PNG Business News - Issue 2, 2022 by Brimble Publishing

PNG CR:

BUILDING PROCUREMENT

THAT BENEFITS PNG

PNG VOTES

IN HEAVILY-GUARDED ELECTIONS COMMENTARY:

EXTRACTING MORE FROM RESOURCE SECTOR

CONTENTS COMMENTARY

EXTRACTING MORE FROM PNG RESOURCE SECTOR / page 12

ON THE COVER

PNG CR: BUILDING PROCUREMENT THAT BENEFITS PNG / page 76

PNG CR has provided a diverse array of camps and accommodation options in PNG for 14 years, including this 150-house staff accommodation development in Port Moresby. Photo courtesy PNG CR

MINING

YANDERA LANDOWNERS QUESTION E.L. RENEWAL / page 24

MINING

CHAMBER: K110M LOST TO PORGERA CLOSURE / page 30

OIL AND GAS

ANGORE DEV’T A PLUS FOR PNG, SAYS SANTOS / page 36

www.pngbusinessnews.com • Issue 2 2022

MORE STORIES 38 40 42 44 46 56 60 66 68

OILMIN, PNG’S LEADING FIELD SERVICE PROVIDER BOOSTING ACCESS TO CLEAN, AFFORDABLE POWER SOLAR ASSOC. TELLS GOV’T: FOCUS ON GREEN ENERGY AGRI PROJECT GETS K120M WORLD BANK FINANCING AGRICULTURE AUTHORITY’S BIOSECURITY POLICY DAL ‘CAN GIVE ECONOMIC INDEPENDENCE’ TO PNG PNGX MARKETS, XBOURSE AUSTRALIA SIGN MOU HOLIDAY INN EXPRESS PORT MORESBY REOPENS ARK PACIFIC: RESOURCE SECTOR’S CAMP PROVIDER

CONTENTS

COMPANIES

HEDURU MONI/MONI PLUS: COMMITTED TO SERVICING EXCELLENCE/ page 50

TOURISM

COMMENTARY

/ page 64

/ page 80

LEARNING FROM CHINA’S MILITARY AID TO THE PACIFIC

PNG AIR CELEBRATES 35 YEARS

access to exellence access to exellence access to exellence

Need PNG Work Permit & Visa Services?

Need PNG Work Permit VisaWork Services? Need&PNG Permit & Visa Services? Need PNG Work Permit & Visa Services? Looking for professional services for

Looking for professional for Lookingservices for professional services for Looking for professional services for

Contact our local team to discuss your Contact our local team to our discuss Contact localyour team to discuss your Contact our local team to discuss your • Contractor Recruitment • Contractor Recruitment • Contractor Recruitment• Manpower & Labour Hire Contractor & Recruitment •• Manpower Labour Hire • Payroll & • Manpower & Labour Hire Manpower Hire •• Payroll & & Labour • Visas & Work Permit • Payroll & Payroll •• Visas && Work Permit • Visas & Work Permit • Welcome Support and In-Country Services Visas & Work Permit •• Welcome Support In-Country Services Services Meet & Greet & •and Welcome Support and •In-Country Services Welcome Support In-Country Services Services Services •• Meet & Greet & •and Meet & Greet & • Meet & Greet & Services

Tel: (+675) 321 9405 Tel: (+675) 321Tel: 9405 (+675) Email: 321 9405 recruitmentpng@brunel.net Tel: (+675) 321 9405 Email: recruitmentpng@brunel.net Email: recruitmentpng@brunel.net Email: recruitmentpng@brunel.net www.pngbusinessnews.com • Issue 2 2022

COMMENTARY

Papua New Guinea votes in heavily guarded elections

ORT MORESBY -- Voters headed to the polls on July 4 for heavily guarded elections in Papua New Guinea, where millions live in poverty despite vast mineral and energy riches, Agence France-Presse reported. About 10,000 police, army and corrections services personnel have been mobilised for the vote in the Pacific island nation, which has a history of corruption and election-related killings. Australia deployed 130 troops with transport aircraft to help secure the lengthy voting process across the rugged, densely forested country of nine million. “We want transparency, we want accountability and above all we want a safe, fair and secured polling period,” Prime Minister James Marape said after casting his ballot on the first day of voting. Marape later had to deny any

connection to illegal financing after confirming his eldest son had been detained for being “in the vicinity” when police found a suitcase containing a large sum of cash. “I just want to inform the country: Nothing to do with me,” he told reporters. “My son had no input in the transportation of the money,” the prime minister said, adding that the funds -- 1.56 million PNG kina ($440,000) in cash, according to police -- belonged to a local construction firm. ‘Rampant corruption’ Election rivalries can quickly spill over into bloodshed in Papua New Guinea, especially in the remote and mountainous highlands provinces. During the last vote in 2017, Australian National University monitors documented more than 200 election-related killings and widespread

“serious irregularities”. This year, 15 election-related deaths have already been recorded, according to Papua New Guinea police. Marape conceded in an end-ofcampaign message that there was still “rampant corruption in all strata of public service”. The prime minister, who has promised to make Papua New Guinea the “richest black Christian nation”, said there had been a lack of development despite the country’s “God-given” resources. “I admit there is much more to be done for our country,” said Marape, who leads the Pangu party. He faces a stiff challenge from his predecessor Peter O’Neill, who resigned as leader three years ago under pressure over endemic corruption and a perceived failure to spread mining wealth to the people. O’Neill, of the People’s National

To Page 12 >

PNG Business News is published independently in the Philippines for the PNG Business community.

PNG Business News

Publisher Beth Galura Editor Jimbo Owen Gulle pngbiznews@gmail.com Journalist Paul Oeka pjoeka@gmail.com Ph 70283999

Advertising Manager Greg Brimble greg@pngbusinessnews.com Phone +675 76810995 + 63 995117 5836 Sales and Marketing Manager Matthew Brimble matthew@pngbusinessnews.com Phone +61 468 853 583

Country Advertising Manager Felix Koma Phone 7834 8641 Administration Cec Pamular Phone +63 917 308 1971 Head Office PNG Business News Inc. Makati City, Philippines

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 2022

BISHOPS HAVE YOUR INDUSTRIAL AND SAFETY NEEDS COVERED

Port Moresby

Warehouse & HO Wards Rd, Hohola

Lae

Cnr Malaita & Malekula St, Lae

Kimbe

San Remo Dr, Kimbe

Kokopo

Karmuk St, Kokopo

Madang

Kaislan Ave, Madang

Mt. Hagen

Okuk Hwy, Mt. Hagen

Honiara

Prince Phillip Hwy, Ranadi, Honiara

Ph: (+675) 325 1088 Ph: (+675) 472 3799 Ph: (+675) 983 5500 Ph: (+675) 982 9911 Ph: (+675) 422 1344 Ph: (+675) 545 1990 Ph: (+677) 30046 Fax: (+675) 325 0083 Fax: (+675) 472 6327 Fax: (+675) 983 5308 Fax: (+675) 982 9912 Fax: (+675) 422 1594 Fax: (+675) 545 1019 Fax: (+677) 30047

COMMENTARY

Extracting more from Papua New Guinea’s resource sector By Maholopa Laveil, University of PNG

uccessive Papua New Guinean (PNG) governments have adopted different policy stances towards the resource sector, but its benefits to citizens remain limited. As former prime minister Peter O’Neill and the incumbent James Marape emerge as favourites for the upcoming July election, the incoming government must ensure that more gains from the resource sector are channelled into development. PNG’s resource sector grew from 11.8 per cent in 1980 to 23.5 per cent of GDP in 2020. Throughout the 1980s, the resource sector grew steadily with only a slight decline in 1989 due to the closure of the Panguna gold mine. It grew again throughout the 1990s with the opening of more gold mines, and the Kutubu oil field.

The 2000s saw some volatility but posted generally higher growth than the 1990s at an average of 21.1 per cent of GDP. When liquefied natural gas (LNG) production commenced in 2014, the resource share of the economy grew to a high of 27.9 per cent in 2018. The resource sector comprised 23.5 per cent of GDP in 2020. Despite its growing significance, the resource sector’s main connection to PNG’s broader economy is through the government’s resource revenue which it uses to finance expenditure including capital expenditure or the development budget. This is largely because of the foreign-owned and capital-intensive nature of resource projects. When the government fails to meet its revenue targets, development budgets are slashed as it struggles to maintain expenditure. Though resource GDP has grown, resource revenue as a share of resource GDP has fallen in the past 10 years. Growth in the non-re-

source sector has also languished as subsequent development budgets have been slashed. Annual growth in average non-resource GDP per capita has been 1.4 per cent since 2003, which is positive but lower than average annual GDP per capita growth of 1.9 per cent. Non-resource GDP, which excludes output from both the mining and petroleum sectors, is the closest measure of income for the average Papua New Guinean because it accounts for over 80 per cent of Papua New Guineans (in both formal and informal employment). Gross National Income would be a better measure, but this data is unavailable. GDP per capita is another misleading measure of average living standards given the enclaved nature of the resource sector. But lacklustre growth in the nonresource sector seems to have little bearing on resource agreements. Under Peter O’Neill’s administration (2011–2019), the 2019 negotiations for the Papua LNG Project with Total

to local communities. Further complicating the process, the electoral roll is not up to date, said Pacific analyst Henry Ivarature at the Australian National University. “So the whole integrity of this election is already under question,” he said. The government that emerges from the elections will face significant challenges.

Nearly 40 percent of the population lives below the international poverty line, according to a 2020 report by the World Bank. The resources- and agriculture-dependent economy posted a “weak recovery” last year, the Asian Development Bank said, after being battered by the Covid-19 pandemic, with only about three percent of the total population fully vaccinated.

< From Page 10 Congress party, has vowed to attract private investment and revive the resources industry. The country boasts large deposits of gas, oil, gold and copper, and is an exporter of forestry and agricultural products. ‘Very violent’ “There are worrying signs around our nation that the election has been very poorly prepared for and interference seems rife,” O’Neill charged. “I hope the good officers of our security forces at all levels can ensure we have free, fair and safe elections.” Voting is scheduled to take up to 18 days and an outcome is not expected to be clear until August. Analysts say the new leader will have to cobble together a coalition government in the male-dominated 118-seat parliament, which has had no women members since the last election in 2017. “Elections are always messy and chaotic and they can get very violent,” said Jessica Collins, Pacific researcher at the independent Sydney-based Lowy Institute think tank. In an ethnically diverse country with more than 800 languages, analysts say voters are less interested in national issues than the material benefits candidates can bring home

12 www.pngbusinessnews.com • Issue 2 2022

To Page 16 >

BUSINESS

Credit Corp. intends to list on ASX

ichard Sinamoi, the chairman of Credit Corporation, says they intend to list on the Australian Securities Exchange Ltd. (ASX). Sinamoi stated that it was in the plans for the upcoming three to five years during the company’s annual general meeting last week. “Of particular importance is that following the board’s strategic review in Full-year (FY21), we have reset our strategy with a new pathway and developed a revised plan for the next three to five years,” he said. “This new strategic plan has set Credit Corporation on a transformational journey. “This ambitious plan will see us building on our strong finance company businesses, simplifying the group and divesting some of our non-core assets, into becoming a niche commercial bank, and ultimately aiming to list on the ASX.

“To realise this strategic growth ambition requires a strong leadership team in place. “I believe our new management team, led by CEO Danny Robinson, will improve the performance and value of the company as we commit to becoming a niche commercial bank in the future.” The board had also declared a final dividend for FY21 of 13.4 toea per share, or K41.2 million, Sinamoi further informed the shareholders. “This follows the interim dividend of 4.6 toea paid in the second half of FY21, making it a total full-year dividend of 18 toea per share, or K55.3 million,” he said. “This represents a full-year payout ratio of 70 per cent of core operating profit, which is at the topend of the group’s stated dividend policy range of 50 to 70 per cent of core operating profit.” According to Sinamoi, it had a

solid track record of paying out all dividends from investments. “It highlights our ongoing commitment to delivering shareholder value,” he said.

Richard Sinamoi, the chairman of Credit Corporation.

< From Page 12 Energies had already improved on the terms of the 2014 PNG LNG Project with ExxonMobil. One particular improvement was a new production levy on top of royalties, earmarked for the national government at 2 per cent of wellhead value — the expected value from commercial sales less deductable costs. This was designed to protect against mineral price volatility and ensure quicker tax flows, compared to previous levies which applied to gross profits. Papua’s LNG royalties will also be non-deductable against corporate income tax payments. But tax concessions similar to the one enjoyed by the PNG LNG Project — estimated to cost 500 million kina (US$142 million) in 2017 — remain in place. Marape sought greater equity in resource projects under his ‘Take Back PNG’ banner. This resulted in significant delays in the reopening of Porgera gold mine. The government refused to renew Barrick Niugini Limited’s mining lease (which expired in 2019) unless the company (jointly owned by Barrick Gold and Zijn Mining) surrendered part of its 95 per cent equity in Porgera. Barrick Niugini Limited has since agreed to let PNG stakeholders hold half of the equity, while the government reserves the right to acquire the company’s remaining 47.5 per cent at fair

Former PNG Prime Minister Peter O’Neill, who looks to return to his post after the July 4 elections.

market value after 10 years. Porgera is yet to reopen. Another delay was the P’nyang LNG agreement with ExxonMobil and partners, which was finally signed in February 2022. Whether the deal is better than previous agreements remains to be seen, as the details are yet to be made public. Under O’Neill, the largely foreign-owned resource sector grew from 14 to 28 per cent of GDP, while government resource revenues fell from 18 to 6 per cent of resource GDP. The drop has forced the government to tax the non-resource sector, as well as borrow commercially to fund expenditure over the

16 www.pngbusinessnews.com • Issue 2 2022

past 10 years. Marape’s fight for greater equity in resource projects has only delayed new agreements from coming online, while non-resource sector prospects have not improved. Regardless of who becomes the new prime minister, it is clear that new resource agreements need to be oriented towards increasing the government’s resource revenue beyond current arrangements. Maholopa Laveil is a lecturer in economics at the School of Business and Public Policy, The University of Papua New Guinea. This article was first published on the East Asia Forum (eastasiaforum.org).

BUSINESS

Monagi: Global inflation rising quickly

ccording to Reg Monagi, chairman of Nambawan Super Ltd (NSL), global inflation is increasing swiftly and rising living expenses. It was one of the difficulties experienced this year, according to Monagi, who spoke at the NSL employers’ conference in Port Moresby. “The global market has been volatile as (it) reacts to the Ukraine-Russia conflict, resulting in (shortages of) fuel and now food,” he said. “Global inflation is rising quickly, meaning (that) the cost of living is increasing as you may all be aware. “Not long ago, you go to the shop to spend K300 to buy goods for one week. Now you have to spend something like K1,000. So, I am sure you can feel that.” The government-imposed market concentration charge on the BSP Financial Group, according to Monagi, was one of the biggest problems the NSL had to deal with. “After considering BSP’s priceto-earnings ratio, the result value erosion from the levy, it is estimated at in 2022 alone, the members crediting rate may be reduced,” he said. “The NSL will continue to work with BSP and other stakeholders and industry players to see what the outcome can be.” Some of the present issues, according to Paul Sayer, chief executive officer of NSL, revolve around the “current economic climate.” “What you are seeing is not

only in PNG but around the world is high inflation,” he said. Sayer gave as an example the cost of a can of Coke. “It used to be K2. (It’s now) K2.50 – if you get it at a retail shop,” he said. “I hate to think what they are charging on the streets. “But that is almost 25 per cent inflation.” Nambawan Super (“the Fund”) is a defined contribution fund (accumulation fund) approved under the Superannuation General Provisions Act 2000. The Fund is governed by the Board of Directors of Nambawan Super Limited, the Fund’s Corporate Trustee (“the Trustee”).

REGISTERED AUSTRALIAN MIGRATION AND EDUCATION AGENT

18 www.pngbusinessnews.com • Issue 2 2022

The Fund exists to invest amounts contributed by or on behalf of Members for their retirement. It has no purpose other than to serve the interests of its membership. The Trustee’s primary responsibility to the Fund Members is to ensure that the Fund is run according to the principles of good corporate governance. To achieve this objective, the Board implements five key governance principles across the entire operation of the Trustee and the Fund: Principle 1: Compliance with the law Principle 2: Effective leadership Principle 3: Integrity Principle 4: Accountability Principle 5: Risk management

Reg Monagi, chairman of Nambawan Super Ltd (NSL)

BUSINESS

New Laga administration building opened

aradise Company Chairman, Mr. Anthony Smaré was in Lae to open the new Laga Industries Ltd. Administration offices during the Board of Directors meeting being held in Lae. The purpose-built building accommodates all the Finance, HR and IT teams in a modern facility including visitor and meeting rooms. The previous administration area is being demolished to make way for more production space within the ice cream factory site. Mr. Smaré acknowledged the main Contractors, Fabs PNG Ltd. for completing construction within

the 9-month build period and within budget, primarily using Lae-based PNG-owned subcontractors. This new office construction incorporates the latest PNG building fire codes integrating steel framing making it in compliance with fire and building standards. Mr. Smaré stated: “This opening is very timely as we are about to embark on increasing our T-Shake and Laga Stik production capacity in time for Christmas.” “These 2 products are extremely popular across PNG with the ongoing demand giving the Board of Directors the confidence to invest

in expanding the output of T-Shake and Laga Stik.” “The Gala ice cream facility is world class in making PNG’s favourite ice cream range from 3Pla Fleiva sold in Gala Palas and in supermarkets in 1 and 2 litre tubs to Sweet Heart and Hamamas sticklines.” The opening was attended by the Board of Directors, Paradise Company CEO, Mr. Michael Penrose and the Executive Leadership Team, factory staff and the contractors involved in creating the new office block with lunch served followed by Gala ice cream.

