PNG Business News - Issue 3, 2021 by Brimble Publishing

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ISSUE 3 2021

OK TEDI CHAIRMAN SIR MOI AVEI KBE RETIRES

SANTOS, OIL SEARCH SEAL MERGER

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MINING 18 21 64

CONTENTS

KAINANTU UPDATE ON MAY RIVER PROJECT BEC: GOLD RESTRICTED WITHIN BOUGAINVILLE MRA’S GARRY: GOLD OUTPUT REMAINS STABLE

OIL AND GAS 30 32 50

MARINE SERVICES FOR PNG O&G SECTOR KUA: SANTOS-OIL SEARCH MERGER MUST SERVE PNG SMARE: RE-ENGAGEMENT ON P’NYANG ‘VERY POSITIVE’

COMPANIES 26 38 40

CUSTOMARY LAND DEV’T OPPORTUNITY AT SASIVA MADANG PACIFIC MARITIME ZONE TO BE REDEVELOPED CENTRAL CEMENT AND LIME CONSTRUCTION IN H1 2022

MINING

OK TEDI CHAIRMAN SIR MOI AVEI KBE RETIRES / page 19

MINING

FREEPORT GAINS MORE LICENSES / page 10

www.pngbusinessnews.com • Issue 3 2021

COMPANIES 44 52

DECENTRALIZED SEWAGE & TRANSPORT HEADACHES WEIR MINERALS LAUNCHES MULTIFLO MUDFLO PUMP

CONTENTS

ENERGY 20 48

MAPPING OUT POTENTIALS FOR GEOTHERMAL ENERGY K3M HYDROPOWER PLANT SEEN IN GOODENOUGH

FINANCE 28 36 56

CREDIT CORPORATION TABS ROBINSON AS CEO MONIPLUS: YOUR BUSINESS GROWTH MATTERS TO US PERSONAL INCOME TAX LAWS TO BE REVIEWED

OIL AND GAS

SANTOS, OIL SEARCH SEAL MERGER DEAL / page 32

COMMUNITY

NEWS

/ page 68

/ page 54

UNDERSTANDING TB THROUGH COVID-19

NEW MEASURES, RESTRICTIONS ON COVID RELEASED

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MINING

Freeport granted extension to Nong River license, awaits endorsement on Yandera

reeport Resources Inc. was recently granted an extension to its Exploration License for Nong River at the heart of its Star Mountains mine, while it still awaits ministerial endorsement for its license for its newly acquired Yandera copper mine. “The company is pleased to announce that its application to extend Exploration License Number EL 1312 has been granted by the Papua New Guinea, Minister of Mining with effect from September 20, 2020 for a term of two years,” Freeport said in a statement on August 23. “We at Freeport cannot overstate the importance of this renewal to the Company,” said Gord Friesen, Chief Executive Officer in the same statement. “It reinforces our belief that Papua New Guinea remains a premier mining destination globally, while providing us with the visibility to conduct our proposed work programs in the coming months.” Nong River, Friesen said, “is the most important license in the Star Mountains portfolio and will continue to be the main focus for future work at Star Mountains.” Meanwhile, Freeport also announced that its applications to extend EL 2467 Mt. Abemh, EL 2001 Benstead and EL 1781 Mt. Scorpion have been granted by the Minister of Mining with effect from December 2nd, 2020, December 20th, 2020, and March 12th, 2020, respectively for a term of two years. “The PNG Mining Cadastre Portal indicates that the renewal for EL 1335 Yandera is awaiting Ministerial Endorsement,” the company added. EL 1312 is the key tenement within the Star Mountains Property, which consists of over 500 square

kilometres spread across four contiguous Exploration Licenses (ELs) approximately 25 kilometres north of the Ok Tedi mine in western Papua New Guinea. Since being discovered by Kennecott in the early 1960s, exploration work has been carried out by a range of companies, including Highland Pacific Limited and Anglo American Plc, with approximately 80% of historical expenditures being spent on the EL 1312 tenement. The highest priority target, Olgal, has seen approximately half of the historic drill testing thus far. Virtually all the other priority targets, including the Futik, Fune, Kum Kom, Unfin, Bumtin, Tuk and

Rattatat, amongst others, all lie within the boundaries of EL 1312. About the Olgal Prospect In 2018, H&S Consultants Pty. Ltd. completed a maiden mineral resource estimate for the Olgal deposit within the tenements. Using a 0.3-per-cent-coppercut-off grade, the deposit is estimated to contain 210 million tonnes of inferred resource grading 0.4 per cent copper and 0.4 gram per tonne gold, for 2.9 million ounces of contained gold and 1.85 billion pounds of contained copper. Based on current market prices, this is equivalent to approximately 7 million ounces of gold equivalent

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

PNG Business News Issue 3 2019

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

10 www.pngbusinessnews.com • Issue 3 2021

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MINING

< From Page 10 or 3 billion pounds of copper equivalent. Yandara purchase completed On 16 August, Freeport announced that it has acquired all of the outstanding share capital of Carpo Resources Inc. Carpo is a privately-held company which controls Era Resources Inc., a corporation established under the laws of Cayman Islands and which itself controls an exploration license located in Papua New Guinea commonly known as the Yandera Copper Project. Freeport said Carpo was acquired pursuant to a share purchase agreement, dated effective June 25th, 2021, entered into with Carpo, and all of the shareholders of Carpo. The Company is at armslength from each of Carpo, and the Vendors. In consideration for all of the outstanding share capital of Carpo, Freeport has issued 20 million common shares to the vendors. In connection with completion of the transaction, Freeport does not expect to assume any material liabilities, nor does it expect to devote the majority of its working capital or resources to the development of Carpo or the Yandera Copper Project. As a result, the transaction does not constitute a fundamental acquisition for the Company, within the policies of the TSX Venture Exchange. The transaction did not result in the creation of a new insider, or a change of control, of Freeport, within the meaning of applicable securities laws. The acquisition of Yandera, which is one of the largest undeveloped copper deposits in

the world, is in line with Freeport’s mandate to seek out, identify and acquire undervalued projects globally, the company said, after previously acquiring the Star Mountains Copper and Gold Project, also in Papua New Guinea. The Yandera Copper Project The Yandera Project area was the subject of intensive, drill-based exploration programs during the late 1960s and 1970s by a number of companies. The historic activity, which included 102 diamond drill holes totaling over 33,000 metres, culminated in the preparation of a mining study by BHP, identifying the Yandera porphyry system as containing one of the largest undeveloped porphyry copper systems (with ancillary molybdenum and gold) in the world. Subsequent to that, Era Resources Inc. spent over USD $100 million and drilled another 471 holes totaling over 144,000 metres. There remains opportunity for further exploration to increase the resource. A Pre-Feasibility Study, completed by Worley Parsons in 2017 showed total resources of 959 million tonnes of copper equivalent grading 0.37% including measured & indicated resources of 728 million tonnes grading 0.39% copper equivalent, and 541 million tonnes of Probable Reserves averaging 0.39% copper equivalent. The measured and indicated resources equate to 6.2 billion pounds of copper equivalent and total resources equate to almost 8 billion pounds of copper equivalent. Location, Physiography and Accessibility The Yandera project is located

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approximately 95 km southwest of the city of Madang in the foothills of the Bismarck Mountain Range, which is part of the central cordillera of New Guinea, at an elevation of approximately 1,900m above sea level. The site is situated on the northern side of the range, about 13km east-northeast from Mt. Wilhelm, with the extensive floodplain of the Ramu River approximately 20km to the east. The deposit area is mountainous with the Imbrum River valley to the west and the Tai-Yor River valley to the east. Materials and transport for the site team are via helicopter from Madang Airport or from a lay down yard which runs through the village of Usino, a 10-12 minute flight away. Yandera History In 1965, Kennecott acquired the Exploration License (EL) to work on the Project. They continued ownership and operated until 1973, when Triako Mines acquired the Project and had its operator, Amdex, complete the work programs. Amdex jointly worked with Broken Hill Proprietary Company (BHP) on the property from 1974 to 1977. In 1978 Amdex joint-ventured with Buka Minerals. Work and ownership between Amdex and Buka Minerals continued until 1984, when they dropped the Project. The Project sat idle until 1999, when Highland Pacific and Cyprus Amax acquired an EL and worked on the Project before dropping it prior to 2000. The Project then sat idle again until Belvedere Limited acquired the EL for the property. In 2005, Belvedere formed a joint-venture with Marengo Mining Limited, who operated the property.

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MINING

< From Page 12 In 2006, Marengo Mining acquired the Project through the purchase of Belvedere’s interest. Since then, Marengo Mining, now Era Resources Inc., has been the sole owner and operator of the Project. Era was subsequently acquired by Carpo, which is now owned by the Company. Yandera Geology Yandera is an igneous, intrusive-hosted, structurally controlled copper porphyry system with ancillary molybdenum and gold composed of a series of adjacent, vertically oriented deposits along recognized structural trends. Mineralization is concentrated in several deposits, namely, Imbruminda, Gremi, Omora, Gamagu and Dimbi. Imbruminda, Gremi, and Omora are contiguous and separated from Dimbi by a low-grade, central, silica-rich zone, which is bounded on three sides by high angle faults. The bulk of the mineralization is adjacent to these major structures on a northwest-southeast trend. Locally, north-northeast-trending cross faults bound mineral domains and reflect the structural complexity of the district. The property lies within the New Guinea Orogenic Belt, which stretches from the southeastern portion of the island through the central mountain ranges into Indonesia, and to the west of Grasberg, Freeport McMoran’s giant Copper-Gold mine. The belt is home to some of the world’s largest producing mines and deposits, including the aforementioned Grasberg, which hosts the largest reserve of gold and second largest reserve of copper in the world. This belt includes slices of metamorphic basement and contains a variety of sedimentary packages. Above Paleozoic and early Mesozoic schists, marbles and granodiorite lie packages of Triassic to Jurassic volcanic, and clastic sediments, and Jurassic to Cretaceous clastic, volcanic, and volcanogenic sediments. Freeport noted that mining in PNG “requires balancing the interests of mining companies with the local and national governments, the local communities and landowners all the while observing the environmental responsibility and sustainability issues.” Despite these challenges, there are comparatively few areas left in the world that offer the potential for the development of large-scale mining projects within a district as prospective as the New Guinea Orogenic Belt, the firm noted. Home to the giant existing mines

Grasberg, Ok Tedi, Porgera and Lihir, PNG also has district-scale projects in the pipeline such as Wafi-Golpu and Frieda River. Locals unsatisfied Despite Freeport’s corporate updates on its holdings and Yandera in particular, local stakeholders are not encouraged by the company’s lack of communication on how it plans to develop the mine and the area around it. Les Emery, who was President and CEO of Marengo Mining Inc. until April 2014 and was involved with Yandera for several years, says Freeport “has no detail on their near-term plans for the project, just a very general timeline.” “Still, they are silent on the status of Exploration Licence 1335, why is this, what is the problem?” added Emery, who is not involved with Freeport but has voiced concerns on behalf of the community and local landowners around the mine. In an exclusive interview with PNG Business News last issue, Emery said: “Failing to undertake these discussions (with local stakeholders) on a very regular basis will work against any group wishing to explore and ultimately bring a project to mine status.” “I take pride in the fact that during my time at Yandera we put a big effort in maintaining a very strong relationship with the community at all times, this paying off with total support in return,” he added. Others, responding on Freeport’s official Facebook page, were more direct. Commenting on the company’s latest announcement on Yandera, anthropologist Dr. Laura Tamakoshi said: “While the report is meticulous when talking geology and the technicalities of running and trying to sell the project to investors, it is woefully lacking in discussions and inclusion of the concerns and needs of local landowners.” Tamakoshi cited in particular the lack of dealings with the local Gende tribe, which she said she had carried out and written over 40 years. “Even the few of my numerous and lengthy census and social impact reports have been trivialized and sloppily misreported,” she said in her FB post. “The impacts of mining projects even without any mining actually happening have been enormous in many ways socially, economically, politically, and culturally,” Tamakoshi added. “I suggest that if you really want to know and act upon or mitigate the impacts on real people you need to call upon or at least read the words and analyses of people like myself and the Gende

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themselves,” she told Freeport. Without a new exploration license for Yandera, Freeport may just be holding on to the copper mine until a bigger miner comes along to either partner with the company or buy them out directly. The company has not responded to inquiries for comment from PNG Business News at press time. According to Emery, no site activity has been carried out since at least 2017 -- and it may take a few more years until development finally happens.

