PNG Business News - Issue 2, 2023

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ISSUE 2 2023

US, PNG INK AGREEMENTS AS IPIC FORUM SEES INDIA AFFIRM SUPPORT TO PACIFIC REGION ECONOMIC BOOST ON THE HORIZON: EXAMINING THE NEWMONT-NEWCREST DEAL’S IMPACT ON PNG A LOOK INTO PORGERA GOLD MINE’S LENGTHY PROGRESS TO RECOMMENCEMENT

K650-M EDEVU HYDRO POWER PLANT LAUNCHES IN CLOSE PARTNERSHIP WITH

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CONTENTS BUSINESS US, PNG Ink Agreements as IPIC Forum Sees India Affirm Support to Pacific Region > 10 Imbalanced Trade Relations Highlighted at 38th Australia Papua New Guinea Business Forum and Trade Expo > 16

Minister Maru Announces Trade Commission Service > 34 PNG Government Reactivates Short-Term Business Visa > 38

MINING Chamber of Mines & Petroleum Confirms Council for New Term > 40

ON THE COVER

Economic Boost on the Horizon: Examining the Newmont-Newcrest Deal’s Impact on Papua New Guinea > 42

K650-M Edevu Hydro Power Plant Launches > 74

Gold Trader Speaks Out on Proposed Gold Refinery Bill > 46

Wafi-Golpu Framework MOU Signed > 62

BSP: Medium-Term Outlook Remains Optimistic but Dependent on Timely Commencement

MRA: Mining Exploration Crucial for Future of PNG

PNG Ranked Among Most Unattractive Countries for

of Resources Projects > 24

Mining Industry > 50

Mineral Investment > 64

ENERGY

PNG’s SEZ Summit Highlights Importance of Global Best Practices to Drive Investments > 28

A Look into Porgera Gold Mine’s Lengthy Progress to Recommencement > 52

OIL & GAS

PNG Poised for ‘Golden Era’ of Resource Projects > 72

ADB: 3.3% Growth Expected in Pacific Region in 2023, 2.8% in 2024 > 18 European Union Signifies Role in PNG’s Economy > 22

Ok Tedi Participates in National Mine Safety Week > 58

Kumul Extends PNG LNG Sell-Down Exclusivity Period with Santos > 66 Progress on Papua LNG Development Brightens Economic Prospects > 68

Kumul Petroleum Holdings Progresses Fabrication Facility > 66

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CONTENTS K650-M Edevu Hydro Power P lant Launches> 74

PNGX to Adopt New Listing Rules Starting July > 88

37 Apprentices Sign Indenture with Ok Tedi and NATTB > 98

FINANCE

PNGX to Move to T+2 Settlement from July 2023 > 88

Pacific Industries Celebrates 70 Years > 100

TOURISM

PacTow Increases Ocean Towage Services > 102

CEFI: Reducing Barriers to Financial Access in Papua New Guinea> 78 PM Marape Launches National Gold Bullion Policy 2023 > 82 BSP: Lower Commodity Prices to Reduce Foreign Exchange Inflows > 84 Minister Maru Names Mr Popotai New Director of PNGX > 84

PNGTPA Taps Justin Olam as Tourism Brand Ambassador > 92 Minister Gives Thumbs Up to Sports Tourism > 94

COMPANY NEWS Port Moresby Supply Base and Port for Resource Project Staging > 96

KPHL signs MoU with TotalEnergies to Launch National Career Database > 110 Steamships Establishes Portside Business Park > 112

Building Better Solutions > 104

Fueling Progress: SGS Ignites Growth in Papua New Guinea Energy Industry > 114

Remington Group Launches ‘Loyal to Local’ Campaign > 106

Kedi Ilimbit Appointed as New Managing Director and CEO > 118

Delnet: 25 Years of Providing Seamless Connectivity > 108

Enzo’s Pizza Servicing Manu Auto Port > 118

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US, PNG Ink Agreements as IPIC Forum Sees India Affirm Support to Pacific Region By: PAUL OEKA

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s the largest Pacific Island country, Papua New Guinea is an economic stronghold in the region. PNG and the United States have one of the largest trade relationships in the world, with bilateral investment and trade totaling to billions of dollars annually.

With PNG also being an APEC member and a significant regional energy provider, the Pacific Island democracy is a key partner for the United States in the Indo-Pacific region.

US-PNG SECURITY PACT: On Monday 22nd May 2023, US Secretary of State Antony Blinken signed a defence cooperation pact with Papua New Guinea to expand the Pacific Island nation’s capabilities and make it easier for the US military to train with its forces.

Blinken headed the US delegation in PNG instead of President Joe Biden, who cut short a proposed trip to PNG and Australia to deal with the US debt-ceiling crisis.

The defence pact with the United States is said to give US forces access to the country’s airfields and ports as the US vies with China’s expanding influence in the Pacific region.

“The defence cooperation was drafted by the United States and Papua New Guinea as equals and sovereign partners,” Blinken said at the signing ceremony in Port Moresby at the APEC Haus during the Pacific Islands Forum (PIF).

“It will expand PNG defence capacity to enhance humanitarian assistance and disaster response and make it easy for US and PNG forces to train together”, Blinken said.

Blinken told PNG Prime Minister James Marape the US would deepen its partnership across the board with PNG, and that he expected partnerships with American businesses would bring tens of billions of dollars’ worth of new investment.

This new agreement comes to light as The United States and its allies are seeking to deter Pacific Island nations from forming security

ties with China, which is a rising concern amid its tension with Taiwan, after China signed a security pact with the Solomon Islands.

Responding to domestic criticism of the agreement after university students in the country protested against the defence pact, PM Marape said: “This signing in no way, shape and form encroaches into our sovereignty, there is nothing for us to be fearful about”.

The accord updated an existing US military

Publisher Elizabeth Galura Editor Jimbo Owen Gulle info@pngbusinessnews.com Journalist Paul Oeka 70283999 pjoeka@gmail.com PNG Business News is published for the PNG Business community.

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relationship, he said, and “has nothing to do with China. We have a healthy relationship with the Chinese government, and they are an important trading partner”, Marape said.

Marape stated that the defence agreement would see an increase in US military presence over the next decade, while the US State Department said it would bolster regional security.

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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.

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MARITIME PACT: Meanwhile, the US and PNG also struck a separate agreement on increasing surveillance of PNG’s exclusive economic zone through US Coast Guard patrols, protecting its economy from illegal fishing.

The United States will provide $45 million in new funds as it works with PNG to strengthen economic and security cooperation, including protective equipment for the PNG defence force, climate change mitigation, and tackling transnational crime and HIV/AIDS, Blinken said.

Blinken stated the US will continue to partner with PNG on strengthening economic relations, security cooperation, and people-to-people ties, as well as promoting inclusive and sustainable development through plans with the PNG Government to provide major development pathways and new programmes.

SIGNIFICANT AGREEMENTS DURING PIF: Blinken also signed a renewed strategic agreement with Palau, known as a Compact of Free Association (COFA), and will sign another with Micronesia, under which the US is responsible for the nations’ defense and gains continued access to huge swathes of the Pacific.

Blinken said Washington looked forward to entering negotiations on a third COFA, with the Marshall Islands, “very soon” and said that under the three compacts the US would commit $7.1 billion over 20 years.

Speaking on behalf of the Pacific leaders, Pacific Islands Forum (PIF) chair and Cook Islands Prime Minister Hon Mark Brown reaffirmed their shared vision for a resilient region of peace, harmony, security, social inclusion and prosperity.

“We will continue to work together to tackle shared challenges such as the climate crisis, to advance inclusive economic growth and social equity for the people of the Pacific and to jointly advocate on shared priorities”.

PIF members represented at the dialogue were Australia, Cook Islands, Fiji, Kiribati, Nauru, New Caledonia, New Zealand, Niue, Palau, Papua New Guinea, Republic of the Marshall Islands, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu.

MODI’S VISIT: Indian Prime Minister Narendra Modi flew into Papua New

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Guinea on 21st May 2023 to jointly host the India Pacific Islands Cooperation (IPIC) Forum with PNG Prime Minister James Marape and was welcomed by a large, enthusiastic crowd of the Indian community in Port Moresby.

“We share your belief in multilateralism. We support a free, open, and inclusive Indo-Pacific. We respect the sovereignty and integrity of all countries”, Modi told Pacific leaders in the forum.

Modi’s speeches and remarks in PNG suggest India’s relationship with the Pacific Islands region will remain largely focused on PNG and Fiji, either as the target of India’s attentions or as a channel through which India can engage with other Pacific Island countries, reports said.

Modi told the IPIC Forum that India would be a reliable development partner and was committed to a “free, open and inclusive Indo Pacific”.

“We are willing to share our capabilities and experiences in digital technology, space technology, health security, food security, climate change and environment protection”, he said.

CHINA’S STANCE: In a recent report by global media organisation Reuters, Chinese foreign ministry spokesman Wang Wenbin, when asked about the signing of the agreement, said they do not oppose normal exchange and cooperation between relevant parties and the Pacific Island countries, but “the cooperation must be genuine”.

“China believes the rest of the world needs to give more attention to and support for the development and prosperity of Pacific Island countries”.

“Any cooperation document to be negotiated and signed should serve this purpose. We oppose bringing geopo-

litical contests into the region of Pacific Island countries by any nation”.

“What we need to be vigilant about is engaging in geopolitical games in the name of cooperation, and we also believe that no cooperation should target any third parties”, Wang said.

OUTCOME: Blinken and Modi held separate meetings with 14 Pacific Island leaders in the PNG capital Port Moresby, pledging support for the region’s priorities of health, development, and climate change.

Addressing the 14 Pacific Island leaders, Blinken said he was carrying an invitation from Biden for them to return to Washington later in the year for a second summit, following an inaugural meeting was hosted by the White House last year.

References: PNG-US Bilateral (Pacific Islands Forum) APEC Haus, 22, May 2023.

Signing Ceremony for the Defense Corporation Agreement [Paul Oeka/PNG Business News] PM Marape says defence cooperation agreement with USA does not affect sovereignty of PNG. https://pmnec.gov. pg/pm-marape-says-defence-cooperation-agreement-with-usa-does-not-affect-sovereignty-of-png/ ABC-India’s Modi lands in Papua New Guinea to host senior leaders at forum for India-Pacific Islands cooperation. https://www.google.com/url?sa=t&source=web&rct=j&url=https://amp. abc.net.au/article/ ABC-China’s Concern Amidst USPNG Security Ties. https://www.google. com/url?sa=t&source=web&rct=j&url=https://abcnews.go.com/amp/US/ wireStory/us-sign-new-security-pactpapua-new-guineaISSUE 2, 2023 – www.pngbusinessnews.com

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Imbalanced Trade Relations Highlighted at 38th Australia Papua New Guinea Business Forum and Trade Expo

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on. Richard Maru, Minister for International Trade and Investment, in his keynote address on the 16th of May at the 38th PNG-Australia Business Forum and Trade Expo at Hilton Hotel Port Moresby, said Papua New Guinea’s trade was always in favor towards Australia.

“For the last 47 years, trade has been in favour of Australia; that has been the status quo. PNG’s exports to Australia are gold and other precious metals, which comprise over 98% of total exports. This means less than 2% are from the non-extractive sector and are valued at about K50 million per annum,” he said.

Australia’s total exports to PNG are estimated at over K1.5 billion, which translates to a ratio of 1 to 10 -- a very huge trade imbalance. In terms of investment, Australia has invested AU$24 billion in PNG, while PNG invested AU$ 4 billion in real estate,” said Minister Maru.

“Australia has been using its very stringent technical barriers and biosecurity to make it very difficult for PNG to export its taro, sweet potato, fish, and other food products to Australian market. So as far I as the Minister for International Trade and Investment is concerned, there is no need for us to talk about a trade agreement,” he added.

“There is no need to talk about Placer Plus or even a study on a Free Trade Agreement between our countries. There is no point when the trade and investment imbalance is so big and so skewed to Australia and unlikely to be reduced in the foreseeable future,” said Minister Maru.

The minister encouraged Australian businesses to seriously canvas more new and emerging business opportunities in PNG and seek to partner with local SMEs and PNG-owned companies in their business endeavours.

On the other hand, Australian Senator the Hon. Tim Ayers, Assistant Minister for Trade and Assistant Minister for Manufacturing, in his keynote address said Australia is proud to be Papua New Guinea’s largest economic, security, and development partner, with two-way trade reaching $5 billion in 2021-2022.

“Trade isn’t just about commercial benefits, it’s also about dealing with big challenges, building capacity to meet international market standards, and creating businesses that deliver good local jobs,” he said.

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“Australia is proud to support Papua New Guinean companies and reach their potential by elevating the quality of production to meet international market standards and establish commercial links with Australia and New Zealand,” said Senator Ayres.

A testament to Australia’s commitment is the PHARMA Plus program, where the Queen Emma Chocolate Factory received expert training and technical expertise in producing international-standard products certified to the Australian and New Zealand

Markets as outlined by Senator Ayers.

Regarding trade, Ms. Jane Ravusiro, Advocate for Sustainable & Inclusive Agriculture Growth & Livelihoods for Abt Associates Australia, commented that the Papua New Guinea market was not viable with strict security protocols, and that the Australian market was structured differently.

An example of this barrier of trade put into picture was a presentation made by Page 18 >

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ADB: 3.3% Growth Expected in Pacific Region in 2023, 2.8% in 2024

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he Pacific is expected to sustain its economic recovery, with growth across all of the Asian Development Bank’s (ADB) Pacific developing member countries this year, according to the Asian Development Outlook (ADO) April 2023, ADB’s f lagship economic publication.