IPI GROUP DONATES 480 CARTONS OF TENKYU.WARA TO ANGAU HOSPITAL

he iPi Group recently donated 480 cartons of Tenkyu.wara to Angau Memorial Hospital in Lae. “With a forward-looking vision toward innovation, growth, sustainability, and respect for the people and our communities, the iPi Group’s Tenkyu.initiative is an example of this commitment to our people and community. As we continue to develop, we want to give back to the community who support us in a meaningful way,” said iPi Group CEO Peter Long. The iPi Group gave its generous donation worth K9,504 in kind. This

is part of the Group’s ongoing commitment to contribute meaningfully back to the communities where they operate. “We thought that the potential of the Hospital using bottled water would be nothing less than a good thing for a great, genuine, and worthy cause,” said Mr. Long. In response, Aung Kumal, Morobe Provincial Health Authority Acting Director of Corporate Services, thanked the Group. He said, “On behalf of Morobe Provincial Health Authority, I sincerely thank the iPi Group for donating 400 plus cartons of bottled water to Angau

20 www.pngbusinessnews.com • Issue 2 2022

Hospital.” “Your kind gesture will very much contribute towards the delivery of quality health care to our patients.” Long further added that the iPi Group is delighted to help and assist under any circumstances. Brian Warrillow, iPi Transport and Logistics Manager, was on-site to deliver the 7,200 water bottles. That is a total of 3,600 litres of HACCP-certified, purified PNG water via Tenkyu.wara. The K960 profit from the initial purchase of Tenkyu.wara will go towards Tenkyu.initiatives.

MINING

Yandera landowners question renewal of EL 1335

By Paul Oeka

ocal landowners from the Yandera Copper Project in Madang have stressed their concerns and objections to the upcoming renewal of its project exploration license EL 1335. Most landowners are adamant to have the renewal refused by any incoming Minister for Mining, as they want an innovative developer to come into the project that can do actual work on the ground and have a better approach to community relations. Located 95 kilometers southwest of the northern seaport of Madang and situated within the highly prospective New Guinea Copper-Gold Belt, the Yandera Project area was the subject of intensive, drill-based exploration programs during the late 1960s and 1970s up until the early 2000s by several companies. The recent acquisition of Carpo Resources by Canadian junior Freeport Resources was finalized in August 2021, as Freeport’s report confirms. Since then, they have been the full owner of Carpo Resources and all shares in Era Resources (formerly Marengo Mining), the current holder of EL 1335, which currently has an application for renewal still pending for the past year. A spokesman for the Yandera Landowners Association, Mr. Greg

Gambu, raised concern earlier this year that EL 1335 Yandera expired in November 2021, and appealed to the Mineral Resources Authority (MRA) not to renew the license to any company except a genuine developer. “Our pristine environment has suffered tremendous damage under the pretext of exploration while the exploration companies have made a lot of money on the stock exchange over the years,” Mr. Gambu said. “With no road access we depend on our rich environment for our survival, and the exploration activities have disturbed our means of survival in a very big way.” “We cannot let them (exploration companies) continue to keep us in suspense and become rich on the stock exchange market at the expense of our suffering by destroying the environment that we depend on for our daily needs.” “It’s time now that they act on the results of their exploration activities – they should decide whether to Pack up and leave us alone or mine the deposit now,” Mr. Gambu added. In response to these statements, MRA Managing Director Mr. Jerry Garry stated: “There is no mining activity in the exploration license (EL 1335) at Yandera Copper mine in Madang Province.” Mr. Garry confirmed that the

24 www.pngbusinessnews.com • Issue 2 2022

exploration license is still undergoing extension application, which is deemed ongoing until a determination is made by the Mining Minister, currently Johnson Ibo Tuke MP. “The exploration license is for exploration only and does not extend

To Page 28 >

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

South Pacific International Container Terminal has redeveloped the Port of Lae to support the country’s flourishing trade and the Province of Morobe’s industrial base. In 2022, SPICT will deploy two state-of-the-art quay cranes–a first in PNG. The QCs will handle bigger vessels and significantly improve terminal productivity with faster and safer movement of cargo, which will benefit PNG’s supply chain.

JAPAN

CHINA

PHILIPPINES MALAYSIA SINGAPORE

With ICTSI South Pacific’s long-term commitment towards sustainable development, SPICT is shaping the Port of Lae to be future-ready and geared up for transformative growth.

INDONESIA

ICTSI SOUTH PACIFIC PAPUA NEW GUINEA SOLOMON ISLANDS FIJI

AUSTRALIA

WE SUPPORT THE NATION'S ASPIRATIONS FOR INCLUSIVE GROWTH

ICTSI South Pacific Ltd. Porebada Rd., 121, Port Moresby NCD, Papua New Guinea +675 320 0881

www.ictsispl.com

NEW ZEALAND

South Pacific International Container Terminal P.O Box 3549, Lae Tidal Basin, Bumbu Road, 411 Lae, Papua New Guinea +675 472 8283 info@spict.com.pg

SOUTH PACIFIC ISLANDS

www.ictsispl.com

Motukea International Terminal Porebada Rd., 121, Port Moresby NCD, Papua New Guinea +675 7190 0395 / +675 7190 0202 www.ictsispl.com info@mit.com.pg

MINING

Govt interested in taking 30% equity in Wafi-Golpu Project

ccording to Dr. John Kuwimb, managing director of Kumul Minerals Holdings Ltd (KMHL), the government plans to exercise its option to acquire up to the full 30% equity in the K18.5 billion WafiGolpu project in Morobe. Kuwimb stated that KMHL was looking forward to taking part in upcoming projects, particularly those involving the mining of rare earth minerals, gold, and copper, where prices are rising and are likely to continue doing so due to increased demand for these minerals due to the climate change agenda, ongoing geopolitical conflicts, and realignments. “If we secure 30 per cent in Wafi, then it is likely that some percentage will go to the Morobe government and the Special Mining Lease (SML) area landowners and so we will be left with the balance to keep for the rest of Papua New Guinea,” he said. “Under government policy, the National Government has the option to take up to 30 per cent equity in large mining projects,

NEW TEMPERATURE MEASURING UNIT TO BOOST SAFETY IN LIHIR PROJECT

ewcrest Lihir has commissioned an improved Temperature Measuring Unit (TMU) that further enhances safety for personnel working at its geothermally active mining pit. This second generation TMU comes after the christened Anako 13, commissioned on 6 March 2018; it engineers out the risk of personnel exposure to geysering events during drill hole measurement activities. Anako 13 allowed geothermal technicians to operate a mobile arm from the vehicle remotely and simultaneously lower or raise a probe safely to measure and record temperature, water level and depth. All these are done from the safety and comfort of the vehicle cabin.

26 www.pngbusinessnews.com • Issue 2 2022

and so, in the Wafi project, the Government wants to exercise that option to take the full 30 per cent.” “The future plan is to concentrate especially on gold and copper projects and buy into existing exploration licenses. “Our future is bright. “We want to follow a future that is sustainable and prosperous by dominating the mining industry in this country.” The developers of the mining project are Newcrest and Harmony under the Wafi-Golpu Joint Venture.

MINING < From Page 24 to mining deposits. EL 1335 was first granted in 2003 and has remained active since,” he added. “The EL has been reviewed for consideration by the Mining Advisory Council, if not it will be reviewed to renew their licenses,” Mr. Garry said. As far as many locals are concerned, they still have a lack of trust in Freeport’s ability to develop Yandera. This was due to reports that showed Freeport’s continued share price decrease since 2021, so they seem uncertain on how Freeport would fund any mining activity at Yandera, even if they obtained a renewal of EL 1335. Before this, officials of the firm have not made any contact with landowners at Yandera during the signing of the acquisition last August. About this issue and the underlying concerns from landowners from Yandera, former Marengo Mining CEO Les Emery commented on the current situation. Emery said: “From 2005 until my team and I were replaced in May 2014, Marengo Mining undertook a vast amount of exploration within the Yandera Project area and the one aspect that was of paramount importance was that we worked to ensure that the local communities were kept continuously informed of what was happening.” “From the reports that I receive from many of my friends within the project area, Freeport has failed to make any sort of contact with the landowners, since announcing their involvement in the Yandera Project, almost one year ago.” “My other concern is the capacity of Freeport to be able to fund the

level of budgets required to take the Project to the next stage, given Freeport’s current stated cash reserves and market capitalization, should they be fortunate enough to gain a renewal of EL 1335, they would, in my opinion, struggle to even undertake minor exploration projects, let alone fund the completion of a bankable feasibility study,” Emery added. The Yandera Copper Project and all concerned stakeholders will most likely still await an announcement, as the country is amidst the elections and the appointment and determination of a new Mining minister will see another inevitable delay in the progress to review and renew EL 1335.

Former Marengo Mining CEO Les Emery (second from left) with friends and villagers around the Yandera Project.

EPIROC WINS LARGE SURFACE MINING EQUIPMENT ORDER IN AUSTRALIA

io Tinto, one of the world’s largest mining companies, has ordered several Epiroc Pit Viper 271 drill rigs that will be retrofitted by Rio Tinto with autonomous capabilities, as well as SmartROC D65 drill rigs that also are loaded with intelligent features. They will be used in the Pilbara region of Western Australia, where Rio Tinto is operating a highly advanced integrated network of iron ore mines. The order exceeds MSEK 150 in value and was booked in the second quarter 2022. It follows a large order by Rio Tinto in the first quarter 2022 for Pit Viper 271s. Also, in 2021, Rio Tinto placed a large order for Pit Viper 271 and SmartROC D65 rigs, also for iron ore mines in Pilbara. “Epiroc and Rio Tinto have a long-standing partnership focused on optimizing safety and productivity through cutting-edge innovation,” says Epiroc President and CEO Helena Hedblom. The Pit Viper 271 and SmartROC D65 drill rigs, man-

28 www.pngbusinessnews.com • Issue 2 2022

ufactured in Texas, United States, and Örebro, Sweden, respectively, are built to face the toughest conditions and will come installed with Epiroc’s Rig Control System, RCS, making them ready for automation and remote control. Congratulations to everyone involved!

Financing Business Growth in PNG Call us today - 3235409 / 3021000 www.rifl.com.pg Lot 15, Goroa Street - Gordons

Asset Finance

We provide finance for new and used equipment.

Insurance Premium Funding

Spread the cost of your annual insurance premium.

Interest Bearing Deposits

Invest your surplus funds for specified periods.

Consumer Finance

We help finance your needs.

MINING

ocal contractors of Porgera Joint Venture (PJV) and others benefitting from the Porgera mine lost around K110 million since the mine closed two years ago, an official says. According to Nickson Pakea, head of the Porgera Chamber of Commerce and Industry, there were about 700 small-to-mediumsized businesses (SMEs) and 176 contractors affected. “Most of the contractors went through difficult situations (when) banks recouped (vehicles) on lease or loan,” he said. Pakea requested “relief funding

Chamber: K110M lost due to Porgera closure to salvage the business losses” from the government. The K100 million Business Development Grant announced by the government should be given as emergency support to SMEs affected by the mining closure, he added. “We want the State to set aside

this funding for SMEs. We also appeal to the Mineral Resource Enga to sign the (outstanding) shareholding agreement (to allow the reopening of the mine) as soon as possible.” Contractors, mine workers, and residents of the Porgera Paiela, according to Pakea, required help.

...AS NEW PORGERA COMPANY TO BE ESTABLISHED

ccording to a representative, a new company will be established as soon as Mineral Resources Enga (MRE) signs the shareholders’ agreement for the new Porgera mine. Kumul Mineral Holdings Ltd (KMHL) managing director Dr. John Kuwimb said: “The moment they sign it, we will move to the next stage (which is) the incorporation of the new Porgera company. “The company will have eight directors – four from Barrick Niugini Ltd and four from PNG. “The next agreement is the Mining Development Contract, after which we can have the development forum. “The operatorship agreement is a private commercial arrangement between Barrick as the operator of the mine, and the new Porgera project company as the owner of the mining lease. “The mining lease-holder is like the owner of a land title.” Kuwimb gave the example of an agreement between a landowner and a carpenter told to build a house on the land. The carpenter does not own the land in that situation, he claimed. Only the house is constructed there.

30 www.pngbusinessnews.com • Issue 2 2022

“We call it operatorship because Barrick will operate the mine,” he said. “The project company holds the special mining licence, and Barrick has the knowledge and skills to operate the mine. “The landowners want the mine to re-open as soon as possible. “They have been telling us (that) for a long time. “What we are concerned about now is the care and maintenance cost that Barrick is paying at the moment to keep the mine in a maintainable form.”

MINING

OK Tedi Geology and Exploration celebrate 11 years LTI-free

K Tedi Mining Limited’s (OTML) Geology and Exploration Department celebrated a milestone of 11 Years without a Lost Time Injury (LTI) on the 21st of June. The last recorded LTI for the team was in March 2011. Manager Geology and Exploration, Oala Rarua, said they are grateful to their staff and business partners on the milestone achievement. “Our gratitude goes out to our team in the bush who are exposed to harsh weather conditions, all the helicopter risks with loading and unloading, and also our Resource team back in the mine pit, working in close vicinity to haul trucks and other heavy equipment. We also thank our laboratory team, who do a fantastic job in keeping safe while working with rotating equipment and chemicals,” said Mr Rarua. “We also acknowledge our various business partners who contribute to our success as a department.” Mr Rarua said his team will continue to maintain this excellent safety record. “We will continue this trend going forward to ensure there is Zero Harm in our workplace so that we contribute to achieving OTML’s Vision 2025 which is to make Ok Tedi the safest mine in PNG.” Deputy General Manager Mining, David Laulau, applauded the Department given the various risks the team is exposed to in the field.

“We congratulate the Geology and Exploration team for this milestone achievement. They cover a wide area of operation, the terrain they operate in is very rough and the weather is always a challenge. I commend Mr. Rarua and his team for the dedication and commitment to safety,” Mr Laulau said. The OTML Safety Department team led by Manager Safety, Anna Ila congratulated the department on the milestone, saying it was an

indication of the team’s commitment towards working safely. “Such an outcome is mainly achieved when you have not only the management, but those on the shop floor committing to work safely.” She also challenged the department to focus on preventing minor incidents such as near misses, minor injuries, and equipment damage, and ensuring critical controls are being implemented to avoid serious incidents from occurring.

HARMONY EXECUTIVES FROM SOUTH AFRICA VISIT PNG

enior executives from Harmony’s offices in South Africa visited PNG last month to tour company assets and meet with Prime Minister James Marape to emphasise the company’s continued commitment to invest and grow in the country. Harmony’s Financial Director, Boipelo Lekubo, and Senior Group Executive: Enterprise Risk and Investor Relations, Marian van der Walt, spoke of Harmony’s investment in PNG since 2004 and the company’s pursuit of multiple opportunities in the Morobe Province, of which the Wafi-Golpu Project is one. “Harmony, through its subsidiary companies, owns the Hidden Valley Mine and 50% of the Wafi-

Golpu Project, as well as extensive exploration interests in and around the Morobe Province,” Ms. Lekubo said. “Significant capital works associated with the Hidden Valley Mine life extension are presently underway, and Harmony continues to assess further investment opportunities in PNG”, Ms. Lekubo added. As of 31 December 2021, the Hidden Valley Mine had paid an aggregate PGK 179.4 million in royalties. However, as many industries are experiencing, “Our stakeholders increasingly wish to understand what Harmony is doing environmentally, socially and in terms of governance,” Ms. Lekubo said. “‘Responsible Stewardship’ is a key pillar underpinning Harmony’s

32 www.pngbusinessnews.com • Issue 2 2022

operating philosophy, which is mining with purpose. The principles of sustainable development are embedded in our business. For example, we recognise, both in South Africa and PNG, that preferential procurement is a national imperative, and we are proud to be supporting PNG businesses, including landowner businesses. During the previous financial year, Harmony’s total procurement spend in PNG was PGK 517 million, including PGK 152 million spend with landowner companies.”

Harmony’s Financial Director Boipelo Lekubo.