MINING

Kainantu Resources update on May River Project acquisition

ainantu Resources Ltd, the Asia-Pacific focused gold mining company, recently provided an update on completion steps to acquire control of the May River Project in the world-renowned copper-gold district of Frieda River, Papua New Guinea. KRL has two highly prospective gold projects, KRL South and KRL North, in a premier mining region, the high-grade Kainantu Gold District of PNG. Both of KRL’s projects show potential to host high-grade epithermal and porphyry mineralisation, as seen elsewhere in the district. KRL has a highly experienced board and management team with a proven track record of working together in the region, and an established in-country partner. In a press release dated June 15, 2021, KRL announced the execution of two definitive agreements to acquire control of the May River Project through the acquisition of two unrelated holding companies: Hardrock Limited and Niuminco Group Limited. On closing of the definitive agreements, KRL would consolidate three adjoining tenements, as detailed in Figure 1. All tenements are highly prospective for copper and gold and are located in close proximity to the world-renowned Frieda River Copper-Gold Project, with the district known for both porphyry and high-sulphidation epithermal styles of mineralisation trending along the Fiak Fault. In relation to EL2603 (being the tenement subject to a definitive agreement with Hardrock), the key prospects of Skiraisa, Foya, Eserebe and Mountain Gate are situated along a 7 km long N-NW trending structural corridor; exhibiting many attributes similar to the extended mineralised system identified at the Frieda River Copper-Gold Project (located 10 km to 15 km to the east). Update on closing of the Acquisitions The following provides an

update on progress toward closing of the definitive agreements, with reference to the June Release for further particulars on the commercial terms agreed separately with Hardrock and Niuminco. Definitive Agreement with Hardrock As agreed under the definitive option agreement between KRL, Hardrock and its shareholders, KRL has an option to acquire Hardrock by way of a series of option arrangements. As an initial step, KRL agreed, at its expense, to complete a field study and sampling programme at May River (“Study”) to increase confidence and understanding of the Project. On completion of the Study, KRL has a right to exercise a first option to acquire a 10% equity interest in Hardrock (for no further consideration beyond the “in-kind” expenditure incurred to complete the Study). In collaboration with Hardrock, KRL reports positive progress towards completion of the Study and is encouraged by initial trends that have emerged. KRL expects to finalise the Study within the coming weeks and will provide a further update in the near future.

Definitive Agreement with Niuminco As detailed in the June Release, KRL entered into a definitive agreement with Niuminco and its related entities to indirectly acquire EL2527 and historic data in respect of the Project. Under the Niuminco Agreement, a key condition precedent to closing remains confirmation to KRL’s satisfaction as to the “good standing” of EL2527 (with Niuminco responsible for maintaining the currency of such tenement). In this regard, Niuminco has advised KRL that the PNG Minister for Mining has not consented to Niuminco’s request for an extension of EL2527. Niuminco further advises that it has commenced steps to review this decision; and that EL2527 remains on foot pending a further determination. The Niuminco Agreement has a sunset date of October 31, 2021 (or such further date as KRL may agree at its absolute discretion) for closing and satisfaction of conditions precedent (with Niuminco advising that it expects a resolution prior to this time on securing an extension of EL2527). KRL will continue to monitor any developments and provide a further update in due course.

Figure 1: May River Project Tenements

KINA SECURITIES CALLS OFF WESTPAC DEAL

ina Securities (KSL) has called off its deal to buy Westpac’s Pacific division. Kina and Westpac Banking Corporation have mutually decided to terminate their purchase of Westpac Fiji and Westpac’s 89.91 per cent interest in Westpac

Bank PNG, which was intended to broaden Kina’s market reach. The transaction was subject to numerous regulatory clearances, and the cancellation comes after Papua New Guinea’s regulator, the Independent Consumer and Competition Commission, denied

18 www.pngbusinessnews.com • Issue 3 2021

Kina’s proposed acquisition of Westpac PNG. The authority body stated that it was unconvinced that the acquisition would not significantly reduce competition or benefit the public. The verdict was made only two months after a preliminary determi-

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MINING

OK Tedi chairman Sir Moi Avei KBE retires

K Tedi Mining Limited (OTML) has announced the retirement of its Chairman Sir Moi Avei KBE who has successfully led Ok Tedi for more than six and a half years. OTML Managing Director & CEO Mr Musje Werror acknowledged the significant contribution made by Sir Moi during his tenure saying that “under Sir Moi’s leadership the value of the OTML business has nearly tripled while mine life has been extended by 6 years to 2032. The outlook for the Company is very positive with over K20 billion expected to be generated over this period”. He added that “this has been achieved at the same time as the Company has made a step change improvement in safety performance”. 2020 was the first year with no lost time injuries recorded in over 30 years. During that year recordable injury frequency rates fell by 42% and this followed a 27% improvement in the previous year.” In announcing his retirement Sir Moi said, “I wish to thank the shareholders for the support provided to me as Chairman and the faith shown in me and my Board.” In addition to thanking director’s past and present Sir Moi ac-

Sir Moi Avei KBE served as OK Tedi’s chairman for over 6 years.

knowledged MD & CEO Mr Musje Werror, and his predecessor Mr Peter Graham, for their valued contributions leading OTML during his tenure, and thanked the workforce and local community for their efforts and support. Mr Werror said that “on behalf of the management, and the workforce, we are grateful to Sir Moi for his guidance, wisdom and

the positive legacy he leaves and especially supporting the elevation of the first national to become Managing Director and CEO of Ok Tedi. He is warmly regarded by all at Ok Tedi, and we wish him well in his retirement”. An announcement on a new Chairman will be made in due course once internal processes are completed, the company said.

NORTON NEW CEO OF CAPITAL INSURANCE

he Chairman of Capital Insurance Group, Mr. Michael Koisen OBE, announced on the 23rd of September 2021, the appointment of Mr. Jeremy Norton as the Group’s new CEO. Mr. Norton joined CIG as its Group COO in January this year to drive operational excellence and sustainable business growth and has been an invaluable addition to the team. He was appointed Acting Group CEO in July this year following the resignation of the former Group CEO, David Lee. Mr. Koisen commended him on his efforts as Acting CEO and added that his permanent appointment would allow for continuity and stability of the business. Mr. Norton has a strong

Jeremy Norton

technical, commercial, and leadership background with more than 20 years of industry knowledge across a broad range of disciplines in both life and general insurance, including the position of Regional General Manager for Tower Insurance Pacific and has held other senior executive roles in the insurance industry. “We are confident that Mr. Norton will continue to provide leadership to the Group across the Pacific whilst working together with the Board to deliver value to our customers and our Papua New Guinean shareholders,” the company said in a statement. Capital Insurance provides a range of insurance products and services to meet the requirements of commercial, corporate and small businesses.

www.pngbusinessnews.com • Issue 3 2021 19

ENERGY Volcanic eruption in Tavurvur volcano, Rabaul, New Britain Island, Papua New Guinea Photo credit: Eric Lafforgue www.ericlafforgue.com

By Marcelle P. Villegas

rom a commentary article by Barney Orere, a list of opportunities and challenges were enumerated from Mining and Exploration Bulletin 2014 by the Mineral Resources Authority. The report details out the geothermal prospects as a potential source of sustainable energy in PNG. Investment opportunities were brought to light as a result of the 2018 APEC Summit where three countries have teamed up with the PNG Government and PNG Power Limited to lighting up 70% of PNG by 2030. One question that surfaced is about Deidel on Fergusson Bay Province. Being a geothermal prospect, will it offer any potential investments to have a positive impact on the country? For this, MRA conducted studies and investigations in the islands of New Guinea. Here are some keypoints: ~ The volcanic island of New Britain is the most prospective region for the development of geothermal energy resources in Papua New Guinea. [1] ~ The northern coastline from the Willaumez Peninsula in Talasea and West New BritaIn Province of the Gazelle Peninsula in Rabaul has scattered geothermal prospects. New Britain Island has several volcanoes which are dormant. The island has two active volcanoes, namely: Pago in Cape Hoskins are in West New Britain Province (WNBP) and the Rabaul (Tavurvur) volcano in the Gazelle Peninsula in East New Britain Province (ENBP). On the other aspects of the study, the main economic activity in West New Britain Province is based largely on oil palm industry. This is apart from other business activities in its capital, Kimble, plus in smaller towns in Hoskins and Bialla. How many people are dependent on this industry? Based on the population count in NRI Report 2010, Talasea District (in West New Britain Province) is around 128,800. For their livelihood, these people are directly and indirectly dependent on oil palm industry. Where do they get their electricity? Their province has four 400-6-KW diesel generators and two mini-hydro power plants supplied by PNG Power Limited. These are the main sources of electricity for this province. Additionally, their local oil palm plantations have their own energy sources in order to address the issue of insufficient electricity supply. This is their backup energy source as their solution for the frequent power outages. More on the geothermal study in Papua New Guinea, geoscientific

Mapping out the potentials for geothermal energy “PNG through Mineral Resource Authority (MRA) has now embarked on undertaking geothermal exploration in the country with assistance from the World Bank and the Government of Iceland through training of its staff, as there is a need to diversity in its energy source and increase the energy needs of the country.” (Taken from “Geothermal Mapping in PNG” by Barney Orere, Post-Courier.com) information reports that WNBP has a few scattered geothermal prospects. “…previous reconnaissance geochemical survey undertaken in Talasea provided temperatures which ranges from 44°C to 101°C. (Berhane and Mosusu, 1997)” [1] MRA started conducting geothermal exploration in Papua New Guinea with the support of the World Bank and the Government of Iceland. “The reconnaissance field survey of the various geothermal sites in the Talasea District of WNBP was undertaken in November 2012 as part of the MRA’s ongoing geothermal exploration work.” [1] Papua New Guinea belongs on the “Ring of Fire” location, thus strong and frequent seismic activities are notable here. Seismicity is rampant at the northeastern margins of the Solomon Sea where the Solomon plate is sub-ducted northward beneath the South Bismarck and the Pacific Plates along the New Britain Trench. The seismicity in this region is known as one of the most intense in the world. [1] More on the geothermal pros-

20 www.pngbusinessnews.com • Issue 3 2021

pects, WNBP has at least seven, five of which were explored during the field work. They are Pangalu-Talasea, Bola and Garbuna (Garu area west of Garbuna) in the Williaumez (Talasea) Peninsula, Silanga and Kasiloli prospects in the Hoskins area. Two prospective locations that were not visited are Galloseulo and Bamus. Pangalu and Talasea are considered as separate prospects. In the report as well, Bola is part of Talasea. In the survey, 36 geothermal surface features were identified. These features are geysers, hot springs mud pools, fumaroles and streaming grounds. These geothermal manifestations were studied to determine the temperature, pH, salinity, conductivity and feature dimensions. These geothermal surface features are located within the oil palm plantations, near settlements and near Kimble and Hoskins towns. In the study, water and gas samples were also gathered for analysis. Samples that were taken include 13 spring samples, seven

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MINING

BEC decides gold is restricted item within Bougainville

he ABG Minister for Mineral and Energy Resources, Hon. Rodney Osioco, announced that the Bougainville Executive Council (BEC) has endorsed for unlicensed gold and other minerals to be treated as “restricted items” at all port facilities (airports and wharves) in the Autonomous Region of Bougainville. Under relevant National Government legislation, there are currently no restrictions on the domestic movement of gold. Restrictions only exist for exporting of gold and other minerals out of country; wherein relevant licenses are required from relevant authorities, including a Gold Exporting License from the Bank of PNG. This BEC decision now provides the basis for collaborative working arrangements to be put in place on monitoring of port facilities for unlicensed gold and other minerals leaving Bougainville. Minister Osioco says that work is in progress to put in place regulatory arrangements including the establishment of monitoring stations at all port facilities to monitor unlawful gold trading and to ensure that this

sector contributes to government revenue. “With this decision, there will be enforcement of provisions in the Bougainville Mining Act 2015 for Authorized Officers to seize, and forfeit to the State, all equipment used for unlicensed mining and all gold and other minerals that have been mined, removed, sold, or processed in contravention of the act. Those involved in unlawful transactions can also be penalized for their offences,” Osioco said. It is envisaged that these restrictions will come into effect by end of 2021, with collaborative effort between relevant ABG and National Government entities to implement the BEC decision. The general public is advised to report any unauthorized transactions and consult the Department of Mineral and Energy Resources for additional information pertaining to this matter. Below is a list of entities/ individuals licensed by the ABG as gold dealers and artisanal miners within the region, those not on this list are considered unauthorized and are encouraged to obtain relevant licenses for their activities.

