the country and hopefully development.” [1] Reference: [1] Lahan, Maxine M., Villafuerte, Gener, Stevens, Lynell. (April - Oct. 2021). Proceedings World Geothermal Congress 2020. “Geothermal Energy Resources of Papua New Guinea: Country Update”. Retrieved from - https://pangea.stanford.
30 www.pngbusinessnews.com • Issue 2 2021
these disease together. “The three years hospital admission statistics is quiet obvious that though TB and HIV maybe still the leading causes of hospital admission there is truly huge surge in Life Style Disease to almost equal in hospital admission. Therefore the Port Moresby Cardiac Services both “ Non-Invasive and Invasive is a really a big need for every Papua New Guinean.” To bolster its efforts in managing the multi-million kina project with the Ministry of Health and respective specialist centres including ANGAU Cancer Services, Kumul Petroleum has established a charitable arm, the Kumul Petroleum Foundation to oversee the projects to its fulfilment. Chief Executive Officer of Kumul Petroleum Foundation William Bando who was present at the pre-
edu/ERE/db/WGC/papers/ WGC/2020/01028.pdf [2] Richter, Alexander (24 Feb. 2021). Think Geoenergy Website. “Bringing geothermal back into the energy discussion in Papua New Guinea”. Retrieved from https://www.thinkgeoenergy.com/ bringing-geothermal-back-intothe-energy-discussion-in-papuanew-guinea/ Photo credits/charts: Courtesy of Lahan, Maxine M., Villafuerte, Gener, Stevens, Lynell. (April - Oct. 2021). Proceedings World Geothermal Congress 2020. “Geothermal Energy Resources of Papua New Guinea: Country Update”. Retrieved from - https://pangea.stanford.edu/ERE/db/WGC/ papers/WGC/2020/01028.pdf
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COMPANIES
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PacTow plants mangroves for World Environment Day
acific Towing (PacTow) – a division of the Steamships Group – marked this year’s World Environment Day by planting mangrove seedlings close to its dedicated tug base in Port Moresby. The project took place on customary land following consultation with local landowners. World Environment Day is the United Nations day for encouraging worldwide awareness and action to protect the environment. This year’s theme for World Environment Day was ‘Restoring the Ecosystem’. PacTow’s HSSEQ Manager, Richard Hayka reported that the aim of the mangrove planting project was to restore part of the nearby marine ecosystem. “We chose the mangrove planting project for this year’s World Environment Day because we interact with the marine environment on a daily basis and healthy oceans and coastlines are central to our core business” explains Hayka. “Moreover, our dedicated tug base and headquarters is located right on the water close to a community that has mangroves which have been negatively impacted by development.” PacTow purchased the mangrove seedlings from small local conservation groups keen to restore and improve the health of their mangrove and broader marine ecosystems. “Landowners were very appreciative of our desire to replant a barren patch of foreshore and gave their approval for the project” confirmed Hayka. A team of 20 PacTow staff
from different departments, as well as senior managers including Acting GM Alfred Weston, HSSEQ Manager Richard Hayka and Senior Marine Engineer Bill Forowan, volunteered for the planting project. Administration staff, cadets, workshop and maintenance workers, and even security guards also pitched in to assist with planting the mangrove seedlings. Mangroves are ecologically vital ecosystems that link the land and sea. They perform critical functions such as nutrient cycling, hydrological regime, coastal protection, and fish-fauna production, et cetera. Mangroves also act as ‘shock absorbers’. They reduce high tides and waves and help prevent soil erosion. Extremely significant to developing countries such as Papua New Guinea, mangroves provide livelihood opportunities to coastal communities. Many coastal families rely upon the fish, crabs and other marine life that are dependent upon healthy mangroves as a significant traditional food source and as a means of income generation. PacTow understands the importance of healthy marine environments to its communities and therefore to its business. Hayka reports that the company has numerous programs, systems and procedures in place to minimise its environmental impact, aligning with the Steamships Environmental Charter and those of its clients. The company is on track to receive its ISO 14001 (Environmental Management System) accreditation in coming
Graduate Management Trainee and HSSEQ Officer, Alumita Chan, planting mangrove seedlings on the Fairfax Harbour foreshore opposite Pacific Towing’s dedicated tug base.
months and has plans for E-Waste initiatives, a reduced reliance on fossil fuels, and a greater uptake of solar energy in place for 2022. To learn more about Pacific Towing and its environmental credentials, including its marine salvage, pollution prevention and oil spill response services: www.pacifictowingmarineservices.com.
< From Page 30 sentation acknowledged the need for specialist healthcare to receive equipment that will address the growing need for attention to cardiac intensive care. On this occasion, Kumul Petroleum acknowledged the leadership of health workers to ensure that they continue to serve the health needs of communities and said that this initiative is a part of the greater contribution by Kumul Petroleum to support the health sector combat and contain the threat of COVID-19 by ensuring that there are specialist equipment at major Managing Director of Kumul Petroleum Wapu Sonk (right) presents boxes of specialist hospitals in the country. medical equipment.
32 www.pngbusinessnews.com • Issue 2 2021
Senior Managers, including HSSEQ Manager Richard Hayka, Acting GM Alfred Weston and Senior Marine Engineer Bill Forowan (from left), volunteered for Pacific Towing’s World Environment Day mangrove planting project.
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Ark Pacific: Expanding in PNG, exploring Africa, Indonesia
lat pack building specialist Ark Pacific is further expanding its business in Papua New Guinea while simultaneously exploring opportunities in both Africa and Indonesia. The company’s growth and international business development initiatives are on the back of 10+ years’ project delivery in Papua New Guinea, primarily in the resources sector. The first half of 2021 has seen Ark Pacific continue to deliver a diverse range of buildings throughout PNG for multiple resource sector clients. Ark buildings (i.e., mining camps, office facilities, ablution blocks, workshops, senior staff housing, etc.,) are being assembled at both remote inland and island resource operations. To date, there are thousands of Ark building modules – all assembled by local workforces – to be found across the country. General Manager, Cassius Ruka, who has over 10 years’ experience in PNG’s construction and mining sectors, describes Ark’s building systems as “perfectly suited” to the remote and challenging conditions of resource operations. “Mining companies prefer our buildings for several reasons” said Ruka. “They are designed and engineered to minimise freight (which in turn reduces client costs and the environmental impact of transporting them), they’re super quick and easy to install even by unskilled workforces, we use high quality steel as opposed to wood which means less maintenance and greater durability, and there are almost endless design options because the modules can be put
together in a multitude of configurations.” Ark’s design team works closely with their clients. Most recently they’ve been collaborating with a major gold mining company on the design of a new minerals testing laboratory. “The client wanted us to do a few things differently and achieve even greater cost efficiencies through minimising the use of on-site concrete by utilising galvanised steel column footings instead which we manufacture ourselves and ship as part of the kit” said Ruka. “We can be very flexible with our designs and the design process and anticipate
All Ark Pacific buildings throughout Papua New Guinea adhere to the Building Code of Australia (BCA) standards.
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finalising the laboratory build early in 2022.” The travel restrictions and cost cuttings brought about by the COVID-19 pandemic have resulted in construction clients all over the world needing to restructure their onsite requirements to accommodate more long term staff. Ark Pacific is responding to these changes by going back to the drawing board for some of its clients. An example of which involves redesigning senior management housing layouts; transforming them into high density accommodation blocks. The popularity of Ark buildings in PNG’s resource sector inspired Ruka to look further afield to grow his business. “There are plenty of parallels between what PNG’s resource sector needs in its buildings and what’s required by resource operations in many African countries and Indonesia. In other words, our flat pack building systems which are perfect for PNG are equally suited to resource projects over there too.” Ark Pacific are looking to penetrate the African and Indonesian market via partnerships with Australia’s Mincore and Lycopodium. The companies are working together on feasibility studies on several greenfield opportunities. To learn more about Ark Pacific, including the considerable benefits of its flat pack building systems: www.arkpacific.net.
Minimal freight footprints, quick and easy installation, high quality steel framing and design diversity characterise Ark’s flat pack building systems; making them perfect for resource projects not just in Papua New Guinea but also Africa and Indonesia.