Pacific economies expanded by an average of 5.2% in 2022 as borders reopened and business activity resumed following the COVID-19 pandemic. Growth in the Pacific is expected to continue albeit moderating to an average of 3.3% in 2023 and 2.8% in 2024 with all 14 Pacific economies projected to expand over the period.

“A broad-based recovery across the Pacific is now on the horizon as

the impact of the pandemic recedes and economies reopen,” said ADB Director General for the Pacific Leah Gutierrez. “But this recovery faces several headwinds, including structural risks from disaster impacts and climate change. To help manage these challenges, growth-enhancing reforms such as improving human capital and financial resources should be embraced to help rebuild resilient and sustainable economies.”

Among external risks, high global fuel prices due to the Russian invasion of Ukraine are compounding inf lationary pressures in the Pacific through higher transportation costs and costs of imports.

On average, inf lation in the Pacific is projected to reach 5.0% in

2023, before slightly easing to 4.4% in 2024. Elevated inf lation and the prospect of higher interest rates will weigh on the world economy over the forecast period.

In 2022, growth in Papua New Guinea (PNG), the biggest economy in the Pacific, rebounded on the normalization of economic activity and increased production in the resource sector. Increased mining activities and liquefied natural gas production, supported by elevated commodity prices, should contribute to the growth of 2.4% in 2023 and 2.6% in 2024.

Tourism will continue as the main driver of growth for Fiji in 2023. The subregion’s second-largest economy is projected to record 6.3% growth in 2023, which will

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He explained there was no proper market access available from the farmers’ end to the buyers and that relevant stakeholders and authorities should work together in making sure Papua New Guinea’s agriculture produce does reach Australia.

“When I go to the Australian markets, I usually see taro from

Tonga or Fiji. How about PNG and why can’t our taro reach Australian Markets?” said Mr. Raju.

The forum showed Papua New Guinea and Australia’s perspective on how each country had a different type of business environment and a dire need to address outstanding technical and political issues regarding trade.

Mr. Navin Raju, Chief Executive Off icer for City Pharmacy Limited, who gave an account of CPL’s work in Papua New Guinea, especially in engaging local farmers in the agriculture sector to better equip them in selling their produce.

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< Page 18 moderate to 3.0% in 2024.

The ADB report says as travel normalizes further, Fiji will increasingly face intense competition from other tourist destinations, such as Indonesia and Thailand. Increasing emigration of skilled workers, due to enhanced access to labor mobility schemes in Australia and New Zealand, will also pose a signif icant challenge to Fiji’s tourism sector and wider economy.

COVID-19 restrictions in the Solomon Islands caused the worst economic contraction in 20 years in 2022. ADO April 2023 expects the Solomon Islands economy to grow by 3.0% in 2023, spurred by the country’s hosting of the Pacif ic Games. To be held for 2 weeks in mid-November, the games are expected to bring more than 5,000 athletes and staff from 24 nations. The report says growth will remain relatively robust at 2.5% in 2024 on higher government spending in the lead-up to national elections.

Growth in Vanuatu is forecast to slow to 1.0% this year following two Category 4 cyclones and earthquakes in March 2023. Economic recovery will partly depend on the revival of tourism, but frequent disasters threaten the outlook and divert resources toward reconstruction. According to the ADO April 2023, its growth is forecast to accelerate to 4.2% in 2024 driven by reconstruction and recoveries in agriculture, and trade and tourism services.

The South Pacif ic economies of the Cook Islands, Niue, Samoa, and Tonga have struggled to recover from three years of economic disruption. Growth in the Cook Islands is projected to be 11.2% in 2023 and 9.1% in 2024 due to a steady recovery in tourist arrivals and public investment. Economic recovery in Niue will likewise depend on tourism, with travel having been frequently interrupted by new COVID-19 cases.

Meanwhile, the mobilization of public investment projects and the initial return of tourists will likely support growth in Samoa—4.8% in 2023 and 2.5% in 2024.

Eased mobility and a revival in public investment in Tonga will likely increase gross domestic product by 2.5% in 2023 with growth expanding further to 3.2% in 2024.

Following the full reopening of international borders, a pick-up in public construction and a nascent recovery in tourism is expected to boost recovery in the North Pacif ic economies. The economic expansion of 4.1% is expected

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in the Federated States of Micronesia in 2023 before slowing to 0.5% in 2024, while the Marshall Islands economy is projected to return to growth of 1.5% in 2023 before picking up to 2.0% in 2024.

Growth in the tourism-driven economy of Palau is expected to reach 3.8% in 2023 and then accelerate to 6.5% in 2024 as demand from its main tourist markets improves. The report says the anticipated renewal of compacts with the United States brightens economic and f iscal prospects but requires strengthened implementation capacity and public f inancial management.

Three years into the pandemic, the Central Pacif ic economies have started on the road to recovery, with growth expect-

ed in all three economies. An economic expansion of 2.3% is expected in Kiribati in 2023, picking up to 2.8% in 2024.

Nauru’s economic growth will edge up to 1.8% in 2023 and to 2.2% in 2024 while Tuvalu will see 2.5% growth in 2023 before slowing to 2.0% in 2024. The growth outlook in all three economies is driven by the rollout of public infrastructure projects, supported by the reopening of international borders.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacif ic while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the Pacif ic region.

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European Union Signifies Role in PNG’s Economy By: PAUL OEKA

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ecently, the European Union Delegation in Papua New Guinea was delighted to have Prime Minister James Marape deliver a speech during the Europe Day reception on the 9th of May 2023 at the Lamana Hotel in Port Moresby.

Ambassador Jacques Fradin, the Head of the EU Delegation to Papua New Guinea, stated in his speech: “Papua New Guinea continues to be a key partner for the EU’s engagement with the Pacific against the background of a changing geopolitical context.”

“EU acknowledges PNG’s prominent role as a lead negotiator for the Pacific region with ongoing negotiations with other Pacific Island nations”.

In his speech, Prime Minister Marape delivered a congratulatory address on behalf of the PNG Government and praised the excellent partnership and collaboration between the European Union and Papua New Guinea.

The event was attended by diplomatic missions in PNG and representatives from both the PNG government and the private sector, including representatives from the civil society who joined the delegation at the official Europe Day Reception.

BRIEF HISTORY OF THE EUROPEAN UNION AND ITS PROGRESS IN PNG Since 1987 the European Union has been one of Papua New Guinea’s biggest and oldest development partners and have enjoyed more than 40 years of partnership with the country.

Papua New Guinea has received over K2 billion in grants as development support from the European Union through the European Development Fund (EDF).

Further support has also been provided through dedicated programs in relation to issues such as Law and Order, Gender-Based Violence (GBV) and support to NGOs as well as community-based development projects throughout the country.

The EU and its Member States are one of the largest donors of humanitarian aid and the biggest donor of international development aid in the world, providing around 50% of official development assistance to help overcome poverty and advance global development.

Earlier this year, Ambassador Fradin stated the EU will spend more than K400 million in Papua New Guinea in the next three years.

This grant is the largest in the Pacific and was one of the major dialogue agendas between EU and the PNG Government held in Port Moresby earlier this year.

“The EU has spent over K2 billion on projects since 1987 and its not the money that counts but its what we do with the money, so

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in the next four years the EU will be spending almost K430 million on projects in the country which is the largest in the Pacific.”

“These are grants and they are not loans.

We differ from other donors in PNG, if we invest, we invest for you. It is not about the money, it is what we build together and then you take over after”, Ambassador Fradin said.

EU’S PROJECTS AND PROGRAMS IN PNG SUPPORT TO RURAL ENTREPRENEURSHIP INVESTMENT AND TRADE (STREIT) This Program is locally known as EU STREIT PNG and is based on the development priorities of Papua New Guinea. The EU’s Support to Rural Entrepreneurship, Investment and Trade in Papua New Guinea aims to improve sustainable and inclusive economic development and job creation in the Momase Region.

In 2020 the European Union started the implementation of the EU STREIT program which is a rural development action designed to revitalise existing economic opportunities particularly on the value chain development of cocoa, vanilla and fisheries mostly in the Sepik region, with a specific focus on women and youth and climate change.

EU-UNICEF NATIONAL WASH (WATER, SANITATION AND HYGIENE) POLICY The European Union in partnership with UNICEF has continued to support the PNG Government’s WaSH policy, the objective of which is to provide equitable access to safe, convenient and sustainable water supply and sanitation, and to promote improved hygiene practices and long-term hygiene behaviour

change at the personal, household, community and institutional level particular to rural and urban settlement areas.

Currently the 3-year 21.3 million euro EU-UNICEF water and sanitation project in Papua New Guinea is expected to benefit 160,000 people, including 40,000 children from 200 schools, 36 health centers and 800 neighboring communities in four Papua New Guinea districts. These include Hagen Central in Western Highlands Province, Goroka in Eastern Highlands, Naweab in Morobe, and Bougainville Central in the Autonomous Region of Bougainville.

Additionally, the EU is also providing funding of K5.9 million to support Covid-19 response to access clean and safe water to vulnerable communities throughout the country.

EU’S SUPPORT TO EDUCATION For the last 10 years, the European Union and the Government of Papua New Guinea has been actively supporting education, including technical and vocational training, in PNG with a total grant funding of approximately K160 million.

One recent development is the construction of infrastructure and the supply of equipment to 10 Technical and Vocational Education Training (TVET) centres throughout PNG. In 2022 the EU-PNG partnership for good governance and transparency had also been discussed and the European Union had designed its first EU Grant budget support worth K100 million to be assured and used for good governance, justice, and anti-corruption.

“Under the EU-PNG Partnership for Good Governance, the European Page 24 > ISSUE 2, 2023 – www.pngbusinessnews.com

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BSP: Medium-Term Outlook Remains Optimistic but Dependent on Timely Commencement of Resources Projects “Business sentiment is robust following the announcement of the Papua LNG project reaching the frontend engineering and design (FEED) phase and Porgera’s resumption progress announced by Barrick CEO in early April,” according to the Bank South Pacific (BSP) Quarter 1 2023 Economic Insight report.

B

SP’s Group General Manager for Corporate, Peter Beswick, said: “Papua LNG’s final investment decision (FID) is expected to be reached in late 2023 or Q1 2024. This will deliver substantial opportunities through local content for landowner and PNG companies… either directly, or through Joint Ventures, with global engineering, procurement, and construction contractors.”

Mr Beswick said, “On the downside, delay of Porgera’s resumption will prolong distress with FX supply over the

short-term.”

“Total foreign currency reserves fell from US$4.1 billion in 31st December 2022 to US$3.9 billion as of 29th March 2023 due to government debt repayments and increases in BPNG FX intervention.”

“BPNG states that IMF funding of US$918.2 million over the next three years for budget support, will have minimal effect on BPNG’s international reserves, due to increases in intervention and Government debt repayments”.

“The medium-term outlook remains

optimistic and will be dependent on timely commencement of the resource projects (Porgera, Wafi-Golpu, P’nyang, Twinza)”, said Beswick.

Beswick noted that inflation “still remains a primary concern for BPNG, businesses, and consumers”.

However, he added, “Inflation is expected to recede in 2023 compared to last year, as lower global output, improvements with supply chain and lower commodity prices, especially on fuel, are to contribute to lower price pressures”.

< Page 22

ness sectors in PNG and the region and their development in a sustainable way.

The EU’s ultimate goal is to build stronger political relations with PNG, and the entire Pacific region, while supporting good governance, security and sustainable development.

Union allocated approximately 100 million Kina for actions aiming at promoting good governance and the respect of the rule of law.

The European Union stands by the PNG Government to progress core reforms to strengthen law and order, including support to police who enforce anticorruption laws,” said the EU Delegation to PNG.

EUROPEAN UNION’S CONTRIBUTION TO PNG’S BUSINESS SECTOR One of the key benefits of EU membership is access to the single market, which allows for the free movement of goods, services, capital, and people within the EU. This has helped to boost trade and investment between member states, creating jobs and economic growth. The EU also provides funding for various projects and initiatives, such as research and development, infrastructure, and social programs.

Following the success of the previous three EU-PNG Business, Trade and Investment Conferences in 2019, 2021 and 2022, the Delegation of the European Union to PNG is likely to host another conference this year.

The focus of the conference is to help increase business contacts, discover new business opportunities, and find new collaboration partners between the EU and PNG, Fiji, Samoa, Solomon Islands, Tonga and Timor-Leste, with particular attention to trade and investment aspects of sustainable development.

A practical dimension of the conference was how it concentrated on particular busi-

24 PNG BUSINESS NEWS

EUROPEAN UNION STRESSES IMPORTANCE OF INFORMAL ECONOMY In the context of Papua New Guinea, the urban informal sector is described as livelihood activities which include microenterprises or day-to-day livelihood activities such as selling, distributing, producing or manufacturing goods and providing services, either regularly or occasionally or on a needs basis and being carried out in unprescribed markets or areas such as streets, roadsides, in front of supermarkets or offices, at bus stops, and in yards of houses.

The current review of the Informal Economy Policy is implemented under the Markets Economic Recovery and Inclusion (MERI) program with funding from the Government of Australia, and European Union.

Recently during a panel discussion at the National Markets Convention in April 2023 held at the Apec house in Port Moresby, the European Union’s Policy Coordinator for Economy, Public Finance Management and Trade, Carlos Padilla Perez, noted that for the policy to have an impact on the livelihoods of the people of Papua New Guinea, stakeholder involvement was a key inclusion at the time of implementation.