MINING

Vulco® R67 mill lining rubber compound: The liner that lasts longer

s a leader in materials development and advancement, the team of material scientists at Weir Minerals are always pushing for ways to improve the capabilities of our technology for our customers. The advanced laboratories at Weir Minerals develop a variety of materials, from natural to synthetic, to polyurethanes and composite materials. One of these materials is the Vulco® mill liner rubber. Vulco® rubber is renowned throughout the mining industry for its exceptional wear life and reliability in mill lining systems. These abrasion- and impact-resistant rubber compounds are continuously improved and refined by Weir Minerals’ team of engineers and material scientists to keep them at the forefront of mill lining systems technology. Having identified a need for higher-wearing rubbers for mill lining systems, the material science experts developed an industry-

< From Page 36 completed the Company’s pre-apprentice program at the Kumul Petroleum Academy (KPA) in 2020. Judy finished at the top of her class and attained an honorable achievement award. A grateful Judy thanked Santos for a further opportunity to broaden her knowledge in oil and gas production. “My dream is

leading, premium-grade rubber compound with superior wear life and performance in mill lining applications. The result: Vulco® R67 rubber – an optimum material which is manufactured with proprietary new compounds and innovative methods of processing to deliver outstanding wear life and longer uptime. This new elastomer material was developed through extensive laboratory testing which was optimised and refined to further improve the material’s properties for aggressive mill system applications. The outcome of these improvements is a rubber compound which delivers an increased wear life of more than 20%, resulting in significant cost savings for our customers. The Vulco® R67 rubber compound offers a high hardness, elongation, tensile and tear strength, making it suitable for lifter bars, head/shell plates and grates. When used in conjunction with metal cap

coming true as I have always wanted to work in this industry,” Ms. Sasa said. The 25 apprentices along with the Santos training team departed PNG for Malaysia last weekend. Two permanent employees were also part of the traveling party to INSTEP where they will train to become dual Electrical & Instrumentation tradesmen.

34 www.pngbusinessnews.com • Issue 2 2022

mill liners, the result is a versatile, economical, and efficient product that weighs up to 50% less than steel alone. The added benefit is a lighter product that’s faster, easier and safer to install, as well as a measurable reduction in mill downtime and reduced maintenance costs. “The Vulco R67 compound is a significant improvement to extend the wear life of mill linings. The longer life results in lowering customer’s production costs and also allows more uptime to potentially increase throughput of the plant due to the higher annual mill availability.” – Tony Millar, Weir Minerals Director of Product Management Produced locally in Australia, as well as North and South America and South Africa, our customers can feel assured that they have a market-leading product that is backed by decades of experience, expertise, and proven effectiveness. Connect with our mill lining experts today: https://info.global. weir/vulcor67

Leon Buskens, Santos Country Chair PNG meeting the 25 new apprentices in Port Moresby before their departure to the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia. Joining Mr. Buskens and the apprentices are members of the Santos Training and People & Culture Teams.

Innovating for the future Bradken’s technology transformation is supporting the evolution of the mining industry. • Innovative mining digital technology solutions • Asset condition and performance monitoring solutions • Design, engineering and manufacture solutions

bradken.com

OIL AND GAS

Angore development is a plus for PNG — Santos executive

antos is in a strong position with the announcement of the next tranche of backfill gas to maintain PNG LNG production and the final investment decision on the Angore Development project. According to Brett Darley, Santos President for Upstream Oil and Gas, who spoke at the recent Australia PNG Business Forum in Brisbane, the first gas from Angore is expected in 2024, and Santos’ share of capital expenditure would be around US$135 million (K475.3m). On the tail of a worldwide epidemic, he added, these drilling efforts will be a huge boost for the sector and economy, as Santos looks to expand its resource portfolio. “In addition to progress being made on the Angore Development project, we have seen strong performance from the Agogo and Moran fields. “A coiled tubing campaign commenced in the fourth quarter of last year in those fields, which will deliver incremental production in 2022,” he said. “Papua LNG, a project that has the potential to be nation shaping for decades to come, continues to progress technical and commercial, regulatory, social, and environmental activities. “These pre-FEED activities remain on track in support of a

FEED-entry decision that is targeted to be made by the end of this year.” Mr. Darley stated that, given the present supply shortage in the global LNG market, initiatives like Papua LNG are becoming increasingly important for global energy security and affordability. “We are continuing to work hard with our joint venture partners to progress this project which will create local jobs in Papua New Guinea, drive economic development, and create revenues for the

government. “The other growth project that we are working hard on is P’nyang, with the P’nyang Gas Agreement being successfully executed between the PRL3 joint venture partners and the PNG government earlier this year,” he said. “We are working hard on the integration of the Oil Search business, on delivering on our commitments, and on ensuring the growth project and opportunities that are so important to PNG to continue on schedule and on budget.”

SANTOS WELCOMES NEW APPRENTICES TO HIGHER-LEVEL PROGRAM

antos is helping to equip Papua New Guinea’s next generation of oil and gas technicians with international qualifications. Ten females are among 25 novices who have joined the Santos 2022 Apprenticeship Program following a rigorous selection process that will see them train at the Institut Teknologi Petroleum Petronas (INSTEP) in Malaysia – 900 applications were received for the 2022 Program. Upon completion of the technician training at INSTEP, the apprentices will earn a Pearson Business Education Technology Council Level 2 and Level 3 UK qualification.

Santos Country Chair for PNG, Leon Buskens when welcoming the apprentices, said: “You have joined at an exciting time following the merger between Oil Search and Santos. As the inaugural batch under the merged entity, there are greater opportunities for you to advance in all aspects of your career both in PNG and abroad. I encourage you to do your best and importantly, maintain a positive attitude and uphold your values - this is what will take you far on this journey. “This is the beginning, but you should be proud of yourselves as we are of you for making it this far. Congratulations and welcome to Santos.”

36 www.pngbusinessnews.com • Issue 2 2022

Joining Mr. Buskens to address the new cohort were pioneering trainees Cornelius Soagai, Senior Government Affairs Manager, and Lydia Warubi, Deputy Occupational Health & Safety Manager. Mr. Soagai went on to become the first national Production Manager in the Operations and Maintenance Department while Ms. Warubi made waves as the first national female process technician to work at the Central Processing Facility. Both leaders encouraged the apprentices to maximize the career development opportunities available to them at Santos. Among the cohort was Judy Sasa who

To Page 34 >

OIL AND GAS

By Paul Oeka

Oilmin, PNG’s Leading Field Service Provider

n Papua New Guinea, Field Service providers are constantly challenged to adapt their operations based on the particular conditions encountered at the Project area of operations. A company which has been in the business of providing these services to the oil, gas and mining sectors for the past 30 years is O.M. Holdings Limited (trading as Oilmin Field Services and Oilmin Seismic Services). Oilmin is a 100% PNG owned company which has an enviable reputation of providing safe and efficient Field Services throughout the country despite the rigorous demands of supporting exploration operations in challenging terrain. Oilmin’s core expertise includes manpower (skilled and unskilled) and expert supervision for onshore seismic acquisition surveys, construction of remote camps and the subsequent management and catering services, and civil construction projects including construction of rig pads. Oilmin’s pool of specialists includes Project Managers with a specific expertise in Seismic Crew Management, Tree Felling Specialists, Trainers, Drilling Managers, Bridging Managers, Civil Construction Managers, Camp Managers and Catering Managers. The primary task of these specialists is to bring their international experience and expertise to ensure safe operations. It is an Oilmin requirement that they assess their National workforce, train them, identify high achievers and mentor them into senior roles within the Company. This has been very successful and Oilmin now has National Chainsaw Supervisors within the company. They also have National Managers throughout Oilmin

whom manage operations in the areas of Camp Management, Catering, Personnel, Human Resources and Logistics. With an established history that spans over three decades in the industry, their major clients are International Oil, Gas, Mining and Construction companies with operations all over Papua New Guinea. Mr. Fintan Lalor, Oilmin’s Operations Manager said “Recent developments has led to Oilmin partnering with Smart Seismic Solutions to offer locally based geophysical exploration services to our clients. For the first time in PNG, a PNG

owned company is now operating a world class seismic crew on behalf of international exploration companies. Our clients can rely on us to sub-contract all of the support services required such as helicopters and medical services which significantly reduces much of the preparation work that historically they performed themselves.” With a vast local and regional knowledge and as one of the PNG’s leading suppliers of remote field support services, Oilmin aims to be the premier support service provider for major Oil & Gas projects and other industries.

CHINA, PNG DISCUSS FREE-TRADE DEAL

hina and Papua New Guinea held talks on a free-trade deal in June, as Beijing’s foreign minister wrapped up a landmark tour of the Pacific Islands with a stop in the resource-rich nation. Papua New Guinea’s Prime Minister James Marape said discus-

sions in the capital Port Moresby had focused on economic cooperation and a long-mooted trade agreement. China is already a major investor in Papua New Guinea and buys much of the country’s gas, minerals, timber, and other resources.

38 www.pngbusinessnews.com • Issue 2 2022

Beijing is vying with Australia to be Papua New Guinea’s leading trading partner. Marape, who has vowed to make his country the world’s richest black Christian nation, said he wants to shift the economy away from primary materials to more lu-

To Page 40 >

ENERGY

ADB, Australia, PNG partner to boost access to clean, reliable, affordable power

he Asian Development Bank (ADB) has announced a $305 million project which will support the strengthening and expansion of electricity in Papua New Guinea (PNG). The Power Sector Development Project is supported by loans and grants from ADB and the governments of Australia and PNG and will target five subprojects within the main power grids of the country’s power utility, PNG Power Limited (PPL). ADB provided two loans amounting to $208.6 million, the Government of Australia contributed a $59.5 million loan and a $12.8 million grant, and the Government of PNG with PPL will yield $24.1 million. “PNG has one of the lowest

rates of electricity access in the Pacific, with only 13% of households having access,” said Director of ADB Pacific Department’s Energy Division Mukhtor Khamudkhanov. “The project will contribute to the government’s objective of connecting 70% of its population to electricity by 2030 and will help advance reforms in the power sector.” The project will expand and upgrade transmission lines and substations in Gazelle, Ramu, and Port Moresby; build new low- and medium-voltage power distribution lines in Gazelle, Ramu, and Port Moresby, and mini grids in West New Britain; and strengthen the capacity of PPL through the introduction of procurement and implementation, utility operation, and financial man-

agement reforms. The limited electricity access in PNG stifles economic growth and exacerbates poverty and inequality in both urban and rural areas. COVID-19 has also impacted the local economy, and quality infrastructure is a central component of the government’s post-pandemic economic recovery strategy. The stable power grids proposed under the project will help maintain urban health facilities’ basic operations and are critical to reducing COVID-19 risks. ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

< From Page 38

as we go through, so that Papua New Guinea interests are not suppressed or harmed, but maintained and in fact augmented,” he said. His comments come as China, Australia, and other Western allies race for influence across the Pacific Islands. The vast but sparsely populated region is home to vital shipping channels and -- because of its location near areas where the Chinese

and US militaries operate -- seen as strategically important. Chinese foreign minister Wang Yi has crisscrossed the South Pacific for more than a week, pressing the case for a greater role by Beijing in regional security. But his visit to Port Moresby has been overshadowed by complaints that it comes too close to Papua New Guinea’s elections, which will be held in the coming weeks, with

crative finished products. He has invited more Chinese investment and said work was ongoing on a trade deal. “China and Papua New Guinea officials are going through tidying Chinese-PNG free-trade arrangements,” Marape told journalists. “The specifics of the free-trade arrangement are being finalized

40 www.pngbusinessnews.com • Issue 2 2022

To Page 42 >

ENERGY

Solar Association tells gov’t: Focus on green energy

ccording to the Solar Energy Association of PNG, foreign investments in the energy industry are now focusing on green energy, but the country’s institutional frameworks are insufficient to take advantage of the prospects. President Christian Lohberger said: “PNG was one of the first countries to sign the Paris Agreement on climate change and under our national commitments, we have set a target of the electricity sector being 78 per cent renewable by 2030. “Currently, we are less than 50 per cent renewable and have a growing LNG industry. “So, we need to develop a pipeline of hydro, solar and eventually wind projects. “Happily, these are also cheap and (in the case of solar) very fast to build.” According to Lohberger, the LNG business presently dominates the PNG energy sector, although LNG is extremely expensive to ac-

quire (or not export) owing to the Ukraine conflict. “LNG is also very polluting with huge methane and carbon dioxide emissions that destroy our environment,” he said. “It is difficult to see LNG competing with solar and other renewables from a price perspective, particularly if a carbon price is adopted. “Our major trading partners are all adopting carbon prices and this will pressure us to clean up emissions. Europe and China already have active carbon prices with

< From Page 40 the result expected in August. Marape is facing a challenge for the premiership from former prime minister Peter O’Neill. “Now is not the right time” for foreign visits, O’Neill said, adding that the government “should not sign any agreements on behalf of the state”. Marape dismissed that argument, saying “our country is still functional”. The two sides signed a series of agreements on investment in “green development”, Covid-19 assistance, aid, and health care. Wang’s 10-day tour has seen the Pacific Islands reject a regional deal that would have given Beijing a much greater role in sensitive areas including policing, cybersecurity, and maritime surveillance. His trip prompted Australia’s new foreign minister Penny Wong to make quick-fire visits to three Pacific Island states, looking to shore up decades-long alliances. Speaking in Tonga, Wong’s host Prime Minister Siaosi Sovaleni stressed the importance of ties with Australia. “There are common strands that bind us. They include respect for democracy, the rule of law, and the rights and freedoms of others. This remains the important tenets of our relations,” he said.

42 www.pngbusinessnews.com • Issue 2 2022

the US having a tax credit that effectively works the same way as a carbon price. “Australia once had a very successful carbon price but it was removed for political reasons. “Looking forward a few years, the most likely scenario is a grid that is almost entirely powered by solar and wind with hydro for backup on rainy and windless days. “LNG might be useful for extreme situations a few times a year when demand cannot be met.”

AGRICULTURE

Agri project gets K120m financing from World Bank

he PNG Agriculture Commercialisation and Diversification Project will get US$40 million (K120 million) in financing from the World Bank. The money will help 12 provinces that have been identified establish competitive and varied agricultural value chains for specific commodities like coffee, cocoa, coconut, spices, and small livestock. Autonomous Region of Bougainville, New Ireland, East New Britain, West New Britain, Morobe, Madang, Eastern Highlands, Chimbu, Jiwaka, Western Highlands, Enga, and Southern Highlands are among the 12 provinces. According to Jane Sprouster, the World Bank Support Country Manager for PNG, the bank is pleased to be extending their cooperation with the Department of Agriculture and Livestock through project implementation. By supporting sector intuitions, enhancing industry, and supporting the improvement of key rural roads, she said, the activities under this new project seek to address three of the major challenges facing

Education Queensland International

the performance of the agriculture sector. This will allow products to reach the market in good quality and a good time to achieve their prices. “The heart of this project is to help smallholders increase productivity and quality of products and to get a higher income for their efforts,” Ms Sprouster said. The three primary commodity-focused areas in PNG are dominated by smallholder farmers, according to Acting Secretary for Agriculture and Livestock Dr. Nelson Simbiken. However, this has been impacted by numerous market and productivity constraints. The limitations include high transaction costs brought on by diseconomies of scale, a lack of information and technology brought on by subpar extension services, poor rural infrastructure, a lack of access to rural finance, and unstable landownership and tenure. With the assistance of the World Bank, the department will now be able to address some of those issues related to ageing, according to Dr. Simbiken.

Study in a

Queensland Government school

World class education and academic excellence. Pathways to universities and Technical and Further Education TAFE. Beautiful climate and a healthy outdoor lifestyle. Unique culture and natural beauty. Schools are location in Cairns, Townsville, Sunshine Coast, Gold Coast, Ipswich and Brisbane. Department of Education trading as Education Queensland International

eqi.com.au

MKT005_22 01

CRICOS Provider No. 00608A

44 www.pngbusinessnews.com • Issue 2 2022

MKT005_22 01 Vert PNG A4 advert.indd 1

16/03/2022 3:05:48 PM

Tel: 675 325 4999 Mb: 675 7235 2442 Email: hertz@leasemaster.com.pg

WE’RE HERE TO GET YOU THERE

Business Management

Premium car rentals for business and holiday travellers. Hertz Car Hire offers a wide range of affordable services to suit your needs.

Through constant customer service development and a desire to remain at the forefront of the car rental industry, Hertz remains committed to delivering exceptional experiences with each car rental. We pride ourselves on the ability to combine local expertise and infrastructure with our vast international network, thereby satisfying the needs of business and leisure travellers alike. At Hertz, ever transaction is treated as a journey of endless possibilities, with customer satisfaction remaining a key end result.

Business Management • • • • • • • •

Car Hire Short Term Rentals Long Term Rentals Chauffeur Drive Hire Airport Transfers Group Transfers Staff Transport Corporate Hire

Business Management

High safety standards are important when you rent a car in Papua New Guinea. Our vehicles are carefully maintained, and we make every effort to inform our renters about how to stay safe on the road in Papua New Guinea.

ABOUT US

Choose Hertz for your car Rental in Papua New Guinea

Hertz was established and incorporated within Papua New Guinea in 1985. Hertz is renowned for providing transportation services to the commercial and general public, not only within Papua New Guinea but also internationally. Our head office maintains the reservations and booking confirmations of all domestic and international rentals ensuring efficiency and convenience for our valued clients. Using our “dedicated” staff that maintain the records and schedules for all vehicles and services we provide.