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COMPANIES
A sea change for the PNG project support sector
A
company that has operated in Papua New Guinea for 13 years recently announced that it has changed its name to PNG CR Services Company Limited. Previously known as the Red Sea Housing Company, it has completed 127 major projects, constructing more than 15,000 project accommodation rooms and 750 support facilities for clients such as ExxonMobil, Oil Search, and the Australian Federal Police, while winning 18 awards during the completion of its construction work. “We are rebranding to create a stronger image, signifying our commitment to Papua New Guinea and strengthening our position in the local infrastructure, camp construction and facilities management sector,” the company said in a statement. “We are able to offer modular and containerised construction, facilities maintenance and management, MER and technical manpower. To further add value to our clients we provide project accommodation and offices facilities for lease in Port Moresby and
at 11 Mile, outside Lae in Morobe Province,” it added. PNG CR builds on its international connections and technical expertise through its parent company’s operations across four continents. The group’s business model operates under a design-construct-operate, A-Z solution to support the needs of its clients. This approach enables any concept to be effectively delivered since it is solely under the control of one contracting entity, creating a seamless flow that is efficient and robust, producing the quality product and service the group is recognised as delivering. “We have years of local knowledge, a large national team to deliver projects, no supply chain disruptions, and provide an end to end service covering design, construction and operation,” the company added. As a PNG company committed to driving national content, PNG CR’s recent community and social responsibility projects include the installation of Sexual Violence units across NCD and, in partnership with St Johns, an ambulance
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facility at the PNG CR facility in Baruni that will reduce ambulance response times for patients in nearby villages such as Baruni, Lealea, Papa, Boera and Porebada to less than 15 minutes. Matt Cannon, the CEO for St John Ambulance, stated: “It’s through fantastic partnerships with companies like PNG CR, that enable us to provide essential medical services to the communities. It is great to see corporate clients giving back to the communities, even in tough economic times to those projects saving lives.” PNG CR has also supported St Johns Ambulance in its Covid-19 response activities, donating equipment and essential infrastructure along with assisting SME development in the local area through creating a transport and waste management service, and a personnel agency company. “PNG CR is your local partner in PNG, your partner for success. Please come to one of our offices or check our website for further details of how we can assist in your development project,” the company ended.
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PPL MD resigns, OIC appointed amid power, union woes
lagon Bekker, PNG Power Limited’s Managing Director, resigned on June 28, with Obed Batia appointed as Officer in Charge by the PPL Board of Directors. In a statement, PPL Chairman Mr Moses Maladina announced Bekker’s resignation effective immediately. “Mr Bekker’s decision to leave the organisation after nine months are based on personal reasons,” Mr Maladina said. The chairman also announced the appointment of Batia as OIC “whilst a more formal engagement is finalised.” Batia has over 30 years of service with the company “and has served the Leadership Team with distinction and possesses outstanding credentials. I have every faith in Mr. Batia’s ability to provide muchneeded stability,” Maladina said. The statement assured that the Chairman and Board of PNG Power will provide the new OIC and leadership team with its full support, during the interim. “We assure all the PNG Power employees and their families, key stakeholders and suppliers, and the valued PPL customers of continued stability during this transition period,” Maladina said. “It remains our key priority, to focus on the objectives of our Annual Operating Plan and to deliver on a promise to provide accessible, affordable and reliable energy ser-
vices to the people of Papua New Guinea,” he added. “I would like to take this opportunity to thank Mr Bekker for his time here at PPL and to wish him well, as he returns to his family in Australia,” the chairman said. Bekker’s resignation comes as the power utility continues to face operational challenges that included a prolonged 16 hours of power outage in Port Moresby last month, which saw many businesses resort to generators to keep doors open to customers and deliver services. It was understood the sabotage of a major substation line had been responsible for the prolonged outage. Earlier, an impending strike by the PPL Union was addressed by the management, according to Bekker. Union meetings with Bekker went on for two days, led by the PNG Power Workers Union, through the PNG Energy Workers Association, regarding certain workplace issues. A townhall meeting was hosted at the Airways Hotel and Apartments in Port Moresby that saw senior PPL team and Bekker address various stakeholders and media about the challenges they were facing and what they were doing to address these. Some minutes following the start of question time, Bekker excused himself after being notified by a staff. His resignation was then announced. Bekker served the PNG utility for
nine months, facing strong pressure over power woes nationwide. He became the eighth head of the country’s national electricity supplier to resign as MD over the last six years. PPL’s challenges include aging and aged infrastructure, a K25 million monthly loss to power theft and sabotage, and millions owed in outstanding fees, particularly from Government. Among other issues that may need the immediate attention of the new OIC are staff and union issues, and the cancellation of a Power Purchase Agreement (PPA) signed with Oil Search Limited last year for the Biomass and Solar Farm project that OSL is championing in the Markham valley of Morobe province. Local landowners have expressed disappointment upon learning of the negative implications of the PPA cancellation. The biomass and solar farm project will provide an additional source of sustainable power supply to feed into the Ramu grid that supplies power to the Momase and vast Highlands region, both with quickly rising energy demands for major resource projects.
Flagon Bekker, PNG Power Limited’s Managing Director, was the eighth MD to resign in the last six years. Photo from Loop PNG
‘OFFLOADING ASSETS TO SOLVE POWER OUTAGES’
D
ue to the ongoing power outages in the nation’s capital, National Capital District Governor Powes Parkop has proposed offloading some assets to private sector organizations in order to provide continuous, dependable, and cheap electricity. He claimed he met with William Duma, the Minister for State-Owned Enterprises, to discuss the unloading of some PPL assets in Port Moresby and Central Province. Parkop said he will next meet with PNG Power Limited’s management and board to examine the idea. PNG Power’s chief executive officer, Flagon Bekker, confessed the company was losing money before quitting. PPL was losing K25 million in electricity per month owing to illicit connections, according to Parkop, whereas it required K50 million for operations and to cover obligations.
He said that this implies PPL has the financial ability to repair its old infrastructure, with banks and financial institutions refusing to provide loans to PNG Power Ltd to recapitalize and replace its dilapidated infrastructure due to the problems. Despite management and government efforts, according to Parkop, the problem is far from being solved. “In the city now, corporate entities are being forced to buy backup generators and become electricians or engage electricians on a full-time basis,” he said. “This not only cuts into their finances but also diverts them away from their core business. “Residents have not only suffered from unreliable electricity and continuous outage but also bear the brunt of costs passed on by business houses for having provided
40 www.pngbusinessnews.com • Issue 2 2021
their own electricity. “Ordinary residents are being hit two or three times a week as a result of this situation.” Past governments and ministers, according to Parkop, have done their utmost to assist PNG Power in transforming itself so that it can offer better service, but all of their efforts appear to have been in vain. “It is about time we accept what is obvious and deal with the problem so we can have solutions,” he said. “In my view, the problem is PNG Power Ltd itself. The way it is structured, managed and capitalised simply cannot enable PNG Power Ltd to be a solution. “The sooner we, especially you Minister (Duma), recognise and deal with this fact, the better it will be. “Even if it’s an infrastructure problem, PNG Power Limited is not made out to solve this problem. PNG Power itself is the problem.”
COMPANIES
K
Kina Bank appoints Chief of Staff, new executive role to drive transformation
ina Bank is pleased to announce the appointment of Judith Ugava-Taunao as Chief of Staff reporting directly to the Chief Executive Officer. In this new senior leadership role, Judith will take a position on the Executive Committee, demonstrating Kina’s continued commitment to promoting PNG women into leadership roles. Judith joins Kina Bank with a distinguished career, having worked in international development, organisational transformation, and human resource development and leadership. For 18 years she has built a career that spans across international borders and sectors. Prior to joining Kina Bank, Judith was at Oil Search where she served as the Vice President, Change Management Lead and as the General Manager for OSL’s Citizen Development Program.
“I am pleased to join the Kina Bank team at a time when the opportunity to introduce new and transformative change in the banking industry is upon us,” said Ms Ugava-Taunao. “It is exciting to consider Kina’s growth over the next five years and the drive to bring improved financial services to Papua New Guineans who want more out of their banks.” In her new role, Judith will be responsible for developing and delivering key strategic, business priorities. The appointment is critical to the success of the business, ensuring the bank delivers on its long-term aspirations. Judith adds significant strength to the executive team. Greg Pawson, Kina Bank’s Chief Executive Officer said: “I am delighted that Judith is joining the Kina Bank team. She has a tremendous amount of knowledge and experience that will benefit
Ms Judith Ugava-Taunao, Kina Bank’s Chief of Staff.
the Bank in its transformational journey. Judith’s appointment also demonstrates our continued commitment to promoting women into leadership roles. It’s an exciting time of growth and expansion for us and with Judith’s expertise in business development and change management, we have an exciting future ahead.”