Perez noted that the common issue raised in all regional consultations “was the lack of implementation of the former informal economy policy, which is undergoing review. These issues of implementation must be addressed strongly in the revision of this policy”.

References: 1) European Day Reception, 9th May 2023 Hosted by the EU delegation to PNG at the Lamana Hotel, Port Moresby (Attended) 2) The European Union and Papua New Guinea - EEAS /Eeas.europa.eu (Press Releases) https://www.eeas.europa.eu › europ...

3) Papua New Guinea: 5th high-level Political Dialogue with the European Union ... 27th February 2023| Eeas.europa.eu https://www. eeas.europa.eu › eeas https://www.google. com/url?sa=t&source=web&rct=j&url=https:// www.eeas.europa.eu/eeas/papua-new-guinea-5th-high-level-political-dialogue-european-union-takes-place_ 4) EMTV Online /European Union to Fund Ten Selected Vocational Training Centres in PNG – EMTV Online https://www.google. com/url?sa=t&source=web&rct=j&url=https:// emtv.com.pg/european-union-to-fund-ten-selected-vocational-training-centres-in-png/ 5) Papua New Guinea Today| Boost for Asset recovery and Corruption investigations in PNG 24 Nov 2022 https://www.google.com/ url?sa=t&source=web&rct=j&url=https://news. pngfacts.com/2022/11/boost-for-asset-recovery-and-corruption.

6) National Markets Conventions 2023...

19-21 April 2023, Apec Haus, Port Moresby (Attended 21 April) https://drive.google.com/ file/d/1m0qpTnI-O-ECR_nfJqDiMmH58g2y5vLv/view ISSUE 2, 2023 – www.pngbusinessnews.com

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PNG BUSINESS NEWS 25

26 PNG BUSINESS NEWS

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PNG’s SEZ Summit Highlights Importance of Global Best Practices to Drive Investments By: PAUL OEKA

W

ays to increase competitiveness through global best practices and drive economic growth were the main high in Papua New Guinea’s Special Economic Zones (SEZs) Summit as well as key challenges in PNG and around the world which were discussed by policy makers, industry players, and experts when the Summit was held at the Stanley Hotel in Port Moresby on May 7th-9th 2023.

The impetus in hosting Papua New Guinea’s first ever historical Special Economic Zone (SEZ) Summit started on a high note and progressed well as the country played host to this very important international summit when the Prime Minister James Marape, officially opened the summit on, Sunday May 7, 2023.

The summit was hosted by the Marape Government through the Department of International Trade and Investment under the Coordination of PNG’s Trade and Investment Minister Richard Maru, highlighting the importance of economic growth at the forefront of the country’s SEZs development to enhance PNG’s competitiveness to drive more investment, increase economic growth and achieve the country’s sustainability commitments in line with the Sustainable Development Goals and the Nationally Determined Contribution.

Governmental representatives and special economic zone (SEZ) leaders from different countries gathered in Port Moresby for the Summit as Speakers stressed the significance of SEZs in catalysing a country’s economic growth through attracting Foreign Direct Investments (FDI).

During the Summit, the country’s officials were keen to promote the development of the country’s identified SEZs, and also had significant panel discussions on how the SEZs development may attribute to the growth in PNG’s economy.

The two-day summit included definition of SEZs, update on global performance of SEZs right across the world as well as country presentation by countries who have successfully transformed their economies through SEZs, how they were successful, and what SEZs have failed and why.

28 PNG BUSINESS NEWS

The summit learned from the experiences of the countries who have tapped into SEZs, such as China, Singapore, Thailand, Bangladesh, Cambodia, Indonesia, Malaysia, Gabon, Vietnam, and the Philippines.

The summit featured keynote speeches, panel discussions, and interactive sessions covering various topics such as SEZ policies, investment opportunities, and infrastructure development.

It also provided a platform to discuss best practices and key lessons learned from international policy makers and expert practitioners including from India, China, Indonesia, Japan, Philippines, Bangladesh, and International Finance Corporation (IFC) The country’s business sector also was a huge inclusion as the event provided a medium for businesses to showcase their products and services to a diverse audience of investors, government officials, and industry professionals with a total of over 400 delegates all over the country including international speakers as well as 50 booths for the summit sponsors that were setup inside the Stanley Hotel for the sponsors to showcase their brands and merchandises during the course of the summit to serve as information booths for the participating delegates.

DAY-ONE BRIEF OF SEZ SUMMIT On the first day of the summit on Monday 08 May 2023, the summit defined and learned about countries who have gone into SEZ and the key factors that have made them to be successful and why many others have not succeeded

so Papua New Guinea (PNG) can learn from the experience of the other countries who have succeeded.

Minister Maru alluded that “SEZ started in PNG at Malahang Industrial Park - Lae, Free Trade Zone (FTZ) Vanimo, Pacific Maritime Industrial Zone (PMIZ) – Madang and Konebada Petroleum Park have not been successfully developed. SEZs have been here in PNG for over 30 years, and we have failed. PNG has to learn from our own mistakes and also the mistakes of other countries and also learn from the success of this time under the Marape Government’s drive to give SEZs a new lease of life following the successful enactment of the 2019 SEZ legislation, we need to now make it work.”

“Despite the legislation and the establishment of the Special Economic Zone Authority (SEZA), we still don’t have a Policy, we don’t have a Master plan and Development plans for SEZs. With this summit now, it will help us learn from other countries on how they have made theirs work, the benefits of SEZs including creation of thousands and millions of new jobs and billions and trillions of new foreign direct investments and how PNG must now follow a new road map to successfully develop SEZs in PNG and enjoy similar benefits.”

“The Marape Government has given one (1) SEZ license already to Paga Hill SEZ and we are hoping that after the summit another four (4) or five (5) more would be identified and developed.

We don’t want this SEZ Summit to be another talk feast, we want to learn and start working on more and more

Prime Minister Hon. James Marape, speaking during the recent PNG Special Economic Zone (SEZ) Summit 2023.

Photo credits: International Trade and Investment Ministry of PNG

Page 30 >

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PNG BUSINESS NEWS 29

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< Page 28 SEZs as the key driver for economic growth,” Minister Maru added.

Overall, we all agreed that despite our failures over the past 30 years, with the support from our many partners including the Japanese Development Institute, and the SEZ Authority of the Philippines, PNG can build more SEZs and succeed with the lessons learned from the other very successful countries.

SIGNIFICANT EXPERTISE INSIGHT Among the dignitaries in attendance at the summit was the Japanese Development Institute (JDI), a think tank with more than 40 years of experience in the development of Special Economic Zones (SEZ) around the world, who shared their evaluation on what went wrong and what must be done in creating a pathway for SEZ Development in Papua New Guinea.

JDI Chairman and Chief Executive Officer, Dr Shoichi Kobayashi said PNG’s attempt to developed SEZs failed due to a lack of a proper regulatory framework, including an SEZ policy to guide its development.

“There was no technical capacity to implement SEZ programs with qualified management and staffs to operate,” Dr Kobayashi noted, and “No SEZ Master Plan and no road map to follow,” PNG’s experience in SEZs include the ‘industrial centers’ concept – Malahang in Lae, Morobe province and Ulaveo in Kokopo, East New Britain province; Free Trade Zone Act 2000 for West Sepik, Western, Gulf, Bougainville; Pacific Maritime Industrial Zone (PMIZ) and Konebada Petroleum Park.

The JDI last year visited more than 15 of the proposed Special Economic Zones in the country assessing and evaluated their potential and will be presenting to the government the country’s first draft master plan, which will be used as a roadmap for PNG going into the SEZ concept of economic development.

Dr Kobayashi also highlighted the strengths and weaknesses and where PNG as a country can improve.

Meanwhile, Papua New Guinea will commence the Special Economic Zone journey with six urgent potential zones in the country.

Chairman of Japan Development Institute Dr. Shoichi Kobayashi announced this during the third day of the SEZ Summit 2023.

Dr. Kobayashi said the top six potential Special Economic Zones will come into effect soon once the Master Plan is complete. They are the Central Industrial Park, Paga Hill Waterfront Tourism SEZ, Central Province Rice SEZ, Sepik Plain Agro Special Economic Zone, Pomio Special Agro Economic Zone, and Central Logging SEZ. Dr. Kobayashi said land and infrastructure,

30 PNG BUSINESS NEWS

like roads and electricity, are crucial to delivering SEZs in the county.

Minister for International Trade and Investment Hon. Richard Maru, speaking during the recent PNG Special Economic Zone (SEZ) Summit 2023. Photo credits: International Trade and Investment Ministry of PNG

DAY-TWO BRIEF OF SEZ SUMMIT On the second day of the summit PNG presented its drafts of policy framework SEZ Masterplan, SEZ development Strategy, revised SEZ legislation, and amendments to the current SEZ Act. “Everything that we will present will be draft versions. We will workshop these drafts so everyone who attends the Summit will have the chance to provide their input,” Minister for International Trade and Investment, Richard Maru said.

“Our people and all the delegates were educated on what SEZs are and the fact that this is a development vehicle that has worked in many developing countries in creating millions of jobs and bringing billions and trillions in foreign direct investments. Papua New Guinea is such a blessed nation where we have so much potential as confirmed by the various speakers during the summit.”

“We are working to finalise the PNG SEZ policy, a comprehensive revised regulatory framework, and the 10-year SEZ Development Plan. We will conclude these three key policy documents and present it to the Government

by June 2023.”

“We still need a lot of help from international partners like the SEZ Authorities in Philippines, China, Indonesia, and others whom we have already started critical relationships with during the summit. We are already in negotiations with countries for possible grant aid to assist the Ministry of International Trade and Investment and the SEZ Authority to develop the technical capacity to drive the SEZ agenda and deliver no less than 6 licensed SEZs and get them operational by the end of 2023.”

“One key immediate challenge is the mobilization of our customary land, and we need the Department of Lands and Physical Planning to have an office and structure set up to support landowners to get bankable state titles of their own land using the successful Tuhava Town model, so the landowners can be partners in the SEZ development.”

The Marape-Rosso Government, through the Ministry of International Trade and Investment is targeting to deliver 6 SEZs this year who must secure licensee from the SEZ Authority on merit. The “lowest hanging fruits” are Rigo Rice, Central Manufacturing Zone, which is being developed by KPHL, Lae Port SEZ which is being developed by PNG Ports, PMIZ in Madang and the log processing SEZ in the Central Province. We are also keen to see the Central Limestone SEZ project start this year. We will focus on these, and we will also work to progress other SEZs

around the country.

Now that everyone has been educated during the summit on the licensing conditions to obtain an SEZ Licenses from the regulator, the SEZ Authority, we will work with the potential SEZs to meet the license conditions.

SEZ’S MASTER PLAN IN MOTION A Master Plan for Special Economic Zones in Papua New Guinea will be drafted in the next four weeks. Minister for International Trade and Investment Richard Maru said this during the close of the Special Economic Zone Summit He said this will include identifying necessary amendments to the Special Economic Zone Act 2019. As much as the Government wants to see the SEZ concept be market driven and not politically influenced, Minister Maru said a wider consultation will be carried out with people, especially landowners.

The SEZ Summit 2023 ended with presentations of crucial enablers in the areas of land, law and order, infrastructure like roads, telecommunications, and ports, among others, that will assist in the success of SEZs going forward.

Deputy Prime Minister and Minister for Lands, Physical Planning and Urbanization Hon. John Rosso said there is potential for customary land to be mobilized for Special Economic Zones (SEZ) in the country.

Speaking during the closing ceremony of the two-day SEZ Summit in Port Moresby, Mr Rosso said SEZ’s “are a great way to attract direct foreign investments and also create job opportunities for the people.”

“SEZ provides a platform for businesses to operate in a more efficient and cost-effective manner and also provide a great opportunity for our citizens to benefit from the economic growth that comes with foreign investment, and it has to be done properly, learning from other experiences and failures,” Hon. Rosso said.

HIGHLIGHTS OF MINISTER MARU’S SPEECH In his keynote address, PNG’s minister of international trade and industry, Richard Page 32 > ISSUE 2, 2023 – www.pngbusinessnews.com

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our objective of ensuring dynamic socio-economic development across provinces.”

< Page 30 Maru stressed the necessity of effectively managing an SEZ to boost a country’s competitiveness. Citing PNG’s ambitions to become a mature economy by 2050, Mr Maru said: “The past couple of years have been challenging, [however] PNG has done well.

We are now on a very exciting journey, and SEZs will play a very important role. The setting up of an SEZ is a much-contested model. While there may be differing views on what are the key drivers in the sustainability of SEZs, to succeed there must be political stability in the overall operating environment, consistency in the regulatory environment, and a sound infrastructure.

These [are] the basic templates that SEZs require.”

Alluding to the 16 SEZs identified in PNG, Mr Maru said: “We have been working hard to improve the business environment and we are in the midst of implementing our economic programme. It is important that we succeed in services and in the knowledge-based sector.

The SEZs of South-east Asian Nations are some of the fastest growing SEZs in the world.

“The policy of the government is to spread out development to cover every [region] and going forward we are going to be more aggressive in attracting investments, in line with

ICTS ROLE IN SEZS The Information and Communications Technology Minister, Hon Timothy Masiu, and Department of Information and Communications Technology (DICT) Secretary, Mr Steven Matainaho, also attended the Special Economic Zone (SEZ) summit.

They met and sat with the host Minister, Hon. Richard Maru, and participated in discussions about the development of SEZs in Papua New Guinea (PNG).