Licensed Gold Dealers for 2021 Meekom Minerals Limited (Expiry date:17-Feb-22) Bougainville Gold Exchange Limited (Expiry date: 17-Feb-22) Boxville Investment Limited (Expiry date: 17-Feb-22) Viscount International Gold Traders Limited (Expiry date:17-Feb-22) Hoa Teina Gold Limited (Expiry date: 17-Feb-22) Bonos Limited (Expiry date:17Feb-22) Licence Artisanal/alluvial Miners Derevai Talings Limited (Expiry date: 1-May-23) Bougainville Utility Services Limited (Expiry date:12-May-26) Alphonse Mirina (Expiry date: 12-May-26)

www.pngbusinessnews.com • Issue 3 2021 21

GREAT EXPECTATIONS

C8 Residences, More Than A Luxury Residence

Airways Residences builds on its longstanding success of providing comprehensive lifestyle solutions for its When Papua New Guinea’s most esteemed property developer builds new luxury apartments in Port Moresby’s prime location, it’s not unreasonable to residents. Incorporating luxury lifestyle affordability, the newly opened C8barResidences, offers spacious presume great expectations. Airways Residences again and leads the way with an expansion project that raises the with affordable luxury apartments only and specially curated fourPorttwo-bedroom and 20 three-bedroom apartments. minutes from downtown Moresby. Officially opened in August year, the apartments’ uniquewithdesign andoutlooks modern open-plan perfect The C Residences 8 project offers fully this serviced, well-appointed residential apartments spectacular of Bootless Bay andconcept the distant is Owen forStanley an executive style,withresidential accommodation for individuals and families alike. Its seamless from ranges. Complete modern amenities, these gorgeous apartments amongst beautifully kept parklands add practical conveniencesflow such as a the private Recreation Park, a mini supermarket, pharmacy and a bank/ATM. lounge and dining area to a full size outdoor balcony allows for a great space to host family and friends. Both apartment feature master bedroom Sharing the types gated garden estate isa the South Pacific’s most with a king-sized bed and an ensuite. awarded five-star resort Airways Hotel. Hotel guests and The three-bedroom apartments in particular feature a walk-inAIRWAYS residents can savour various top-class restaurants and bars, NOW wardrobe and an ensuite complete with a separate shower andPREMIUM a full PROPERTY swimming pool, Airways Health Club and award-winning LEASING sizeBlissfree-standing bathtub, a unique element especially in Port DEVELOPMENTS Day Spa. Moresby. Recognised for its unique come design andfully-serviced high-level standards where exclusive on-site LEASING ENQUIRIES The apartments NOW OPEN and facilities, C Residences 8 Residential Apartments facilities are hygienically cleaned regularly. Each apartment is recently became the International Award Winner with Asia complete with modern amenities including white goods and Property Awards. appliances, and bonus spectacular views of Bootless Bay, Jackson’s With completion due in August, flexible leasing terms have Airport and the distant Owen Stanley Range. International opened for their 20 three-bedroom and four two-bedroom The modern luxury spacious apartments. “It’sapartments the extraordinary are valuefitted of livingwith an elevator in each of thecomplete 3 towers, servicing 2 apartments with ultimate amenities at your doorstepper thatfloor for maximum privacy andmakes security. us distinct and popular,” explains Kevin Wells, C RESIDENCES 8 General Airwayswell Residences. NestledManager amongst kept parkland, residents can also access the RESIDENTIAL private Recreation andingreen spaces, award-winning BlissAPARTMENT DEVELOPMENT Residents live safely andPark securely an oasisopen of natural COMPLETION AUGUST 2021 Daylandscapes Spa, Airways Club, Deli Vue Restaurant & Lounge Bar, that fostersHealth social distancing. And allKC, residences exclusive on-site facilitiesrestaurant are hygienically theandfine-dining Bacchus andcleaned enjoy the convenience of 24regularly. hour in-room dining service. There is also an on-site retail shop and pharmacy, Bank, Residences ATMs and 24-hour reception and security C ResidencesWestpac 8 builds on Airways longstanding success of providing its Residents comprehensive lifestyle services. Airways Residences solutions. And in this day andnow age, tooffers live howflexible you want,leasing terms for the high-quality residential apartments. Contact us without sacrificing safety and living standards, should not be and other excellent long-term accommodation options at Airways for more information on the C8 Apartments a privilege but rather a necessity for everyone. Residences. Findt:out+675 more contact Airways Residences General Manager 324 5200 | e: info_residences@airways.com.pg | w: www.airways.com.pg/residences E: kevinwells@airways.com.pg Luxury Apartments 20 x 3 BEDROOM & 4x2 BEDROOM

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AGRICULTURE

Economics professor on regional visa and Pacific labour scheme

By Marcelle P. Villegas

Stephen Howes. Photo credit: https://crawford.anu.edu.au/news-events/ news/5686/developing-research-centre-region

n a commentary of Stephen Howes, Director of the Development Policy Center and a Professor of Economics at the Crawford School of Public Policy, shared his opinion and discussed how the June ASEAN agricultural visa announcement could develop or evolve. He noted three possibilities. First point he made is the possibility that Asian countries will by allowed to join the Pacific Seasonal Worker Program (SWP) and the Pacific Labour Scheme (PLS). Another scheme might be in place as well for Asian countries. Lastly, “existing backpacker caps for Asians to work in Australia would be increased.” [1] An announcement made last August by a group of Ministers on both sides of the Coalition entails that a new Australian Agriculture visa is to be created in addition to the SWP and PLS. However, the commentary notes that “it is hard to believe that the regulations for the new visa will be in place by the end of next month.” “Agriculture Minister David Littlepround highlighted the Philippines, Thailand, and Vietnam (and the UK) in his ABC interview.” However, the press release only says that the Australian Agriculture visa will be open to applicants from a range of countries negotiated through bilateral agreements. No countries were mentioned. “Despite these assurances, the press release is in some ways more

alarming than the initial Littleproud announcement,” said Howes. Aside from the agriculture sector, the new visa covers other related industry such as the meat processing, forestry, and fishing. Administration of the new visa is to be given to the Department of Foreign Affairs and Trade (DFAT). Even with DFAT being assigned to handle the new visa, some speculate that this might pose a threat to the Pacific labour mobility in the PLS. The meat processing industry comprises 71% of the PLS jobs, while agriculture and horticulture is 21%. “If employers in these two sectors switch to the new visa PLS will collapse,” according to Howes. He also points out that the SWP might also be in danger. “The

risks are especially high given the press release’s commitment to a ‘demand-driven approach’ -- the implication being that the new visa will be uncapped. The Australian Agriculture visa lacks public policy justification. All the sectors covered by it are already covered by the PLS.” Timor-Leste and the Pacific island nations sends workers under the SWP and PLS, and they have to meet the demand for labour in those sectors. “If this new visa is to have a pathway to permanency built into it (something which the press release says will be considered) then so too should the PLS. And whatever safeguards are applied to the PLS should equally apply to this scheme,” said Howes.

< From Page 20

•

gas samples and even a meteoric water sample from Laka Dakautaua at the Williaumez Peninsula. The samples were sent for lab analysis at the New Zealand Geothermal Analytical Laboratory (NZGAL), GNS Science, Wairakei. Ten of the samples were taken from Williaumez Peninsula, three from Silanga and one from Kasiloli. WNBP is situated within an active tectonic area, thus geothermal activity is common here. The data below shows why these four locations are good prospects for geothermal spots:

•

accurate geochemistry data. Overall, further investigations are needed in surface geology mapping, geophysics survey and geochemical surveys of hot springs that were not yet sampled.

• •

Pangalu (Rabili) - 270°C to 295°C Talasea Station - 270°C to 310°C

Silanga (Bakama and Sakalu) - 210°C to 290°C Kasiloli (Magouru) - 275°C to 300°C

Since geothermal prospects Pangalu and Talasea Station are situated within the shoreline, the water samples may be contaminated with seawater. For this, isotopic analysis is needed to test the water samples accurately. This technique in testing and analysis can determine possible seawater contamination of the sample. The report notes that there is a lack of gas and isotopic data analysis during the study. Thus, it is recommended that isotopic analysis should be part of the study. Another important recommendation is the use of proper equipment in collecting gas samples, in order to come up with

24 www.pngbusinessnews.com • Issue 3 2021

Reference: Orere, Barney (24 Feb. 2021). “Geothermal Mapping in PNG”. Papua New Guinea Post-Courier. Retrieved from - https://postcourier.com.pg/geothermal-mapping-in-png-2/ Photo credit: Volcano in PNG – Tavurvur volcano, Rabaul, New Britain Island - https://www.flickr.com/photos/ mytripsmypics/8398027130 by Eric Lafforgue Photography - https:// www.ericlafforgue.com/articles/ About

Reference: [1] Howes, Stephen (30 Aug. 2021). “Yesterday’s Regional Visa announcement: The End of the PLS?”. Post-Courier. Retrieved from https://postcourier.com.pg/ yesterdays-regionalvisa-announcementthe-end-of-the-pls/ Note: The article by Stephen Howes that was published on Post-Courier first appeared on Devpolicy Blog (devpolicy.org), from the Development Policy Center at the Australian National University. ret)

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COMPANIES

Customary land development opportunity at Sasiva

asiva Industrial Park is a 70-hectare development located within 2km of Motukea International wharf in Port Moresby, Papua New Guinea. Sasiva, being the traditional name of the land, was converted from customary land to a state lease for the purpose of developing an industrial park, giving companies the opportunity to operate within possibly the most logistically-sound area within Port Moresby. Sasiva Industrial Park is comprised of mixed zoning of commercial light industrial and residential lots. The company was founded with the intention of changing the way development is done in PNG, by working closely with the traditional landowners this project has been made possible. Over the years, Sasiva Industrial Park has focused on the wellbeing of the custodians of the land by funding education, building adequate housing with proper sanitation, and giving landowners access to private health, as well as a number of community initiatives for the broader community.

Sasiva Industrial Park is a first of its kind within Port Moresby. The company believes that partnerships with traditional landowners is the way PNG should aim to move forward. This project has been made possible by working together with a common goal of benefiting the people of the country and its future generations, by working closely with the customary landowners to create a state-of-the-art industrial/ business park, which will bring a number of opportunities for the local community, while giving businesses the chance to take advantage of the relocation of Port Moresby’s International wharf. Sasiva is one of few parcels of land that has been granted a state lease within the proximity of the Motukea International wharf. As areas throughout Port Moresby become congested with traffic, Sasiva looks to become a convenient location for companies of all types. Stage one of the development will see 1.5km of a 4-lane road sealed with power and water connection, with available lots rang-

ing from 5,000 to 20,000 square meters. The group have managed to establish a company with a clear goal of continued investment and support to the local community. With these same values, the group plan to use these resources to improve education, health, housing and a sustainable income for the people of Sasiva. The group understands the importance of proper planning and a harmonious environment for both customary landowners and investors, all of which makes this an exciting opportunity for Papua New Guinea based businesses.

Product design and development Sourcing Manufacturing With 18 years experience in Papua New Guinea, AsiaPac has helped its various customers with ”end to end” procurement requirements. AsiaPac understands the importance of quality and the terrain of doing business throughout the highlands and the islands of PNG. Mel.Bromley@asiapac.biz www.asiapac.biz PNG Phone number 7069 4303 No. 3, 2nd Floor Huon Haus LAE

26 www.pngbusinessnews.com • Issue 3 2021

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FINANCE

Credit Corporation appoints Robinson as CEO

anny Robinson has been approved as Credit Corporation’s president and chief executive officer. He was designated CEO of Credit Corporation on a permanent basis along with the firm’s new general counsel and company secretary, Robinson. Robinson has been interim CEO of Credit Corporation since February this year following the departure of former CEO Peter Aitsi. He was formerly the Group’s chief operational officer and has been with Credit Corporation since May 2020. Robinson was the executive general manager of banking at Kina Bank before joining Credit Corporation. He has a great track record of executing customer strategy via company transformation and integration, building distribution networks in new regions, generating significant asset growth, creative product creation, and providing exceptional customer service. Robinson has shown himself since taking over as interim CEO in February, according to Credit Corporation chairman Richard Sinamoi. “Thanks to his efforts, it was a smooth and effective transi-

tion to new leadership, despite the challenging environment we have faced due to the COVID-19 pandemic. He has led the business through this difficult period with great determination,” Sinamoi said. “The Board’s decision on the CEO appointment considered the need for ongoing stability during a period of considerable challenges with a proven leader who has an in-depth understanding of our business, our markets and our strategic goals. “His depth of experience across finance, strategy and financial services digital transformation, his inclusive and collaborative people leadership style, and his passion and drive made him the standout candidate,” he said. As the Group’s strategic assessment proceeded, Sinamoi said the Board looked forward to continuing its excellent cooperation with Mr Robinson. Robinson expressed his delight at being named CEO of Credit Corporation. “I would like to acknowledge the Credit Corporation team for their support and outstanding commitment to our customers as we continue to meet the challenges of the pandemic.”