AGRICULTURE

Agriculture authority launches biosecurity policy

he National Agriculture Quarantine and Inspection Authority has launched its 10year biosecurity policy 2022-2032, the first for the authority and the country since Independence. The policy will put an emphasis on easing trade inside the nation while also addressing the problems and difficulties the nation faces in preserving and conserving its distinctive biodiversity and allowing for the import of commodities. The policy, according to Joel Alu, general director of NAQIA, is a springboard for NAQIA and the agricultural industry to mobilise and adopt regulations to protect agricultural products for international trade as well as to protect agricultural products from disease and pets in this country. “From the policy, we are going to launch the bill, we will derive the bill from this policy, we will draft the law and that law will help guide how we want to conduct trade in this country. “NAQIA does not have the tooth to bite, and this policy allows us to develop that tooth to bite,” he said. John Simon, the minister of agriculture and livestock, who was present for the policy’s introduction, urged NAQIA to give the Biosecurity Act and its necessary rules more attention. “A good policy is supported by legislation and a good set of regu-

lations with the requirements, and financial resources,” he said. The main goals of PNG’s biosecurity policy are to develop a framework for safeguarding livelihoods, the environment, and agriculture, as well as to promote both internal and foreign trade. Targeting imports and transit routes for the pre-border, border, and post-border stages to prevent the entry and spread of pests; defending and enhancing agricultur-

al production and productivity in PNG; market access and export certification, which involves assisting export market opportunities for PNG agriculture products The policy is further supported by cross-cutting blocks, which include components that apply to the complete biosecurity framework and cut across them, such as the infrastructure required to support the aforementioned pillars.

NAC SIGN CADIP PHASE TWO MOU WITH ASIAN DEVELOPMENT BANK

he key partners in the Civil Aviation Development Investment Program (CADIP) in Papua New Guinea have signed a Memorandum of Understanding (MoU) for Phase 2 of CADIP. The National Airports Corporation, Asian Development Bank ADB in the Pacific, Department of National Planning & Monitoring, and Department of Transport together with Civil Aviation Agencies, signed the MoU in Port Moresby on July 4, 2022. The signing of the MoU is a significant step taken by the de-

velopment partners prior to and in the lead-up to the implementation of high-impact aviation projects under phase 2 of the program. The MoU is a result of a series of discussions between the Asian Development Mission (the Mission) and the Government agencies (Department of Treasury, Department of National Planning and Monitoring; Department of Transport), aviation entities (National Airports Corporation, NiuSky Pacific Limited, Civil Aviation Safety Authority, PNG Accident Investigation Commission) and other key

46 www.pngbusinessnews.com • Issue 2 2022

stakeholders. The MoU contains information on the ABD Mission’s findings and agreements reached with GoPNG on the following; • Project scope of works; • Cost estimates and financings plans; • Implementation arrangements; • Project due diligence • Proposed loan assurances and conditions • Draft project administration manual; and • Loan processing schedule.

To Page 54 >

FINANCE

Heduru Moni Ltd trading as Moni Plus Ltd: Committed to servicing excellence By Paul Oeka

eduru Moni Limited initially traded as Kina Finance in 1998 prior to being granted a license by the Bank of Papua New Guinea before transitioning into a Financial Institution and rebranding its trading name as Moni Plus. To date, the company has assisted thousands of Papua New Guineans and valued clients to improve their financial position and achieve their dreams through the company’s commitment to service excellence. With over 20 years of experience, Moni Plus is fast becoming one of Papua New Guinea’s leading financial service provider, servicing all major regions of Papua New Guinea with its headquarters in Port Moresby and branch offices at Port Moresby, Mt. Hagen, Alotau, Lae, and Kokopo, covering most major centers of the country. Moni Plus is specialized in a wide variety of lending. Their services include Personal Loans, Asset and Equipment Finance, Loans against Properties, Financial Guarantee, and FX Remittance services. Apart from its core strength in Personal loans, Moni Plus’ strength lies in its ability to respond to all types of business houses and sectors, from corporate heavies in transport, logistics, and construction to SMEs such as vehicle hire and public motor vehicle (PMV) operators nationwide. In a recent interview with Moni Plus Managing Director Mr. Aho Baliki OBE an experienced and seasoned banker who is widely known in the Banking and Financial sectors of PNG, he Stated that “In an industry that requires faith and trust, Moni Plus has seen and experienced the success of its clients and endeavors to understand its clients’ particular needs and how best to serve them”. Mr. Baliki said “Most importantly, we are service orientated, meaning our clients are our number one priority” When asked about the approach of Moni Plus during pre-pandemic scenarios, when the coronavirus pandemic was putting most players out of business, Mr. Baliki explained that “Moni Plus had the appropriate strategies in terms of maintaining the core services and growth of the company’s profits”. “To their credit and the strength of the team, not just

50 www.pngbusinessnews.com • Issue 2 2022

in terms of our decision-making but also in terms of how we could work together with our clients, contributed to our ability to serve our clients during the peak of the Covid pandemic and in turn, our customer service was quite good and was not affected by the effects of Covid,” he said. Moni Plus continues to enjoy a stable relationship with the Bank of PNG and has recently been leaning towards supplementing the SME sector through a partnership with the Bank of PNG’s recently launched Credit Guarantee Scheme. One of the finance company’s ultimate aims is to look at the possible acquisition of a commercial banking licence in the near future. Mr. Baliki said that “We will continue to grow the business progressively.” He says, “Moni Plus is a stable Institution with good potential and is well placed than it was in the past as profit margins have been ascending with each financial year and would very much be able, and keen to transition into a nationally owned bank in the near future”.

Moni Plus Ltd.’s Managing Director Mr. Aho Baliki OBE; [top photo] Head Office view of Moni Plus Ltd

AGRICULTURE

NFA group in the Philippines for exchange fisheries experience

group from the National Fisheries Authority is in General Santos, Philippines, led by board chairman Ango Wangatau, to exchange and gain fisheries expertise and experiences in this region. General Santos is renowned as the Philippines’ “Tuna” city capital, and visiting this region provides delegates with first-hand information and improved ideas for implementing the Fisheries Strategic Plan 2021-2030 and achieving its objectives. It has the Philippines’ most modern fish port and contributes significantly to the country’s earnings. The remarkable expansion of fisheries in General Santos was driven by collaboration between the government and important stakeholders, which the NFA delegates witnessed and will think about further when they return home. “Seeing is believing and we needed to come and see the sizeable scale and strength of this Fisheries industry in the Philippines. From here we want to incorporate the existing knowledge and experience of our Philippine counterparts to model and expand our own infrastructure in PNG,” Mr. Wangatau said. According to him, the goal of the Fisheries Strategic Plan is to change Papua New Guinea into the Pacific’s “Tuna Capital,” thus visits like these are important to gather additional expertise from a country that has already been transformed. The delegates saw tuna landings, grading, weigh-

52 www.pngbusinessnews.com • Issue 2 2022

ing, and processing, as well as the fishing boat docking yard and the world’s largest prawns and fish farm. These first-hand experiences will help PNG Fisheries prepare for the establishment of a downstream processing facility for all tuna collected in the country, as well as greater employment development for the people. “We are here and have seen what is done with fisheries in General Santos. If it can be done here, we can also do it in PNG,” he said.

AGRICULTURE

PM’S special envoy to Portugal on PNG’s efforts to protect oceans

n addition to other topics, Papua New Guinea will speak at the second United Nations Oceans Conference in Lisbon, Portugal, about the recently authorised Global Climate Fund component. Other issues PNG will bring up include the passing and implementation of maritime transportation legislation, particularly the usage of the Jomard Passage by large vessels in the province of Milne Bay. As a step toward preserving the health of its oceans, PNG has also enacted a ban on single-use plastic bags. Dr. Eric Kwa, the Secretary for the Department of Justice and Attorney-General, expressed his gratitude to Prime Minister James Marape for choosing him to serve as his special envoy and represent the nation at the important weeklong worldwide seas event. The PNG Country Statemen are anticipated to be presented by Special Envoy Kwa. He said that in his capacity as the National Oceans Committee’s Chairman, he is well-versed in both oceans-related issues and the Conference agendas that will have an impact on Papua New Guineans’ quality of life. At the numerous meetings they will attend, Dr. Kwa stated in their interactive conversations that he expects to present distinct yet intense and particular reports with the assistance of PNG’s respective sector agencies and the wider ramifications of the difficulties the country’s seas confront.

< From Page 46 The proposed CADIP Phase 2, is expected to be financed at an estimated cost of USD$ 171.5 million (ADB loan of USD$ 162.9 and the Government’s counterpart funding of USD$8.6 million). This means the ADB’s ordinary capital resources loan will be 95% of the total cost whilst the Government’s component will be 5% of the overall cost. The loan will finance identified projects by National Airports Corporation (NAC), Niusky Pacific Limited (NSPL), Civil Aviation Safety Authority (CASA), PNG Accident Investigation Commission (AIC), National Weather Service (NWS), and Rural Airstrip Agency (RAA) under the following scope; civil works, goods, and

2017 saw the first UN Oceans Conference take place in New York. The PNG Oceans Policy, however, was only adopted and put into effect in 2020. PNG will speak about the Second Oceans Conference’s recently authorised Global Climate Fund component, the passage and implementation of maritime transportation laws, and specifically the usage of the Jomard Passage in Milne Bay Province by large vessels. As a step toward preserving the

health of its oceans, PNG has also put the ban on single-use plastic bags into effect. Meanwhile, according to Dr. Kwa, they will utilise this conference to persuade the UN to use the UN Sustainable Development Fund to empower SMEs, notably the local fisherman in Papua New Guinea. He continued by saying that he would also concur that PNG is carrying out target 14 of the Sustainable Development Goals, which serves as the conference’s overarching theme.

equipment, consulting services and capacity building. The implementation period of the second phase will be five (5) years with the loan envisaged to take effect in December 2022. However, before that the proposed loan will go through ADB’s approval process which includes an interdepartmental review then an internal loan negotiation will be conducted, then the ADB Board’s approval, and finally the loan will become effective afterward. All projects are expected to be completed by the 30th of June 2028 with the loan closing on the 31st of December 2028. CADIP Phase 2 will be governed by the Project Steering Committee (PSC) comprising; ADB, the Department of Finance, the Department of National Plan-

ning and Monitoring, the Department of Treasury, the Department of Transport (DOT), NAC, CASA, New Sky Pacific Limited (NSPL), PNG Accident Investigation Committee, Air Niugini and Link PNG. The executing agencies of CADIP Phase 2 will be NAC and NSPL and the implementing agencies will be CASA, DOT, National Weather Services (NWS), and PNGAIC. CADIP-2 aligns with the Medium-Term Transport Plan, 2019 to 2022 to rehabilitate the national airports in PNG and to ensure they comply with the PNG Civil Aviation Rules Part 139 and the International Civil Aviation Organization (ICAO) Standards and Recommended Practices. In addition, CADIP Phase 2 aims to improve the selection of

54 www.pngbusinessnews.com • Issue 2 2022

To Page 64 >

AGRICULTURE

DAL ‘can give economic independence’ to PNG

ccording to Minister John Simon, the Department of Agriculture and Livestock has the capacity to give the country economic independence within the next five to ten years. He claimed that around 90% of those who reside in rural areas are actively engaged in agriculture. The goal of the government is to increase output and open up markets. “The DAL will give economic independence to the country in the next five to 10 years because the Government has been supporting the department with funding to improve the market and export,” he said. Simon claimed that he has been working to develop initiatives and price support schemes for agricultural and cash crop items to boost value and output. According to him, the price campaign and instructions issued to exporters not to manipulate prices will result in an increase in the overall export of agricultural products. “We (Government) knew the market prices so we told the exporters to pay the right price to the farmers

and producers to increase production,” he said. “We are paying better prices for coffee and cocoa so you can see the production started to increase.” According to Simon, the nation used to earn between K350 million

and K400 million from only exporting coffee. This year, it will rise to K800 million. “We are now encouraging the people to grow cocoa and coffee to benefit from the Government support programme,” he said.

Minister John Simon of the Department of Agriculture and Livestock

✔ Regulators of Exploration and Mining in

Papua New Guinea.

✔

Website: www.mra.gov.pg

56 www.pngbusinessnews.com • Issue 2 2022

Managers of Minerals Resources.

Email: info@mra.gov.pg

AGRICULTURE

COMPANIES

Supporting farmers with tools, and materials to produce quality cocoa, vanilla in PNG

< From Page 68

been the main income generation avenues for his people and province. While coffee farmers’ income in Eastern Highlands have fallen in recent years, coffee industry sales in the country has been increasing; this is one of the main reasons why Governor Numu wants to make the coffee trade fairer in order to keep prompting, other coffee buyers and fee export. The former plantations exporters to acdo the same. owned and managed by expatrimoney in the farmers pockets of his local o enable to put into practice skills In time, Rumbia aims to increase ates were returned to customary farmers. quired during capacity-building training, the Euthe price K10 to allow local farm- landowners during the 1970s and Most organic coffee producers ropean Union-funded United Nations Joint to STREers alltools throughout the province to 1980s. in PNG Eastern Highlandshas Province IT Programme startedare distributing and earn a better income. Rumbia’s General Manager Mr. subsistence farmers that live in rematerials that will enable rural communities to improve Rumbia Coffee Exports initially Baragu said: “In the coming year motehusbandry areas, which is why in exportatheir practices cocoa and vanilla blocks. exported green tionThis of intervention, quality organic coffee is a in May, which started has so far coffee beans with we plan to successfully operate a firstcloths, shipment market which Rumbiapolybags, Coffee is addistributed 900,000 90 shade 180 of 300 bags at the these plantations to produce premiof and K250,000 to South Korea. um quality coffee, as there is an inamant to explore. But at times. most value telescopic pole pruners, 90 measuring tapes, 90 Rumbia coffee has also exported to ternational market that sought-aforganic coffee produce have not boxes of budding tape to 52 cocoa farmer groups in China groups and USA ter PNG coffee but currently the madeSepik it to Province buyers in and Goroka town farmer East 38 cocoa in as well. Jullian Baragu, General Manag- quantity of supply that is exported due to road conditions. Sandaun Province. er of Rumbia Coffee, stated: “We is much less”. Since the establishment Rum- rehabilitate These inputs will help theoffarmers their are also in cothe preliminary stagRumbia Coffee exports have the bia Coffee in 2019, Governor Numuof high-quality blocks and improve the production es of exporting to India and the support of the Governor, the Prime has subsidized airfreight to these coa beans for an increased income to support their remote areas order for them to Philippines as well. Our main ob- Minister, and all stakeholders such livelihood and in families. jective is to help our hardworking as the Department of Agriculture sellThese their groups coffee have as well as fresh already received tailored traincoffee farmers produce. Rumbia Coffee buys their ing on cocoa bud grafting and block management in remote locations and Livestock and Coffee Industry throughout with EHP where it has very Corporation to manage and opercoffee at a by higher previously, organised the price; Programme in collaboration quality organic coffee and ate these plantations. parchment at good PNG Cocoacoffee Boardwas and bought Department of Agriculture to export quality green The processing and roasting of ora price of K2.50 per kilogram, but are and Livestock officers in the districts andwilling local-level ganic coffee will eventually be done since Rumbia(LLGs). coffee’s inception, beans to the overseas market”. governments Rumbia Coffee also aims re- in the province of production rather they have started buying at K4.50 The 90 to registered cocoa groups of over 45,000 The skills acquired during these training sessions habilitate coffee in the than in other countries. Thepod resultborwill per kilogram, whichtowas eventually farmers have started propagation of cocoa assist the farmers enhance their cultivation, farm plantations accessing be the export of high-quality finished increased to the current price of K7 province as they erare (CPB) tolerant seedlings in their respective nursermanagement, and harvesting practices. more markets for large-scale cof- product straight to the buyers in oth-

(Photo left) Rumbia Coffee Exports Launching, Goroka National Park. (Photo right) Roasted coffee beans from Rumbia Coffee.

To Page 62 > To Page 80 >

SUSPENSION If your suspension’s reliability is a necessity and not a luxury, then Terrain Tamer Suspension has been designed for your vehicle. The corrugations and dust on our vast network of dirt roads can take their toll on any suspension. Terrain Tamer Suspension has been proudly designed, modified and manufactured by our team with engineering experience to tackle these conditions stretching back to the 1960’s. These years of experience, constant refinement and innovation as well as the utilisation of modern advancements, all add up to a tailored suspension kit to suit your needs.