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42 www.pngbusinessnews.com • Issue 2 2021
Telephone: +61 7 3271 9111 Email: export@sqsteel.com.au
BUSINESS NEWS
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Foreign direct investment PNG Expo: A premier industry event will aid PNG’s recovery from for Australia and PNG COVID-19 — Fleming
he 2021 PNG Industrial & Mining Resources Exhibition will showccording to Bank South Pacasecific over 100 local, national, Group Ltd chief execand international manufacturers, and utive officer Robin Fleming, suppliers with the latest innovations foreign direct investment (FDI) will in the supply services andNew equipment play a keyofpart in Papua Guinfor the industrial, mining and ea’s recovery from Covid-19.oil & gas, agricultural and industrial sectors in Papua New Guinea. “Bank of PNG data indicates The two-day exhibition is the that in 2020 FDIplace flowsto into the and premier meeting connect country will be reduced by 66 per denetwork with thousands of industry cent makers to K387 across million from K1.1industry billion cision a broad in 2019,” Flemingsenior said. management, reach, including procurement, government person“This statistic, however, and doestrade nel, engineers, contractors, not reflect that the level of internatechnicians. tional investor increased in Exhibitors willinterest have the opportunity to2020 attend free one “How Business anda that of to theDo key chalinlenges PNG” is seminar and give a short preconverting that interest sentation across one of two conference into definite projects. stages on the exhibition floor over the two days. “It is promising to see a number exhibition for offers the potential ofThe opportunities businesses togoing acquire tender information directly, forward. and engage and network with peers, colleagues, contractors, suppliers, “For example, PNG businesses installers, and end-users over two can participate in Government action-packed days. infrastructure such as The seminar initiatives will host industrythe Pacific step-up partnership leading experts for an in-depth view of between the issues PNG and the important nowAustralian driving and governments where K582 million changing the structure of the indushas mining, been committed.” trial, and oil and gas sectors in Papua New Guinea. Other examples, according to Establish your business as a supplier include K1.1 billion naofFleming, choice with VIPthe senior management tional port rehabilitation program; and procurement personnel from PNG and the Asia-Pacific. theacross PNG electrification partnership They are anticipating 2,500+ with Australia, Japan, the Unitedtrade visitors attend event 6-7 October States,toand Newthe Zealand, which 2021 Sir John Stadium aimsattothe connect 70%Guise of PNG’s pop-in Port Moresby. ulation to electricity by 2030; and Trans Tasman Media will beRedeexhibitthe ongoing Nadzab Airport ing at the event with twomillion new local velopment worth K692 by salespeople assisting withCooperabuyer prothe Japan International grammes. Attend one-on-one meetings tion Agency (Jica) and the National with leading experts to assist you with Airports Corporation (NAC). new business contacts. If you would like to be part of the According to him, the mining, at oil, event, contact Patrick McElligott and gas industries received the maTrans Tasman Media for further details jority of foreign direct investment. patrick@ttmediagroup.com.au
Morgan Equipment. Adventist University. • Continued in business development • platform Chose the study that aligns “The is afield greatofway of promoting environment for businesses to grow and as a contractor for both established and PNG’s withbusiness career and aspirations as aopportunities.” digital busiinvestment attracting FDI.” start-up businesses. ness analyst. • HastoaFleming, passion the for PNG European sports • Previously worked foraSwire Ship“Over the three-day event, line-up of According Investgolf, and photography. ping in thepanellists maritime will industry learning distinguished coverand a number ment cars, Conference, which will take place in . is one of the most important wastopics,, top priority. of key ranging from PNG’s place in September, Edgar Kunia, Sales Development for Personal branding and commitment a post•Covid-19 world and the prevailing conferences that has enhanced PNG’s reputhe Exhibition to work are key priorities. climate to important industry tation on• the A international current yeararena. three student study- investment • Aims to drive business growth, sales, and major updates.” ing Bachelor of Business (Accounting & trends revenue, brandproject awareness and customer information Systems) program at Pacific service for Trans-Tasman Media.
Some key factors to consider Paul Gilles, Sales Development when an FDI proposal, for thereviewing Exhibition according to Fleming, the net • Born into a miningare family in Broeconomic benefit and alignment ken Hill, New South Wales • Idyllic childhood with national interests,growing such as up the inpotential Arawa, Bougainville Island; Dad for the positive devel(Patrick working for Bougainville opmentGilles) of human and natural Copper. resources; creation of jobs and • Family went on toopportunities; further other income-earning projects in PNG Kutubu technology andincluding skill transfer; andand Gobe, visitingto them several times at contribution training Papua New their place in Ella Beach, Port Moresby Guineans. • Schooling as a boarder at Nudgee College, Brisbane “This screening process high• Went on to complete an apprenlights government’s continued ticeshipthe in heavy earthmoving and focus on developing a supportive mining equipment as a diesel fitter with www.pngbusinessnews.com • Issue 2 2021 43
COMPANIES
S
Addressing sexual harassment with company ASH Policy
exual Harassment is a problem not just for employEES but also for employERS. Did you know that there are real and significant business costs associated with Sexual Harassment? Statistics show that 1 in 5 women and 1 in 20 men experience sexual harassment in the workplace. The Business Case for Addressing Sexual Harassment In addition to the moral imperative for addressing Sexual Harassment there is also a strong business case. Adverse Results may include: • High levels of stress and demotivation among employees • Reduced productivity • Compromised teamwork Increased absenteeism • And in some cases, higher turnover • Company perspective – limits access to a diverse talent pool if potential applicants fear harassment. There are Increased Costs associated with the above negative impacts. Although it is difficult to quantify how much money PNG businesses are losing every year due to Sexual Harassment, the Institute for Women’s Policy Research www.iwpr.org has compiled some interesting studies on the cost to American businesses – across multiple sectors it’s in the HUNDREDS of MILLIONS - $US!!! High Risk Employment Situations Is your workplace associated with any of the following high-risk factors? If yes, your employees are at greater risk of experiencing Sexual Harassment. • Working remotely or in an isolated context: • Working in a male-dominated job: • Working for tips: Workers who rely on tips as part of their income (e.g., accommodation and food service workers). Let’s Focus on Solutions The Business Coalition for Women is a ‘solutions focussed’ organisation. We have PNG-nuanced resources available to help our member businesses PREVENT and RESPOND to Sexual Harassment. These resources include:
• A best practice model AntiSexual Harassment Policy • Training and consultation services to help tailor our Sexual Harassment Policy to the unique characteristics of individual businesses • Anti-Sexual Harassment Training (specifically designed for HR/OHS professionals) • Sexual Harassment information and awareness sessions and workshops • FREE one-hour education sessions for staff on Sexual Harassment in the Workplace and or Family and Sexual Violence in the Workplace (for new members) PNG Corporate Sector’s Response The response and leadership demonstrated by PNG businesses like Bank South Pacific, Nasfund, Hastings Deering and others are significant. These businesses are implementing the Anti-Sexual Harassment and other best practice workplace policies to ensure safe workplaces for all. “BSP recognizes the pervasiveness and severity of family and sexual violence and sexual harassment impacting the workplace. As a responsible employer, we are compelled to invest in appropriate resources and initiatives which have been developed specifically for the business community,” said BSP Group CEO Robin Fleming.
44 www.pngbusinessnews.com • Issue 2 2021
“Often people do not understand as to what behaviour constitutes sexual harassment. Having a distinct policy in place which defines sexual harassment and clearly articulates unacceptable behaviour, and its consequences is the key to preventing sexual harassment in the workplace. It helps to improve the team morale as staff feel protected. In the long run it contributes to the positive corporate culture of the organization,” said Seema DassRaju- Chief Risk & Compliance Officer, Nasfund. Sexual Harassment Policy – Crucial First Steps Your first line of defence (and a crucial first step in preventing Sexual Harassment in your workplace) is a Sexual Harassment Policy (sometimes referred to as an ANTI Sexual Harassment Policy).A strong Sexual Harassment policy can transform employee relations and office culture from toxic and harmful to rewarding and beneficial. A policy reflects a firm stance against Sexual Harassment. For those organisations that do not have such a policy, we hope that you will be inspired to act and implement one. Please contact the Business Coalition for Women on: communications@pngbcfw.org for more information.
Nambawan Supa Limited, Cardno, IEA, Pacific Towing are among 18 BCFW member organizations who are implementing the ASH Policy to ensure safe workplaces.
OK TEDI HAS CONTRIBUTED MORE THAN
PGK65 BILLION
TO PAPUA NEW GUINEA’S ECONOMY.