The presence of Minister Masiu and Secretary Matainaho at the SEZ Summit demonstrates the government’s commitment to promoting economic growth and development using Information and Communications Technology.

The officials’ attendance at the event provided them with an opportunity to engage with industry experts, network with peers, and explore potential business partnerships.

The attendance of Minister Masiu and Secretary Matainaho at the summit is an indication of the government’s commitment to utilizing the power of ICT to drive economic growth and development in PNG.

EXPECTED OUTCOMES The delegates who attended the summit will

have a unique opportunity to contribute to the SEZ Policy, the Master Plan, the Legal Framework and gain insights on the speeches not only from international speakers but also on potential SEZs in Papua New Guinea and important local SEZ development partners.

Papua New Guinea’s new journey to achieve economic transformation has started and the country is looking forward to successfully delivering the outcomes of the summit and importantly to see a new wave of billions of kina of new investments from both local and international investors.

The conference concluded that a committed focus on the quality of economic growth is fundamental to drive investment and to fully realize a country’s economic potential.

References: 1) Published presentations given during the SEZ summit on the Ministry of International trade and Investment Website....| Website: www.miti.gov.pg FB Page : https://www.facebook.com/Ministry Of International Trade And Investment PNG 2) Wohi. L | Post Courier May 9th 2023 Publication. BUSINESS, Expert Explains Why SEZs In PNG Fail....| https://postcourier.com. pg/expert-explains-why-sezs-in-png-fail/ 3) Department of Information and Communications Technology Press Releases from SEZ summit..| https://www.ict.gov.pg/

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Minister Maru Announces Trade Commission Service

T

he Marape Government has made an historic decision to establish for the first time, the National Trade Commission Service, starting with establishing eight new Trade Missions around the world this year with the first Trade Mission to be established in Shanghai, China.

The Honorable Minister for International Trade and Investment, Richard Maru, MP, announced that Papua New Guinea’s Trade Missions will be equivalent to Austrade of Australia, New Zealand Trade Enterprise (NZTE), Canadian Trade Commission Service, and Malaysia External Trade Development Corporation, “(PNG) trade representatives will have their own establishments either in foreign missions or stand-alone offices or through the appointment of both Papua New Guinea Trade Commissioners and Honorary Trade Commissioners throughout the world starting with eight countries”, Minister Maru said.

The primary responsibility of the Trade Commissioner is to look for export markets for Papua New Guinea goods and to promote trade investment opportunities in PNG especially to attract foreign direct investments.

“One of the major priorities is to attract

investors to invest in our Special Economic Zones (SEZ) and also in Free Trade Negotiations with various countries starting with China and Indonesia”, he said.

Minister Maru said, “This move is very grateful for the support we have received from the Prime Minister and Cabinet and is very timely as we prepare for the historic SEZ Summit which will be opened by the Prime Minister this Sunday”.

“For too long Papua New Guinea has been an exporter of raw materials to the world, this will no longer be the case. The Marape Government is serious about processing all our raw materials in the country including all our fish, logs, cocoa, coffee, and other agricultural commodities, and even our gas and mining resources”.

“To do that we need to bring in capital and technology, and this will require very significant investment into the billions and billions of kina”.

“The Government’s other priority is on green and clean energy, we need to find alternative sources of energy which are clean so that we can do away with expensive fossil fuels that we have been using pre-independence and post-independence”.

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“The country needs cheap and reliable electricity to reduce our cost of production across all industries so that Papua New Guinea can become a competitive major manufacturing and industrialised country in the future”.

“Without investors from across the world, it will be difficult to realise our vision to build a bigger and most sustainable and robust economy as we work towards achieving economic independence by 2032,” Minister Maru said.

The first 8 Trade Commissions to be established are for Shanghai - China, Brisbane - Australia, Bangkok - Thailand, Jakarta – Indonesia, Brussels – European Union, Dubai – United Arab Emirates, Manila – Philippines, and Singapore.

“Those offices will either be manned by Papua New Guinean Trade Commissioners or Honorary Trade Commissioners from those respective countries with the challenge of funding this Trade Mission, we will evaluate and deploy the most cost-effective strategies to set up all these missions this year”, Minister Maru said.

“The Ministry is extremely grateful that the number of SOEs have expressed interest to Page 36 >

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< Page 34 fund a number of the Trade Commissions”.

“In terms of priority, the first Trade Commission we want to establish is Shanghai in China. It ranks as our highest priority as China is now offering through the President to buy all our LNG gas and our other mining and petroleum products, our fish, logs, and all the other goods”.

“China has the capacity to buy all our goods and that has been expressed in numerous meetings we have had and the Prime Minister has had with the Chinese President,” Minster Maru added.

Minister Maru also announced that he will be sending his Department Acting Secretary to Shanghai on the 13th May 2023 to look around for office space there.

They will be working very closely with the Government of China and the Papua New Guinea Embassy in Beijing to assist identify a suitable office space that can be obtained in the right location to establish the Trade Mission.

Minister Maru wants Prime Minister Hon James Marape to officially open this office when he visits China later this year.

“This is a very significant move to show the country and the world that Papua New Guinea will no longer continue to do trading with only its traditional trading partners who are not buying large volumes of Papua New Guinea products”.

“We are diversifying our trading partners starting this year with the view to securing Papua New Guinea’s economic future”.

“Under our ‘Walk across Asia’ Trade and Investment focus, we are keen and focused on developing Trade and Investment ties with China, Indonesia, Thailand, Singapore, Philippines, United Arab Emirates, European Union, Australia, Indonesia, Japan, Malaysia etc.”

“This is only the start; we are going to look at opening up our Trade Missions after this initial eight.”

Economic Security, Food Security, Energy Security, and Climate Change Security are our most important priorities, and we will be working to forge new trade and economic partnerships with various countries starting with the first eight that we feel that we know provide the best opportunities for more investment into PNG and good investors to secure more export opportunities for our products to be sold to the world at large”.

“We thank the Marape Government for recognising that International Trade and Investment is key to securing our economic future.

The decision to establish the Ministry of International Trade and Investment “is long overdue and we are determined to deliver many large-scale investment projects that will

36 PNG BUSINESS NEWS

create thousands of jobs, bring in foreign currency and really help to develop our economy now and well into the future”.

“We hope to announce up to five new Special Economic Zones (SEZ) that we will prioritise to develop this year at the summit.

The summit will not be another talk feast but will be action-oriented and work has already started with the Paga Hill development as our first large-scale privately owned SEZ”, Minister Maru said.

“I finally want to commend the Prime Minister for his bold decision as a government to introduce for the first time the Trade Commission Service as a key strategy to find new markets for Papua New Guinea products and to bring in more foreign direct investment into Papua New Guinea”.

Minister Maru said this “is so critical

to building a more robust, inclusive, and sustainable economy that will help to create jobs, create wealth for our citizens and build a bigger and stronger and more prosperous Papua New Guinea”.

The Department for International Trade and Investment “will be advertising very shortly” for applicants to fill the positions of Trade Commissioners in the first eight Trade Missions.

“The Department is looking for very highly qualified Papua New Guineans who have a very strong commercial background minimum of Master’s Degree qualifications with a strong academic background and work experience who can deal with the corporate world in driving PNG’s trade agenda in terms of securing export markets and bring in foreign direct investments”.

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PNG Government Reactivates Short-Term Business Visa By: PAUL OEKA

J

ohn Rosso, Deputy Prime Minister of Papua New Guinea and Minister for Labour and Immigration, on Friday 21st April announced the reactivation of the multiple-entry component for the short-term business visa for holders of eligible passports.

Mr Rosso said the duration of the multiple business visa is 12 months with a 60-day maximum duration for each visit.

“Activation of this visa product for holders of eligible passports means that people who intend to visit PNG for eligible short term business activities will be allowed to travel to PNG on multiple occasions within a period of 12 months,” he said.

“Meaning, they can apply within the 12 months, have a Visa and come and do business here within a space or short term of three to four weeks or up to 60 days at the most,” Rosso said.

Mr Rosso said this move supports trade and investment in Papua New Guinea while helping to restore international travel arrangements to pre-pandemic settings.

This also signifies a commitment and agreement reached between PNG and the Australian government during the ministerial forum in Canberra recently and compliments the existing 30-day duration single entry visa.

“With PNG experiencing strong economic performance and growth through investment, reactivating the Short-Term Multiple Entry Business Visa demonstrates ICA’s (Immigration and Citizenship Authority) commitment to support the government’s objectives through the facilitation of genuine business travel, giving increased confidence to those seeking to invest in our country,” said Minister Rosso.

The reactivation of the multiple business entry visa is indeed a welcoming news for the business community. Australians, New Zealanders, and other Pacific Island countries wanting to do business in PNG can now do so under this visa arrangement.

Speaking in his capacity as Minister for Labour and Immigration, Rosso stated that this supports and demon-

38 PNG BUSINESS NEWS

strates the ICA’s commitment and the government’s objective through facilitation of genuine business travel giving increased confidence of those seeking to invest in the country.

“It is critical that we have a multiple entry visa due to the fact that there are a lot of businesses not only from Australia but from countries like New Zealand and a few other countries that do business in PNG and for the ease and convenience of business it would be good for them to come to PNG and do business here instead of the current single entry Visa which also has a backlog of work and creates a lot of work on our part from the Immigration office,” Minister Rosso said.

“This announcement signifies ease of business and will also be helping us in our development and making it easier for other countries to visit PNG especially businessmen and people who have work to do here.”

He further reiterated that the announcement also fulfilled one of the aspects of the commitment that PNG and Australia had during the ministerial forum in Canberra.

PNG’s Foreign Affairs Minister Justin Tkatchenko also shared similar sentiments while adding that this is welcoming news for both Australia and PNG. “The initiative by the deputy Prime Minister, minister for immigration and the immigration department

will allow businesses especially from Australia to have short term Visas for up to twelve months in PNG. That’s a welcome relief in a period when we have all these major projects coming into operation in PNG,” Minister Tkatchenko said.

“This visa agreement will make it so much easier for more Australians to do more business and be able to do more investment in our country,” Tkatchenko added.

Passport holders from eligible counties who intend to visit PNG multiple times within a 12-month period for business purposes can now apply for visa under this category.

The maximum duration of stay for each visit is 60 days and the permit holder is not allowed to engage in work or formal employment.

The requirements state that to be eligible for business or short-term employment visa, individuals must show they are a genuine businessperson or are engaging in approved employment, with the intention of leaving Papua New Guinea at the end of their stay.

References: 1) Immigration and Citizenship Authority Press Conference 21st April 2023 2)https://ica.gov.pg/press-releases/2023/minister-rosso-reactivates-short-term-multiple-entry-business-visa ISSUE 2, 2023 – www.pngbusinessnews.com

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MINING

Chamber of Mines & Petroleum Confirms Council for New Term

T

he PNG Chamber of Mines and Petroleum has confirmed its council and executives for its next term at its 35th Annual General Meeting held at the Hilton Hotel in Port Moresby recently.

President for the Chamber Mr. Anthony Smaré and Senior Vice President- Mr. Richard Kassman (Total Energies) were re-elected unopposed.

Vice President Philip Samar (K92 Mining) was elected as Vice President, and Mr. Harold Duigu (Ok Tedi Mining Limited), Hitesh Lal (Exxon Mobil), Stanley Komunt (Newcrest Mining Limited (Lihir) were elected as Councillors.

Also returning to the Chamber unopposed is Associated Council Member Mr. Mark McMonagle, CEO of Sun Engineering.

In his address, President of the Chamber Mr. Smaré welcomed the new councillors, saying another busy year lies ahead for the Chamber.

Key events for the group include the 2023 PNG Community Affairs & National Content Conference and Exhibition in August in Lae, the Asia PNG Investment Conference planned for Hong Kong in October, and the PNG Energy and Resources Investment Con-

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ference in December, amongst other policy matters the Chamber is working on with all its members and stakeholders.

Mr. Smaré also flagged the special resolutions which will be put to the membership for approval in the next few months for the change of the Chamber’s name to PNG Chamber of Resources and Energy (PNGCORE) and changes to the constitution to update the Chamber’s governance, structure and operations to better serve its members and achieve its objectives.

The Chambers’ Chief Operating Officer, Mrs. Pansy Taueni-Sialis, in her presentation on Repositioning the Chamber also emphasized that national events like the upcoming Community Affairs & National Content Conference expand robust dialogue between all stakeholders.

Just like its Investment Conferences, the events aim to build the platform between the government and other stakeholders to identify investment ability and restore financial stability in the PNG Economy.

“Such engagements between government and stakeholders only become fruitful when policies are friendly and conducive for our stakeholders and investors,” Mrs. Taueni-Si-

GP Services

President of the PNG Chamber of Mines and Petroleum, Mr. Anthony Smaré, who was re-elected unopposed.

alis said.

The Chambers’ Policy Manager Ms. Gretel Orake, in making clear the Chambers’ stance on policy matters, stressed the importance of member input as being critical for the industry in terms of the narrative surrounding policy matters.

“Member input is critical as it yields mutual benefits for all involved. And since the Chamber is uniquely positioned within the industry, the Chamber and its members have a role to play by sharpening the language it uses when it comes to policy matters. The narrative we use must harness, represent, advocate, and enhance the interests of the industry,” she said.