To learn more about these solutions visit terraintamer.com

TT307_Suspension_127x181_v3.indd 1

58 www.pngbusinessnews.com • Issue 2 2022

17/3/22 1:04 pm

www.pngbusinessnews.com • Issue 1 2022 79

FINANCE

PNGX Markets, Xbourse Australia ink MOU for blockchain technology use To accelerate Pacific Islands’ capital markets

NGX Markets - Papua New Guinea’s national stock exchange, XBourse Australia - a leading technology services company specialising in building innovative bespoke solutions for financial markets, and Pacific Capital Markets Development - an Australian company committed to the development of capital markets in the Pacific region, have recently signed a memorandum of understanding to explore the development of world-leading digital solutions for Pacific Islands’ capital markets, starting in Papua New Guinea. The objectives of the cooperative arrangements are to enhance capital market efficiency, promote market liquidity, attract investment, and reduce market risk in the Pacific Islands region. Under the memorandum, PNGX, XBourse and PCMD will work together to explore the phased development of state-of-the-art digital market infrastructure and services: • Multi-currency post-trade settlement and registration solutions for public and private markets; including equities, bonds and climate instruments. • central securities depositories and registries; • custodial services for international investors; • integrated commercial and regulatory solutions for SMEs; and • superannuation registry solutions. “We are very excited to be working with XBourse” said PNGX Chairman and PCMD Director, Mr David Lawrence. “XBourse’s digital ledger technology (also known as blockchain)

and smart contracts have the potential to turbo-charge the public and private capital markets in the Pacific region. “iThe concepts currently being developed would be world-leading, presenting real opportunities for Papua New Guinea. “We have a vision to provide an integrated solution for Pacific companies of all sizes offering faster access to debt and equity capital, instantaneous and risk-free settlement of trades, a central securities depository to make trading easier for all market users, a custodial platform to meet the needs of international investors, and the potential for expansion into other services, such as superannuation technology services” Mr Lawrence said. “XBourse is a market leader in the financial technology sector and has been working in recent years with globally recognised technology partners to develop a range of integrated and innovative market platforms and digital solutions that can be readily deployed into all types of markets, covering both existing and new assets, such as climate, that are rapidly being digitised. “These platforms deliver greater functionality, efficiency and a new way of doing business in the 21st century at a lower cost than existing incumbent legacy systems and processes. “Importantly they offer opportunities for new asset classes in the digital age. Some of the opportunities include issuance and registration of assets, trading, digital registries, and other back-office systems with immutable records of ownership, trans-

60 www.pngbusinessnews.com • Issue 2 2022

actions and provenance that provide much-needed integrity and security to support the market and regulatory confidence. “XBourse is excited to be working with PNGX and Pacific Markets Capital Development to identify ways XBourse’s technology solutions can be implemented in the PNG market. Our experience has shown that better market infrastructure is vital to promote efficient use and allocation of capital and to attract the interest of investors large and small,” said XBourse CEO and Founder, Mr Tony Mackay. “Digitisation and blockchain provide the opportunity for markets of all types and sizes to better and more efficiently access capital. Just as importantly, the new market infrastructure can reduce operational and regulatory risk for all participants and operators. “XBourse is also working on early-stage projects to tokenise carbon abatement and carbon credits, and we see enormous potential in the Pacific for these instruments where digitisation and blockchain technology can validate, regulate, and tokenise these instruments and initiatives and make markets in them,” Tony Mackay said. “The input of key stakeholders in the market, such as listed companies, banks, superannuation funds and stockbrokers, is critical to the success of this project and ultimately of the PNG market” said PNGX General Manager, Ms Elizabeth Wamsa. “We will shortly be conducting industry forums to discuss user and regulator needs to enable the development of an optimal solution,” she said.

Agmark machinery is the sole PNG agent for JCB equipment

FINANCE

We are the sole distributors of the JBC brand of machinery & equipment in PNG. Other brands we distribute; Shantui machinery & equipment, Maximal Forklifts, and YTO Tractors & agricultural attachments. We have a large range of Spare Parts and an after sales Service Department. NGIP AGMARK LTD Group of Companies is publicly listed on PNGX and is a 100% nationally owned PNG company since 1971.

Tel: Main +675 982 9055 | Lae +675 472 6324 | Port Moresby +675 323 2658 Email: machinery@agmark.com.pg

www.pngbusinessnews.com • Issue 2 2022 61

AGRICULTURE < From Page 58 ies. The Programme will continue to support them, whereby each group will have their seedlings purchased and distributed to their respective members or farmers including youths and women for free. “I want to say thank you to STREIT PNG and the financiers of this Programme the European Union. The training we attended, we will now put into practice using these tools and materials,” said Mrs. Maureen Mombi, whom with her husband Ben are organizing and supporting three farmer groups of 1,500 members from Mushu Island, Hambraure Village (Wewak District), and Hambini Village (Ambunti-Drekikier District). For the vanilla value chain, the Programme has distributed 120 sets of vanilla cultivation, husbandry, and processing tools, including shovels/spades, gumboots, pruning baskets, harvesting knives, cooking pots, cooler boxes, strainers, thick clots, digital thermometers, kraft/wax paper, plastic canvas, and cardboard boxes to the farmers in 11 villages of Wewak District and 4 villages of Aitape/Lumi District. Six vanilla vines treatment sheds with a 10,000-vine capacity have been established. The vanilla

kits and sheds in total so far are supporting more than 4,000 men, women, and youths in rural Sepik. “The transfer of knowledge and skills to farmers and their families is an important extension activity that must be supported with tools and materials. Under the Programme, we are distributing these items as well with new technology to improve their practice,” explained Programme Coordinator Dr. Xuebing Sun. “Tools and materials are a vital link in the adoption of technologies for sustainable farming systems, which is being encouraged under the Programme,” added Dr. Sun. Among the recipients were 1,000-plus farmers from four re-

mote communities of the inland Turubu area in Wewak District, East Sepik Province. On behalf of youths and women in the village who will also benefit from this intervention, Brigitte Kamiresa, a mother at Mundangai Village, said: “I want to thank the European Union. We mothers didn’t attend big schools so our youths or kids will help train us to use these tools and materials to improve our practices.” The national technical officers of the cocoa and vanilla value chain have also explained on the local radios the distribution of tools and materials for farmer groups/ clusters that have already been formalised and are supported un-

A family dries Tahitian vanilla seeds grown in their PNG farm.

To Page 66 >

Rondon Ridge Lodge Mount Hagen The ultimate weekend adventure! Experience the cool of the Highlands Walking tours, bird watching, restaurant and function rooms available.

7198 9397

62 www.pngbusinessnews.com • Issue 2 2022

service@pngtours.com

Endorsed By

Host Sponsor

HARNESSING PAPUA NEW GUINEA’S ENERGY SECTOR TO ENSURE SUSTAINABLE DEVELOPMENT

2022 Distinguished Speakers Include

Hon. Kerenga Kua Minister of Petroleum and Energy Papua New Guinea

Dairi Vele

Secretary - Treasury Department Papua New Guinea

Peter Koim

Director Gas Project Coordinating Office

David Manau

Secretary Department for Petroleum & Energy

Wapu Sonk

Managing Director Kumul Petroleum Holdings Ltd

Augustine Mano Managing Director Mineral Resource Development Company (MRDC)

Papua New Guinea Energy Summit & Exhibition At A Glance

1000

600

ATTENDEES

DELEGATES

SPEAKERS

CONFERENCE SESSIONS

HOURS OF NETWORKING

EXHIBITORS

Host Sponsor

Gold Sponsor

Silver Sponsor

Bronze Sponsors

REGISTER AS A DELEGATE TODAY Please Contact Alexander Soar +44 204 5666 783 | png@dmgevents.com | pngenergysummit.com/register Organised By

pngenergysummit.com #PNGSummit

TRAVEL AND TOURISM

PNG Air celebrates 35 years By Paul Oeka

ne of Papua New Guinea’s leading airlines PNG Air has marked and is celebrating 2022 as its 35th anniversary year. PNG Air has been taking Papua New Guineans to their destinations since its initial beginnings as Milne Bay Airlines (MBA) right through to the airline’s transition to PNG Air for 35 years. The Airline’s history dates back to the late 80s in the beautiful Island Province of Milne Bay. The company was established and started operations on June 30th, 1987, as Milne Bay Airlines (MBA) by founder Sir John Wild, a naturalized citizen of Papua New Guinea and an architect. Sir John Wild was also an avid and passionate aviator who owned an Amphibian aircraft which he was asked to provide a service to fly to and from the remotest and far-fetched parts of the islands in the Milne Bay province. Now as the Airline Company looks ahead and celebrates 35 years of service to Papua New Guineans it also reflects on the tale of how a humble airline company that started with an amphibious aircraft in Milne Bay Province became a fully-fledged national carrier, flying over 500,000 passengers a year. It’s a story of innovation – 35 years ago PNG Air began its journey when some of its first flights flew around the scattered Islands of Milne Bay under the Milne Bay Airlines (MBA) Brand to operate as one of PNG’s leading Airline carriers today. In the years that followed after MBA’s establishment, the airline underwent its first major rebrand from Milne Bay Airlines to Milne Bay Airlines of PNG to focus on new opportunities, which also included chartered flights for the country’s resource sector. In 2001 the airline was renamed Airlines PNG, boasting a fleet of 26 aircraft, and signifying a new era for the company’s future as it

< From Page 54 Rural Regional Airports. This is to encourage and create business opportunities such as tourism, agriculture, and connectivity to boost economic growth and sustainability for our people in the

PNG Air 35th Anniversary Launching

grew to be regarded as the people’s airline, providing affordable and value airfares. Within that period PNG Air also transitioned into a public company when entering the Port Moresby stock exchange. Since then, it has been governed by a seasoned and experienced Board of Directors. Eventually, after 14 years as a fully-fledged commuter airline, the company signed a contract to acquire seven ATR 72-600 series aircraft, which gave way to the rebranding and launch of the company to PNG Air on November 5th, 2015. As PNG Air embarks on the beginning of its next endeavors in conjunction with the anniversary the company’s Chief Commercial Officer Mr. Simon C Pitt said: “To commemorate this Milestone we’ve commissioned a special 35th anniversary Logo that will set the benchmark for all the activities we plan to do this year. The Logo is a representation of all the distinct

elements of our livery, represented through the bird of Paradise”.

rural and urban areas of PNG. The proposed CADIP Phase 2 will commence after the successful closure of CADIP 1 which ended after the ADB’s Multi-Tranche Financial Facility (MFF) loan expired on the 24th of November 2021.

Under CADIP 1 several highimpact aviation infrastructures were successfully implemented through a series of tranches (Tranches 1, 2 & 3). Few projects that were not covered under CADIP 1 will be implemented in the second phase

64 www.pngbusinessnews.com • Issue 2 2022

The first airplanes under MBA Airlines

THE LINER THAT LASTS LONGER

The best mill liner has a green strip and lasts longer than ever. With more abrasion resistance and a better wear life, Vulco® R67 liner keeps your mill running at capacity longer. That means a measurable reduction in mill downtime, as well as a reduction in installation, maintenance costs and total cost of ownership. It’s all thanks to the unique patented material that forms our innovative premium rubber compound. The R67 mill liner is the most wear-resistant we’ve ever made. Which for Vulco is pretty impressive. So, if you don’t see that green strip, you know you’re not working with the best.

Get more from your mine with Vulco®. Visit https://info.global.weir/vulcor67 today. Copyright © 2018, Weir Minerals Australia Ltd. All rights reserved. The trademarks mentioned in this document are trademarks and/or registered trademarks in the name of The Weir Group PLC and/or its subsidiaries. Certain features of the technology in this publication may be protected by pending and granted patents and designs in the name of The Weir Group PLC and/or its subsidiaries.

TRAVEL AND TOURISM

Holiday Inn Express Port Moresby reopens doors on 1 May

oliday Inn Express Port Moresby reopened its doors to guests on the 1st of May 2022. The perfect base to get business done while in Port Moresby or start a PNG adventure, the hotel closed operations on April 16, 2020, following the first travel border closures as a result of the COVID-19 pandemic. Whilst the hotel remained closed for sale from 2020, several rooms were utilized as overflow from the Holiday Inn & Suites, in 2021. Two years on and this smart hotel choice for the business and leisure traveler reopens offering all the essentials of a great hotel at an exceptional value. “A Holiday Inn Express guest is a savvy traveler that expects value, we extend free breakfast and free Wi-Fi with our rates,” says Mauro Leone, Area General Manager, IHG PNG. ”Considering the high cost of connectivity in Papua New Guinea, this sets the brand apart from the competition,” he continues. Holiday Inn Express Port Moresby offers a choice of modern queen and twin rooms and 2 wheelchair-accessible rooms, as well as free on-site undercover parking and a complimentary shuttle bus to the city’s Jacksons International Airport only 6 minutes away. Located within a secure green oasis in the heart of central Waigani,

Holiday Inn Express shares a vicinity with Holiday Inn & Suites. Between the two hotels within the precinct, they offer a variety of modern facilities, including a fully equipped gym with two squash courts, an external basketball court, and a walking track for guests. In celebration of this reopening, the hotel offered an unbeatable

room rate to the domestic tourism market, of K399 +GST inclusive of free Wi-Fi, breakfast for two adults in Kopi Haus Restaurant, and accommodation in a standard room for the month of May. Experience Holiday Inn Express Port Moresby again and book now, at reservations.holidayinn&suites@ ihg.com or +675 303-2000.

< From Page 62 der the rural agriculture development programme. “If you have transport, please come to the office at Wharf Road. For those in hard-to-reach areas, we will come to you,” said Mr. Michael Lames, National Cocoa Value Chain Officer. The distribution of quality inputs by the Programme will continue to cover other farmer groups in the Programme’s implementation sites in East Sepik and Sandaun provinces. The EU-STREIT PNG, as a UN Joint Programme (with FAO as leading agency, and ILO, ITU, UNCDF and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. Being implemented in close cooperation with the National and provincial government institutions, research entities, civil society or-

Cocoa seedlings growing in a garden in Gumine district, Chimbu Province.

ganizations, and private sector enterprises, the Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces. This is done by focusing on increasing sustainable and inclusive economic development of rural areas through improved econom-

66 www.pngbusinessnews.com • Issue 2 2022

ic returns and opportunities from cocoa, vanilla, and fishery value chains, while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development.

COMPANIES

Ark Pacific: Resource Sector’s Preferred Camp Provider

refabricated modular building supplier, Ark Pacific, continues to increase its market share in the provision of camps across PNG’s resource sector. With a low freight footprint (up to 75 percent less) and proven commitment to quality and after-sales service, Ark’s fit-for-purpose buildings are perfect for camps and a multitude of other building types required by mining and oil and gas operations. Introduced to PNG during the LNG construction phase in 2010 for a 1,000-person multi-story camp accommodation complex and office facilities, there are now thousands of Ark building modules around the country. Significantly, all of Ark’s buildings are assembled by local community workforces, thus helping developers achieve their local content objectives. Ark has long-term building supply partnerships with several of its resource clients. General Manager, Cassius Ruka, who spent his childhood in PNG as well as most of his working life, knows the importance of building genuine client partnerships. Central to these partnerships is Ark’s commitment to after-sales service and continuous quality improvement. “We do whatever we can to make our buildings even better for our clients. Right now, Ark Pacific is engaged in the process of working closely with one of PNG’s biggest mines to further improve the quality, design, constructability,

and longevity of their buildings,” Ruka says. “This has involved carrying out inspections and conducting interviews with a range of stakeholders, including asset owners, construction project managers, maintenance coordinators, and facility end-users. The data we’re gathering from this process will be used to develop an even better product, that is buildings that are increasingly fit for purpose, have enhanced longevity, and can accommodate the mine’s unique environmental factors and remoteness.” Ruka is well versed in the challenges remotely located resource operations face when it comes to procuring camp accommodation and other buildings.

68 www.pngbusinessnews.com • Issue 2 2022

“Irrespective of whether you’re an island operation like Lihir or a highland operation like Porgera, you need to be 100 percent certain that your buildings – which represent a major capex investment – are durable and can withstand whatever nature throws at them.” “Sulphur and salt, as well as excessive rain and moisture, will all reduce building longevity. You also need to be able to get the buildings to the site as easily and cost-effectively as possible which is incredibly difficult given remoteness combined with the state of our road network and current freight prices.” Ark modular building units are engineered specifically for the harsh conditions of remote resource operations. Furthermore, clients can

Camp Complex: Ark buildings are easily assembled by local workers, thus assisting developers to achieve their local content objectives by providing training and employment for people in their footprint communities.

To Page 70 >

LAE • GOROKA • MT. HAGEN

LOCALLY CONNECTED GLOBALLY FOCUSED

YOUR TRANSPORT AND LOGISTICS SOLUTION PROVIDER IN PAPUA NEW GUINEA AND BEYOND

Customs and Freight Forwarding

Logistics and Transport

Recovery and Onsite Support

Connected directly to PNG’s electronic Customs System “Asycuda”, we handle your import / export duties in a secure and eﬃcient way.

We provide ad-hoc and contracted solutions that suit your needs like FCL, LCL, FTL, LTL, Bulk or Oversize.

Mapai Transport has built up its own recovery capacity, which allows a fast and reliable intervention in case of accidents or disruptions.

Contact our Customer Service today to get a quote.