Danny Robinson

MARAPE: EXXONMOBIL, GOV’T TALKS ‘GOOD’

he talks between ExxonMobil and the government on the P’nyang gas project have been hailed as “good” by Prime Minister James Marape. Last month, the two companies signed a letter of intent to commence project talks. “ExxonMobil will be resuscitating conversations on the P’nyang gas fields which is up north from the present PNG LNG. P’nyang will be brought back to the table,” he said. Marape just departed the nation to attend the UN General Assembly in New York and continue discussions with the firm.

“If I could win above present thresholds, as far as where our laws allow or winning better than the PNG LNG and Papua LNG, we will come back with news on how P’nyang will be,” he said. “But we will be pushing hard on ExxonMobil.” ExxonMobil and the State Negotiating Team are “in excellent discussions,” according to Marape, based on the indications received. “Hopefully, my showing-up in Houston, Texas, the headquarters of ExxonMobil, will cement how the future of P’nyang will be, subject to how the negotiations will come to a conclusion,” he said.

“It might be a win/win for us, a win/win for them that embraces also the PNG LNG area footprint and the legacies that we are living with as far as the PNG LNG project is concerned.” Marape said once negotiations with ExxonMobil were completed, “we should (know) how P’nyang will feature”. He estimated that the Papua LNG project will be completed in 2024/ 2025. “We would like to extend the construction phase in the LNG sector to two, three years, piggybacking on the possibility of bringing P’nyang into the picture.”

< From Page 18

expenses and projected revenue from the acquisition that is no longer expected. Kina’s Managing Director and Chief Executive Officer, Greg Pawson said about the termination, “Whilst we are disappointed

that the acquisition has not proceeded, this in no way changes the Company’s strategy of seeking both organic and inorganic growth in PNG and the Pacific region. The outlook of the company remains positive.”

nation reached the same outcome. Kina anticipates its full-year 2021 earnings to be in line with the Company’s full-year 2020 results, after accounting for transaction

28 www.pngbusinessnews.com • Issue 3 2021

Equipment Finance

The smarter way to borrow The right tools of the trade are essential for operating a successful business. However if cashflow is tight, you may not have the money to invest in assets which will help your business thrive and grow. If you’re a sole trader or a company engaged in business, you may qualify for Credit Corporation’s equipment finance. Equipment finance can be used to purchase heavy machinery, vehicles, and equipment used to run your day-to-day businesses. Loan periods are from as little as a year and we offer flexible payment terms — allowing you to get on with the job and keep your business moving.

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OIL AND GAS

Marine services for Papua New Guinea’s O&G sector

acific Towing, a 44-year-old marine services business headquartered in Papua New Guinea has been servicing the oil and gas sector more than 10 years. The company is a member of both the International Spill Control Organization and the International Salvage Union. With its own Australian trained and certified commercial dive team, ‘PacTow’ is now providing its in-water surveys to class with live feeds streamed back to internationally located survey technicians. PacTow provides a diverse range of services to not just O&G companies themselves but also to some of the largest offshore support operators. General Manager Neil Papenfus says the company’s commercial dive team at its dedicated tug base in Port Moresby is central to the many services it provides its O&G clientele, including the sector’s offshore operators. Of considerable value to these offshore entities, are PacTow’s in-water class surveys. “Because our dive team can provide a live feed to surveyors in just about any country, we’re able to negate their need for international travel. The live feed component of our service is obviously highly valued given that COVID-19 is making it next to impossible to get specialist international technicians both in to and out of PNG.” Papenfus confirms that the company’s commercial divers are all Australian trained and certified. In addition to being highly trained, he says that “as PNG nationals they have an intimate knowledge of the country’s water ways, its weather patterns and overall marine condi-

Pacific Towing’s commercial dive team is central to the numerous services it provides PNG’s O&G sector including in-water surveys to class with live feeds back to international survey technicians.

tions – they are definitely the best in-country and easily equal to their international counterparts.” Other services PacTow provides to the O&G sector include oil spill response and prevention; video pipeline inspections; PLEM valve hook up and release; towage, berthing and mooring; hull cleaning; and a range of niche, as well as project-based customised solutions. Specific to the country’s PNGLNG project are the installation of current sensors, inspection of navigational piles/systems, and sea water intake inspections. Additional services provided to two of its downstream clients include mooring inspections and repair, an-

nual pressure testing of fuel transfer sub hoses, and seabed survey and sampling. The company anticipates introducing new services to support PNG’s O&G sector as it invests further in its re-fleeting program which will see it acquire another three Azimuth Stern Drive (ASD) tugs by 2025. To learn more about Pacific Towing’s services, go to www. pacifictowingmarineservices.com.

PacTow General Manager Neil Papenfus: “With our fleet of 22 vessels and 200+ well trained maritime professionals, including those who’ve worked and trained internationally on OSV’s, PacTow is the in-country marine services provider the O&G sector turns to when it wants a job done safely and to the right standard.”

PNG POWER ALLOTS K700M FOR PROJECTS

ccording to PNG Power Ltd., more than K700 million in power investment has been committed for the remainder of 2021 and next year, with further projects to be announced. About ten projects will begin under the PNG electrification partnership, according to PNG Power’s director of project delivery Eric Alom, who spoke at a PNG Business Council conference (PEP). “Since 2018 up to this year, we have never had any real movement on the delivery and coordi-

nation of the PEP programme,” he said. “Now we are able to have a single central entity that is purely focused on project delivery and coordination.” The following projects are in the works: • The Australian government has provided a K128 million loan and grant for the EDEVU to Port Moresby transmission line and substation, which is currently being procured. • The Australian government provided a K40 million loan

30 www.pngbusinessnews.com • Issue 3 2021

and grant for the LEALEA to Kanudi transmission line. Many companies will be present, and they will require a reliable power supply and network. It’s still in the planning stages. • A K327 million counterfunded grant and loan from Australia and the Asian Development Bank is being used to enhance the power industry. It’s still in the early stages of defining the scope and negotiating the financial terms. • Provincial microgrids – a K40 million Australian grant to build a stand-alone grid with its

To Page 50 >

OK TEDI HAS CONTRIBUTED MORE THAN

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In the last 36 years since operations began in 1984, Ok Tedi Mining Ltd has contributed more than PGK65 Billion to Papua New Guinea’s economy, and has further supported Western Province development through Tax Credit Scheme and other infrastructure projects such as health centres, school classrooms, roads, airstrips, jetties, water supply and communication systems. We also contribute significantly to the Province, and Papua New Guinea through royalties, compensation payments, direct and indirect employment, training, and business opportunities.

As a majority State-owned entity, and proudly the only 100% PNG-owned mining company, we are committed to helping contribute to Western Province and Papua New Guinea’s development.

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OIL AND GAS

Santos, Oil Search seal deal

antos Ltd and Oil Search PNG Ltd have completed their merger through a merger implementation deed, according to a market statement. Reciprocal confirmatory due diligence, which began on August 6, has been completed. Oil Search shareholders will get 0.6275 per cent new Santos shares for each Oil Search share held on the plan of arrangement’s record date, according to the conditions of the merger. Around 38.5 per cent of the combined company will be owned by Oil Search stockholders. Santos stockholders will own around 61.5 per cent of the company. The board of directors of Oil Search unanimously recommended that shareholders vote in favour of the merger. Each director of Oil Search plans to vote in favour of the merger with all of the shares in Oil Search that they own or control. According to Santos, the merger of Santos and Oil Search will result in a regional champion with the following characteristics: A diversified portfolio of highquality, long-life, low-cost assets with significant growth potential in Australia, Timor-Leste, Papua New Guinea, and North America; The pro-forma market capitalization of roughly US$21 billion (K53 billion), putting the combined company among the top 20 ASXlisted firms and the top 20 global oil and gas companies; Production of around 116 million

barrels of oil equivalent in 2021; 4,867 million barrels of oil equivalent PRO-forma 2P+2C resource base; An investment-grade balance sheet with over us$5.5 billion in liquidity to self-fund development projects while maintaining additional options and flexibility to optimize the portfolio Gearing of less than 30% is the goal; and Santos’ net-zero emissions aim by 2040, a focus on carbon capture and storage projects, and Oil Search’s social and community involvement in PNG and North America are all strong ESG credentials. Oil Search chairman Rick Lee said, “Put simply, this merger provides Oil Search shareholders with a compelling opportunity to participate in a larger entity with significant scale, product mix, ESG

and geographic diversity, and access to capital. “The combined entity will have the capacity to deliver on an exciting pipeline of organic growth opportunities.” Santos Chairman Keith Spence said, “The merger represents an attractive combination of two industry leaders to create a regional champion of quality, size and scale with a unique and diversified portfolio of long-life, low-cost oil and gas assets.”

KUA: OIL SEARCH-SANTOS MERGER MUST SERVE NATIONAL INTERESTS

he proposed merger of Oil Search Limited by Santos must be in the best interests of the country, according to Petroleum Minister Kerenga Kua. While Kua recognizes the significant contribution Oil Search Limited has made to the country, he believes that a merger will result in the company’s identity being lost and subsumed under another new business, which will have ramifications. “The Prime Minister has said that whilst this is a free and open market and because the Oil Search business is based in Papua New Guinea, the Prime Minister has emphasised that Papua New Guinea’s national interest must be factored into the merger arrangements.

“Us as ministers we have been instructed to monitor the national interest components and consequences of the merger,” he said. As a result, Kua stated that they will be closely monitoring the merger to ensure that the good culture that has grown and becomes a daily expectation for Papua New Guineans, particularly landowners, is preserved, maintained, and built upon. “There’s nothing we can do about the merger process itself as it is a free market and that’s noble business taking its course but any entity resulting from the merger must always remember the Oil Search culture that has been of considerable benefit to the people of Papua New Guinea.

32 www.pngbusinessnews.com • Issue 3 2021

“That contribution that Oil Search use to make must not be lost when you have a new entity from the merger,” he said.

Petroleum Minister Kerenga Kua

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FINANCE

34 www.pngbusinessnews.com • Issue 3 2021

FINANCE

MoniPlus: Your business growth matters to us

eduru Moni Limited is successfully running its 22nd year of operation and is quickly earning the reputation as one of the most exciting financial services firms on the rise in Papua New Guinea. The company was incorporated and commenced trading in 1998 as a financial intermediary under the trading name Kina Plus and started operations by providing small personal loans for employees of both the public and private sector. In February 2006, the Bank of Papua New Guinea granted Heduru Moni Ltd a license as a Financial Institution under the Banks and Financial Institutions Act. Attaining the license allowed the company to raise deposits and expand its lending portfolio. In 2006, the company’s trading name was changed to what it is now known today, “MoniPlus”. This company is a full-fledged financial institution and is “the leading lender in unsecured personal loans in the country in its category.” The current leadership position is achieved and maintained due to exceptional friendly service quality, turnaround time, promptness, flexibility, affordability of loans offered with innovative products to suit every Papua New Guinean’s financial need. It is operating from PORT MORESBY (HO) at present with nationwide presence having branches at POM, Mt HAGEN, ALOTAU, LAE & KOKOPO.

“MoniPlus” also provides SME Financing, Asset and Equipment Finance, Loan Against Properties, Financier Guarantee, FX Remittance services (known as Moni Plus FX) and offers highly competitive rates for Term Deposits. In 2012 the company created a state-of-the-art on-line, Foreign Exchange delivery service and had its license approved as a Foreign Exchange dealer in May 2012. With respect to its lending division, the company reported in its 2020 key disclosure statement total loans and advances of K 284 million. The year 2021 continues to see steady growth & promising particularly in terms of Education Loans, Asset and Equipment Finance portfolio and foresees this to continue as more opportunities within the economy in all sectors are unlocked. “MoniPlus” strength lies in its ability to respond to all type of business sectors, from corporate heavies in transport, logistics and construction right across to SMEs such as vehicle

hire and public motor vehicle (PMV) operators nationwide and through its lending portfolio shows optimistic signs ahead for Papua New Guinea. With “MoniPlus” continued branch expansion plans over the coming years, its sights are on regional opportunities for unsecured Personal Loans, Education Loans and Asset Financing with particular interest in growing its mining and petroleum lending portfolio. “MoniPlus” has made its name in the market on its fast, quick and easy service and its speed to funding for all customers. “MoniPlus” provides the most modern, online foreign currency exchange and money transfers in Papua New Guinea. Services are available to individuals and commercial enterprises alike. The online service is available 24 hours a day 5 days a week and allows clients to complete currency transactions from home or office, or from our branches if preferred.