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MINING

Economic Boost on the Horizon: Examining the Newmont-Newcrest Deal’s Impact on Papua New Guinea

T

he recently announced acquisition deal between Newmont (NYSE: NEM, TSX NGT) and Newcrest Mining Limited (ASX, TSX, PNGX: NCM) on May 14, 2023, is set to have a significant impact on Papua New Guinea (PNG). The deal involves Newmont acquiring 100% of the issued shares in Newcrest by way of an Australian Scheme of Arrangement. Newcrest shareholders will receive 0.400 Newmont shares for each Newcrest share and a special dividend of up to $1.10 per share paid by Newcrest. This represents a 30.4% premium. The deal is worth A$ 28.8 billion creating the largest-ever gold M&A transaction and solidifying Newmont as the largest global gold producer. Newcrest initially rejected a A$19bn offer from Newmont in February 2023. What does this mean for Newcrest’s assets in Papua New Guinea (PNG)?

Strengthening the Mining Sector: Newcrest’s assets in PNG have a long-standing presence, with established mining operations and infrastructure in place. Their experience in operating in the country provides them with a deep understanding of the local business environment, regulatory frameworks, and cultural dynamics. This familiarity can be a significant advantage in ensuring smooth operations and stakeholder engagement. The acquisition of Newcrest by Newmont reinforces the position of both companies as leading gold producers and consolidates their presence in PNG. The combined portfolio of assets offers substantial opportunities for optimisation, paving the way for enhanced operational efficiency and increased production.

LIHIR GOLD MINE: Located on Lihir Island in the New Ireland Province, the Lihir Gold Mine is one of the largest gold mines in the world.

It began production in 1997 and has since yielded significant gold reserves.

The mine utilizes both open-pit and underground mining methods, and it has substantial processing facilities on-site, including a large-scale autoclave for processing refractory ore.

Newcrest creates economic value for

42 PNG BUSINESS NEWS

PNG and local communities including direct revenues from operations, investments in public infrastructure and services, support of local suppliers and a range of indirect economic benefits. It employs approximately 4,500 people of which around 90% are Papua New Guineans.

WAFI-GOLPU PROJECT: The Wafi-Golpu Project is a significant joint venture between Newcrest Mining (50%) and Harmony Gold (50%) in the highly prospective Morobe Province through the Wafi-Golpu Joint Venture (WGJV). It encompasses the exploration and development of a world-class gold-copper deposit.

Deep drilling has identified a worldclass copper-gold porphyry deposit at Wafi-Golpu (the Golpu deposit) suited to bulk underground mining techniques, similar to Newcrest’s Cadia operations in Australia.

ECONOMIC GROWTH AND EMPLOYMENT OPPORTUNITIES: Through the acquisition, Newcrest can leverage its existing assets and expand its operations to tap into additional mineral deposits since it now has a bigger market capitalisa-

tion. This could lead to increased production, improved economies of scale, and a more diversified portfolio of mining projects thus bringing an economic boost for PNG. Optimised operations, coupled with the expansion of mining activities, can lead to increased job opportunities, both directly and indirectly. This infusion of employment opportunities has the potential to contribute to poverty reduction and overall economic growth in the country.

Lihir Gold Mine.

Photo Credit: Newcrest Mining Limited Website

SYNERGIES AND COST EFFICIENCIES: The consolidation of operations between Newmont and Newcrest creates synergies and cost efficiencies. It is estimated that the deal could generate annual pre-tax synergies of $500 million within the first 24 months. These cost savings can be reinvested into further development, exploration, and sustainable mining practices, benefiting the companies and the local communities.

SUSTAINABILITY AND ENVIRONMENTAL PRACTICES: Both Newcrest’s and Newmont’s track record as a leader in sustainability and responsible mining practices can

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MINING

< Page 42 bring positive changes to Newcrest’s assets in PNG.

SOCIAL AND COMMUNIT Y DEVELOPMENT: Both the companies’ expertise and experience in community engagement and social development initiatives will further the development of the community.

The acquisition of Newcrest by Newmont holds promising prospects for PNG’s mining industry and economy. The deal’s potential to drive economic growth, create employment opportunities, enhance sustainability practices, and optimise operations brings an economic boost to the country’s mining sector.

However, it is important for all parties involved to navigate the regulatory and stakeholder considerations diligently to ensure a successful and mutually beneficial outcome.

References: Newcrest Mining Limited. (2023).

Wafi-Golpu. Retrieved from https:// www.newcrest.com/our-assets/ wafi-golpu. Retrieved on 19 May 2023.

44 PNG BUSINESS NEWS

Newcrest Mining Limited. (2023).

Lihir. Retrieved from https://www. newcrest.com/our-assets/lihir. Retrieved on 19 May 2023.

Newmont Corporation. (2023).

Newmont Enters into Definitive Agreement to Acquire Newcrest.

Retrieved from [https://www. newmont.com/investors/news-release/news-details/2023/Newmont-Enters-into-Definitive-Agreement-to-Acquire-Newcrest/default. aspx]. Retrieved on 19 May 2023.

The Wafi-Golpu Joint Venture (WGJV) hosts one of the highest-grade porphyry copper systems in Southeast Asia.

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MRA: Mining Exploration Crucial for Future of PNG Mining Industry

M

ineral Resources Authority (MR A) managing director, Jerry Garry, has emphasised the importance of exploration in ensuring the future of Papua New Guinea’s mining industry.

Speaking at the agency’s 15th anniversary celebration in Port Moresby, Garry highlighted the vital role that exploration plays in the development of mines.

“If you do not have exploration, you do not have a mine”, said Garry. “Before MR A’s establishment, the total exploration Kina spent on grassroots and advanced projects in the country were well below K100 million per annum. After the establishment of the MR A, the exploration expenditure increased and peaked at around K370 million per annum, that in itself is a testimony to MR A’s achievement”.

Current advanced exploration projects progressing into the mine development stage include Wafi-Golpu, Frieda River, Woodlark gold mine project, Central cement lime project, Oro nickel and cobalt project, and Misima mines.

Garry also highlighted the importance of alluvial mining in the sector, which has grown from earning less than K100 million to K640 million per annum under the

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Prime Minister James Marape (second from right) with Mineral Resources Authority officials. Photo credit: MRA

MR A’s supervision.

“Looking at the small-scale mining training center (in Wau, Morobe), they have trained and certified more than 6,000 artisanal miners since its establishment in 2008”, said Garry. “That is why we have a K640 million export revenue in this sector, it is the effort of the training center”.

While Papua New Guinea’s mining industry has seen significant growth in recent years, Garry cautioned that all major mineral reserves in the country will be depleted by 2063. “That includes Wafi-Golpu and Frieda River projects”, he said.

Garry stressed the need to invest in the next layer of deposits to sustain the mining business in the country, stating that the only way to achieve this is to explore deeper.

“We need to invest in the next layer of deposits to sustain the mining business in the country”, said Garry. “And the only way to do that is to go deep because those deposits or assets on the surface have already been tested”.

Despite this challenge, Garry was optimistic about the future of Papua New Guinea’s mining industry.

“We need to look at the future and the next big thing, and we need to invest in exploration”, he

said. “The future of the mining industry is very bright, and we can only make it happen if we all work together and invest in the right areas”.

Garry’s remarks were met with support from industry stakeholders.

Peter Graham, managing director of Wafi-Golpu Joint Venture, stressed the importance of exploration to the industry’s future.

“Exploration is the lifeblood of our industry”, said Graham.

“We are exploring at depths never before contemplated, and our joint venture has the potential to provide significant long-term benefits to the people of Papua New Guinea”.

Similarly, Richard Robbins, managing director of Highlands Pacific, emphasised the need for collaboration between the government and industry to ensure the sustainability of the mining sector.

“It is essential to maintain a healthy and collaborative relationship between industry and government to maximize the benefits of mining to the people of Papua New Guinea”, said Robbins.

As Papua New Guinea’s mining industry continues to grow, the focus on exploration and sustainable mining practices will be crucial to ensuring its long-term success, they said.

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MINING

A Look into Porgera Gold Mine’s Lengthy Progress to Recommencement By: PAUL OEKA

I

n recent years Papua New Guinea has been ranked as one of the most natural resource-dependent economies in the world and has been seen as an example of the cruel ironies that often go simultaneously with big extractive industries which are supposed to lead to the development and lead people out of poverty but yet, on the contrary, the situation only seems to worsen.

PNG is undoubtedly an incredibly beautiful country with pristine beaches along the coastal shoreline and stunning mountain landscapes, valleys, and rainforests up in the highlands, which are sparsely populated in most parts. Natural resources form the backbone of the country’s economy, especially mining, timber (logging), and oil with the inclusion of the enormous LNG projects that are in the pipeline which are mostly headed by Exxon Mobil and Total Energies.

BARRICK’S INCEPTION Porgera is one of Papua New Guinea’s longest-running goldmines.

Operating for over 30 years in the highland province of Enga, this large mine was expected to produce around 250,000 ounces of gold in 2019. It employed more than 5,000 people and the 5% landowner and provincial equity stake had helped to fast-track the efforts to bring services and education to one of the country’s most remote provinces.

52 PNG BUSINESS NEWS

The Porgera Joint Venture (PJV) was created in 1988 with the shareholding split between Placer Pacific (30%), Highlands Pacific (30%), Renison Goldfields Consolidated (30%) and the PNG government had a small 10% equity.

Barrick Gold, a Canadian company that is also the World’s largest producer of Gold acquired its interest in the Porgera Joint Venture in 2006 and through its subsidiaries in the country, the company held a 95% stake in the operation with the remaining 5% being held in equal partnership with the Enga Provincial Government and the traditional Ipili landowners. Barrick had agreed to continue production until 2023 before the closure of the mine in 2020.

Since the Porgera Gold mine opened in the 1990s it has likely produced around 16 million ounces of gold and at today’s price that would be worth more than K40 billion.

The mine is the vocal point and lifeline of everything that happens in Porgera, 12% of PNG’s export earnings had come from the Porgera Gold mine but despite all the wealth it had gained the recent outcry by the people of Porgera the mine reopened has stated otherwise.

Reports since the closure of the mine in the local media still show that the mining township and its

surrounding areas still suffer from grinding poverty and a lack of basic government services.

MINE’S CLOSURE - PORGERA AND POLITICS Late in April 2020, in the middle of a global pandemic and brewing domestic economic crisis, the PNG government made the surprising announcement not to extend the mining lease on a goldmine that contributes roughly 10% of the country’s total exports. The mine had been closed following the government’s decision not to renew BNL’s special mining lease.

A subsequent legal battle and an April 2021 agreement ceded majority ownership of the mine to ‘PNG stakeholders’ while securing BNL’s status as the mine’s operator.

Before the mine’s closure, Porgera was a joint venture between Barrick Gold (47.5 per cent), Zijin Mining (47.5 per cent), the Enga government (2.5 per cent), and the Porgera landowners (2.5 per cent) while the Government had no stake or equity in the gold mine. It only earned from what came out of corporate tax.

The announcement not to renew the special mining lease for the Porgera mine was a shock, in particular to the mine’s operator, Barrick Gold, and their joint venture partner Zijin Mining.

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< Page 52 The decision on the closure of Porgera was reported widely as being mainly an attempt from the PNG government to harvest more bene benefits from existing projects and issue a stern warning to projects still in negotiation that they mean business.

When Prime Minister Marape was sworn into office in May 2019, he quickly set a narrative to “take back PNG”, arguing that the people of PNG were not getting their fair share of the benefits of the formal economy and major natural resource projects. During that period PNG’s slowly increasing and ongoing economic crisis was set to deepen in the fallout of Covid-19 and it was no surprise that the natural resources sector found itself in the crossfire, in this instance, the Porgera Gold mine was the one to take the fall.

At that time Prime Minister Marape had hoped Barrick would keep the mine operating while negotiating its exit. But the company’s firm refusal of that option and its immediate shutdown of the mine had demonstrated its bargaining power. Since then, Barrick and all stakeholders have been in negotiations with the government to have the mine reopened.

While the government had seemed within its rights not to renew the lease, the unexpected announcement had led Barrick to hit out, by stating the move was the same as nationalization without prior notice and due process.

According to PNG Report, the Porgera closure had cost 4,000 jobs and about K110 million in losses for small and medium enterprises servicing the Barrick-owned mine in Enga Province. Porgera Chamber of Commerce and Industry president Nickson Pakea said those affected included around 700 SMEs and 176 contractors.

NEGOTIATION PROCESS During the past three years, ongoing negotiations between Barrick Gold and the government to reopen the mine have not yet come to fruition but are eventually taking a favourable course. The issues surrounding one of PNG’s longest-serving mines and a significant

54 PNG BUSINESS NEWS

contributor to the country’s GDP have been closely scrutinized by both domestic and foreign interests who have links and have been benefactors of the mine.

Porgera has been on care and maintenance since April 2020 when the government declined to renew its special mining lease to which Barrick Niugini Limited (BNL) has spent more than a billion kina on care and maintenance since the mine was closed in 2019.

Early this year, Deputy Opposition Leader Douglas Tomuriesa had suggested that the government re-negotiate and seek a 25 per cent shareholding in the Porgera gold mine, not 51 per cent.

Tomuriesa pointed out that the Government also needed to be making money.

“Just admit that you were wrong or the advice you were given was wrong and go back and fix this so that the mine can operate again, and the country can make money,” he said.

“Realistically, how can we demand 51 per cent ownership, when we have contributed nothing?

At this rate we are going, we are starting to chase investors out of the country. “Who will want to do business in the country or invest here when our demands are unrealistic?”

Tomuriesa urged the Government to renegotiate a 25 per cent ownership, a 25 per cent share for economic benefits, to allow the mine to start operating.