Contact: +675 7092 2000 sales@mapaigroup.com www.mapaigroup.com

COMPANIES

iPi Catering: Seven decades of quality brewing Partnership brewed since 2012

enowned as Papua New Guinea’s most iconic beer brand, SP Lager has indeed been uniting Papua New Guineans since 1952. With South Pacific Brewery celebrating SP Lager’s 70th anniversary this year, iPi Catering is beyond honored and elated to be part of this monumental journey. South Pacific Brewery has long been a highly valued partner of iPi Catering and the company is nothing less than delighted in their decade-long business partnership. iPi Catering Limited’s General Manager, Peter Long, reflected on this remarkable milestone and said, “our friendship with SP Brewery humbly began over our mutual attendance on Sunday footy in Lae and from there, iPi Catering began catering for the good and decent people at the Lae Brewery; a time later, this included the Port Moresby Brewery.” As the South Pacific Brewery’s operations thrived, so too did iPi Catering grow in conjunction with the Brewery. iPi Catering shares similar sentiments with SP Brewery’s commitment to respect for diversity in people, gender equity, and, from a business lean, delivering the very best of product and service. Across the first decade of their partnership with the SP Brewery, they soundly maintained food safety

and quality; accordingly, whilst remaining focused on a continuous innovative approach to ensure top-tier service delivery. This was especially seen during the COVID-19 pandemic. Hand in hand with the SP Brewery, iPi Catering responded and adapted proactively to the ‘new normal’

To Page 72 >

< From Page 68 save up to 75 percent on their freight costs because Ark’s modular componentry is specifically engineered so that six of its flat-pack units are equivalent to a single 20-foot shipping container when stacked together ready for transport. “In other words,” says Ruka, “instead of using five, six, or seven trucks to get our units to the job site, the client only needs one.” In addition to the low freight costs and durability associated with Ark Pacific’s prefabricated modular building systems, Ruka says his resource clients also benefit from: • After-sales services: Regular follow-up and ongoing communication (i.e., not just from design through to handover, but for years afterward). • Quality guarantee: Cost of any defects 100 percent covered by Ark. • Multiple configurations: Modules can be utilized for a multitude of building types and layouts (i.e., a range of ancillary buildings in addition to camps, such as offices, laboratories, messes, etc.,) • Furniture and equipment supply: From office and bedroom furniture to commercial laundry

and kitchen equipment. • Local workforce assembly: Developer achieves local content objectives and local workers secure training and employment. • Repurposability: Unbolt and disconnect the modules from one another to transport to another site and bolt them back together in a similar or different configuration. • Buildings that ‘Give Back to

70 www.pngbusinessnews.com • Issue 2 2022

PNG’: The repurposability of Ark buildings means that they can be donated to footprint communities after they’re no longer needed by the developer. To learn more about Ark Pacific, including its diverse range of fit-forpurpose camps and ancillary buildings, as well as the advantages of its unique building systems: www. arkpacific.net

Crane Module: Resource clients benefit from a greatly reduced freight footprint when building with Ark. Six of its flat-pack units are equivalent to a single 20-foot shipping container when stacked together ready for transport.

AGRICULTURE

Contracts signed for rehabilitation, specific maintenance of 4 roads in EU-STREIT PNG project

o create an enabling environment including farm-to-market roads to support cocoa, vanilla, and fisheries farmers in the Greater Sepik Region, the ILO under the EU-funded UN Joint STREIT PNG Programme, has recently engaged three local contractors to commence rehabilitation and specific maintenance of four farm-to-market access roads totaling 52.1 km in the Sepik Region of Papua New Guinea. The ILO recently signed contracts with three local firms -- Hiawani Limited for the rehabilitation of 7.8 km Banak-Wautogik road in Wewak District; Midway Pacific Ltd for the Specific Maintenance of 12.8 km Balif-Araseli Road in Maprik District; and Kaystar Construction Ltd for two roads: Rehabilitation of a 6.5 km Munji-Haripmo road in Yangoru-Saussia District, and Specific Maintenance of 25 km Pasi-Krisa road in Vanimo-Green District, Sandaun Province. These roads were selected based on the high production of vanilla, cocoa, and fisheries in the areas that are supported under the EU-STREIT PNG Programme. The contract duration of these specific lots and packages is 12 months and the contractors have been given two weeks to mobilize their resources including pieces of machinery to commence road works by 15 July 2022.

The ILO Engineer will conduct regular supervision, monitoring, and monthly meetings to discuss work progress, challenges, and the way forward. “We will not only monitor but we will be satisfied to support you by providing technical training to the key personnel of the contractors for continuous capacity development and quality assurance of sub-projects,” explained Mr. Shailendra Kumar Jha, ILO’s Infrastructure Specialist/Chief Technical Advisor under the EU-STREIT PNG. “Given the delay caused by the COVID-19 pandemic which has put a strain on the progress, I’m pleased to announce that this is a milestone achievement for the road transport infrastructure component to ensure we assist the government in its efforts to bring markets closer to the unreached in our focus areas,” said Dr. Xuebing Sun, EU-STREIT PNG Programme Coordinator. The contractors were selected through the competitive bidding process using the e-portal of United Nations Global Market Place (UNGM) to ensure the principle of sustainable procurement of ILO. This is a new practice in the case of PNG where local contractors were trained on e-bidding and successfully submitted their bids using UNGM and ILO Electronic Tendering System (eTS). As part of EU-STREIT PNG’s mandate to support

To Page 74 >

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

Industry ● Commerce ● Manufacturing ● Transport ● Shipping

Tel: +675 472 2340 Fax +675 472 6038 Email:admin@Icci.org.pg www.Icci.org.pg www.pngbusinessnews.com • Issue 2 2022 71

COMPANIES

CSR: More than a handout, it’s good for business! By Port Moresby Nature Park

SR: It once meant a big company handing over large sums of cash in the hope (or more usually, on the condition) of getting something in return, but today it means a whole lot more. Today it is about the social license to operate and a necessity if we are to meet net-zero by 2050. Today’s global society is identifying that doing good for others is doing good for you. In this way Corporate Social Responsibility, although still evolving, is also proving to be good for business. A company that “cares” for its staff and others, creates a happy workforce, a happy workforce leads to less staff turnover, greater productivity, and overall, makes for a good bottom line. Progressive companies proactively use their CSR programs as marking tools. Furthermore, it doesn’t focus

just on big corporations. Every entity, private, government, and notfor-profit, big, or small, has a role to play in improving our communities. It is as simple as the choices we make in whatever our line of work. Ensuring supply chains are equally socially responsible is a sure way to drive change and takes little to no extra effort. By adding a few questions to your procurement processes you’re making a difference. Better yet, those that can proactively assist/encourage business in the right direction: if you supply in this way, we will commit to your product/service. Being socially responsible is worth more than just the material worth that may be provided. It provides the concept of planning for tomorrow because today is taken care of. It provides long-term assurance that support is ongoing, so there is no need for an immediate cash grab. Advanced programs also provide for growth within arrange-

< From Page 70 by reconfiguring the interior dining facility and opening the POM Brew Kettle as a secondary dining outlet to ensure social distancing for the SP Brewery staff. In addition, they were more than happy to comply with COVID-19 rules and regulations where their staff in Lae and Port Moresby were the first caterers to be 100 percent vaccinated in light of the vaccine rollout in Papua New Guinea. At the heart of this milestone, their skilled and dedicated team has always focused on providing nutritious and delicious meals for the SP Brewery staff knowing that it is vital towards achieving employee productivity, boosting employee morale, maintaining employee focus whilst on duty, promoting healthy eating habits, reduced facility downtime, and an increased bottom line. “We are immensely grateful that SP Brewery continues to put their trust in us in ensuring employee satisfaction. Congratulations SP Lager on seven decades of quality brewing,” said Mr. Long.

72 www.pngbusinessnews.com • Issue 2 2022

ments and often involve more than one partner. An initial relationship can create leverage and multiply the ROI when further relationships come on board. This is often the case when the industry partners with the not-for-profit sector; partnerships reach out to wider community groups to facilitate work required ‘on the ground’. More and more we now see collaboration between partners that were previously unheard of. Consider the recent arrangement between one of Australia’s largest pastoral companies, The North Australian Pastoral Company, and Australian Wildlife Conservancy, one of the largest conservation NGOs. This will manage 6 million hectares with a key objective to demonstrate that conservation-focused land management can benefit both pastoral productivity and biodiversity. It’s an innovative investment in the ongoing sustainability of both parties’ core businesses. You need

Photos (top left): Participants in the ExxonMobil volunteer program at the Port Moresby Nature Park; (top right) Two school buses donated by Ela Motors to PMNP

To Page 74 >

COMPANIES < From Page 71 capacity development, all contractors including their personnel will undergo training in technical areas like contract management and administration, Supervision, Quality Assurance, and Quality Control, Material Testing and Laboratory Practice, environmental and social safeguards, occupational safety and health at the construction site, and modern survey techniques using GIS (geographic information system) and Total Station. This is to ensure the delivery of quality road transport works for EU-STREIT Programme in the Sepik Region while also fulfilling the PNG government’s requirement to develop professional contractors in the country. The contractors were excited and looking forward to completing sub-projects within the allocated time frame of 12 months. Mr. David Bannah of Midway Pacific Ltd said: “We’re very fortunate because we’re learning a lot of new things here, especially the UN ILO procurement process through e-bidding. As a local contractor, I’m so proud to be associated with the Programme.” Mr. Pious Hiawani of Hiawani Ltd added: “We know the ILO team will help us to become better contractors and many rural people will benefit here so I like to thank European Union (EU)-the donor agency and ILO under the STREIT Programme.” Under the road transport infrastructure component led by ILO, 15 rural roads in the Sepik totaling 264kms in length will be rehabilitated to support the market access initiative implemented by the EU-STREIT PNG for rural farming communities to boost agriculture production and agribusiness activities in the three targeted value chains for an improved income and cash flow for the rural sector. The roads will also support other agricultural, business, social, and community activities and facilities

< From Page 72 an open mind but if you start by finding similarities instead of targeting historic conflict, you’ll go a lot further. Good CSR arrangements aim to become more than a year-to-year grant submission. To be successful and truly fit the definition of corporate social responsibility, CSR arrangements need to be just like any other facet of the business. Budgeted for, measured, and reviewed accordingly to provide an effective feedback mechanism, thus ensuring the biggest bang for your buck! Agreed milestones also provide greater flexibility into how the project may evolve, even mid-allocation, provided it meets criteria, and each completed stage provides engagement opportunities between partners as well as to the wider community. These celebrations are equally as important to schedule and commit to as the program itself and what’s more, they are wonderful brand promotional activities. Regularly sharing progress with the wider community, rather than just listing it in an annual report offers your program momentum, and credibility and adds to your reputational profile. After all, if nobody hears about it, is its social respon-

like schools, aid posts, and health centers that are in dire need of better access roads. The EU-STREIT PNG, as a UN Joint Programme (FAO as the leading agency, and ILO, ITU, UNCDF, and UNDP as partners), is the largest grant-funded Programme of the European Union in the country and the Pacific region. The Programme aims to help improve the lives of the people from East Sepik and Sandaun provinces, by focusing on increasing sustainable and inclusive economic development of rural areas through improved economic returns and opportunities from cocoa, vanilla, and fishery value chains. This while strengthening and improving the efficiency of value chain enablers, including the business environment, and supporting sustainable, climate-proof transport and energy infrastructure development. The program is being implemented in close cooperation with the national and provincial government institutions, research entities, civil society organizations, and private sector enterprises.

sibility or just a business deal between two companies? Additionally, consider delivering your success to wider audiences. Make them a part of everyday business and promote them at industry expos and during networking events or conferences. Offer to present them to other industry networking events as well. You’ll be surprised at the response. Most of all, share your stories. Port Moresby Nature Park simply wouldn’t exist without our corporate partners, big and small. Annually they make up 30-40% of our budget. Many of our partners have been with us from the very beginning: ExxonMobil PNG, Ela Motors, and Digicel being key players in our foundation wildlife and education programs. Partners such as Newcrest Mining may be newer on the scene but equally important as we expand our reach and capacity to assist rescued wildlife, enhancing the awareness of key environmental issues along the way. In the future, there are plans for major upgrades to infrastructure to provide a platform for an international conservation research hub. A place where international players can base their fieldwork on PNG biodiversity.

74 www.pngbusinessnews.com • Issue 2 2022

With a focus on collaboration and coordinated research, we aim to be the most sought-after platform in the country and to also utilize this to provide stability to finances. There are a few steps to go in reaching this goal, but we are perfectly positioned in a biodiversity hotspot central to current global conversations regarding climate change. We remain steadfast in our Vision -- to inspire the guardianship of PNG flora, fauna, and culture; we hope you will join us. Remember, it’s not just good for the planet, it’s good for business!

www.pngbusinessnews.com • Issue 2 2022 75

COMPANIES

Building Procurement That Benefits PNG

t is readily accepted that prefabricated and modular building systems are better suited to Papua New Guinea than conventional modes of building. This is especially so for remotely located resource sector projects such as camps, but also housing developments, and large civil infrastructure projects including hospitals, schools, and government offices. There are several prefabricated and modular building providers in PNG, however, they differ in the extent to which they ‘give back’ to PNG, as well as the extent to which they help their clients achieve their local content objectives. While cost is always a critical criterion for building procurement, companies are increasingly placing greater emphasis on building suppliers that make a meaningful contribution to PNG. Managing Director of PNG CR, Allen Tyson says that “most of the country’s modular and prefab builders are doing a similarly good job when it comes to corporate social responsibility, but they do differ when it comes to local content.” Having good local content credentials encompasses much more than a company ensuring it employs as many PNG Nationals as possible. It’s also about maximizing the number of PNG-owned businesses in their supply chains, as well as supporting and capacity-building these businesses. PNG CR, with its 14 years of experience providing world-class modular and containerized buildings in PNG, implements a range of initiatives that maximize the incorporation of local businesses in their supply chains for large projects: • Centralised procurement of local goods, • Agricultural co-ops, • Business start-up training, • Assistance with the scalability

of local partners, • Expansion of business partners at national levels, and • Training and upskilling of the local workforce. “In addition to making sure we have as many local businesses in our supply chains as possible, 95 percent of our 250+ workforce is Papua New Guinean,” says Tyson. “This workforce is largely permanent, and we increase it by hiring more local workers when the need arises.” Unlike some of its competitors, which manufacture cheaply off-shore, PNG CR manufactures in-country. Tyson acknowledges this wasn’t always the case but says that over the last 14 years his company has established the capability to produce PNG-made building solutions. According to Tyson, 80 percent of a typical PNG CR building (e.g., framing, cladding, roofing) is manufactured in-country.

76 www.pngbusinessnews.com • Issue 2 2022

Manufacturing locally obviously has many benefits for PNG in terms of employment, upskilling, and reducing the reliance on expensive expatriates who send their money overseas. It also assists clients who procure PNG CR buildings with their local content requirements. PNG CR has delivered a broad spectrum of buildings in PNG in addition to the 9,700-person camp complex with ancillary buildings it designed, supplied, and installed for the PNG LNG project back in 2010. The company has also provided PNG with several other camp and staff accommodation facilities, an airport terminal, a medical center, an ambulance control center, numerous offices, and many more buildings. As well as the buildings PNG CR supplies, the company also has full facility management capacity. Tyson says that this capacity is highly valued, particularly by resource sector clients with hundreds or even thousands of staff to accommodate and multiple buildings to operate. “We provide a design-manufacture-construct-operate model – essentially an ‘A to Z’ turnkey suite of solutions for clients. In short, we can take care of absolutely everything building-related which enables our clients to get on with their core business. Dealing with one contractor like PNG CR who can literally ‘do it all, is a lot easier than managing multiple contractors.” To learn more about partnering with PNG CR and procuring buildings and facility management services that benefit PNG, go to www. png-cr.com.

COMPANIES

Transportables for the Resource Sector

NG Forest Products has produced an innovative range of transportable, modular solutions for mining, gas, and petroleum camps that provide instant accommodation without the need for on-site construction. Each unit in the range is affixed to a steel chassis skid frame with lifting eyes for easy craning onto trucks for transport to the site. The Transportable Duplex with Ensuite provides comfortable accommodation for 2 people with each unit containing a bathroom, water heater, air conditioning, and all internal plumbing and electrical fixtures and fittings. Including verandahs, this duplex is priced from K69,000. There is also a Transportable 4-Man Duplex without ensuite, which accommodates two persons per unit and is priced from only K62,425. Supplementing these are Transportable Ablution Blocks, which come in several configurations including Male/Female with three toilets on each side; a six-toilet unit; a six-shower unit; or a three-toilet/ three-shower unit, all with four handwash basins. Priced from K64,600, these ablution blocks are also ideal for rural schools, health clinics, and aid posts around the country and come with the option of a septic tank kit. For situations where space is an issue, PNGFP has designed a 3-Storey stackable duplex with ensuites, priced from K295,000. All prices quoted are ex-Lae and ex-GST. These modular units are a real game-changer when it comes to time savings in constructing a mining camp. Projects Maintenance Superintendent at K92 Mine Site, Reis Colley, explains why: “As K92 Mine is growing and expanding we were considering different accommodation options when PNGFP proposed a transportable 2-bedroom individual ensuite unit with a verandah. I presented this to the Management Team as a quicker option than the traditional timber long houses we have been installing. “We initially purchased 18 of these units and installed them near existing accommodation units, which allowed us to use established infrastructure and minimize disruption to current camp rooms. When the first units were installed and inspected, it was agreed to continue with the purchase and installation of these units, as they provided 2 ensuite rooms with a verandah on a footprint about the same size as a 20ft Container.