In the last 36 years since operations began in 1984, Ok Tedi Mining Ltd has contributed more than PGK65 Billion to Papua New Guinea’s economy, and has further supported Western Province development through Tax Credit Scheme and other infrastructure projects such as health centres, school classrooms, roads, airstrips, jetties, water supply and communication systems. We also contribute significantly to the Province, and Papua New Guinea through royalties, compensation payments, direct and indirect employment, training, and business opportunities.
As a majority State-owned entity, and proudly the only 100% PNG-owned mining company, we are committed to helping contribute to Western Province and Papua New Guinea’s development.
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FINANCE
P
Don’t fall prey to a phishing scam
hishing prevention has become essential as more criminals turn towards online scams to steal your personal information. Since you will likely be exposed to a phishing attack eventually, you’ll need to know the red flags. Because scams are nothing new on the web, but phishing is harder to spot than you might think. Across the web, phishing attacks have baited unsuspecting victims into handing over bank info, cash, and more. If you so much as click a link, you could be the scammer’s next victim. What is Phishing? Phishing persuades you to take an action which gives a scammer access to your device, accounts, or personal information. By pretending to be a person or organisation you trust, they can more easily infect you with malware or steal your credit card information. In other words, these schemes “bait” you with trust to get your valuable information. These schemes may urge you to open an attachment, follow a link, fill out a form, or reply with personal info. You must be always on guard which can be exhausting. These threats can get very elaborate and show up in all types of communication, even phone calls. The danger of phishing is that it can deceive anyone that isn’t on guard. Let’s unpack how phishing attacks work. How does Phishing work? Anyone who uses the internet or phones can be a target for phishing scammers. Phishing scams normally try to: • Infect your device with malware • Steal your private credentials to get your money or identity • Obtain control of your online accounts • Convince you to willingly send money or valuables Sometimes these threats don’t stop with just you. If a hacker gets into your email, contact list, or social media, they can spam people you know with phishing messages seemingly from you. Trust and urgency are what makes phishing so deceiving and dangerous. If the criminal can convince you to trust
them and to act before thinking — you’re an easy target. Who is at risk of Phishing Attacks? Phishing can affect anyone everyone from the elderly to young children are using internet devices nowadays. If a scammer can find your contact information publicly, they can add it to their phishing target list. Your phone number, email address, online messaging IDs, and social media accounts are harder to hide nowadays. So, there’s a good chance that just having one of these makes you a target. Spam Phishing Spam phishing is a broad net being thrown to catch any unsuspecting person. Most phishing attacks fall into this category. To explain, spam is the electronic equivalent of the ‘junk mail’ that arrives on your doormat or in your postbox. However, spam is more than just annoying. It can be dangerous, especially if it’s part of a phishing scam. Phishing spam messages are sent out in mass quantities by spammers and cybercriminals that are looking to do one or more of the following: • Make money from the small percentage of recipients that respond to the message. • Run phishing scams – to obtain passwords, credit card numbers, bank account details and more.
46 www.pngbusinessnews.com • Issue 2 2021
• Spread malicious code onto recipients’ computers. Spam phishing is one of the more popular means that scammers get your info. However, some attacks are more targeted than others. Targeted Phishing Targeted phishing attacks usually refers to spear phishing or it most common variant whaling. Whaling takes on high-level targets, while spear phishing widens the net. Targets usually are employees of specific companies or government organisations. However, these scams can easily be aimed at anyone seen as particularly valuable or vulnerable. You might be targeted as a customer of a targeted bank, or an employee of a healthcare facility. Even if you’re just responsive to a strange social media friend request, you might be phished. Phishers are much more patient with these schemes. These personalised scams take time to craft, either potentially for a reward or to increase the chances of success. Building these attacks may involve gathering details about you or an organisation you happen to be involved with. Phishers might take this information from: • Social media profiles • Existing data breaches • Other publicly discoverable info Moving in for an actual attack might be swift with an immediate attempt to encourage you to take
Don’t lose your hard-earned cash to a phishing scam.
To Page 48 >
Equipment Finance
The smarter way to borrow The right tools of the trade are essential for operating a successful business. However if cashflow is tight, you may not have the money to invest in assets which will help your business thrive and grow. If you’re a sole trader or a company engaged in business, you may qualify for Credit Corporation’s equipment finance. Equipment finance can be used to purchase heavy machinery, vehicles, and equipment used to run your day-to-day businesses. Loan periods are from as little as a year and we offer flexible payment terms — allowing you to get on with the job and keep your business moving.
PRODUCT FEATURES › Loan amounts start from K20,000 › Loan periods from 1 – 5 years › Flexible payment term › Frees up your cash flow so you can use the funds elsewhere
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Simply visit or call a Credit Corporation branch to complete an application form. Email us: sales@creditcorporation.com.pg Call us: +675 321 7066 Terms and conditions apply.
FINANCE < From Page 46 an action. Others might build a connection with you for months to earn your trust before the big “ask.” These attacks aren’t limited to direct messages or calls — legitimate websites might be hacked directly for a phisher’s benefit. If you’re not careful, you might be phished just by logging in to site that is normally perfectly safe. Unfortunately, it seems many people are convenient targets for these criminals. Phishing has become a new “normal” as these attacks have ramped up in frequency. Some examples of common Phishing scams Whilst it would be impractical and impossible to list every known phishing scam here, there are some more common ones you should look out for: Iran Cyberattack phishing scams use an illegitimate Microsoft email, prompting a login to restore your data in attempts to steal your Microsoft credentials. Scammers use your fear of being locked out of Windows and the relevance of a current news story to make it believable. Office 365 deletion alerts are yet another Microsoft-related scam used to get your credentials. This email scam claims that a high volume of files has been deleted from your account. They give a link for you to login, of course resulting in your account being compromised. Notice from bank. This scam tricks you with a fake account notification. These emails normally give you a convenient link which leads to a web form, asking for your bank details “for verification purposes.” Do not give them your details. Instead, give your bank a call as they may want to act on the malicious email. Email from a ‘friend’. This scam takes the form of a known friend who is in a foreign country and needs your help. This ‘help’ normally involves sending money to them. So, before you send your ‘friend’ money, give them a call first to verify whether it’s true or not. Contest winner/Inheritance email. If you’ve won something unexpectedly or received an inheritance from a relative you’ve never heard of — don’t get too excited. Most of the time these emails are scams that require you click on a link to enter your info for prize shipment or inheritance ‘verification’. Coronavirus/COVID-19 phishing scams are the latest. One of the most notable is the Ginp
banking trojan which infects your device and opens a web page with a “coronavirus finder” offer. It baits people into paying to learn who is infected nearby. This scam ends with criminals taking off with your credit card info. Steps to protect yourself from Phishing Internet protection starts with your mindset and behaviour toward potential cyberthreats. Even for cautious users, it’s sometimes difficult to detect a phishing attack. These attacks become more sophisticated over time, and hackers find ways to tailor their scams and give very convincing messages, which can easily trip people up. Here are a few basic measures to always take with your emails and other communications: 1. Employ common sense before handing over sensitive information. When you get an alert from your bank or other major institution, never click the link in the email. Instead, open your browser window and type the address directly into the URL field so you can make sure the site is real. 2. Never trust alarming messages. Most reputable companies will not request personally identifiable information or account details, via email. This includes your bank, insurance company, and any company you do business with. If you ever receive an email asking for any type of account information, immediately delete it and then call the company to confirm that your account is OK. 3. Check email addresses. Some replicate very closely the ‘real’ email addresses of companies – some just use a Gmail address – a sure sign that it’s a scam.
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4. Do not open attachments in these suspicious or strange emails — especially Word, Excel, PowerPoint, or PDF attachments. 5. Avoid clicking embedded links in emails at all times because these can be seeded with malware. Be cautious when receiving messages from vendors or third parties; never click on embedded URLs in the original message. Instead, visit the site directly by typing in the correct URL address to verify the request, and review the vendor’s contact policies and procedures for requesting information. 6. Keep your software and operating system up to date. Windows OS products are often targets of phishing and other malicious attacks, so be sure you’re secure and up to date. Especially for those still running anything older than Windows 10. Reducing your spam to avoid Phishing Here are some more useful tips – from Kaspersky’s team of Internet security experts – to help you reduce the amount of spam email you receive: Set up a private email address. This should only be used for personal correspondence. Because spammers build lists of possible email addresses – by using combinations of obvious names, words, and numbers – you should try to make this address difficult for a spammer to guess. Your private address should not simply be your first and last name – make it hard for scammers to guess. Set up a public email address. Use this address when you need to register on public forums and in chat rooms, or to subscribe to mailing lists and
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TRAINING THE NATION AND BUILDING GREAT FUTURES!