“They can come up with an agreement where the 25 per cent has to be within the year and leave the other 25 or 26 per cent open for negotiations, which can be something they can go back and forth with but allow the mine to start operating,” he said.

In light of this, Prime Minister Marape issued a statement stating that Barrick is committed to reopening the mine and the Government through Kumul Mining Holdings Ltd as a partner is also committed to reopening the mine. PM Marape is adamant that the re-opening of the mine should occur sometime this year.

In relation, The Lease for Mining Purposes chairman Timothy Andambo said re-opening the multi-million Kina Porgera gold mine would ease the country’s foreign exchange shortage issue. He stated that Porgera was a national asset and can generate the foreign currency ($US Dollars) that this country desperately needs.

LIKELY RECOMMENCEMENT After a lengthy negotiation process at the back end of last year (2022) towards the first quarter of this year (2023), The Porgera gold mine has been looking steadily to get on track to resume operations later this year after the government and Barrick Niugini Limited agreed on a partnership for its future ownership and operation.

The early recommencement of the mine, preferably within the first half of this year was critical for the country, as the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back into its full operating capacity would be a challenge.

Under the terms of a binding framework agreement signed by Governor General Sir Bob Dadae and Barrick Gold Corporation President and Chief Executive Mark Bristow, ownership of Porgera will be held in a new joint venture owned 51% by PNG stakeholders

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MINING

and 49% by BNL in which BNL will remain the operator of the mine.

The framework agreement also provides, among other things, for PNG stakeholders and BNL to share the economic benef its generated over the life of mine on a 53/47% basis, BNL to f inance the capital required to restart the mine, An increase in the equity allocated to a broad group of landowners who are the customary owners of the land where Porgera is located, And the state retains the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years.

The parties will now work towards the signing of def initive agreements at which time full mine recommencement work will begin.

Prime Minister James Marape said the framework agreement, reached after months of negotiation, was a historic development, which would benef it PNG for many years to come, and set the precedent for future projects.

“I thank Mr Bristow and his

team for recognizing our nation’s aspirations and their willingness to partner with us in realizing this vision at Porgera,” he said.

President and CEO of Barrick Gold Mark Bristow said, on behalf of BNL’s joint venture partners Barrick and Zijin Mining, was delivering on its promise of reaching a fair agreement on the future of Porgera for the benefit of all its stakeholders, notably the local community, Enga province and the PNG government.

“We intend to partner with all key stakeholders to make Porgera a world-class, long-life gold mine,” he said.

FINAL OUTSTANDING ISSUE TAXATION About the news of reopening, it was revealed that there was a clause inserted in the New Porgera framework agreement in which the resolution of Barrick’s old tax liabilities was a condition for reopening the mine. Since then, the taxation matter surrounding Barrick’s past operations at Porgera Mine was put under the spotlight.

Internal Revenue Commission (IRC) Commissioner-General Sam Koim when responding to a statement by PM James Marape said the “old Porgera” tax issues relating to Barrick (Niugini) Limited should not be used as an excuse to delay the reopening of the Porgera mine.

These remarks were made by Mr Koim following Prime Minister James Marape’s statement which blamed the delay in the reopening of the mine on a “tax issue”.

“We are almost there. There is just a tax issue standing in the way of Porgera being reopened,” Marape said.

Furthermore, Barrick’s chief executive officer Mark Bristow gave an ultimatum to the State parties to resolve all outstanding issues by March 31.

Regarding Bristow’s ultimatum, Koim stated that Bristow did not mention what “outstanding issues” were holding up the reopening of the mine.

Barrick has insisted that the IRC accepts its position, even if it goes against the grain of the law but Koim stated “It seems Barrick

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MINING

Ok Tedi Participates in National Mine Safety Week

O

k Tedi Mining Limited (OTML) staged a weeklong awareness campaign in all its operational sites, of Fubilan/Folomian, Tabubil, Kiunga, Bige, and Port Moresby focusing on ‘Light Vehicles and Mobile Equipment Safety’ during its National Mine Safety Week from April 30th to May 6th.

According to Manager Safety, Anna Ila, “There has been an increase in trends from Light Vehicles and Mobile Equipment incidents over the past months. The theme is timely as it complements our efforts in addressing the issue.”

OTML started off its National Mine Safety Week with a Fun Run/ Walk on Sunday morning, 30th April,

which saw over 200 participants from OTML and Business Partner employees.

OTML Managing Director and Chief Executive Officer Kedi Ilimbit said the theme for this year highlights the need for more awareness with employees and the public.

“The more awareness we do, the better we improve the outcome”, he said.

“We need to prevent and eliminate light vehicle and mobile equipment fatalities and incidents because as human beings we are in control of light vehicles and mobile equipment, it is not the other way around so we should be able to operate these machines safely”, Mr Ilimbit said.

Speaking at the launch of the event

on 30th April, OTML General Manager People and Capability, Mark Stone, emphasised the importance of working together with business partners to ensure OTML performs well in terms of safety.

Much of the awareness activities that were rolled out included the safety pre-start activities, school awareness on road safety, games, quizzes and a panel discussion on OTML’S Community Radio Station, Radio Fly that saw active participation from OTML Departments and Business Partner employees.

The Mineral Resources Authority (MRA)-sanctioned week is recognised each year by mining companies and projects in PNG.

< Page 56

tif ication in simple is to gain better shares for the landowners and the Enga Provincial Government.

2. https://www.pngbusinessnews. com/articles/2023/1/women-groupsin-porgera-call-for-immediate-restoration-of-government-servicesin-district-mine-closure-is-notmaking-peoples-lives-better 3. http://www.porgerajv.com/Company/Media/Press-Release/Porgera Mine Temporarily Suspends Operations/Saturday, April 25, 2020 4. http://www.porgerajv.com/Company/Media/Press-Release/Update on Porgera Negotiations/Saturday, October 17, 2020 5. https://www.pngbusinessnews.com/articles/2023/1/ barrick-niugini-limited-clarif ies-its-stance-on-porgera-s-current-progress 6. https://www.thenational. com.pg/renegotiate-porgera-shares-to-25-per-cent-says-tomuriesa/February 13th, 2023 7. Luma.D https://postcourier.com. pg/porgera-reopening-process-almost-complete-says-vele/February 15th, 2023 8. https://www.barrick.com/ English/news/news-details/2021/ Porgera-Mine-Set-to-Restart-asPNG-and-Barrick-Niugini-Limited-Agree-New-Partnership/default. aspx 9. https://www.thenational.com.pg/ porgera-mine-tax-debate/ January 27,2023 10. http://www.porgerajv.com/ Company/Media/Press-Release/ Barrick Steers PORGER A GOLD MINE Back towards world-class production -March 31, 2023

is seeking a political solution to its legacy tax problems, some of which are very technical matters even for non-experts like me to understand”.

Koim thanked PM Marape and the Government for being “forthright in informing Barrick that the IRC independently administers tax matters, and the Government is not in the business of breaking its laws”.

“Barrick should not use the pressure of reopening the mine to force the Government to address its tax problems. The mine should reopen immediately while Barrick addresses its ‘old Porgera’ tax liability following the due process of law. in response, Barrick (Niugini) Limited (BNL) said it was “deeply disappointed that the Commissioner-General of the Internal Revenue Commission has chosen to speak publicly about a confidential tax matter.

“The Income Tax Act requires that officers of the Internal Revenue Commission, including the Commissioner-General, treat as confidential the information and tax affairs of all taxpayers.

“BNL has always administered its financial affairs by the laws of PNG and believes the matter should be dealt with by the law and obligations of fairness and confidentiality”.

Whilst the future of Porgera Gold Mine is awaited the outcome of its taxation issue, Marape’s jus-

58 PNG BUSINESS NEWS

MINE REOPENING UNDERWAY In the first quarter of 2023, during the month of March, Barrick Gold Corporation, the government of Papua New Guinea, and New Porgera Limited signed an agreement on Friday 31st March to resume operations at the Porgera gold mine.

The New Porgera Progress Agreement (NPPA), which was signed, conf irmed that all parties are committed to reopening the mine at the earliest opportunity, in line with the terms of the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement, both of which were concluded in 2022.

The New Porgera project team will now proceed with the f ilings for a special mining lease and progress the other conditions set out in the Commencement Agreement for the reopening of the mine.

New Porgera’s equity at 51% is shared by Papua New Guinea (PNG) stakeholders, including local landowners and the Enga provincial government. Economic benef its will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini Limited, which will operate the mine.

References: 1. http://www.porgerajv.com/Company/Our-Story

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MINING

Wafi-Golpu Framework MOU Signed

W

afi-Golpu Joint Venture (WGJV) participants, Newcrest and Harmony Gold, through their respective PNG subsidiaries, have signed a Framework Memorandum of Understanding (MOU) with Papua New Guinea at a signing ceremony attended by the Governor General, the Prime Minister, and key members of his Cabinet, as well as the Governor of the Morobe Province.

The MOU represents a substantial step forward in progressing and signing a Mining Development Contract for Wafi-Golpu and confirms the parties’ intent to proceed with the project, subject to finalising the permitting process and approvals of both the Newcrest and Harmony Boards.

The MOU sets out key terms to be included in the Mining Development Contract, which is a prerequisite for a Special Mining Lease (SML), including: • State equity participation, royalty rate, tax package, and term and scope of the SML.

• Key terms for other related agreements with the State, including provision for stability to underpin the significant long-term investment required to develop and operate the project.

• Commitments for the WGJV to invest in infrastructure and social development projects that will deliver long-term benefits to local communities.

• The framework for the parties to progress the permitting of the Wafi-Golpu Project as quickly as practicable in accordance with applicable regulatory processes.

Peter Steenkamp, Chief Executive Officer of Harmony Gold Mining Company Limited, said, “This MOU is an important step in progressing the permitting of the Tier 1 Wafi-Golpu project, one of the world’s premier, undeveloped copper-gold deposits”.

“I wish to thank Prime Minister Marape and his Government for the constructive manner in which they have worked with the WGJV partners and for the commitment

demonstrated in advancing this important and long-awaited project”.

“This MOU is a pivotal milestone towards the development of one of the world’s premier, undeveloped, copper-gold deposits” said the Interim Chief Executive Off icer of Newcrest Mining Limited, Sherry Duhe.

“Importantly, the project will result in fair and equitable benef its for landowners, communities, local level governments, the Morobe Provincial Government, and the Independent State of Papua New Guinea, while also delivering strong returns for investors”.

The MOU recognises that the development of the Waf i-Golpu Project will be of major significance to the people of Papua New Guinea and encourages its development to contribute both socially and economically to the community.

It also provides a viable and stable foundation for the long-term development of the Project by the WGJV.

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PNG BUSINESS NEWS 63

MINING

PNG Ranked Among Most Unattractive Countries for Mineral Investment

P

apua New Guinea has been ranked as one of the least attractive jurisdictions globally for mining investment, according to the Annual Survey of Mining Companies published recently by the Fraser Institute, an independent, nonpartisan Canadian policy thinktank.

President of the PNG Chamber of Mines and Petroleum, Mr Anthony Smaré, has called for urgent dialogue with National Government and all stakeholders to address this decline in PNG’s international standings.

“The results of the Fraser Institute Global Survey show how much PNG has fallen as an international destination for mining investment and needs to be urgently addressed if we are going to preserve this industry to benefit future generations beyond our current operating projects” he said.

“If we want this industry to have a future, to continue to provide employment, business opportunities, royalties, dividends, taxes, and other benefits for future generations, it is imperative that all stakeholders, led by the National Government, take note of these survey results, and engage in dialogue to urgently address the policy matters deterring investment in PNG, particularly regulatory uncertainty and aspects of our taxation incentives”.

The Fraser Institute’s global mining survey is the most comprehensive report on government policies that either attract or discourage mining investors.

This year’s report ranks 62 jurisdictions around the world based on their geologic attractiveness (minerals and metals) and government policies that encourage or deter exploration and investment.

PNG is ranked in the bottom seven countries in both Investment Attractiveness and Policy Perception.

In 2018, PNG ranked 41st out of 83 jurisdictions in the Investment Attractiveness Index and has now slipped to 54th out of 62 jurisdictions. PNG has slipped from ranking 61st out of 83 jurisdictions in the Policy Perception Index in 2018 to a new low of 57th out of 62 jurisdictions in 2022.

This decline in PNG’s standings is reflected in the significant drop-off in exploration activity in PNG over the last 10 years.

Records from the Mineral Resources

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Authority (MRA) indicate a steady decrease in the number of explorations licenses issued since 2012 from 177 Exploration Licenses (ELs) granted and 379 applications awaiting processing to the June 2022 numbers of 158 granted and 112 applications.

The Global Survey assesses how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment. The survey was circulated electronically to approximately 1,966 individuals between August 23rd to December 30th, 2022.

Survey responses have been tallied to rank provinces, states, and countries according to the extent that public policy factors encourage or discourage mining investment.

An overall Investment Attractiveness Index is constructed by combining the Best Practices Mineral Potential index, which rates regions based on their geologic attractiveness, and the Policy Perception Index, a composite index that measures the effects of government policy on attitudes toward exploration investment.

Neighbouring Australia continues to be the most attractive region in the world for mining investment.

Western Australia (2nd), Northern Territory (6th), and South Australia

(9th) appeared in the global top 10 on the Investment Attractiveness Index in this year’s survey.

Zimbabwe ranks as the least attractive jurisdiction in the world for investment, with PNG slightly higher.

The ranking is a result of the survey responses from participants comprising of managers, executives mainly company presidents around the world in companies involved in mining exploration, development, and other related activities.