FX Feature include: • Competitive rates and low fees - check a live rate on your online dashboard any time. • Exceptional service - Fast, easy and secure. • Seamless intuitive interface is very user friendly • 24 hour / 5 day per week availability While subject to usual regulatory Know Your Customer requirements, its registration process can also be handled online, with a user-friendly process meaning you can be transacting within normally 24 hours. For inquiries, email info@moniplus.com or visit www.moniplus.com.

36 www.pngbusinessnews.com • Issue 3 2021

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COMPANIES

Madang Pacific Maritime Industrial Zone to be redeveloped

adang Province’s Pacific Maritime Industrial Zone will be redeveloped to become a regional fish processing centre. The National Fisheries Authority and the Treasury Department are collaborating on the project’s development and financing plan. Ango Wangatau, head of the National Fisheries Authority, said the regional processing hub will bring together other Pacific Island governments to achieve a critical mass of tuna processing and export from the Pacific. PNG will inevitably emerge as the leading country as the hosting hub. According to him, the sector expects to gain more than 30,000 new jobs as a result of the PMIZ’s launch, with income-producing over K3 to K4 billion. “Maximising export earnings is contingent on increasing value-adding production and the PMIZ redevelopment is the

platform to achieve it. “The NFA Board is confident that this investment will lift PNGs value-adding capacity to another level in the commercialisation agenda.” The National Fisheries Board, according to Wangatau, is dedicated to participating in these changes and is convinced that the plan’s road map will enable the fisheries sector to contrib-

ute to the objective of “Taking Back PNG and Leaving No Child Behind.” He stated that he has been in discussions with super funds about partnering with NFA to invest in infrastructure and allowing private sector participation, which would help the industry to develop additional facilities and achieve the anticipated outcomes.

BAKANI: AGRICULTURE, SME POLICY IMPROVEMENTS WOULD ENHANCE KINA

Bank of PNG Governor Loi Bakani

olicy changes in agricultural and small-to-medium companies, according to Bank of PNG Governor Loi Bakani, would boost the PNG Kina versus other currencies. Bakani warned stakeholders at a CPA conference in Lae that the country has been missing out on a golden chance for years. He said that the value of the PNG Kina has fallen by 41% between 2012 and 2020. The kina value versus the US dollar was as high as 0.4 toea when the

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PNG Liquefied Natural Gas (LNG) plant began exporting. “When foreign exchange from PNGLNG stopped, there wasn’t sufficient forex coming in or from other mining or non-mineral sectors to sustain the appreciation of kina,” he said. Bakani said if policies were in place to encourage the agriculture and SME sectors, import substitution and export promotion, kina would have remained stable. “In the last two years, we’ve seen a big pick-up in

the export of non-minerals, especially in agriculture, to generate a lot of forex.” He advised stakeholders to cut imports and increase exports. The Wafi-Golpu project, the Porgera mine, and the Papua LNG projects, according to Bakani, have the potential to reverse the trend and boost the Kina. “This is the idea to address this shortcoming with the PNG LNG project where the government gets early revenue, the foreign exchange comes to banks and helps exchange rates to appreciate.”

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COMPANIES

Construction of Central Cement and Lime to begin in H1 2022

onstruction on the Central Cement and Lime (CCL) project will begin in the first half of next year, according to Mayur Industrials chief operating officer Trent Alexander. Mayur Industries is a Mayur Resources Ltd subsidiary. The first phase of the project, a 2 Kiln Quick/Hydrated lime factory, cost around K300 million, according to Alexander. A K1 billion clinker and cement project is planned for the second phase. “Now with all statutory approvals in place, once the final project agreement is signed between the landowners, provincial and state governments, and the developer (Mayur), a financial investment decision on phase one would be expected,” he said. “Phase two depends on customers and their final commitment to support the project. “In quicklime, we have customers supporting circa 100 per cent of the kilns capacity. “Presently on cement, we have circa 60 per cent of the production volume being supported by customers, we are aiming to bring that up to between 80 to 90 per cent,” he said. “Once this occurs, we will examine a financial investment decision on the K1 billion expansion. “The sooner we can do this the better. “There are certain boxes that must be ticked, but with a very solid foundation now laid, we are

confident this will come.” According to Alexander, the project will produce about 1,800 construction employment, as well as hundreds of ongoing direct and indirect jobs. The first phase will take 18 to two years to complete. Construction offers from both the local and international markets have been received. Mayur, which was awarded special economic zone designation for a K1.3 billion cement and lime project, also hopes to lower construction material prices in the country. Alexander stated that the project will now be able to establish cheaper building material costs for PNG. The Central Cement and Lime (CCL) project will be able to compete with roughly 1,000 economic zones in Southeast Asia, including India and China, thanks to the designation accorded to it. He said that surplus output might be sold to neighbouring countries, making PNG’s exports more competitive. The Globe Bank estimates that there are between 3,500 and 4,000 special economic zones in the world. PNG, according to Alexander, has been unable to generate vertically integrated quicklime, clinker, and cement. Thailand, Malaysia, Japan, and China were all required to import. “There simply has never been a viable economic business case that

justified the establishment of such a facility that competes with Asian imported alternatives and those manufacturing facilities established in the various types of economic zones (set up by South East Asian governments). “The SEZ license covered the same area as the mining lease already granted for the CCL project, located across Kido and Rea Rea. It would now offer further reason for global manufacturing/industrial investors to at least equitably consider putting their capital into PNG and not just prioritise other South East Asian countries and their economic zones, over Papua New Guinea.” It will give income tax relief, import tariff exemptions, and other advantages to Central, landowners, Mayur’s manufacturing company, and new investors in order to lower the high cost of construction materials.

LEONARD: DOMESTIC TOURISM SHOULD BE PUSHED TODAY

omestic tourism should be pushed today, argued Tourist, Arts and Culture Minister Isi Henry Leonard, since the tourism industry is being impacted by the Coronavirus (Covid-19) epidemic. “The Covid-19 has awakened us to realise our full potential,” he said. “The answer is in culture and domestic tourism. We have to realign and re-strategise to get tourism up and going. “You don’t need to look outside for answers. You need to look inside to address this global situation. “Culture is the product to boost the tourism industry that is largely affected by the pandemic. “Anywhere there is a cultural event, we support it. I promote the

culture of this country.” Chief executive officer of the Tourism Promotion Authority, Eric Mossman Uvovo, said measures were in the works to promote

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domestic tourism. Locals and expats alike were interested in domestic airports and flights, he added. Packages with airlines have been promoted.

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FINANCE

Gov. Numu supports Extractive Industries Transparency Commission

overnor for Eastern Highlands Province Hon. Peter Numu has given his full support for the establishment of the Extractive Industries Transparency Commission. Governor Numu opened the lower Highlands Consultation workshop on the PNG Extractive Industries Transparency Commission Bill in Goroka on Monday, September 6th, 2021. He welcomed the State legal and policy officials from key government departments, Department of Petroleum and Energy, Department of Treasury, Constitutional and Law Reform Commission, National Economic and Fiscal Commission, Internal Revenue Commission, including Provincial administration key representatives from Western Highlands, Jiwaka, Chimbu, Eastern Highlands, and the PNGEITI

staff who gathered in Goroka for the week-long consultation. “As the Governor of Eastern Highlands Province, I am in support of transparency and accountability in the extractive sector. “The government must be accountable and it must make sure the developer is transparent in the extraction of our natural resources,” he said. “Our government recognises the need to have transparency and visibility of revenue received from the extractive projects and other sectors in the country particularly in our province. “We also acknowledge the importance of having factual data from the sector to ensure we are able to make informed decisions in the governance of the sector. He added that Eastern Highlands Province contributes significantly to

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the economy of the country through coffee production and exports. The province is a major coffee producer and from coffee exports revenue is generated for the country, while local farmers benefit directly from selling their coffee produce. “The province also hosts the K92 Mine located in the Kainantu District, that started four years ago. The company K92 Mine Ltd paid K25 million to the government last year, given the tough economic times and is looking at a promising future for the province,” he said. “Our government also recognises the importance of supporting the work of the PNGEITI in transitioning to an independent entity as proposed ‘Commission’ to fully implement the EITI requirements and best practice Standards that PNG has signed up to implement for our benefit.

(Photo above) Eastern Highlands Governor Hon. Peter Numu (seated third from left) with stakeholder representatives from provinces Western Highlands, Chimbu, and Eastern Highlands including the State legal and policy officials and the National Secretariat staff at the Bird of Paradise Hotel after he officially opened the lower highlands regional consultation on the PNGEITI Commission Bill.

FINANCE

Alkan: Stakeholders views critical for better resource governance

he Head of the PNG Extractive Industries Transparency Initiative (EITI) Mr. Lucas Alkan has issued a strong challenge to stakeholders in the extractive industries to embrace and promote the work of EITI in Papua New Guinea to derive best value from the industry. Mr. Alkan spoke of this last week in Wabag when he opened the upper highlands regional consultation on a proposed law to transition the PNGEITI into a statutory authority. “PNG EITI is a government driven initiative to promote transparency and accountability in the PNG mining and petroleum space which has been driving the PNG economy for a sustained period of time. “But there is this misconception about proceeds from mining and petroleum activities not being translated well into development on the ground and this sentiment is shared by many at both the provincial and national level. “What PNGEITI is doing is to shed light on the leakages on revenues and proceeds from the mining and petroleum activities with the ultimate aim of improving governance in the mining and petroleum sectors using international best practice standards to see the desired development outcome from this important sector. “Seven years into PNGEITI implementation in PNG, we’ve now seen the need to make the PNGEITI administrative body, the PNGEITI into a statutory body to see more improvement in the EITI reports to enhance good governance in the sector to derive the best development outcome. “We’ve covered two regions; the New Guinea Islands and Momase regions and we are now conducting consultations in Enga and Eastern Highalnds to cover the big highlands region. “I encourage the best knowledge and views from all stakeholders from the stakeholders in these consultations so that we give birth to a law that truly reflects the genuine views of all stakeholders for better development outcomes. A State Technical working group comprising the Department of Petroleum, State Solicitor, Internal Revenue Commission, Department of Personnel Management, Department of Treasury, the National Economic Fiscal Commission and Department of Finance were in the Enga capital, Wabag for a four days consultation for the Upper Highlands region” “PNGEITI has been in operations since 2014 effected by a NEC decision and now we are moving into the next step in anchoring this extractive industry reporting process into PNG’s legal and administrative system. PNGEITI

published 7 reports detailing activities taking placing inn the PNG mining and petroleum space,” Mr. Alkan said. The PNG Extractive Industries Transparency Initiative (PNGEITI) is a PNG Government initiative established in 2013 to promote accountability and transparency of revenue received from the country’s mining, oil and gas sector and how it spends these funds. PNGEITI is part of a global best practice standard known as the Extractive Industries

Transparency Initiative that promotes good governance in the extractive sector. The PNGEITI implements the Global EITI Standard through its Multi-Stakeholder Group comprising of government representatives, extractive industry representatives and the Civil Society Groups. Meanwhile, Governor for Eastern Highlands Province Hon. Peter Numu has given his full support for the establishment of the Extractive Industries Transparency Commission.