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AGRICULTURE
Cocoa sector to enhance standing in international markets
A
ccording to the Pacific Horticultural and Agricultural Market Access Plus Programme, the country’s cocoa sector is poised to enhance its standing in international markets, due to recent investment aimed at decreasing smoke taint and increasing cocoa quality (Phama Plus). The PNG Cocoa Board is collaborating with Phama Plus to improve possibilities for PNG’s cocoa-growing communities. “Through the support of Australia and New Zealand, Phama Plus has been in collaboration with the PNG Cocoa Board since 2015, providing training in innovative farming practices that maximise profitability and income and maintain a sustainable value chain to improve international competitiveness for PNG sourced cocoa,” Phama Plus said in a statement. “PNG is a longstanding producer of high-quality cocoa on the global market; however, due to smoke taint affecting the flavour of cocoa, PNG’s fine flavour status was recently reduced (from 90 percent to 75 per cent) by the International Cocoa Organisation. “This impacted the premiums paid for cocoa and influences the value of trade from international niche and speciality cocoa buyers. “Recently, 57 local farmers and their team leaders in Lower Watut, Morobe and Aitape, West Sepik attended training sessions delivered by Cocoa Board officers on the correct post-harvest practices
to better understand key stages of primary processing of cocoa, including harvesting, transportation, fermentation, drying and storage.” Meanwhile, inadequate extension services have been identified as a cause of low coffee output in the country, according to a study. Prof. Eugene Ezebilo, the National Research Institute’s deputy director for research, authored a paper titled Strategic initiatives to boost the competitiveness of coffee production in Papua New Guinea” It gives you some ideas for how to improve the production of coffee in PNG. Inadequate facilities for processing coffee are also mentioned as a significant issue. The conclusions have been pressed upon agricultural managers, planners, and policymakers. “Coffee is one of the most important agricultural commodities for the government and farmers,” Prof Ezebilo states. “Though PNG has a suitable environment and climatic conditions for growing high-quality coffee, there are challenges that need to be addressed. “The findings will assist agriculture managers, planners and
policymakers in making decisions on how to improve coffee production in an effective and efficient manner.” Inadequate facilities for processing coffee, insufficient extension services, and limited access to funding were among the problems. Coffee output in PNG may be enhanced, according to the research, by encouraging efficient extension services for coffee producers and removing coffee plants that had outlived their economic usefulness. Providing low-interest loans to farmers who wish to grow output and promoting contemporary production and processing techniques were also suggested as ways to boost productivity.
< From Page 48
account from phishing and junk emails. Anti-malware is included to prevent other types of threats. Like anti-spam software, anti-malware software is programmed by security researchers to spot even the stealthiest malware. By using an anti-malware package, you can protect yourself from viruses, Trojans, worms and more. By combining a firewall, antispam, and anti-malware into one package, you can provide extra backups that keep your system from being compromised if you do accidentally click on a dangerous link. They are a vital tool to have installed on all your computers as they are designed to complement common sense. In addition to having virus protection software on your computer, it is crucial to use a password manager to manage your online credentials.
Today, it is vital to have different passwords for all websites. If a data breach ever occurs, malicious attackers will try using the discovered credentials across the web. While technology is a rapidly evolving field, by using a security package from a reputable security vendor, you can secure your devices from phishing and other malware threats. Savi Moni offers a range of financial literacy training, tools, tips, and resources aimed at improving the financial wellness levels of Papua New Guineans. It’s no use being financially ‘well’ and then lose your hard-earned cash to Phishing Scams. Learn more at www.savimonipng.com. Information in this article sourced from https://www. kaspersky.com/
other Internet services. Treat your public address as a temporary address. The chances are high that spammers will rapidly get hold of your public address. Don’t be afraid to change your public email address often. Phishing and the importance of Internet Security Software One of the simplest ways to protect yourself from becoming a victim of a phishing scheme is to install and use proper Internet security software on your computer. Internet security software is vital for any user because it provides multiple layers of protection in one simple-to-manage suite. Anti-spam software is designed to protect your email
50 www.pngbusinessnews.com • Issue 2 2021
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BUSINESS
PM asks Japan, Australia, NZ to open ‘economic bubble’ with Pacific Is. nations
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s part of their involvement in the battle against COVID-19, Prime Minister Hon. James Marape, MP has called on Japan, Australia, and New Zealand to open up an economic bubble with Pacific Island countries. During the 9th Pacific Alliance Leaders Meeting (PALM), which was held online, the Prime Minister made this request. COVID-19, he added, was not just a health issue but also an economic issue in the Pacific Islands at this point. “In Papua New Guinea we recognize that COVID-19 has had a strong negative impact on our economy,” Prime Minister Marape said. “Speaking on behalf of my 14 other sister nations in the Pacific, especially those who are dependent on tourism or external trade, dependent on fisheries, agriculture and the export of our raw resources, who are totally exposed to the ravages and the damage COVID-19 is causing to our local economies, so we need international trading and commerce for
our economies to function. “Papua New Guinea, having recognized the need for our economy to be functional, has elevated our COVID-19 response by way of the passing of a specific Act of Parliament called the National Pandemic Act that defines how we live, work, operate and trade. “We have not closed our borders and we are still open for business to ensure our 10 million people survive COVID-19. “At this juncture, let me thank Japan for your continued interventions and interest in our small Pacific Island nations. They are totally vulnerable and exposed to the contraction of the global economy and the close of international borders. “Therefore, I ask for your continued presence in helping us, not just in the area of health but more importantly, on how we can ensure trade and economy remains functional and relevant.”
Prime Minister Marape has urged Japan, Australia, and New Zealand to assist Pacific Island nations in keeping their economies afloat by functioning in a special trade and economic bubble that will allow our economy to weather the storm. The Prime Minister also praised Japan’s Prime Minister, Hon. Yoshihide Suga, for his assistance to the area, as well as Australia, and New Zealand.
Savii’s PNG experience combined with their ability to transform our ideas into a concise strategy and outline all the necessary actions to 'make it happen’ were invaluable.
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business & marketing strategy PR & media coverage marketing management editorials, content & collateral advertising & media bookings web & social media corporate branding & communications corporate social responsibility
www.saviisolutions.com.au 52 www.pngbusinessnews.com • Issue 2 2021
STRATEGY COMMUNICATIONS MARKETING
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ENERGY The Puma Energy fuel terminal in Guatemala.
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Marape: Promote low cost fuel and energy supply
he Prime Minister, Hon. James Marape MP said the government is looking for a partner or investor, such as Puma Energy, to assist it to achieve its goal of creating a low-cost fuel and energy industry in the country. He also urged Puma Energy to stay in PNG’s local petroleum and energy sector and invest more. PM Marape made the remarks at Puma Energy’s Napanapa oil refinery west of Port Moresby, to commemorate 14 million man-hours of incident-free operations at Puma Energy’s locations around the nation over the previous seven years. “I am happy to be here today to witness and celebrate this world-class safety milestone achieved by Puma Energy PNG staff and its contractor staff. “On your milestone achievement of 14 million man-hours without any lost time in the incident, think big and think positive, expand and promote the fuel and energy needed for our domestic customers,’’ he said. “Let me thank Puma Energy and those of you who have been working diligently in the last two years when we were stressed through the COVID-19 pandemic. “You remained at work and delivered to our country through your contractors, and the subsidiaries that work off the main Puma Company and I think the network of companies who feed off Puma Energy has been the beneficiary of the standard of safety and you have conducted yourself and you deserve special commendations. “Going forward I would like to encourage Puma Energy in our
country to also step out of where you are today. You are at a site in our country where it’s the first in as far as oil and gas business is concerned the first refinery in our country. “You have acquired these assets and you have a feel of what it is all about and as a Government, my major focus going into the future and something that is critically important and to anchor our economy is the lower cost of power and lower cost of fuel in our country. “We are looking for business partners who could assist us in filling this gap by finding solutions to lower the cost of fuel and lower the cost of power. And so I would like to take this opportunity to sound it out to people and Puma Energy, you are already here with us,’’ said PM Marape. He stated that Puma Energy may collaborate with the government and others in the sector in a variety of ways. “As a Government, we are on the search for partners who could assist us in lowering the cost of energy, more so fuel of all kinds whether its jet fuel, fuel for ships, fuel for cars and the costs of fuel, energy and power must come down in our country. “There is no secret and that is the intention of my Government. That is why I am strongly advocating for a specific portion of our domestic market of gas and for us to ensure that domestic market gas is secured in new gas fields we sign up and or translate that to companies that are already in the energy space into cheaper energy and fuel. “So at this juncture without
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imposing upon you Puma Energy being the major importer and processor of fuel in our country space is there for you and we look forward to partners who can be serious players in downstream fuel processing in the country,’’ he said. PM Marape said that PNG produces oil and gas in the country and yet we have expensive fuel that is based out of Singapore pricing when we may be able to look for our own pricing. “So Puma Energy that is something you can work in your board room and see whether you could be a partner of choice for us going forward. “Whilst you do not have upstream gas and petroleum areas, you are already in the downstream area so how can you partner the Government and Government bodies like Kumul Petroleum, who are agents for seeking petroleum gas deals, you can fit in that gap as you have a refinery facility here and how you can utilize the gas and oil extracted locally here. “I am encouraging you not to sell out and remain in our country going forward where some of our 10 million people will be needing fuel and energy and we need competition and a robust competition is good for our customers. “I look forward to Puma Energy continuing to serve our country and clocking another safety manhours. “Congratulations to Puma Energy, your management, and individual workers for contributing to this milestone safety record,’’ said PM Marape.