All these respondents indicated that PNG’s legal system, infrastructure, political stability, and quality of the geological database are the main policy factors deterring investment.

Alarmingly, the report is an indication of how low PNG ranks globally, in terms of investability in the mining sector as the survey was designed to identify countries that have the most attractive policies for encouraging investment in mining exploration.

Countries that investors assess as relatively unattractive may therefore be prompted to consider reforms that would improve their ranking.

The Global Survey can be found at https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2022

(L-R) President Anthony Smaré – PNG Chamber of Mines and Petroleum, Paul Hueper – Director of Energy and Mineral Programs for the Bureau of Energy Resources, US Department of State with his colleagues on the right, and MRA’s Managing Director Jerry Garry (centre) at the Prospectors & Developers Association of Canada (PDAC) in Toronto, Canada early in March 2023 promoting investments in PNG’s mineral sector.

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PNG BUSINESS NEWS 65

OIL & GAS

Kumul Petroleum Holdings Progresses Fabrication Facility

T

he Kumul Petroleum Holdings Limited fabrication facility is now one step closer to completion after the signing of a memorandum of understanding with two international companies to oversee the engineering, procurement, and construction phase of the project.

Managing director Mr Wapu Sonk said, “We have now secured an MOU with Sinopec (Ningbo) Engineering and Construction (SNEC) and China State Construction and Engineering Company (CSCEC) to work with us on the EPC phase of this fabrication facility. This complements the agreements we already have in place with two Dubai-based companies – A2Z LLC to design the heavy fabrication engineering plant and Fabtech International to manage the facility for us”.

“The Facility will have a capacity of 20,000 tonnes per year, producing steel, mechanical, piping, and electrical modular packages, such as those that will be necessary for the construction phase of the Papua LNG Project and subsequent LNG and mining projects”.

Mr Sonk outlined that the fabrication facility would provide direct employment for 1,000 skilled Papua New Guineans and indirect jobs for up to 3,000 more local people when operating at full capacity. He noted that if the facility was run 24 hours per day, the number of jobs could even double.

The managing director added, “Kumul Petroleum is expecting to work with the Papua LNG Project’s EPC contractors to start using the facility when the project achieves FID and enters the construction phase later this year or early next year”.

Mr Sonk reinforced that the Facility was designed to meet national content requirements for petroleum, energy, mining, and major infrastructure construction in the country, for the provision of professional technical services, in addition to the likely high number of employment and training opportunities that such projects would generate.

Mr Sonk added,” Site works for the construction of the Facility and associated construction training

academy have already started, close to the existing ExxonMobil-managed LNG plant at Caution Bay outside Port Moresby. Kumul Petroleum is advertising for recruitment of trainees for the Facility, through the KPHL job search and advertisement software portal (www.wanpng.com) and other agencies”.

“We intend that the Papua LNG Project will have a greater national content than the previous PNG LNG Project, and this Facility will contribute greatly towards this goal”

KPHL managing director Mr Wapu Sonk (centre) with Mr Zheng Lijun, President SNEC, and Mr Chen Lie, Vice President CSCEC, at the MOU signing ceremony.

Kumul Extends PNG LNG Sell-Down Exclusivity Period with Santos

K

umul Petroleum Holdings Limited (Kumul) has advised Santos it has extended the period in which its offer to acquire a five per cent interest in PNG LNG for an asset value of US$1.4 billion, including a proportionate share of PNG LNG project finance debt of approximately US$300 million, will remain open until 31 August 2023.

Santos has agreed to deal exclusively with Kumul during this period regarding the sale of equity in PNG LNG. In an announcement on 27 September 2022, Santos referred to its binding conditional offer from Kumul, which on 23 December 2022 the latter extended until 30 April 2023.

Kumul has agreed it will work closely with Santos during this extension period to assist it in arranging the

66 PNG BUSINESS NEWS

finalisation of its acquisition financing with third parties. There is also strong support from both the government and the Joint Venture partners for the transaction proceeding.

Santos Managing Director and CEO Kevin Gallagher said PNG LNG continues to represent compelling value for shareholders.

“With the significant changes in the global energy landscape over the last 12 months, PNG LNG remains a world-class asset that is low-cost, low emissions intensity and delivers reliable LNG supply to our customers in Asia”, Mr Gallagher said.

“The project is positioned in a supportive regulatory environment, with fiscal stability arrangements in place ensuring that it contributes strong cash flows to project participants and delivers significant economic and

social benefits to the nation”.

“While the PNG project is a very valuable asset and Santos’ balance sheet is strong, Santos remains committed to selling five per cent equity in the project to support the PNG government to achieve the nation’s equity objectives”.

Prime Minister James Marape said: “I am fully supportive of continuing the transaction to purchase five per cent of PNG LNG in pursuing PNG national interest and its nation building programmes.”

Given the volatility in the financial markets and high-interest-rate environment, I support Kumul’s request for a time extension to complete the transaction. With credible private sector lenders significantly advanced, I am confident that Kumul will secure an appropriate financing package.”

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OIL & GAS

Progress on Papua LNG Development Brightens Economic Prospects By: PAUL OEKA

T

he advantages of having a second Liquefied Natural Gas (LNG) project in a country like Papua New Guinea is important and strategic in that the people are attached to the land, and they want to feel they are part of the extraction of resources and wealth -- and they can only do that through the development of their customary land.

The focus has shifted from Oil to Liquefied Natural Gas (LNG) in the 2000s and the country is now looking at three more LNG trains to be added to the two trains that exist now.

Total Energies EPPNG, the developer of the Papua LNG project in the Gulf Province, will be progressing to utilize the Elk and Antelope gas fields before ExxonMobil’s proposed development of P’nyang in Western Province, as this phased approach to gas development would support ongoing economic growth in Papua New Guinea.

Design work on the upstream, gas production side of the Papua LNG project, involving tapping the Elk and Antelope fields in the eastern Papuan Basin, started in July 2022, and this will now be extended to be ready for construction that could begin as soon as 2024.

In contrast, the P’nyang project will be an independent project with landowner benefits to be provided under a future benefit sharing agreement to be negotiated by the State in accordance with the Oil and Gas Act. Currently the Papua LNG project is on course to be PNG’s second natural gas project, and PNG Prime Minister James Marape hopes the development will spur economic growth in a country where majority of the population live below the poverty line.

68 PNG BUSINESS NEWS

Wapu Sonk, Managing Director of the country’s national petroleum company Kumul Petroleum Holdings Limited (KPHL) recently stated in an interview: “Papua New Guinea is well known for its extensive and profitable gas fields.

While our LNG reserves are lower than those found in Qatar or Mozambique, for example, we still have a significant amount of discovered gas, and that allows us to play an increasingly important role in the global LNG supply chain”.

“We will continue to benefit from our proximity to Asian markets, which limits transportation costs and offers lower geopolitical risk than the Middle Eastern market. It will be important for us to capitalise on this advantage by maintaining the progress we have made in terms of project development in our country”. Mr Sonk said.

PAPUA LNG PROJECT - EARLY WORKS AND INFRASTRUCTURE Recently the business fraternity in Port Moresby sat over a breakfast organised

by Papua LNG’s project developer TotalEnergies EPPNG in conjunction with Port Moresby Chamber of Commerce and Industry (POMCCI) to give both national and international businesses an insight on the early works of the Papua LNG project, and a brief on the progress of the project on the 11th of May 2023 at the Royal Papua Yacht Club in Port Moresby.

Speaking at the breakfast was Managing Director of Total Energies EPPNG JeanMarc Noiray, who said the Project has not yet started work but has already started implementing community based projects and infrastructure within the project area.

“The Papua LNG Project is a big project and we are just at the begining of construction of its multi-decade production life, but already we can see the impact through the successful early works and start up in and around the project,” Noiray said.

“Do not underestimate the confidence that the Papua LNG project’s reputation will give others as they consider investing in this great country,” he said.

“Integrated efforts by all stakeholders in the early progress of the project is key to see PNG reap benefits from the project through development of Roads, Bridges, Airstrips as well as developing local content during the early works and infrastructure start up phase of the project”. Mr Noiray said.

The project is expected to create significant economic benefits for Papua New Guinea, including job opportunities, infrastructure development, and revenue generation. The project is also expected to contribute to the country’s energy security and reduce its reliance on imported fuel.

During the information session, representatives from TotalEnergies and EPPNG provided details on the project’s timeline, scope, and potential impact on the local communities. They also discussed the company’s commitment to environmental sustainability and social responsibility.

Local business owners and entrepreneurs expressed their interest in participating in the project and learning more about potential business opportunities.

They also raised concerns about the project’s potential impact on the environment and the need for effective community engagement and consultation.

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PNG BUSINESS NEWS 69

OIL & GAS

NATIONAL CONTENT Business opportunities for PNG companies will be mostly in the aspect of supplier development of the project. This will be In accordance with the Oil and Gas Act, and PNG companies will be used for the supply of goods and services wherever they are competitive with foreign sourced goods and services.

Strategic Community Investments will be a mainstay within the lifespan of the project as these are corporate contributions and other voluntary community investments made in host communities.

They are designed to reduce barriers to development, build capacity and improve standards of living through programs targeting health, education, sustainable livelihoods and environment.

The Papua LNG project will ensure that a skilled local workforce is established and expected to offer over 5,000 positions to nationals through the WAN PNG recruitment platform over its lifespan. The project is focused on setting an exemplary stance in its implementation by paying particular attention to the environment and biodiversity, while ensuring the rights of the local communities and landowners. [b]

WAN PNG PLATFORM The much anticipated strain on human resources, particularly in relevant skilled areas, is a contributing factor in phasing each developing project.

The competition for skilled workforce is already underway domestically and internationally. Its also a revolutionary opportunity to build up PNG’s current local workforce, with the technical and soft skills which will be needed as the country progresses into this new wave of economic development.

The collaboration between Ubidy and KPHL with the support of Total Energies has made way for the emergences of Wan PNG a National recruitment Platform focused on developing local talents and is intended to provide 5,000 job opportunities for PNG nationals for the Papua LNG project when it launches.

At a glance, the Wan PNG platform was developed by Ubidy, a global recruitment marketplace for employers, jointly with KPHL. The platform is dedicated to expanding opportunities for local Papua New Guineans with the goal to increase the development and employment of local PNG talent in sharing newfound opportunities in the country’s booming resource and industrial sectors.

PAPUA LNG PROJECT OBJECTIVES

70 PNG BUSINESS NEWS

Papua LNG project’s commitment is to produce natural gas, the lowest carbon fossil fuel, with a very high focus on protecting land, wildlife, local inhabitants, and their livelihoods, as well as expanding knowledge of PNG’s biodiversity and its preservation.

The project also aims at creating employment opportunities during both construction and production to provide a catalyst for further gas-based industry development in the country. It supports capacity building of government agencies involved in the petroleum sector as well as supporting capacity building and skills development of domestic SMEs and workforce.

To move national content, TotalEnergies and its partners are working closely with an independent panel of experts highly recognized for their contribution on environment and socio-economic development, to make the Papua LNG project best-in-class in terms of sustainability.

TECHNOLOGICAL ASPECT LNG E-TRAINS The most important infrastructure needed for LNG production and transportation is an LNG plant consisting of one or more LNG trains, each of which is an independent unit for gas liquefaction (melting and condensing) and purification.

A typical LNG train consists of a compression area, propane condenser area, and methane and ethane areas. In the context of the midstream oil & gas sector, a train consists of various components to process, purify, and convert natural gas to liquefied natural gas (LNG).

They are called trains because of the consecutive arrangement of the equipment used to process and liquefy natural gas.

TotalEnergies confirmed the use of four electric LNG trains to process gas at 6 million tonnes a year. The use of the revolutionary new technology for processing gas will ensure lower emissions and better efficiency.

The electric trains will be supplemented by two of the existing conventional trains used at the PNG LNG facility at Caution Bay, which is 20km out of Port Moresby.

One of the new LNG trains would be fed by the P’nyang expansion and the other two by Papua LNG. By sharing infrastructure at the PNG LNG plant, it is estimated that stakeholders could save US$2bn-3bn in construction costs.

Altogether the two projects would almost double the country’s LNG export capacity, with Papua LNG alone adding 5.5m tonnes per year to existing capacity at the

PNG LNG plant.

Papua LNG is expected to have liquefaction capacity of up to six million mt/ year of LNG, with first production expected by the end of 2027 or early 2028.

CURRENT PROJECT TIMELINE Prime Minister Hon James Marape recently remarked that the project is on track, setting the stage for 4 years of Papua LNG construction, immediately followed by another 4 years of the P’ynang project construction, and that the FEED phase will be completed in less than 12 months, which will include the marketing project resources to potential markets and counterparts abroad compared to PNG LNG FEED phase which spans over 16 months.

Papua LNGs FID is expected by 4th quarter 2023 or 1st Quarter 2024 and construction is to begin thereafter from 2024 to 2027. P’nyang LNG will commence construction in 2027 to 2032, effectively giving 8 years of construction phase and its benefits to the economy.

The venture partners in the Papua LNG project are currently TotalEnergies (31.1 per cent), ExxonMobil (37 per cent) and Santos (22.8 per cent). A final investment decision is expected to trigger the PNG State’s direct involvement in the venture, with the following percentages expected.