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COMPANIES

Decentralised sewage eliminates transport headaches

ecentralised sewage treatment is not common in Papua New Guinea (PNG), yet according to the United Nations Sustainability Development Goals (SDGs) sanitation and clean drinking water are two of the core fundamentals for society. Whether your site is a community village, an educational institute, regional hospital, or mining camp, it needs to adequately treat sewage to maintain a healthy virus free community. Logistically, however, remote decentralised sewage systems are one of the hardest projects to undertake because they involve sizable infrastructure. With Hydroflux, you do have choices and the skills are here in-country, so here we review the options to achieve sanitation in remote areas through the appropriate selection of decentralised sewage solutions. Prefabricated tanks are generally the best option because they can be constructed off site, tested, and sent to site ready to install in a “plug and play” format. An important sustainable benefit of the Hydroflux Epco decentralised STP is that we construct the tanks in Port Moresby or Lae, increasing local economic value through our in-country partnerships. There are two decentralised STP options available through Hydroflux Epco, and both have their merits if applied appropriately. Selecting the appropriate solution is centered around the life span of your site. In simple terms, ask yourself; Does the site have a medium-term lifespan of less than 10 to 15 years duration or is the project for a community style site to last 25 years or more? The first option for medium to short term sites is a fully containerised system. Fully containerised systems are often more economical because they are built offshore in high volume production lines and are built using sheet metal stainless steel inside standard shipping containers. Yes, they are purpose built from the ground up, but they are a one size fits all standardised solution with little ability for customisation. The containerised solution by Mena Water, is an excellent example of a quality German owned design

made in the United Arab Emirates from quality European components. Quality containerised systems are appropriate where CAPEX budget is a limiting factor or for a maximum effective site life of between 10 to 15 years. The second, and most appropriate option for PNG is fabricated here in country. The Hydroflux Epco RoadTrain® STP is purpose built from the ground up and is designed for longevity, thus having significant circular economic value. The RoadTrains are readily refurbished and are capable of accepting future process improvements. As of 2021, the Tabubil RoadTrain STP is 39 years old and being successfully refurbished and upgraded for inlet screening of in-organics and sludge handling prior to effluent discharge. Both modern technologies were not available in 1981 when the site was first built. There are two installation variants available in the RoadTrain series depending on your site’s logistical disposition. The first variant is a fully welded tank configuration for transporting as a standalone low and wide load for sites with little if any logistical issues. The second is a bolted panel configuration for flat pack delivery and assembly on site where road access and or cranage is limited or problematic. You can watch an animated assembly of the Hydroflux Epco

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bolted RoadTrain in this edition of PNG Business News and on the Hydroflux Epco website. Just look for our advertisement or follow the link to our website at the end of this article. Recently, Hydroflux Epco and their in-country representative’s, constructed each of the decentralised options mentioned in this article. Enga province in the western highlands is the site of one of our most recent containerised installations. The Wabag decentralised solution was built over the Summer of 2020/21. The site was accessible, a stock standard solution fitted the brief and a Mena Water containerised solution was selected. The Kundiawa STP in Chimbu province is a bolted panel design because the access road down to the site is very narrow and steep, virtually impossible for wide load access. In this case the bolted RoadTrain assembly as seen in the animation on our website was the most appropriate choice. In contrast, the fully welded version of the RoadTrain Original was used for Lihir, Kiunga and Wangbin townships because of ready access via road and coastal sea freight. The RoadTrains for the Western Province towns were fabricated in Port Moresby for ready access to the Fly River via coastal shipping and the Lihir project would have been pro-

To Page 46 >

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FINANCE

Stock market to be affected by Santos-Oil Search merger

arket capitalisation will drop by 30 per cent if Oil Search leaves the PNG Stock Exchange (PNGX) due to a merger with Santos, says PNGX chairman David Lawrence. The PNG stock market is currently valued at K120 billion, according to the PNG Securities Commission, with 13 businesses listed. According to Lawrence, Oil Search is an important component of the PNG market, and PNGX is hopeful that Santos will join if the deal goes through. He also stated that the existing 5,000 Oil Search investors in PNG will have continued access to the market. “That change increases the visibility of the Papua New Guinea market internationally which further serves to attract international investment,” Lawrence said. “We are hoping and believe the PNG Government is also working towards Santos’ listing in Papua New Guinea.” The proposed transaction is valued at AU$21 million (about K53 billion). Shareholders of Oil Search will own 38.5 per cent of the company,

while Santos would possess 61.5 per cent. PNG’s Commerce and Industry Minister, Sam Basil, warned the merger will have economic consequences for the country. “The planned merger between Oil Search and Santos can bite both ways,” Basil said. “Oil Search is a PNG company publicly listed in the PNG National Stock Exchange first, and in the Australian stock exchange while Santos is not listed in Papua New Guinea,” he said.

“From our perspective, this is an outbound transaction. “At the conclusion of this merger process, Oil Search ceases to exist. “If the arrangement succeeds, shareholders will become shareholders of an Australian company which has no presence in the PNG capital market. “The merged entity, which will be a foreign company, will be the biggest partner in the PNG LNG project with a more than 42.5 per cent stake.”

are considering sewage treatment for your next project, think about logistics first, and let Hydroflux Epco take care of producing a

treatment outcome that protects your community into the future, whatever distance that horizon is.

< From Page 44 duced in Lae for shipping east to New Ireland Province except for unfortunate Covid related delays in Morobe Province at the time. Hydroflux Epco are the regional leaders of this type of design with over 60 years’ experience in PNG across some 40 plus locations from the Western Highlands to the Eastern most islands of Bougainville and New Ireland. The Hydroflux Epco product range is trademarked as the RoadTrain® STP and Hydroflux Epco are proud to say our RoadTrain STP’s provide the highest level of economic value for PNG because they can be produced locally. When it comes to robustness and longevity, the RoadTrain STP is the best choice for project life spans greater than 25 years and when your site logistics are problematic, for any reason, the Hydroflux Epco bolted RoadTrain is the design of choice. So, if you

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ENERGY

K3M hydropower plant to be erected in Goodenough

K3 million hydropower plant capable of powering Goodenough Island in Milne Bay will be erected to serve the people of Kiriwina-Goodenough, according to MP Douglas Tomuriesa. “We have already contracted it out, we have just recently paid out K380,000 to the contractor and they have told us that it will cost us about K3 million to build a hydropower station,” Tomuriesa said. “That will bring in somewhere between 4.5 megawatts to 6 megawatts of power.” He said that six megawatts would be more than adequate for the island and could easily power a big city. Tomuriesa stated that the firm conducted surveys and that work will continue. On Wednesday, he was in the district to officially inaugurate the Vivigani airstrip, a classroom, and a teacher’s residence for Vivigani Primary School. Meanwhile, Tomuriesa stated that four sawmills were located in Alotau and would be spread to the surrounding towns. He stated that the sawmills will be utilized to chop lumber for home construction in preparation for the

hydropower station’s completion. “It is not easy to get money from the Government so when you see power poles, classrooms and airports coming up, look after them.” He said that the new projects will allow Vivigani companies to expand. About 30,000 cocoa trees may be found on Goodenough Island. “Just two weeks ago, a boat came and loaded 100 bags of

cocoa and took them to Alotau, that is more than 25 tonnes of cocoa, that brought an estimated K102,000 into the economy of Goodenough Island. “Organic cocoa is what the world wants, it is what the market wants,” Tomuriesa said. On Goodenough Island, he added, nine cocoa fermentaries had been erected, with another eight on the way, as well as seedlings for local farmers.

RETAIL INTERNET RATES TO DROP BY 50%, SAYS DATACO CHIEF

etail internet rates would be decreased by around 50% by the end of next year, according to Dataco PNG Ltd chief executive officer Paul Komboi. Wholesale prices had already been slashed by nearly 40%, he said at an investment conference. However, due to market competition, it was not cut at the retail level. “I hope in 2022, we will see at least a 50 per cent reduction in the retail price, and I can guarantee you that,” Komboi said. “I think the market will move very fast and it will be very aggressive. “Vodafone is coming in at the end of this year and one of the challenges we see is that a drop in the wholesale price is not being

Dataco PNG CEO Paul Komboi. passed to the end-user. “Either the market will force that to happen, or we will see the regulator stepping in. “We know that Telstar is also

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coming on board if everything goes well after their final assessment and due diligence. They will also create different dynamics in the marketplace to continue to put pressure on reducing the price of services offered to the people.” Because of the retail market’s rivalry, the reduction was not felt by end-users, according to Komboi. “But there is an uptake by the usage of mobile phones by other carriers that are out there now,” Komboi said. “It means that there is competition in the marketplace. “Once Vodafone comes in, that will add on to that competition and continue a reduction in pricing. “That’s when customers will win.”

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OIL AND GAS PNG Chamber of Mines and Petroleum President Anthony Smaré

Chamber applauds P’nyang Heads of Agreement signings

he Papua New Guinea Chamber of Mines and Petroleum has applauded the signing of Heads of Agreements for the P’nyang Gas project. Chamber President Anthony Smaré stated: “Our country desperately needs new gas and mining projects to bring in foreign exchange, create thousands of jobs, create significant business opportunities for PNG SMEs that desperately need them, and generate additional revenue for the State to fund important government services.” “The signing of the heads of agreement after a successful negotiation between the PNG Government and ExxonMobil earlier this week in Houston USA was an important first step in the finalization of the necessary agreements to pave the way for the construction of the P’nyang Project.” “It is pleasing to see the positive

and constructive manner in which the Prime Minister and his team approached the negotiation with the developers, and the win-win outcome that was secured for the country,” Smaré added. “As the Prime Minister stated, it is also important to note that the State was able to secure these advantageous economic benefits via a commercial negotiation with ExxonMobil under the current resource sector laws – this win-win outcome was achieved without changing any laws,” he said. The signing of these HOAs “signal a continued push in the right direction of returning stability to the resource investor climate and led by ExxonMobil and its partners committing to the project, and agreeing with the government on its expectations,” Smaré said. “It will help retain and build investor confidence in the country’s existing resource laws, amongst

other potential developers across the globe,” he said. “I extend my congratulations also to the state entities Kumul Petroleum and Mineral Resources Development Corporation and Petroleum Minister Kerenga Kua and Gulf Governor Chris Haiveta who all played leading roles in the negotiations.” He said the global energy market is moving through a period of transition, away from fossil fuels, and into renewable energy. PNG is facing a risk “that if it doesn’t convert the opportunities to develop its gas resources now, it will lose that opportunity forever, and the present generation of Papua New Guineans will pay the price in lost income, education, and health outcomes,” Smaré said. “That is why the successful P’nyang heads of agreement negotiations were significant,” he ended.

densification and intensification initiative centred in Markham and Lae will be implemented in Morobe. • A K2.5 million US assistance grant for PPL business infrastruc-

ture support, and; • PEP is launching a big countrywide home connectivity initiative. The amount of money available has yet to be determined.

< From Page 30 own supply and distribution. Finschhafen, Maprik, Wewak, Daru, and Kerema feasibility studies are currently being procured. • A K6 Million Australian funding for a grid capacitor bank in Port Moresby; • Priority minor projects for PPL - a K25 million Australian funding to repair generators and renovate distribution and transmission lines; • Energy utility performance and reliability enhancement project - a K103 million World Bank financing will begin next year; • Rural electrification in Papua New Guinea using a K32 million grant from the Japan International Cooperation Agency. Around 2022, a significant grid

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COMPANIES

Multiflo® MudfloTM pump and dredge unit before installation in Indonesia.

Weir Minerals Multiflo® MudfloTM 150 pump render

Weir Minerals launches Multiflo Mudflo submersible pump for large particle handling

eir Minerals, global leader in the provision of mill circuit technology, dewatering solutions and services, has launched the new Multiflo® MudfloTM hydraulic submersible slurry pump. Engineered for abrasive applications and large particle handling, the Multiflo® MudfloTM pump features a hydraulically driven wet-end specifically designed to efficiently and safely reprocess and relocate tailings ponds, maintain water retention dams, and manage slimes and sludge ponds. The innovative solution combines the Warman® MGS pumpend, Multiflo® CB32 hydraulic cutters and ESCO® excavation teeth to provide efficient pumping of highly charged and abrasive slurries. Weir Minerals’ unique Ultrachrome® A05 chrome alloy impeller ensures high wear resistance, and the specially engineered suction strainer minimizes the risk of clogging by preventing large solids & debris from entering the pump. Drawing on decades of Warman® pump design experience, the Multiflo® Mudflo™ pump is capable of pumping between 150 and 1,200m3/h, up to 82m head. The Multiflo® CB32 hydraulic cutters feature market-leading ESCO® Ultralok® tooth system to prevent premature breakage,

avoid tooth loss and protect the integral locking system to ensure the continuous operation of the pump. Engineered by the Weir Minerals dewatering pump experts in Australia, it is available for global customers from July 2021. “The Multiflo brand is synonymous with high quality and longlasting equipment. In designing the Mudflo pump, our dewatering experts drew from the very best Multiflo, Warman and ESCO technology and used advanced hydraulics to create an innovative and cost-effective new solution for mine dredging applications,” Cameron Murphy, Director of Dewatering Weir Minerals APAC said. Weir Minerals understands that success is built from enduring partnerships based on close collaboration and a mutual commitment to safety and technical excellence. “It is not uncommon for sites to use a combination of pumps, shovels, excavators and trucks for dredging applications. When one of our long-time partners in Indonesia contacted us about developing a custom solution for the slurry build-up in their sumps, we knew we could provide a better solution,” Geoff Way, Weir Minerals Dewatering Specialist said. “We’re problem solvers. We considered our customer’s pain points and engineered a new

52 www.pngbusinessnews.com • Issue 3 2021

solution to efficiently and safely manage their site processes,” he said. The Multiflo® MudfloTM pump can also be retrofitted to competitor OEM equipment; the quickhitch plate attachment ensures convenient installation and removal from hydraulic excavators. The Multiflo® Mudflo™ pump can be assembled on land, eliminating the safety risks associated with assembling pumps over water. Furthermore, the new hydraulic hose management system reduces the risk of hose entanglement and trip hazards, all the while providing a reliable hose bend radius to ensure smooth oil flow. The Multiflo® MudfloTM pump will be available globally from July 2021. Discover more at https:// info.global.weir/mudflo

Weir Minerals engineer on site with the pump.