FINANCE
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ADB endorses 5-year strategy for Pacific Island countries
s the 12 smallest Pacific Island countries (PIC-12) recover from the immediate shock of the (COVID-19) pandemic, the Asian Development Bank has endorsed a new 5-year strategy aimed at building resilience against economic shocks, delivering sustainable services, and promoting inclusive and sustainable growth. The Cook Islands, the Federated States of Micronesia, Kiribati, the Marshall Islands, Nauru, Niue, Palau, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu are all members of the Pacific Approach, which runs from 2021 to 2025. Fiji and Papua New Guinea, which have larger economies, have their own national partnership plans that drive ADB activities. “ADB’s work in the Pacific has evolved due to the massive changes brought on by the COVID-19 pandemic and this new Pacific Approach reflects those ongoing strategies while adopt-
ing a new and tailored approach to every element of our work in these countries,” said ADB Director General for the Pacific Leah Gutierrez. “This new and tailored approach to our work is also motivated by the growing frequency and intensity of climate change and natural hazards in the region.” The ADB will assist the PIC-12 in enhancing public financial management and health systems, as well as catastrophe risk mitigation and economic recovery, as part of the strategy’s first goal of increasing resilience to shocks. The ADB will continue to fund essential energy, transportation, and urban infrastructure, as well as assist utilities in managing assets more sustainably, under the second goal of delivering sustainable services. The third goal, promoting inclusive growth, will see the ADB expand its private sector operations in the region, assisting the PIC-12 in strengthening their
business environments, increasing access to finance for micro, small, and medium-sized businesses, and assisting in the development of social protection systems for the most vulnerable. To address rising funding needs, the ADB’s portfolio for the PIC-12 will rise from $568 million in 2015 to a projected $1.34 billion in 2021. The increased funding necessitates new approaches to ADB’s portfolio implementation. As a result, the strategy focuses on increasing efficiency and sustainability while growing the portfolio and functioning in the particular operational contexts of tiny island developing states. To achieve these goals, the strategy introduces new operational priorities, such as a new regional climate strategy, a growing focus on gender equality, increased procurement and contracting flexibility, and a greater focus on long-term capacity development for the public and private sectors across the region.
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Product design and development Sourcing Manufacturing With 18 years experience in Papua New Guinea, AsiaPac has helped its various customers with ”end to end” procurement requirements. AsiaPac understands the importance of quality and the terrain of doing business throughout the highlands and the islands of PNG. Mel.Bromley@asiapac.biz www.asiapac.biz PNG Phone number 7069 4303 No. 3, 2nd Floor Huon Haus LAE
56 www.pngbusinessnews.com • Issue 2 2021
Quality control Freight & logistics
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Situated in the heart of Port Moresby is Crown Hotel Port Moresby with stunning panoramic views of the Coral seas and the Fairfax harbour. Crown Hotel is perfect for either business or leisure with 151 rooms, 2 restaurants, 2 bars and conference facility that caters up to 300. The fragrance of fresh flowers breezes through our modern Lobby, where you can browse artefacts drawn from Papua New Guinea’s diverse cultures. Our Front Desk staffs are waiting to take your bags to your room or suite while you gaze at the ocean from Heritage bar or soak in the outdoor pool. Rapala restaurant’s French fusion organic restaurant is complemented by a fine wine list while our casual Pondo Tavern serves comfort food on its deck. Exercise when you want in our 24-hour Fitness Centre or get to work using wireless Internet in our Business Centre. We’ll help you dive the reefs off Loloata Island and our sumptuous beds are a wellearned reward after hiking the Kokoda Trail. Stay at Crown Hotel Port Moresby and, whether you’re with us for 2 nights or 2 months, you’ll feel safe, secure and right at home.
OIL AND GAS
Government intends to move on with P’nyang gas project
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he National Government is set to concluding all project discussions for the $US11 billion (Kina 38,55 billion) P’nyang gas project by the third quarter of 2021. This, according to Petroleum Minister Kerenga Kua, will provide project partners enough time to obtain Sales and Purchase Agreements (SPA) and achieve a Final Investment Decision (FID) by 2023, when the new LNG project opportunity window to absorb a large amount of LNG from within the area is still available. According to Kua, the project’s development may serve as a catalyst for the development of marginal and stranded gas resources and prospects in the Western Papua Basin, which is located in the Western and Gulf provinces. He claimed that the P’nyang deposit, when coupled with the remainder of the stranded gas in the Western Papuan Basin, could provide up to 16 TCF of gas and 200 million
barrels of condensate. “Since we have a good traction on Papua LNG project with Total E&P fully committing to it, the Government will now re-appoint a new State Negotiating Team to start reengaging with ExxonMobil,” Kua said. According to him, the initial intention is to build a third LNG train alongside the two Papua LNG trains, each having a capacity and specification of 2.7 MTA of LNG production. “However, the P’nyang gas development will have a huge impact on the monetization of other smaller stranded gas fields in the Western and Gulf provinces and can be aggregated as a standalone, used as a backfill for the PNG LNG project together with Juha and Muruk in the Northwest fold-belt as a utilised project, or deliver alongside Papua LNG as initially planned with reference to the set re-negotiation closing
date,” Kua said. “The benefits of spreading the construction period for both Papua and P’nyang projects over an 8 years’ period shall be massive for the country.” According to the Field Development Plan and the Open Book Economic Model provided by ExxonMobil, the spread will be over a decade of continuous intense industrial activity before to and after construction, with total Capital Expenditure Investment for P’nyang alone estimated at $US11 billion. “P’nyang Gas Agreement is one of my KPIs as the responsible Minister, and once the new SNT and ExxonMobil agrees on the key fiscal and non-fiscal term sheets, then the Petroleum Advisory Board will be able to convene and make the final recommendation to the Minister off Petroleum either to grant or refuse the application for the Grant of Petroleum Development Licence,” Kua said.
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58 www.pngbusinessnews.com • Issue 2 2021
BUSINESS NEWS
Runway restoration forces Madang airport closure
D
ue to the National Airports Corporations’ ongoing rehabilitation work on the airport runway, air traffic into Madang will be disrupted, as the airport will be closed from July 23 until August 8, 2021, for renovation. Runway restoration is presently in Stage 5 of the Method of Works Plan (MOWP) for Madang Aerodrome, according to NAC interim managing director Rex Kiponge, and is expected to be completed by July 22 depending on the weather. According to him, the usable runway is 820 meters long on the western end and is adequate for Dash 8, ATR, and other smaller aircraft. The construction of MOWP Stage 6 is set to begin on July 23, with a runway length of 680 meters. “Unfortunately, this length is for viable operations by Dash 8 and ATR type aircraft and the Runway will be available for Twin Otter and smaller aircraft operations during this 3-week period. This is unavoidable,” Mr Kiponge said. “Work on MOWP stage 7 is planned to commence on August 14, 2021 and will take 3 weeks to complete. The runway length available will be 880 meters which will permit operations by Dash 8, ATR and smaller aircraft. The full runway of 1570m is planned to be available on 31 October 2021 for Fokker 100, F70 and smaller aircraft operations,” he added. As a result, Air Niugini’s subsidiary, Link PNG, will help with all Dash-8 turboprop flights into
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Wewak and Madang. In a statement, the airline said that owing to the decreased length of both runways, even these Dash-8 planes are limited in the number of people they can transport. Due to the shorter runway, Air Niugini has also announced that all Dash-8 operations would be temporarily stopped between July 23 and August 13. Meanwhile, Sir Peter Barter, acting chairman of the Madang Tourist Industry Association and
President of the Madang Chamber of Commerce, said that the closure of the airport will have a far-reaching impact, including the possible closure of hotels and other businesses that rely on air transportation, based on consultations with respective members of the association. “Air travel in PNG is not a luxury it is an essential means of communication, safe transport not only for people but also for cargo, medicine and in some cases, lives of people,” Sir Peter said.