Stackable transportable duplexes

78 www.pngbusinessnews.com • Issue 2 2022

“As the modular unit is built in the PNGFP factory offsite, once delivered it only had to be lifted onto the footings and connected to the plumbing and electrical services, so we could have rooms available quickly. This also allowed for us to hand over completed sections and continue with more footing and infrastructure installation for the next deliveries”. Another significant advantage these transportable units provide is a cheap and simple solution for camp relocation… just pick them up and move them! And, as with all PNGFP Engineered Wood Products, the timber and plywood components are produced from durable, lightweight, pressure-treated PNG plantation pine, manufactured to Australian and NZ standards. PNGFP’s unique preservative pressure treatment method ensures full protection from rotting and termites, so you know these units are built to last. For more information contact the NiuBuild team on 478 8111 or email buildingsales@pngfp.com.

Photos from top: Duplex with ensuites; Floor plan of duplex with ensuites; Ablution blocks on the move.

Endorsed By

Host Sponsor

THE MOST ESTABLISHED GATHERING OF PNG’S ENERGY SECTOR DECISION MAKERS

2022 Distinguished Speakers Include

Hon. Kerenga Kua Minister of Petroleum and Energy Papua New Guinea

Dairi Vele

Secretary - Treasury Department Papua New Guinea

Peter Koim

Director Gas Project Coordinating Office

David Manau

Secretary Department for Petroleum & Energy

Wapu Sonk

Managing Director Kumul Petroleum Holdings Ltd

Augustine Mano Managing Director Mineral Resource Development Company (MRDC)

Papua New Guinea Energy Summit & Exhibition At A Glance

1000

600

ATTENDEES

DELEGATES

SPEAKERS

CONFERENCE SESSIONS

HOURS OF NETWORKING

EXHIBITORS

Host Sponsor

Gold Sponsor

Silver Sponsor

Bronze Sponsors

CONTACT US TO BOOK A STAND AT THE PNG ENERGY EXHIBITION Please Contact Alexander Soar +44 204 5666 783 | png@dmgevents.com | pngenergysummit.com/contact Organised By

pngenergysummit.com #PNGSummit

COMMENTARY

What can we learn from China’s military aid to the Pacific? By Xiao Liang, SIPRI

he Pacific islands have become the latest front in the geopolitical rivalry between China and the West. In April, China and Solomon Islands signed a controversial security agreement, while earlier this month China’s foreign minister, Wang Yi, wrapped up an unprecedented 10-day tour of the region. He managed to secure several bilateral agreements, but not the comprehensive Chinese-Pacific security pact Beijing had reportedly been hoping for with 10 Pacific Island countries. All this has raised concern among the established regional powers—primarily Australia and the United States—that China’s growing military presence could upset the region’s geopolitical balance. Australia’s new foreign minister, Penny Wong, made two trips to the region, one in parallel with Wang’s stay and another, days after his departure. At the end of May, it was announced that Fiji would join the US-led Indo-Pacific Economic Framework, and last week US President Joe Biden’s special envoy, Joseph Yun, visited the Marshall Islands. As the Pacific Island countries

negotiate this diplomatic tug-ofwar, developments in China’s military aid to the region offer valuable insight into what is happening with China’s military presence. This blog explores data and trends in China’s military aid to Pacific Island countries over the past two decades. China’s priorities in the Pacific Until recently, Beijing’s engagement with the Pacific Island countries has primarily focused on economic cooperation, notably via the Belt and Road initiative. However,

80 www.pngbusinessnews.com • Issue 2 2022

it now seems that Beijing aims to deepen political and military ties with the region, likely linked to great power rivalry with the USA and its allies. In particular, China is alarmed by the revival of the Quad alliance—formally the Quadrilateral Security Dialogue, between Australia, India, Japan, and the USA— and by the newly formed AUKUS pact between Australia, the United Kingdom, and the USA. In a recent statement, China’s Foreign Ministry

To Page 81 >

COMMENTARY < From Page 80 the Quad as ‘a tool for containing and besieging China to maintain US hegemony’, and claimed that AUKUS ‘escalates regional tension, provokes an arms race, threatens regional peace and stability’. The Pacific is also a region where China’s diplomatic competition with Taiwan plays out. The Solomon Islands only switched diplomatic recognition from Taipei to Beijing in 2019, a decision that fuelled civil unrest in the Solomon Islands in 2021 and paved the way for the new security agreement with China. Chinese military aid to Pacific Island countries The latest data published by SIPRI shows that China is the world’s second-largest military spender. It has increased its spending, in real terms, every year since 1995—the longest stretch of uninterrupted growth recorded by any country. China does not publish disaggregated data on its military aid, which falls under what the People’s Liberation Army (PLA) calls ‘military cooperation’, encompassing equipment assistance, personnel training, and joint exercises. Therefore, the data on Chinese military aid presented below is based on esti-

mates consolidated from a variety of sources, including budget documents of recipient countries, announcements by Chinese embassies overseas, and media reports. Over the past two decades, Beijing is known to have provided military aid to all the four Pacific island countries with a standing military: Fiji, Papua New Guinea, Tonga, and Vanuatu (see table 1). Fiji was the first of these to establish diplomatic relations with the People’s Republic of China in 1975 and has to date one of the closest military relationships with Beijing in the region. Since 2000 China has regularly supported the Fijian military with vehicles, uniforms, and personnel training. In 2018 China pledged a grant of US$4.3 million to Fiji’s armed forces, equivalent to 6 percent of Fiji’s military expenditure ($77.6 million) that year. Also in 2018, the PLA gifted a hydrographic and surveillance vessel to the Fijian navy, and in April 2022 donated another 47 specialized military vehicles. The financial value of the last two batches of equipment is not known, so the total value of China’s military aid to Fiji is likely to be considerably higher than the $5.9 million shown in the table. Papua New Guinea is the biggest recipient of Chinese military

aid in the region, having received more than $18 million between 2000 and 2020, according to SIPRI estimates. This aid ranged from military infrastructure and logistical support to personnel training and over 100 vehicles for the Papua New Guinea Defence Force. Among others, China donated 62 vehicles worth $5 million in total in 2017, which included armored vehicles, troop carriers, and mobile kitchen vans. China has delivered around $2.6 million worth of military aid to Tonga in the past 20 years. Between 2018 and 2020, China provided 2.2 percent of Tonga’s military expenditure, totaling $626,000. (To put this in context, Australia contributed 37 percent and the USA 26 percent in the same period.) China also provided military trucks and logistical services to the Tongan armed forces as early as 2008. Aid from the PLA to Vanuatu’s small mobile force has predominantly been regular personnel training and supply of non-lethal equipment, with the recent exception of 14 military vehicles delivered in 2017. In general, China’s military aid to these four countries has become more diverse over the past two decades. In the early 2000s, it was largely confined to non-lethal

To Page 82 >

When seconds matter. Count on St John. St John is well known for operating Papua New Guinea’s primary emergency ambulance and aeromedical evacuation services. Did you know that St John also has a social enterprise that helps business and industry? - Health services and emergency response - First aid and advanced life support training - Medical kits, defibrillators, consumables and rescue All revenue from St John’s social enterprise helps the St John Ambulance Service respond to over 14,000+ emergencies each year, and provide Papua New Guineans with FREE ambulance services in an emergency.

Call 111 for St John

www.stjohn.org.pg www.pngbusinessnews.com • Issue 2 2022 81

COMMENTARY

Women battle for parliament seats

omen are fighting to get at least one seat in Papua New Guinea’s male-dominated parliament when voting opens July 4 in a mountainous, forest-clad land scarred by gender-based violence. Prime Minister James Marape is fending off a challenge from his predecessor Peter O’Neill to lead this resource-rich but poverty-struck Pacific Island for the next five years. Whoever wins, the new leader will need to cobble together a coalition government, say analysts. Women, though, are hoping just to have a voice in the 118seat parliament. In the nearly 50 years since Papua New Guinea gained independence from Australia, only seven women have ever secured a seat and not one in the last election in 2017. “A lot of us really feel like we stand a great chance,” said Sylvia Pascoe, one of 142 women among the almost 3,500 candidates in this election.

“Not just because the timing is right, but because we’ve spent our lives building up to this moment.” Statistics on women’s experiences in the country are alarming: 63 percent have been subject to physical, sexual, or emotional violence at the hands of their spouses, according to a national survey completed four years ago. At least 70 percent of both men and women agreed that a man would be justified in beating his wife in at least one of these circumstances: if she burnt food, argued, went out without telling her husband, refused sex, or neglected her children.

< From Page 81

lands dwarfs the military aid it has supplied. China provided $1.5 billion in ODA to the region between 2013 and 2018 (the latest period for which official data is available for China), making it the second-largest donor after Australia ($4.8 billion) in that period. What distinguishes China from most donors is the modality of its aid: large infrastructure projects funded by concessional loans, rather than the ODA grants preferred by Organisation for Economic Co-operation and Development (OECD) donors. Concessional loans from the state-owned Export-Import Bank of China accounted for about half of Tonga’s debt repayments between 2018 and 2020— which will rise to over 80 percent from 2024, due to the bank’s funding of several major Tongan infrastructure projects. Chinese loans can be an attractive alternative source of funding for many Pacific island countries, as they do not come with the political conditions, such as good governance, that traditional donors often attach. These loans have also been seen as providing leverage for China to build up political and military influence in the Pacific in competition with the USA, a

forms such as upgrading military hospitals or providing uniforms and buses. In recent years, however, Beijing has increasingly supplied more combat-oriented equipment like military vehicles and vessels, in line with its pursuit of deepening military ties in the region. It is important to note, however, that China’s military aid to Pacific island countries is still smaller than the $963 million provided by Australia and the $52 million provided by the USA between 2000 and 2020. Beyond military aid While this is going on, China is apparently seeking to normalize its military presence in the region through growing non-military activities by the PLA, such as disaster response and humanitarian aid. For example, both the PLA Air Force and Navy were involved in delivering relief supplies to Tonga in early 2022 after a volcanic eruption and tsunami. China also sent anti-riot equipment and provided police training to the Solomon Islands after the 2021 unrest. China’s official development assistance (ODA) to the Pacific is-

‘Brazen’ But Pascoe said women were increasingly taking leadership roles in churches, sports and youth groups, and the “drought” in female representation in politics was sparking a change in sentiment ahead of the election. “At the last elections, nobody

82 www.pngbusinessnews.com • Issue 2 2022

was really out there rooting for women,” she told AFP, but women were now expressing a desire to vote for fellow women, and youth groups were singing songs in support of their runs for office. “People only saw men being leaders. Then suddenly, there claim that Beijing has denied. Is China an emerging military power in the Pacific? Although China evidently has ambitions to expand its military reach in the Pacific, it would be premature to call it a regional military power. China’s military aid to Pacific island countries has diversified in recent years but remains trivial in both volume and substance, primarily comprising non-lethal support and vehicles with low value. Speculation about Chinese plans to build a military base on the territory of a Pacific island state has been around for years but has been consistently denied by both Beijing and the Pacific countries involved, and no such base has materialized. So far, the mounting economic and political influence Beijing has gained through development aid, infrastructure loans, and trade poses a bigger challenge to the geopolitical status quo in the Pacific than its military activities. Xiao Liang is a Research Assistant with the SIPRI (Stockholm International Peace Research Institute) Military Expenditure and Arms Production Programme. This article was first published on the SIPRI blog (sipri.org/commentary/blog)

Dame Carol Anne Kidu was the first woman MP in Papua New Guinea until her retirement in 2012.

To Page 84 >

COMPANIES

Binding offtake supports Orokolo Bay development

ayur Resources Limited has executed a binding offtake agreement with titanium pellet producer Qingdao Shinebest for the sale of vanadium titanomagnetite (magnetite) product from the Orokolo Bay Iron and Industrial Sands Project. The Agreement replaces and improves the previously announced offtake with Shinebest, including increasing the contracted volume and term (see MRL ASX release dated 13 March 2019). The Agreement is conditional upon entering operations by 30 June 2023, and a subsequent trial shipment of 30,000 tonnes performing to the satisfaction of Shinebest (as specified in the Agreement). The key terms of the Agreement include: • Annual contract minimum volumes of 300,000 tonnes (±10%) of Product for an initial 3-year period, with the ability to mutually extend the term by a further year (total of 4 years); • Product pricing formula based on the prevailing Platts 62% Fe iron ore pricing index (IODEX) with the application of a discount factor to ¬¬adjust for the iron and titanium quality of the Product; • Pricing subject to a floor price mechanism, whereby if IODEX is below US$60 per tonne then there is no obligation to supply Product under the Agreement; • Agreed Product quality and specifications, as well as bonus and penalty payments that are standard for an Agreement of this nature; • CIF delivery terms apply; and • Force Majeure and other internationally recognized standard commercial terms apply. Mayur Managing Director, Mr. Paul Mulder, comment-

< From Page 82 was a drought, and they said: ‘Something’s not right, there is no balance.’” Women in Papua New Guinea have found it hard to overcome perceptions that only men make leaders, said Jessica Collins, Pacific researcher at the independent Sydney-based Lowy Institute think tank. But there is now more public debate about women’s place in politics, Collins added, with some young, determined female candidates running smart campaigns this year. “The chance for getting women elected to parliament this time around is probably increasing,” she said. Elections in Papua New Guinea can be dangerous, however. At the last general election in 2017, more than 200 voting-related killings were documented by monitors from the Australian National University. Election malfeasance was “more brazen than ever before”, the monitors said in a report, citing

ed: “We are pleased to have revised our Agreement with Shinebest for approximately 60% of planned production from our fully permitted and construction-ready Orokolo Bay Iron and Industrial Sands Project.” “Combined with the term sheet we executed with a leading Japanese trading house in December last year, the significant majority of the expected magnetite production from Orokolo Bay is now under some form of offtake agreement.” “The execution of this agreement with Shinebest provides investors, financiers, and other stakeholders, future revenue certainty in continuing to progress the projects construction plans, with funding partners in the private and public space.”

“serious irregularities” such as voter intimidation and multiple voting. ‘People are desperate’ For women candidates hardpressed to get financing, the risks can be even greater, said Pascoe, who sometimes ventures into volatile areas without the large security teams her male rivals enjoy. So far, she had not encountered significant security issues, but Pascoe said she had heard stories of crowds throwing stones and bottles at candidates. “I was in a place the other night where the guy said they haven’t had water for a month,” she said. “People are desperate” and when they do not hear what they want from candidates, they can get upset, Pascoe said. Australia has sent more than 130 troops with transport aircraft to provide security for the vote. They will assist the thousands of Papua New Guinea police and troops around the country, with the heaviest deployments in the remote and frequently violent

84 www.pngbusinessnews.com • Issue 2 2022

highlands provinces. Further complicating the process, the electoral roll is not up to date, said Pacific analyst Harry Ivarature at the Australian National University. “So, the whole integrity of this election is already under question.” Voting is scheduled to take place over 18 days, with the outcome not expected to be clear until August. Analysts say the battle to be prime minister could be tight as O’Neill calls for a revival of the resources sector, three years after resigning under pressure over corruption and a failure to spread mining wealth. In an ethnically diverse country with more than 800 languages, there are few national issues to galvanize voters, and the overriding focus remains on what material benefits candidates can bring to local communities. Women are hopeful however that their voices can break through. “We might just see a whole new empowered generation rising out of this,” Pascoe said.

COMPANIES

City Pharmacy Group records K23m profit

or its 2021 financial year results, The City Pharmacy Group Limited recorded a trading profit of K23 million. Despite fiercer competition, significant increases in the cost of goods, freight charges, and COVID-19, this represents a 6% gain over 2020. A 4 toea per share full and final dividend has also been declared by the group. Sales growth for CPL Group’s nine core brands continued to decrease in the first quarter of 2022 as the trading environment returned to normal and NiuplaPasin requirements became part of the new normal across the country. “The Board remains confident that despite the operational challenges and future growth prospects, CPL Group remains positive and will continue to promote opportunities for sustainable business in our day to say operations and advocacy through the CPL Foundation,” said Stan Joyce CSM, Chairman of CPL Group. One of the year’s major milestones was Mr. Navin Raju’s promotion to Group CEO, succeeding Sir Mahesh Patel. While the business was able to surpass the trading profit from the previous year while keeping the net gross profit margin in line with 2020, the total group sales were 0.3% lower than in 2020. Key brands Hardware Haus and City Pharmacy successfully achieved sales growth of 4.2% and 12.3%, respectively, through the company’s

subsidiaries. Despite a drop in sales, the supermarket chain Stop & Shop is still Port Moresby’s favorite choice for shopping. “As we move into the upcoming year, CPL Group brands will continue to be the go-to destination for shopping by providing our communities, customers, suppliers, and team members with amazing value and exceptional customer service. We will also maintain our emphasis on maximizing shareholder value,” it said in a statement.