NEWS

PNG releases new measures and restrictions on COVID

avid Manning, the Police Commissioner and Controller of PNG’s National Pandemic Response, has approved the release of new measures to combat the COVID-19 pandemic. These new measures, which took effect on September 15, 2021, were developed in response to the ongoing threat of COVID-19 while also ensuring continuity and normalcy in all aspects, according to Manning. The national prohibition on the selling of alcoholic beverages on weekends is still in effect. International and local travel, as well as social and commercial interactions, are all undergoing significant changes. The new measures for overseas travel are as follows: 1. New Quarantine Periods Those who are completely vaccinated must be quarantined for seven days, while those who are just partially vaccinated must be quarantined for fourteen days. Unvaccinated PNG nationals and permanent residents would be quarantined for 21 days. Unvaccinated foreign nationals will not be allowed entrance into PNG. Children under the age of 18 who travel with a parent or guardian will be confined for the same amount of time. Unaccompanied children under the age of 18 will be evaluated and quarantined on a case-by-case basis. Children under the age of five are exempt; 2. Unless an exemption is granted, these additional quarantine durations do not apply to all those who are presently in quarantine. 3. Approvals to enter PNG now have a 60-day validity period rather than the prior 90-day period. 4. Persons travelling to PNG only for the purpose of holidaying, vaca-

tioning, or other similar activities will not be granted entry permission. 5. All visitors to Papua New Guinea must obtain a valid COVID-19 test 72 hours before leaving their original port of departure, rather than seven days before arriving in Port Moresby. To be clear, if a person began their journey in the United States of America and flew to Port Moresby through Singapore, they would need to be tested 72 hours before to their aircraft from the United States of America, not the flight departing from Singapore. Children under the age of five are excluded from being tested; 6. All visitors to Papua New Guinea must be tested upon arrival and while in quarantine. This is the duty of the confined person’s host facility. The expense may be passed on to the person, but it is the quarantine facility’s obligation to organize the tests and report the results to the NCC. 7. If a person refuses to get tested, they will be placed on a 14day quarantine.

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8. There are no restrictions on which medical practitioners are allowed to perform these tests, save that they and their personnel must be legally licensed. All medical testing providers’ results will be accepted by the NCC. 9. Individual tracking for quarantine reasons is now limited to house quarantine exclusively. Quarantines in regularly scheduled facilities are not needed to be tracked; and 10. All Charter Flights require the Controller’s written permission in addition to the usual approvals. This authority is not delegated. Measure No. 3 “Domestic Metrics” combines domestic travel and social measures. Other domestic restrictions continue to apply, including; • If a person has COVID-19 symptoms, they are not allowed to travel, and • All passengers must have their temperature checked by airline personnel, and no one may travel if their temperature is 37.5 degrees Celsius or above (except for medivac and emergency flights).

(Top photo) PNG Police Commissioner David Manning at the podium while Prime Minister James Marape listens on. (Above photo) The World Health Organization’s COVID-19 dashboard for Papua New Guinea via https://covid19. who.int/region/ wpro/country/pg

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FINANCE

Personal income tax laws to be reviewed

ollowing the release of its issue paper on October 1st, the Constitutional and Law Reform Commission (CLRC) will review personal income tax rules. According to CLRC Secretary Dr Mange Matui, the Terms of Reference on the revision of Income Tax Laws in Papua New Guinea focuses primarily on the Personal Income Tax paid by public officials and private sector employees. “This review is quite necessary because income tax seems to be very high in PNG,” he said, adding, this is according to the submissions made to the Tax Review Committee in 2014. According to him, an internal discussion paper from 2018 sparked the review because it revealed, among other things, that public servants, in particular, are not benefiting from tax incentives and privileges, and as a result, most public servants working in towns and cities have been pushed to live and work in settlements and villages, putting their lives in danger. Dr Matui stated that the public and relevant stakeholders would be polled on the Key Issues, which include:

• the connection between living costs and taxable income, and if the tax rate should be changed; • public service tax incentives; • whether the government should lower the income tax rate for public servants; • ways the informal sector may help with taxes; • whether tax-free superannuation and retirement benefits should be available, • other tax-related concerns. CLRC is also aware of the Government’s concerns and reliance on taxes to support the National Budget, he added, adding that the review would be conducted with care. Dr Matui added consultations, which are required by law, would begin on the 4th and 5th of October in the Eastern Highlands and Madang, on the 7th and 8th of October in Simbu and Morobe,

on the 12th and 13th of October in Manus and Oro, and on the 27th of October in NCD. Written contributions are also being accepted through November 5th, 2021, by the CLRC. The Commission is encouraging members of the public, tax professionals, and anyone with working knowledge of tax or tax-related issues to participate in the regional consultations through their Facebook page or website.

Chart shows the six-tier personal income tax regime of Papua New Guinea.

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56 www.pngbusinessnews.com • Issue 3 2021

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FINANCE

CEFI signs MOU supporting the DEFINE Initiative

EFI, the Centre for Excellence in Financial Inclusion has signed a Memorandum of Understanding with PNGX Markets, the PNG Digital ICT Cluster and Emerging Venture Management (Unkapt), together the proponents of the DEFINE Initiative, to provide for a framework of cooperation and communication. To achieve the targets of the Sustainable Development Goals (SDG) in the country, one of the initiatives to implement work on the Fintech space is the Developing Financial Markets for Enterprises in the Pacific Islands (DEFINE) Initiative that is being spearheaded by partners which includes CEFI, with PNGX Markets, the PNG Digital ICT Cluster and Unkapt. The objective of the DEFINE Initiative is to contribute to the development of financial markets, products, and services for – aligned enterprises in Papua New Guinea and the Pacific Island countries, with the ultimate goals of diversifying their sources of

capital and enhancing access to finance. This includes the establishment of specialist SME funding facilities for debt, debt-like, and equity-like investments in SDG-aligned private enterprises which demonstrate governance, performance, return and impact potential with a special focus on Women-led enterprises, clean energy initiatives, agribusinesses, and businesses in the ICT sector. Mr. Saliya Ranasinghe, Executive Director for CEFI expressed his views on the journey taken to be working with and supporting the DEFINE Initiative. He further stated that the objectives of the DEFINE Initiative are very well aligned with those of CEFI and together is hopeful that the collaboration of all parties can deliver greater financial inclusion, financial literacy, and business capability to the SME sector. PNGX Chairman Mr. David Lawrence stated that a key objective of the DEFINE Initiative

is to strengthen the capacity of domestic financial institutions to encourage and expand access to banking and financial services for all, in particular women and the vulnerable, and their integration into value chains and markets. Mr. Lawrence elaborated that as a locally driven initiative, CEFI will be a key partner for meeting our objectives within Papua New Guinea and using the experience gained to export financial services and financial access across the Pacific.

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NEWS

COVID misinformation is hurting PNG, Marape tells UN

peaking at the UN General Assembly, Papua New Guinea Prime Minister James Marape noted his country’s struggles with Covid. Community transmission is now widespread in many PNG provinces, and the Delta variant is gaining a foothold, with local health systems becoming overwhelmed. Marape said PNG’s partners had been of great help to it during the pandemic to date, including Japan, New Zealand, India, China, the US, and Australia. But he said PNG required further support for its national advocacy and awareness of the efficacy and safety of Covid vaccines. “We advocate for global efforts in curbing misinformation that has resulted in low rates of vaccination in our country, especially the Facebook misinformation that keeps going on in public space.” Marape also called for global co-operation to improve access to Covid vaccines in countries where they are most needed. Marape also called for urgent

action to save the planet and its biodiversity from the ravages of climate change. “May I remind us all that little children and their families are living in the seas of the earth in fear and uncertainty of what their future will be like. “Because in their lifetime they have seen their arable and safe lands lost due to sea level rise and are watching as the structures that their lives are built upon slips away,” he told the assembly. “It is time the big carbon emitters of planet earth own up and apologise to the small island states and all other victims of climate change. “And today I make a call to all of us and especially to the big carbon emitting nations, who are now enjoying their national economic transformations through industrialisation, to pause, think and take

responsibility to save our planet.” Marape added to the calls by other Pacific leaders for the international community to collectively meet their Paris Agreement obligations and submit individual Nationally Determined Contributions without delay. “We want to see major carbon emitters in the industrialised nations to be genuine and committed in their actions to fund climate change mitigation and adaptations.”

Prime Minister James Marape addresses the United Nations General Assembly.

US GIVES $3.8M COVID AID TO PNG

s part of the American Rescue Plan Act, the US government announced $3.8 million in urgent COVID-19 assistance for PNG through the United States Agency for International Development (USAID). This assistance will assist in accelerating widespread and equitable access to and delivery of safe and effective COVID-19 vaccines, strengthening health systems, and supporting other public health measures to combat COVID-19 and the recent emergence of the Delta variant in PNG. “PNG is struggling to address the challenges caused by the COVID-19 pandemic within its communities,” US Ambassador to Papua New Guinea, Solomon Islands, and Vanuatu Erin McKee said. She stated that the American people’s support demonstrates their long-term collaboration and commitment to working together to address the tremendous global health issue. “With this assistance, the US government, through USAID, has

provided more than $9.2 million to address COVID-19 in PNG. “USAID assistance has helped the country implement internationally recognised infection prevention and control strategies, strengthen laboratory systems, case management and surveillance tracking and communicate effectively about COVID-19 prevention and care. Additionally, the United States has already contributed $2 billion as part of its $4 billion pledge, to support COVAX — a global effort to provide safe and effective vaccines for 92 countries, including Papua New Guinea,” she said. The country has already received 580,400 vaccine doses from the COVAX Facility, including 302,400 Johnson & Johnson vaccines given directly by the US government, according to Ambassador Mckee. She stated that the United States is committed to working with Papua New Guinea and other Pacific Island countries to stop the COVID-19 epidemic, alleviate its terrible social and economic

60 www.pngbusinessnews.com • Issue 3 2021

effects, and rebuild a world that is better prepared for future outbreaks. “These efforts build on decades of lifesaving work and US leadership in tackling global health crisis. “For the past 60 years since its founding in 1961, USAID has saved millions of lives from diseases such as Ebola, HIV/AIDS, tuberculosis, malaria, and now, COVID-19,” she said.

US Ambassador to PNG Erin McKee

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TOURISM

Tourism industry losses at K500M

ccording to Tourism Promotion Authority (TPA) chief executive officer Eric Mossman Uvovo, the tourism industry has lost roughly K500 million as a result of the Coronavirus (Covid-19). “PNG recorded an 82 per cent drop – 170,000 fewer arrivals compared to the 200,000 arrivals of international travellers in 2019,” Uvovo told a tourism convention yesterday at the University of PNG. The tourist industry, he said, has been hammered the hardest around the world, with Asia-Pacific being the hardest-hit region. “Global tourism suffered its worst year on record in 2020 with international arrivals dropping by 74 per cent (or one billion less in arrival according to the latest data from the World Tourism Organisation). The Asia and Pacific region suffered the most with an 84 per cent drop (or 300 million fewer international arrivals), followed by the Middle East and Africa. “International arrivals worldwide continue to remain weak in 2021 and it is expected to slowly

improve in 2022 and fully recover by 2024.” The National Development Plan 2022-2026 is being used by the TPA to: • Improve the number of visitors; • Increase the number of domestic visitors; • Increase the number of tourism operators and suppliers and strengthen product capacity;

• Enhance the quality of tourism-related goods and services; • Strengthen the tourism industry and the regulatory framework; and • Improve sector leadership, coordination, and synergy. The TPA intends to collaborate with the two local airlines to offer domestic travel discounts to outlying areas of the country.