LINK PNG, PNG AIR CODE-SHARE HITS SNAG
ccording to Independent Consumer and Competition Commission chief executive officer Paulus Ain, the proposed code-sharing agreement between Link PNG Ltd. and PNG Air should only be approved if a number of criteria are met. The criteria, he added, should be targeted at modifying the planned code-share agreement to reduce the likelihood of anti-competitive consequences and ensuring that the two airlines could compete in the long run. Link PNG filed an application for permission under section 70 of the ICC Act 2002 on April 9. For a period of five years, the proposal requested a joint operat-
ing agreement (JOA) with PNG Air for code-sharing. According to Link PNG, the proposed JOA would allow the two airlines to coordinate flight schedules, fleet allocation, operational and maintenance services, and charter airline operations. The ICCC, according to Ain, recognized important markets for domestic scheduled and regular passenger transport, air freight,
and air charter services. “The ICCC has considered that the proposed JOA should not form part of the authorisation because it constitutes an unjustifiable intrusion by Link PNG into the management of PNG Air. “The former would gain decision-making control over key aspects of the strategy, operations and, consequently, the financial structure of the latter and, therefore, would be likely to substantially lessen competition and result in greater detriment than benefit to the public.” He added Link PNG’s bid to buy 40% of Nasfund’s stake in PNG Air is presently being reviewed. www.pngbusinessnews.com • Issue 2 2021 59
OIL AND GAS
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PNG LNG sets record production and best safety performance
espite obstacles posed by the Covid-19 epidemic, the Papua New Guinea Liquefied Natural Gas (PNG LNG) project had its greatest production and best safety performance since its inception, according to departing ExxonMobil PNG managing director Andrew Barry. Barry said the team achieved record LNG production levels, delivering the company’s best safety performance since production commenced while continuing to meet environmental and social commitments. “EMPNG has completed over 70 million hours of work since production began and had no lost time incidents for more than three years, with no significant process safety events for almost seven years,” he said. “A significant milestone was achieved on Sept 1 with EMPNG’s first shift fully managed and operated by qualified Papua New Guineans workers. “This included the Hides Gas Conditioning Plant and Pipeline operations supervisors, and control room, field and pipeline technicians.” By the end of 2020, the PNG LNG workforce would have grown to 2,784 workers and contractors, according to the annual PNG LNG environmental and social report issued last month. Due to the suspension of several upstream region projects as a consequence of travel and limitations caused by the pandemic, this
number was decreased from 3,964 employees at the end of 2019. The overall workforce of the PNG LNG project is made up of 91% Papua New Guineans. In 2020, EMPNG contributed K8.4 million to local communities in the form of contributions, sponsorships, in-kind assistance, and community-based initiatives. The PNG LNG project’s contract with ANU Enterprise Proprietary Ltd was renewed, allowing the community lifestyle improvement project (Clip), which began in 2015, to continue. Clip is assisting communities in Hides, Juni, Nogoli, Angore, and Komo in gaining financial independence and improving their living conditions by providing training and assistance in areas such as nutrition, financial literacy, and agricultural practices. The five-year head starts conservation initiative, financed by EMPNG and administered by the Port Moresby Nature Park, was also completed last year. Last year, 36,650 stakeholders participated in over 5,400 community interactions, including over 2,000 official and roughly 3,400 informal encounters. Community interactions were conducted in line with Covid-19 safe practices, with the majority
of the engagements focusing on boosting Covid-19 awareness. Through the infrastructure tax credit projects, an additional K57.4 million was spent on local infrastructure. Since construction began, more than K10 billion has been invested in community projects and local infrastructure. Peter Larden, EMPNG’s new managing director, congratulated Barry for his six years of leadership, which had left a legacy. “I look forward to building upon the standards he and EMPNG have set to further cement PNG’s reputation as a world class LNG producer and to be able to contribute in a sustainable and meaningful way to enhancing the communities in which we operate and the nation of PNG,” he said.
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New Zealand, aims to reduce the cost of doing business by modernizing business laws, improving credit access, reforming stateowned enterprises, and providing support to women be part of the successful economy, Importantly, the strategy takes a longer-term approach to capacity building. All ADB support in the PIC-12 will involve capacity building. Capacity supplementation—the practice of posting long-term specialists in essential sectors—will also be introduced by the ADB to guarantee that expertise is preserved beyond the lifespan of a project. Partnership development will continue to be a top goal. The ADB will continue to work with the Australian, Japanese, and New Zealand governments, as well as
the World Bank and other development partners. The Pacific Approach for the Years 2021–2025 was developed in close collaboration with Pacific governments, development partners, civil society, and the corporate sector. It reflects the aims of Strategy 2030, the Asian Development Bank’s broad vision and strategic response to Asia and the Pacific’s evolving requirements, and the bank’s specific focus on small island developing nations and fragile and conflict-affected countries. The Asian Development Bank is dedicated to building a prosperous, inclusive, resilient, and sustainable Asia and the Pacific while continuing to fight extreme poverty. It was founded in 1966 and is owned by 68 people, 49 of them are from the region.
By taking a strategic, interdisciplinary, and whole-of-country approach to investments and sector planning, the strategy will enhance ADB’s assistance for climate change and disaster risk management. By including gender considerations into project designs and fostering policy discourse on gender inclusivity, the Pacific Approach will improve gender equality in all 12 small island governments. A new private sector plan for the region will be implemented by the ADB, with an emphasis on renewable energy, financial institutions, tourism, and fisheries. The Private Sector Development Initiative, co-financed by the Asian Development Bank and the governments of Australia and
60 www.pngbusinessnews.com • Issue 2 2021
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AGRICULTURE
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Cost of doing agriculture in PNG ‘far too expensive’ — Simon
he cost of doing agriculture in the country is far too expensive, said Minister for Agriculture and Livestock John Simon. He said there are challenges in the sector that are far more expensive. “As soon as I became the minister, I did research and found out that the cost of doing agriculture in Papua New Guinea is high. For instance, coffee at that time was paying K2-K3 (per kilogram) so we wanted to lift the price up to K5 through the price support and interventions,” he said. “Infrastructure development is far beyond comparison; farmers are stationed in the rural areas and that makes it more expensive, thus, it is better the price is increased so that the farmers get the fair price and boost production,” Simon said. Meanwhile, the Farmers and Settlers Association has urged the appropriate authorities to evaluate the issue in light of the
legal and policy consequences for the country’s industry. The announcement comes after most, if not all, government departments and organizations raised non-tax fees and levies. As a result of the chain reaction, many firms would pass the cost on to the people of PNG. Agriculture, food processing, exporting, and rural businesses are all affected, according to Wilson Thompson, President of the Farmers and Settlers Association. PNG is dealing with COVID-19 issues and a struggling economy, and agriculture, food processing, exporting, and rural businesses are all affected. “We know that the government agencies will not review their own decisions, but our concern is the collective impact on the producers and the micro and SME business
and the consumers,” he said. Increases in wharfage fees and fuel prices will lower the price that growers or farmers receive for coffee, cocoa, coconut, rubber, and tea, while customers will pay higher prices for sugar, rice, wheat, and fresh foods and vegetables that rely on fertilizers and fuel, among other things. “We request the Independent Consumer and Competition Commission (ICCC) to deliberate independently on the issues,” added Thomson.
Minister for Agriculture and Livestock John Simon.