ADVISORS APPOINTED TO LEAD STRATEGIC REVIEW OF MISIMA GOLD PROJECT

ingston Resources Limited is pleased to announce that following the recent conclusion of the Misima Gold Project Definitive Feasibility Study the Kingston Board has commenced a strategic review of the Company’s interest in the Project. The review will assess all options to maximize the shareholder value of Kingston’s 100% interest in the Misima Gold Project. It will be conducted in parallel with ongoing Mining License and Environmental and Social Impact Assessment work programs which are expected to be concluded in the September quarter. Kingston has appointed ICA Partners to support the strategic review process. ICA is a specialist mining advisor with wide-ranging transactional experience gained over many years in many commodities and jurisdictions. It maintains widespread relationships across global corporate and capital markets. Kingston Resources Managing

Director, Andrew Corbett, said: “The Board, in consultation with ICA Partners, looks forward to investigating opportunities to advance the Company’s interest in Misima by identifying, evaluating, and entering into potential strategic transactions relating to the long-

86 www.pngbusinessnews.com • Issue 2 2022

term value opportunity at Misima.” “We look forward to working on this exciting review, and we are confident that there are strategic opportunities to advance the Misima Gold Project, but more importantly to achieve significant value creation for our shareholders.”

COMMENTARY

Timely action by government is critical to realise growth projected, backed by the extractive sector By Lucas Alkan

he PNG economy stands to make a quick recovery and growth can pick up this year if the Government acts early to facilitate recovery in a fragile environment as the country slowly recovers from the Covid 19 challenges. The World Bank in its Economic Update for PNG released in March this year, projected the PNG economy to grow by around 4 percent this year- largely driven by growth in the extractive sector. The Bank’s projection stems from its estimate of the economy returning to positive growth of 1 percent in 2021 after contracting by 3.5 percent in 2020. The economy is currently in a fragile state, particularly when it is emerging from the aftermath of the Covid 19 pandemic-induced disruptions that had a devastating impact across all sectors of the economy. The pandemic has created room for complacency and brought about new approaches to living and conducting business as we have been introduced to the ‘new normal’ way of living and doing business in recent times. The Bank’s growth forecast is dependent on several risk factors that are at play relating to the extractive sector. Some of these are external risks such as the rising fuel prices brought about by the Russian and Ukraine war which “we have little or no control over”. However, other risks can be managed in the remaining months of this year. Firstly, the Porgera Mine needed to be re-opened immediately to contribute to the growth projected. The prolonged delay in re-opening the Mine has resulted in significant revenue loss to the State and loss of employment and benefits to local communities. The shutdown of the Mine is having a direct impact on the current foreign exchange shortage, constraining business operations domestically. Porgera Mine had been a good source of foreign exchange inflows and its continued shutdown is not assisting PNG to achieve the 4% growth projected

by the World Bank. The growth was projected almost 4 months ago, assuming that the Government would conclude negotiations and re-open the Mine before June, however, this has not eventuated. Reopening the Mine anytime soon seems not feasible in light of the current national general elections that will take us up to August for a new government to be in place. If all is in order the Mine can be re-opened but then the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back to its full operating capacity is a big challenge. Realistically, we may be looking at around October or November for the start-up but then it will be almost the end of the year so for Porgera to contribute to the projected 4% economic growth seems unlikely. Secondly, the inherent political risk associated with the current national general election and the formation of a new government is likely to delay any efforts to start up new resource projects currently in the pipeline. The commencement of at least one or two of these projects at the earliest possible time will have a positive

88 www.pngbusinessnews.com • Issue 2 2022

impact on the economy, and in as far as contributing to the 4% growth projected. Unfortunately, election activities have generally stalled things until a new government arrives but this may not be too soon until around August or September for the new regime to pursue outstanding negotiations to reach agreements to bring these projects online. These projects include; Wafi-Golpu, Frieda, and the Papua LNG project which have the potential to contribute positively to the economy during their construction phases. Thirdly, there is a real risk for the Covid-19 pandemic to surge again, disrupting economic activities in this very fragile environment, especially given the vaccination rate is very low. This is highly likely due to large gatherings taking place right across the country since political campaigns commenced following the issue of writs in May. Some of the above risks and challenges could be minimized if the current or incoming government takes immediate actions within the remaining months. It is understood that the final agreement for Porgera reopening will be sanctioned soon by Mineral Resources Enga (MRE), the rmain-

To Page 90 >

enjoy delicious pizza

GATEWAY | ELA BEACH HARBOURSIDE Follow us @Enzo’s Pizza PNG

COMMENTARY < From Page 88 ing party to sign the recommencement agreement. We hope this agreement will be sealed at the earliest for the next phase which is the application of the Special Mining Lease (SML) to recommence the mine. The transparent negotiation process that has taken a substantial amount of time and effort to ensure the interests of all parties are reflected in those agreements is commendable. We believe the re-opening of Porgera Mine will live up to the expectations of institutions such as the World Bank that predicated PNG’s positive economic growth to be driven

strongly by the extractive sector this year. It would be very critical for the incoming government to also engage with the developers to bring the new projects already in the pipeline online at the earliest which will contribute positively to the economy. World Bank’s sentiment that the PNG economy is navigating a fragile recovery period is true. If the Government does not act decisively and fast to re-open the Porgera Mine and bring online new projects in the pipeline in the next few months then it will be highly likely that the Bank’s projected growth for the extractive sector will not be achieved.

About the Author Lucas Alkan is head of the PNG Extractive Industries Transparency Initiative National Secretariat. Before working with PNGEITI, he held senior positions at the PNG Treasury as an economist for over 20 years.

EXPERT: ONLY 12% OF PNG POPULATION USING INTERNET

nly 12 per cent of Papua New Guinea’s population has access to internet, making it one of the lowest rates in the world, an expert says. Deloitte PNG director of consulting, Alberto Cimas said this was according to the latest available data on internet users in the country which showed that they did do not have full or continuous internet access.

“In other words, they simply use internet just to check Facebook once in a while, but they count as ‘internet users’ when they shouldn’t,” he said. “Additionally, according to the latest data, only eight per cent of PNG’s population use social networks. We can assume that only a very small percentage use social media continuously or on a daily basis. “In other words, usage of social

media in PNG can be considered irrelevant. “Also, note that the concept of ‘social media’ is very diverse and covers applications like Facebook, Twitter, Instagram, TikTok, Snapchat and others.” Cimas noted that when looking at the data it was understood that cyber-security or fake news in social media did not pose a real threat to the election process in PNG.

Talent Search & Selection, People Growth and Organisational Improvement

RECRUITMENT

LEARNING

CONSULTING

ASSESSMENT

pacificpeoplesolutions.com

ccpacific.com

ENERGY - MANUFACTURING - MINING - UTILITIES 90 www.pngbusinessnews.com • Issue 2 2022

COMMENTARY

‘Niupela pasin’ and taking more than an ROE approach to TB

By Dr. Ann M. Clarke

usinesses for Health PNG is supported by businesses who appreciate the value of preventing disease and deaths from Tuberculosis. I can’t stress enough the importance of prevention, and the financial impact of the loss of just one employee to disease. My “return on investment pitch” is based on the enormous size and scope of costs associated with losing one employee to TB. Chronic diseases also drive high rates of infectious TB. Any opportunity I get, I try to explain how businesses can learn to better manage, and support workers found to have TB, by reducing their costs, reducing their downtime, and preventing deaths and new infections. Then, out of the blue, a little encounter on one of Mosbi’s back streets completely derailed my ROE economic rationalist approach. Here’s my new pitch story. This week we were out scouting for the next site for our “Epic small business COVID-19 project”. B4H only took on this project in 2021, because (government?) funding was available to engage the public about COVID-19 and vaccinations. In this project, the B4H Small Biz team goes into workplaces and provides face-to-face sessions about COVID-19. We explain to staff that it is a droplet and airborne respiratory infection., and how and why we all need to stick to the “niupela pasin,” if we are to control its spread and other infectious diseases like TB! We select a busy back street full of small businesses where many

people work. We go from shop to shop one day, and on the next day, set up a street-side information booth, for anyone to stop by and ask questions or pick up health information. Recently we have invited the mobile vaccination teams to join us on our info-booth days. Over two years into the global pandemic, very few people on the backstreets of the Nation’s capital are taking the “niupela pasin” (or new normal) seriously, or fear dying of COVID. This lovely little (government?) funded health education project, goes where few health projects go. These are the streets where many women are working long hours at the lowest rates of pay, to support their children. It’s where access to current health information is limited and where rumors about “nogut” vaccines or sik b’long ples rule. Our Nurse Naomi suggested we stop by a bigger shop with an area big enough for our information tent, and a safe area for the mobile vaccination team at 2nd Block, 8 Mile. We met the bossman Abdul and asked if we may use the area in front of his shop to set up for next week’s visit. He was kind and helpful, and as we chatted the shop filled with local kids wondering who the strangers were in ‘their shop’. After a few minutes of playful banter about the Maroons’ imminent loss, with a young boy named “Fitler”, we gave a quick “cover your cough” lesson, shared our

92 www.pngbusinessnews.com • Issue 2 2022

awesome TB info line stickers, and said, “see you next week” and left. Meanwhile, our HEO Teresa was doing the same scoping task as us at 9 Mile. Because we accidentally booked the same day, we decided to pop back to 8 Mile and ask Abdul if we could change the date of our sessions along the street. In the 20 minutes or so, it took to drive back to the 2nd block, the coconut telegraph and sticker distribution had been working at full speed – probably assisted by Fitler! We pulled up at Abdul’s shop, and a woman rushed across the road to greet Teresa and Naomi. She had come to see just who had visited the shop, and who it was coming to talk about TB. The other beautiful woman in the photos is called Rose. From 2017 to 2018 she was a TB patient. At that

To Page 94 >

COMMENTARY < From Page 92 time, our HEO, Teresa was working as one of her treatment supervisors. For 20 months. Rose endured the treatment required to cure a person of drug-resistant TB. For 6 months she had to have daily infections in her backside, and for 20 months she was given a special combination of the oral drugs needed to kill the deadlier, tougher-to-kill-version of the horrible bacterial infection, known as DRTB, or drug-resistant tuberculosis. For over 20 months Teresa worked with her team to support Rose’s adherence to treatment with nutrition support, emotional support, and even some fun trips to Ela beach with her very young children. Without support adherence is difficult. Without support cure rates are low. Without treatment adherence, Rose would have infected many more people with DRTB. It’s safe to say, that without support, Rose would have died. So, on this day in June 2022, when Rose heard there was someone in the street wanting to talk about deadly TB, she took a chance to see if it was her ‘old’ supporter Teresa. Unbelievably, it was! What a privilege to see this joyous meeting. I hope these pictures of Teresa, Rose, and some of our team, remind us all about the power of tangible, emotional, and social support in managing complex health issues. I hope these faces, help to express

< From Page 96 during the working week when we have gathered support and carefully analyzed the size and scope of the challenge. “I am being encouraged and rewarded by my colleagues, but I need to know my family and friends will help me avoid situations where everyone else is chewing. We need to be surrounded by people who recognize that chewing is associated with so many threats to long-term health and well-being. “My parents were health workers. I grew up knowing chewing was unhealthy and unacceptable at work. I know chewing is associated with diseases like TB which thrive when the immune system is put under pressure. I also know I am addicted and COVID has put us all under so much strain. “When I was wearing a mask 24/7 it was easy for me to sneak in some extra chewing without my colleagues knowing. Making October 7 my quit date is easier than starting on January 1 when we are all holidays,” says HEO Teresa. “At Businesses for Health, I train people in early case finding for Tuberculosis and support

the power of human kindness in promoting health and helping to end the misery that TB places on women like Rose. (repeating for effect): Businesses for Health PNG is supported by businesses who appreciate the value of preventing disease and deaths from Tuberculosis. My challenge is to attract your attention and get your support. Supporting our project by paying your annual subscription. , will help a person, a worker, or one of the family or community members with TB to get tested, treated, and supported. Your subscription offers a ‘return on investment’ and will also stop some children from losing their Mum. It will help keep more children fed, and at school. It will help end the grinding poverty we all see

every day. Please join our program. Check out our website and ask me to come and talk about TB. annmclarke@ businesses4health.com Ask a question about TB on our bmobile toll-free info-line 7676 2482.

people to kind to people terrified by a diagnosis of TB or HIV. In supporting people with TB or HIV we use care, kindness, and support to help people to achieve better treatment compliance, and it reduces fear. “We recommend people wanting to quit chewing use the same strategies. On the B4H campaign Chew Challenge chart we have set some challenges. We are offering to send people reminders and notes of support. Best of all the campaign end date is well before the Christmas holidays,” said Teresa. “The campaign specifically states we are aiming to quit workweek chewing and is not advocating for a global lifetime buai ban. It would be disrespectful and foolish to expect people not to chew at haus krais or other events at which chewing may be an ancient tradition. “We also want people to learn to manage their habits, keep on trying and go gentle with themselves. We recommend registering with the B4H campaign to get reminders and encouragement along the way to NOT chewing in the working week by World No Buai Day,” said Dr. Clarke, B4H project manager. A poster and resource

pack for participants and their supporters are available at https:// businesses4health .com/bua ichallenge. In the pack, is a chewing diary, a challenge chart to mark off each day of the campaign. People who register for the campaign are invited to contribute stories about their successes and challenges to our Facebook page@B4HTB. Businesses for Health is PNG not-for-profit association. The PNG team is 100% supported by PNG’s private sector supporters who are working to reduce the burden of TB deaths and disease on businesses, their employees, and their families. In 2022, Dr. Clarke’s time in PNG is supported by the Global Fund for TB/HIV and Malaria.

94 www.pngbusinessnews.com • Issue 2 2022

PNG EITI AD FP

COMMENTARY

Advertisers’ Index Agmark Machinery 61 Ark Pacific 77 Atlas Steel PNG 59 Bishop Brothers 11 BizPrint & Scan 93 Boroko Motors 87 Bradken 35 Brunel 9 Business Coalition for Women 7 Capital Insurance 52 Consort Express Lines 67 Coral Coast Migration Services 18 Crossroads Hotel IFC Crown Hotel 91 Datec 51 Digitec 55 Don Kyatt Group 58 East West Transport 57 Education Queensland International 44 Enzo’s Pizza 89 Express Freight Management 17 Fincorp 39 Fly Engineering 14-15 GFS Limited 6 Government Printing Office 22-23 Grand Papua Hotel 73 Hertz 45 Holiday Inn Express 53 Hornibrook NGI OBC Hydroflux 47 Icon Medipharm 33 ICTSI South Pacific 25 IHG / Crowne Plaza Residences 21 iPi Group 95 Kumul Petroleum 48-49 Lae Chamber of Commerce 71 Lease Master 68 Mapai Transport 69 Maxitool 26 Monier 37 Moni Plus 2-3 MRA 56 OilMin Field Services 4 Pacific Palms Property 19 Pacific People Solutions 90 PNG Air 8 PNG Business News 85 PNG Chamber of Mines & Petroleum 75 PNG CR 13 PNG EITI 41 PNG Energy Summit & Exhibition 63, 79 PNG Forest Products 42 PNG Industrial & Mining Exhibition 83 QED 5 Resources & Investment Finance Ltd 29 St. John 81 Sky Health & Medical Services 31 Steamships 43 Stocks and Partners 27 Trans Niugini Tours 62 UMW Niugini IBC Weir Minerals 65 Westpac 1 Proudly printed in PNG by

World ‘No Buai Day’ campaign starts now

TB HEO and No Buai Day campaign leader Teresa Koratsi.

orld No Buai Day is Friday, October 7. As COVID-19 restrictions ease, Businesses for Health is encouraging people who want to end their chewing habit to sign up for their “World No Buai Day” campaign. COVID-19 has disrupted work and social lives in so many ways. It also had some unexpected consequences. Whilst the infection control benefits of mask-wearing are well known, in PNG masks have enabled people to hide their workday chewing. With fewer mask-wearing requirements in place, we are kicking off our campaign to get the workers of PNG to consider the health and financial costs of chewing buai. We have set the campaign to run over seven fortnights or 96 days. This gives chewers time to think, analyze, plan, and find colleagues and friends to support

96 www.pngbusinessnews.com • Issue 2 2022

them in reducing their chewing habit. B4H understands that chewing is part of many people’s usual routines, so planning is required if people are going to be successful in reducing their dependency on PNG’s favorite addictive drug – betel nut! B4H Campaign leader and participant TB HEO Teresa said: “The sooner people reduce their chewing, the better it is for their health. But people also recognize that chewing is an addiction and it’s not something they can successfully achieve without talking to family, friends, and colleagues. Addicts need encouragement or friends to join them in the campaign.” “The campaign is structured so quitters like me can think and plan, before cutting back. It’s only a good idea to make announcements on social media about quitting buai chewing

To Page 94 >

PNG Business News - Issue 2, 2022

Articles inside

HOLIDAY INN EXPRESS PORT MORESBY REOPENS

SOLAR ASSOC. TELLS GOV’T FOCUS ON GREEN ENERGY

HEDURU MONI/MONI PLUS: COMMITTED TO SERVICING EXCELLENCE

AGRI PROJECT GETS K120M WORLD BANK FINANCING

BOOSTING ACCESS TO CLEAN, AFFORDABLE POWER

DAL ‘CAN GIVE ECONOMIC INDEPENDENCE’ TO PNG

OILMIN, PNG’S LEADING FIELD SERVICE PROVIDER