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BizPrint & Scan

PNG’s Only dedicated Scanning hub

e all know that Technology is changing at a great rate, affecting how we do a lot of things today, not the least of which, our work. In the business world, we have seen some office equipment and devices quickly become obsolete, superseded as we transform our work spaces to improve efficiency and save money. This technological evolution has seen a rapid increase in the number of organisations that are going paperless, and so digitising documents and paper- based records has become the order of the day. That’s where BizPrint & Scan comes in. We understand the importance of staying up-to-date with technology and providing our growing list of corporate customers with the very latest digital solutions in print and document management. Apart from providing the best commercial printing products and services in Papua New Guinea, BizPrint & Scan now offers state-of-the-art digital scanning operations at our Konedobu Headquarters. As our corporate customers move away from their old paper-based systems, they are becoming more and more reliant on digital business operations, every day. Our Scan Bureau is a dedicated, highly secure scanning hub, offering state-of-the-art imaging software and a highly trained document management team. The first in the country to offer a complete end-to-end solution to fully

digitise all your documents, we can collect all of your paper files, then scan, repack and deliver them back to your office, scanned to a safe and secure hard drive. Digital Scanning is a highly effective, quick, easy and secure method of maintaining your critical documents, helping to improve your organisation’s workflow and efficiency. Your old records can also be enhanced to make them easier to read, your documents can be stored for easy retrieval, rather than have you hunting through the dozens of file cabinets or mounds of paperwork that currently clutter your office.

• Immediate retrieval. Digital documents can be found quickly and easily with a simple keyword search. • Eliminate the risk of losing important information if paper documents are damaged or lost due to fire, flood or theft. • Scanned documents last forever and don’t deteriorate in time as do paper documents. • Save huge amounts of money in floor and office rentals. Don’t forget, BizPrint and Scan’s Specialist Scan Bureau offers you record and document management options for your critical data. Our scanning services save you time and money, boost your productivity, enhance your document security and help you retrieve critical data anywhere, at any time. Sound like something your business will benefit from? Contact our team of professionals to scan and digitise all your documents. Call us on 321 3500 or send us an email at: sales@bizprint.com.pg

The benefits of using our scanning services include: • More storage space & savings. • Remote access to data online. • Optimise your business processes & efficiency. • Increase document security & control access. • Improved staff collaboration.

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MINING

MRA’s Garry: Gold output remains stable

espite an increase in export and revenue, gold output in the alluvial mining industry has remained stable for the past 13 years, according to an official. Export income has increased from K100 million to over K600 million yearly in 2019 and 2020, according to Mineral Resource Authority managing director Jerry Garry. However, he stated that manufacturing maintained at approximately 100,000 units. Gary believed that if mechanised mining operations such as the usage of excavators, trammel, and other mechanised processing facilities were utilized, gold production might grow. Unfortunately, he added, the alluvial industry has not moved into specialized mechanised processing facilities because finance institutions were wary of the significant investment risks involved. Gary said that unlike hard rock mining, where the distribution of metals such as gold or copper

could be predicted with a high degree of certainty, alluvial mining deposits could not. “There is no uniformity in the distribution of alluvial gold in an alluvial deposit,” he said. “So you cannot be sure exactly to ascertain the volume of sediment to come up with how much

gold is in that deposit.” Gary stated that this will be discussed at the alluvial mining conference in Lae. “Once we get some understanding and if we can minimise the risk, then financial institutions will be comfortable in investing,” Gary said.

PREVENT KILLER COUGHS IN YOUR BUSINESS WTH A CALL TO 7676 2482 Last year 4,700 Papua New Guineas died of Tuberculosis. All these deaths were preventable. Business for Health (B4H) trains non-health-staff in simple and effective TB and HIV workplace programs which also identify people with TB so impacts on your business’ success are minimised. To find out about the course and how we can also help you with health advocacy and developing your own TB policy, and provide all the information, advice and support to ensure your business is best placed to look after your employees. And your enterprise’s long-term viability. Call us now, toll-free on bmobile 7676 2482 www.businesses4health.com @B4HTB

64 www.pngbusinessnews.com • Issue 3 2021

THE ROYAL EXPERIENCE

CROWN HOTEL Port Moresby

PO BOX 592 WATERFRONT, KONEDOBU, NCD CNR HUNTER & DOUGLAS STREET P: +675 309 3000 / +375 7373 0400 E: INFO@CROWNHOTEL.COM.PG

Situated in the heart of Port Moresby is Crown Hotel Port Moresby with stunning panoramic views of the Coral seas and the Fairfax harbour. Crown Hotel is perfect for either business or leisure with 151 rooms, 2 restaurants, 2 bars and conference facility that caters up to 300. The fragrance of fresh flowers breezes through our modern Lobby, where you can browse artefacts drawn from Papua New Guinea’s diverse cultures. Our Front Desk staffs are waiting to take your bags to your room or suite while you gaze at the ocean from Heritage bar or soak in the outdoor pool. Rapala restaurant’s French fusion organic restaurant is complemented by a fine wine list while our casual Pondo Tavern serves comfort food on its deck. Exercise when you want in our 24-hour Fitness Centre or get to work using wireless Internet in our Business Centre. We’ll help you dive the reefs off Loloata Island and our sumptuous beds are a wellearned reward after hiking the Kokoda Trail. Stay at Crown Hotel Port Moresby and, whether you’re with us for 2 nights or 2 months, you’ll feel safe, secure and right at home.

NEWS

Climate-vulnerable island nations call on world to save ‘our very future’

ozens of small island states most vulnerable to the effects of climate change have called on the world to save “our very future” after a landmark UN report said accelerating global warming and rising sea levels threaten their existence, Agence France-Presse reported. The call to action comes after the climate report warned that catastrophic global warming is occurring far more quickly than previously forecast, an assessment met with horror and hopefulness by world leaders and green groups. “We have to turn this around,” Diann Black-Layne, lead climate negotiator for the Alliance of Small Island States (AOSIS) and ambassador of Antigua and Barbuda, said in a statement late in August. “The stark fact is that if we keep warming to 1.5C we are still facing half a metre of sea level rise. But if we stop warming from reaching 2C, we can avoid a long term three metres of sea level rise. That is our very future, right there.” The group comprises 39 states including Cuba, Jamaica, Papua New Guinea and the Maldives, the world’s lowest-lying country.

It said the report confirmed that governments around the world must take critical action to cap warming to the 1.5C temperature goal of the 2015 Paris Agreement. The UN’s Intergovernmental Panel on Climate Change report, published on Monday, said the world is on course to reach that level around 2030, a decade earlier than predicted just three years ago. That level of global warming will have devastating impacts on humanity, including more extreme weather events such as fires, typhoons, droughts, and floods. In its first major scientific assessment since 2014, the IPCC said by mid-century, the 1.5C threshold will have been breached across the board, by a tenth of a degree along the most ambitious pathway, and by nearly a full degree at the opposite extreme. UN Secretary-General Antonio Guterres said greenhouse gas emissions from fossil fuel burning and deforestation are “choking our planet and putting billions of people at immediate risk” and said countries must “combine forces” to avert catastrophe. Many world leaders reacted to

the report by calling for immediate action to curtail the rise of the world’s temperature. But Australia’s conservative prime minister rejected growing calls on Tuesday to adopt more ambitious emissions targets, while China insisted it was implementing its climate commitments and signalled no new policies despite the report’s findings.

DIGICEL, TELSTRA ‘DISCUSSING’ ACQUISITION

ustralia’s Telstra CEO Andy Penn visited Papua New Guinea last month to negotiate the possible acquisition of Digicel Pacific, according to the Australian Financial Review. The Review said Penn visited PNG to discuss the prospective purchase of Digicel Pacific with the country’s political authorities. Timothy Masiu, the Minister of Information and Communication, acknowledged Penn’s visit but declined to say why. “We will prepare a statement when the time is right,” he said. Penn’s three-day visit, according to the report, indicated that Telstra had “ramped up its due diligence” in order to “possibly work with the Australian government to acquire Digicel and help the government’s goal of preventing the Pacific telco from slipping into Chinese hands.” According to individuals acquainted with the trip, he visited Prime Minister James Marape, Masiu, Australia’s High Commissioner to PNG Jon Philp, and officials of Denis O’Brien, the Irish millionaire

Telstra CEO Andy Penn

who owns Digicel. In PNG, Fiji, Tonga, Vanuatu, Samoa, and Nauru, Digicel is the major owner and operator of 3G and 4G mobile phone networks. The Australian government is willing to provide substantial loan financing to Telstra in exchange for

66 www.pngbusinessnews.com • Issue 3 2021

an equity share in Digicel Pacific that would be a tiny part of the overall deal. According to sources involved with the talks, a deal for Telstra to buy Digicel for around AU$2 billion (K5.11 billion) – including government debt – is likely to be completed before the end of the year. When asked about Penn’s journey to PNG, a Telstra spokesman indicated that the Digicel talks are “incomplete” and “it is not certain a transaction would proceed.” “Given the nature of these discussions, we are not able to say more at this stage other than any transaction will have to meet certain financial parameters,” the spokesman said. “These include Telstra’s financial investment being the minor economic portion of the overall transaction, with all other capital being resourced on a non-recourse basis. Telstra would own Digicel with appropriate risk protections and consolidate it in our financial results. “Digicel Pacific is a commercially attractive asset, enjoying a strong market position in South Pacific.”

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COVID-19 helping PNG understand TB more By Dr. Ann M. Clarke

or Businesses for Health, promoting new COVID-19 vaccines is an opportunity to improve understanding about Tuberculosis and the lack of new vaccines to end PNG’s biggest infectious disease killer. In 2021, the Bacillus Calmette-Guérin or BCG vaccine turned 100! BCG was introduced to combat tuberculosis (TB) in 1921! It remains the only vaccine for TB. But did you know it only provides moderate protection against severe forms of TB in infants and young children? At B4H, we have found that many business leaders have an outdated understanding of the BCG vaccine. This is especially true for expatriates over 40 years of age who enjoyed community immunisation program visits at school in places like Australia. BCG vaccination of schoolchildren started in the UK and Australia in the 1950s. Protection was about 70% over 15 years, but protection was found not to be lifelong. By 1986, with the falling incidence of tuberculosis in Australia, the BCG vaccination program was discontinued for those at low risk of infection. In 2021, nearly all cases of TB occur in overseas-born Australians or indigenous Australians. Since B4H was set up in 2017, we have listened to many Australian and British managers over the age of 47, who think that the BCG vaccine is still routinely offered and assume they are still immune to TB more than 35 years later. In the cities of Australia or the UK, there is little community transmission of TB. However, in PNG, 6,000 persons of the estimated 38,000 annual caseload live in Port Moresby. With high caseload comes the risk of community, workplace, or household transmission. Workplace leaders need to understand and address this risk, considering poor childhood vaccination rates. In PNG in 2021, BCG is only administered to infants born in major hospitals in PNG. Although childhood immunisation coverage is low, BCG continues to play a vital role in saving young PNG lives and preventing serious illnesses like TB meningitis. Sadly, children still make up a quarter of all TB cases in PNG. Health and Safety or human resource officers can learn to promote participation in the national immunisation programs. In contrast to the 100-year-old BCG is a spectacular achievement with the rollout of vaccines for COVID-19 in PNG in 2021. The new vaccines follow unprecedented public and private financing, vaccine research, development, manufacturing, distribution, and promotions. Incidentally, we celebrate the political commitment backed by massive investments in promoting the Niupela Pasin and the “Sleeves Up” campaign. PNG has never seen a vaccine promotion like it. Businesses for Health has also created vaccine education resources to support this campaign. The success of COVID vaccine development and delivery surely demonstrates that we don’t need to wait over 100 years to access new TB vaccines to stop deaths from TB in PNG! While we dream about a new vaccine, we ask businesses in PNG to step up and invest in B4H and join our mission to reduce the TB burden. We want to help you to pay attention to what is killing your staff and their children, to provide better workplace health education, alleviate suffering and improve productivity. B4H trains your workplace representative to enable kinder, more respectful responses to manage people with TB at work. We continue to work alongside the PHAs and National TB program to efficiently find, test, and treat anyone with TB at no cost to the individual. Find out about our annual subscription program. Email me at annmclarke@ businesses4health.com.

68 www.pngbusinessnews.com • Issue 3 2021