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PNG COVID-19 situation summary and highlights
s of 4th July 2021 (12:00 pm), there were a total of 17,282 COVID-19 cases and 175 COVID-19 deaths reported in Papua New Guinea (PNG), the National Department of Health reported. From the period of 28th June to 4th July, there were 89 newly reported cases. One additional death was reported from East New Britain Province. • As of 4th July 2021, a total of 59,125 people has been vaccinated in PNG. This includes 7,844 health workers and 43,206 essential workers and 8,075 people over the ages of 18 including those with comorbidities. • Over 1984 people have received their 2nd dose of the AstraZeneca Vaccine and thereby fulfilled the criteria for maximum protection offered by the vaccine as of the 4th July. • Infrastructure setup for Papua New Guinea’s first ever mobile testing lab, also known as the Air Lab, has completed. All high-throughput diagnostic labora-
tory equipment and ancillary items installed had undergone necessary checks and tests successfully including sample testing. • Leveraging on church partnerships as a communications strategy to address vaccine hesitancy was featured in Western Pacific Regional Office Partners workshop organised by WHO. Transmission Assessment Currently COVID-19 cases are being reported from across PNG, with cases reported from 14 out of 22 provinces in the previous seven days. Northern (Oro), East Sepik, West Sepik, Central, Gulf, Hela, SHP and Western provinces did not report any cases on the past seven days. The epidemic curve, although showing a marked decline in the trend, should be interpreted with caution as it may not be reflective of true positivity. The current weekly test positivity remained at 13%. However, this measure is highly reliant on receiving testing data from all facilities across PNG,
particularly with regards to negative test results. Despite this, the relatively high positivity rate in the context of overall low testing is suggestive of ongoing community transmission in most provinces. Challenges around obtaining swabbing, testing and reporting data are still observed and strategies are currently being explored to improve and strengthen current response. While there continue to be low rates of testing and limited contact tracing, it is believed that community transmission of COVID-19 is occurring in much of PNG. With a low level of confidence based on the available data, National Capital District (NCD), Morobe and East New Britain appear to be in Stage 3, widespread community transmission. In addition, AROB, East Sepik, Enga, Hela, Manus, New Ireland, Northern, Western Highlands, West New Britain, and Western appear to have localised community transmission (stage 2).
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Bougainville leaders seek independence from PNG by 2027
B
ougainville’s leaders have agreed to seek independence from Papua New Guinea no later than 2027. In a referendum held in 2019, 97.7% of Bougainvilleans decided to separate from Papua New Guinea and become the world’s youngest nation. President Ishmael Toroama of Bougainville and Prime Minister James Marape of Papua New Guinea met in the Highlands town of Wabag on July 7 to try to reach an agreement on a path forward. Toroama had earlier stated that he wanted Bougainville to be independent by 2025, but the two parties have now agreed on a timeline for the transfer of certain powers by 2023, followed by full independence in 2027. In addition, the PNG government has agreed to hold national discussions on the subject. Here is the Joint Statement on the Second Joint Inter-Government Consultations, Wabag, Enga Province: “The Government of Papua New Guinea (National Government) and the Autonomous Bougainville Government (ABG): Acknowledge the requirements of s.342 of the National Constitution for both the National Government and the Autonomous Bougainville Government to consult on the results of the Referendum; Acknowledge that the first consultation was held on 18th and 19th May 2021 at Kokopo, East New Britain Province, and that the Referendum results of 97.7% choice for separate independence was tabled at this consultation; Acknowledge that the Bougainville Independence Consultation Team tabled in the Kokopo Consultation, the Year “2025” as the year for the Declaration of Bougainville’s Independence;
< From Page 68 Alas, Roger will be hard to replace; his knowledge of the PNG petroleum industry and its policy framework was intimate with over twenty-years of deep involvement in its formulation and workings. I admired how he was not afraid to take up to ten-pages in PNG Business News to get his message across, not that he was verbose or
Acknowledge that the Kokopo Consultations agreed to consult on a joint roadmap in the second consultation; Acknowledge that the second consultation was held in Wabag on 6th of July 2021; Consulted on the joint roadmap that will guide the post-referendum process; Acknowledge that the process needs to be agreed upon to decide the final political settlement. We agree to: Continue to consult and develop clarity on establishing the constitutional and parliamentary pathway for the tabling of the results of the Referendum, the outcome of the consultation to give effect to the results of the Referendum and the outcome of the Consultations, and the pathway consequential to the outcome of the National Parliament’s decision. Take all actions necessary to process an endpoint which is the culmination of all the activities that flows from the constitutional amendments give effect to the
National Parliament’s decision. Take immediate actions which are focused on the full implementation of the Bougainville Peace Agreement subject to the National Constitution, with a focus on completing outstanding tasks under the pillars of the Bougainville Peace Agreement, including the implementation of the Sharp Agreement to support the economic growth of Bougainville to ensure that Bougainville is in a position to effectively and efficiently manage its own economic affairs in preparation for a political settlement. Allow the National Government to undertake national consultations across Papua New Guinea on the outcome of the Referendum, noting that the constitutional amendments which would have been set in motion by the signing of this Statement will need to be enacted to give effect to Bougainville’s final political status. Determine a political settlement no earlier than 2025 and no later than 2027 guided by an agreed joint roadmap.”
rambling, but that he truly desired his lay-readers to have a proper understanding of the workings of the petroleum industry for which he applied great patience to explain every nuance of the business. Our most sincere condolences go to his family, and I am sure that he and his wife will be most sorely missed. For the Nation, we have
lost one of our most competent petroleum professionals who had so much more to do in his new role as a feature writer for PNG Business News on petroleum business, policy and economics. May he rest in peace.
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Michael McWalter, OL, CS, is former Director and Adviser, Petroleum Division, Department of Petroleum and Energy.
PNG Prime Minister James Marape and Bougainville President Ishmael Toroama.
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ROGER KEWA AVINAGA
5 May 1970 - 16 May 2021
By Michael McWalter
R
oger Kewa Avinaga, PNG Business News’ main commentary columnist, died on Sunday 16th May 2021, just ten days after the passing away of his beloved wife, Priscilla Nase Avinaga. By any measure, this was a very sad and tragic occurrence for the Avinaga family, but we hope that Roger and Priscilla will rest in peace together. Roger was born at Keakasa Village, Okapa in the Eastern Highlands Province, a mountainous area within the Highlands of Papua New Guinea north of the Gulf Province. After completion of his secondary education, Roger graduated with honours in International Relations from the University of Papua New Guinea, and subsequently completed a Master’s (LLM) in Petroleum Finance and Taxation at the University of Dundee, Scotland, United Kingdom in 2003. Roger was a colleague and one of whom I was proud. I first met him in 1998 when he joined the newly-formed Dept. of Petroleum and Energy, when petroleum functions were split from mining. He was a young Petroleum Economics Analyst in the Petroleum Division, the core of the new Department. I had just stepped down from being the Director of the Division and had started work as an Adviser to my successor-Director funded by the World Bank. Roger worked in what we loosely called the policy area where the overall deal between the petroleum industry and government is formulated, and if managed well, constantly modified to optimise the outcomes for the Nation. He ably took to his duties as I later reflect - always with a cheer. It was with that very same cheer that I last saw him in the Waterfront supermarket in Port Moresby several weeks ago. We had a long discussion on the petroleum policies for PNG with me grumbling about the current volatility and uncertainty of petroleum policy after decades of sound stability. As if often the case, our
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discussions become all the more intense, when I threw the matter of domestic utilisation of oil and gas into the dialogue, saying that we should be more proactive in encouraging the domestic use of our oil and gas in PNG for our development needs than always exporting it to other Nations. Roger patiently listened to my points as only a professional colleague could and would, and smiled: he shared with me, a passion to get the very best out of the petroleum industry of PNG and for Government to manage and regulated the companies firmly and fairly, and with competence. In recent times, he had like me worked for the World Bank as a consultant from time to time in their Port Moresby office engaged in the economic analysis of petroleum policy options. More lately, he had gathered some fame for writing voluminous and excellently-researched articles on petroleum issues and policy for the online and print magazine - PNG Business News. After all it, was Roger who had diligently compiled the Petroleum Policy Handbook of the Government in 2005; he was the reference point and one of very few technocrats who really understood the swath, array and complex interaction of the economic and fiscal terms of petroleum exploration, development and production well. The distinguishing feature of Roger was his ability to write and write well, and that comes only with practice as one writes more and more. He had a distinguished record of writing many speeches whilst in the Dept of Petroleum and Energy and travelled widely to deliver some of his own speeches in the days when PNG was seeking investment in the first large-scale development of natural gas. He was part of the campaign and advertisement to the world in the early 2000s that PNG as open for business and with more than ten-years of uninterrupted oil production that PNG was ready to receive investment in the development of it substantial gas reserves. To Page 66 >