References: 1) Australian Financial Review (23 March 2023) | PNG hatches plan for new,gas fields https://www.afr.com › ... › Energy 2) TotalEnergies insight into Early Works and Infrastructure of Papua LNG (11th May 2023/ Business Breakfast and Infornation Session (Attended session) Papua LNG Project - Early Works and Infrastructure National Content Wan PNG platform Papua LNG Project objectives See press releases and full insight and speeches on website: https://papualng.com. pg/ 3) What is an LNG Train? Cameron LNG/ LNG and Liquefaction https://cameronlng. com › lng-facility 4) Papua New Guinea: TotalEnergies launches integrated engineering studies ... ( 7th March 2023) https://www.google.com/ url?sa=t&source=web&rct=j&url=https:// totalenergies.com/media/news/press-releases/papua-new-guinea-totalenergies-launches-integrated-engineering5) Oil & Gas Journal (7 March 2023) TotalEnergies launches integrated FEED for Papua LNG project https://www.ogj.com › ... › LNG ISSUE 2, 2023 – www.pngbusinessnews.com

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ENERGY

PNG Poised for ‘Golden Era’ of Resource Projects

T

he State Negotiation Team (SNT) chairman, Dairi Vele, has expressed optimism about the future of Papua New Guinea, stating that the country is currently in a “golden era” of resource projects.

Speaking after the signing of the Wafi-Golpu Framework Memorandum of Understanding (MoU), Vele noted that the country has the potential to benefit from significant revenues from a range of projects.

“It’s a golden era of resource projects.

I did my first deal in 2008 for the PNG LNG and at that time we were looking at US$30 billion (K105 billion) in revenue over a short period of time,” said Vele.

“We now have Papua LNG which is just under another US$30 billion in revenue over a period of time. We have P’nyang which overall will get almost US$7 to US$9 billion (K24-K31 billion) and there’s another US$14 billion (K48 billion) in the project.”

Vele went on to highlight the potential revenues from the Porgera

and Wafi-Golpu projects, stating that Porgera is set to generate US$10 billion (K34 billion) over a 20-year period, while Wafi-Golpu is expected to generate US$23 billion (K80 billion) over a similar period.

He also noted that the Golpu deposit, which is part of the Wafi-Golpu project, is still being explored and may yield even greater returns.

Despite the positive outlook, Vele acknowledged that Papua New Guinea

must be mindful of the finite nature of its resources. “The only problem with it is that at some stage the resources will run out,” he said.

However, he emphasized that the country has a unique opportunity to develop and transform its economy in the coming decades.

“So, Papua New Guinea, we have no excuse now. We should be developed like Singapore in the next 30 years, I really believe this,” Vele said.

Sign up for free now and upload your jobs for free Access PNG’s fast growing database of talent.

Smart matching between your jobs and candidates.

By listing your job on the platform you are supporting the upskilling and training of Papua New Guineans.

Diversity promoting candidate suggestions allows you to reach a wide pool of talent.

Hiring made easy with WanPNG.com Connecting job seekers, employers, and training institutions in Papua New Guinea.

A KUMUL PETROLEUM INITIATIVE 72 PNG BUSINESS NEWS

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PNG BUSINESS NEWS 73

ENERGY

K650-M Edevu Hydro Power Plant Launches Project to Provide Resilience to Port Moresby’s Energy Grid By: PAUL OEKA

The newly constructed K650 million Edevu hydro project is seated below the Brown River (pictured) in the new Hiri Koiari District of Central Province.

P

ower is considered the major backbone for all nations throughout the world including PNG it is the basis of which the development of the country depends. Within this context, Energy has become an essential element in man’s efforts to meet basic human needs, as energy generates power.

Due to Papua New Guinea’s mountainous terrain and high rainfall in many parts of the country, Papua New Guinea has abundant, although largely untapped, hydropower sources but despite many years of economic growth, less than 20 per cent of the country’s population is connected to the power grid, owned and operated by state own entity, PNG Power Ltd. Over the years the government has been working closely with the private sector and international partners to scale up household access, having set a goal of 70 per cent by 2030.

Generally, if a country has the resources to generate power at a competitive price the people of the country get the benefits in terms of improvement in their social and economic life. Given the relatively small population size, low access to electricity, commercial and technical challenges of hydropower, Papua New Guinea today has an installed capacity of less than 250 Mega Watts (MW). However, this is likely to increase over the coming decade with several projects under development.

With solar and renewable energy lacking

74 PNG BUSINESS NEWS

clear strategic development plans, hydropower is expected to drive future renewable energy generation, as evidenced by the launch of several new hydro projects in recent years such as the Ramu 2 Hydro project and the recent impoundment of the Edevu Hydro Power plant reservoir.

The recent Edevu Dam impounding Ceremony Launched by Chinese Management Company PNG Hydro Power Ltd kicked off the opening of the Hydroelectric Power plant in Edevu on Friday 21 April, with a view to delivering accessible energy and power supply to local communities to the country’s Capital and surrounding areas.

Representing a total investment of over K650 million, the hydro power project will have an installed power generation capacity of 54 Mega Watts (MW) which is set to bring a reliable supply of electricity to the Southern region of the country. Within its 14-year development process the Edevu hydro power plant project has lived up to its expectations despite the social and economic challenges it has faced. In terms of its local content component, the construction of the hydropower project opened up the nonexistent road system, provided employment opportunities, trained and equipped locals with technical skills and is still expected to provide an abundance of opportunities in the coming years.

The company PNG Hydro Development Limited, through its investment partners,

has invested K650 million in the project which is one of Central Province’s biggest assets that will supply electricity not only to Port Moresby but the whole Southern region in the near future.

At the launching ceremony of the project, Prime Minister Hon. James Marape thanked the Koiari landowners of Central province and Chinese investor PNG Hydro Development Ltd for the K750 million Edevu Hydropower Project. “We are a nation in pursuit of development. In the power sector, we want 70 per cent of our country – by 2030 – to have accessibility to cheap, reliable, and green energy to our country,” PM Marape said.

He said what the Edevu landowners had done, by going into partnership with a foreign investor, not only in terms of receiving royalties but with shares in the project, was a good example for traditional landowners in the rest of the country.

“You have shown a wonderful example to other landowners right across our country.

You (landowners) own 97 per cent of land rights. My government, like governments of the past, and any government in the future, will not break that right you have. It is your inherent, God-given right to your land.

“But land sitting idle is of no use to us, or more importantly, our children and their children that will come into the future.”

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ENERGY

< Page 74 While hydropower remains economically attractive in many regions of the country, the development of the Edevu Hydro project highlights a number of major game changing factors to improve the energy grid of the country’s capital which has been subjected to constant blackouts over the years.

As most studies portray, new hydropower projects often face long lead times, lengthy permitting processes, high costs and risks from environmental assessments, and opposition from local communities. These pressures mostly result in higher investment risks and financing costs compared with other power generation and storage technologies, thereby discouraging investors.

PNG Hydro Development Ltd managing director Allan Guo said it took them almost 15 years to reach the launch of the project and this was possible through the good relationship and discussions they had with the landowners of Edevu.

“We worked hard on this project. Port Moresby, Central and NCD will benefit from it,” PNG Hydro Development Ltd managing director Allan Guo said.

The Edevu Hydropower Plant is an impressive medium-scale plant built on the mainstream of the Brown River in the Hiri Koiari district of the Central Province.

The powerhouse has two turbines with a total installed capacity of 54 MWs. Once fully operative, the plant will provide electricity to about 40 per cent of homes and help PNG’s Nation’s Capital, Port Moresby, to meet its growing energy demands.

Power consumption in PNG has been steadily growing by about 15 percent annually for the last several years, and hydropower is now part of a comprehensive plan the PNG government has developed to increase electricity access for its population.

Currently AG Investment Ltd, who is one of the major partners and construction contractors for Edevu Hydropower Plant under PNG Hydro Development has also been awarded the contract to construct the

76 PNG BUSINESS NEWS

Edevu-Moitaka 132 kV transmission line to transport electricity from the Edevu plant, and eventually from the Naoro-Brown plant to the Central Province. AG Investment started work on the Edevu-Moitaka 132kV Transmission Line Project at the end of 2022, funded by GoPNG through KCH. This ambitious undertaking involves building 104 towers to connect the grid and bring clean and reliable energy to the country’s capital.

This project will connect the Edevu Hydropower Station to the Port Moresby grid.

In relation to the Nation’s Capital’s stance on this Energy development Governor Parkop, accompanied by City Manager Ravu Frank, inspected the project and were very impressed. He applauded the project initiative, a substantial foreign direct investment that will provide a reliable and cost-effective energy supply to NCD and Central Province.

One of the major challenges of NCD has been reliable energy. The Edevu Hydropower Project will cater for an efficient energy supply.

“Port Moresby needs reliable, cheap and constant power supply for domestic needs and, more importantly, to industrialise our city.

The Edevu project was launched with a

PPA from PNG Power in 2015 and has been Managed by the Chinese company PNG Hydro Development Ltd, with operations expected to be carried out in the coming month.

Hydro power is considered a renewable and environmentally friendly source of energy. Hydropower development will be critical to not only improving household electricity access, affordability, and grid reliability but also in achieving the government’s 2050 vision of a decarbonised power supply.

References: 1) Project insight from Margaret Tambagle/ Manager & Communications / PNG Hydro Power Ltd/AG Energy Limited https://www. google.com/url?sa=t&source=web&rct=j&url=https://www.aginvestmentpng. com/&ved=2ahUKEwitg-bmw8P-AhUka2wGHe80AWcQFnoECAkQAQ&usg=AOvVaw1S58Qvl__3PiYDZ9UVNlqd 2) City Sivarai April 16th, 2023 (NCDC Media) Sivarai/https://ncdc.gov.pg/media/city_ sivarai/governor-parkop-visits-edevu-dam. html ISSUE 2, 2023 – www.pngbusinessnews.com

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FINANCE

CEFI: Reducing Barriers to Financial Access in Papua New Guinea Why PNG should care about financial inclusion.

By: PAUL OEKA

W

ith the rapid development of inclusive finance, the popularity of financial services is increasing, and the level of financial literacy throughout Papua New Guinea has also gained.

According to the Bank of PNG, Financial inclusion is important in the Papua New Guinea context as over 85% of the low-income population are living in rural areas and do not have access to formal financial services.

To curb this indifference, PNG’s National Executive Council (NEC) established The Centre for Excellence in Financial Inclusion (CEFI) in 2013 as the industry leader for coordinating, supporting, and monitoring all financial inclusion activities in PNG.

WHAT IS FINANCIAL INCLUSION? According to the World Bank, financial inclusion means that individuals and businesses have access to useful and affordable financial products and services that meet their needs

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– transactions, payments, savings, credit, and insurance – delivered in a responsible and sustainable way.

For the past 10 years since its establishment, the CEFI has focused on financial inclusion and literacy, poverty elimination, and the promotion of vibrant financial institutional operations in Papua New Guinea.

Since PNG gained independence, it has been a slow-paced process for low-income Papua New Guineans and households in owning a formal bank account due to inconveniences and high transaction costs, but in recent years the availability of financial literacy programmes and access to mobile phone technology has helped to reduce the constraints.

When explaining the aspects of the National Financial Inclusion Strategy (NFIS) in line with the country’s current financial trends, Acting Governor of the Bank of Papua New Guinea and Chairperson of CEFI Mrs. Elizabeth Genia stated that financial inclusion is about making

affordable financial services that meet individuals’ needs accessible for all.

“Primarily, financial inclusion begins with owning a transaction account which can be used to save money, send and receive payments,” she said.

“All Papua New Guineans are financially competent and have access to a wide range of affordable financial services that address their needs and are provided in a responsible and sustainable manner,” Genia stated.

Bank of Papua New Guinea Acting Governor Mrs. Elizabeth Genia and Chief Secretary Ivan Pomaleu with CEO’s from nine financial institutions during the launching of the NFIS 2023-2027.

PNG’S NATIONAL FINANCIAL INCLUSION STRATEGY (NFIS) The NFIS is in line with the country’s National Financial Inclusion Policy (NFIP) headed by the country’s Department of Treasury and the Bank of PNG, driven, coordinated, and implemented by CEFI. The NFIP was launched in 2019 as a subsidiary of PNG’s overall economic policy.

After the successful launch and implementation of the NFIS 1 & 2 in the country since 2014, the Bank of PNG and CEFI recently launched the Third

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FINANCE

< Page 78 National Financial Inclusion Strategy 2023-2027 (NFIS 3) for 2023-2027 in Port Moresby at the Hilton Hotel on 25th April 2023 by the Chief Secretary Ivan Pomaleu, OBE. The Chief Secretary was honoured to launch the 3rd NFIS 2023-2027 on behalf of the National Government, while stating the importance of financial inclusion in the country.

“The Government believes that financial inclusion is key to integrating the unbanked into the formal economy, which helps to alleviate poverty, make the poor less vulnerable to financial shocks, reduces economic inequality and raises living standards for all,” said Mr Pomaleu.

The Chief Secretary emphasized specifically how the NFIS is receptive to global trends, emerging issues, digital financial services, and gender.

WHY DOES FINANCIAL INCLUSION MAT TER IN PNG? Financial inclusion in Papua New Guinea (PNG) remains a challenge for the informal economy as most people are excluded financially and are not participating in a monetized economy.

The three NFIS focus on how Papua New Guineans can take advantage of accessing and actively using financial services such as loans, savings accounts, and payment services, which have several benefits.

Mostly, it eases transaction costs to households and businesses, aiding financial planning and investing in areas like housing, health, and education.

Also, the strategies stated that it increases resilience against negative economic setbacks, especially for the rural and vulnerable population of the country.

Speaking during the launching of NFIS 3, Mrs. Elizabeth Genia stated that its overall objective is to reach PNG’s 2 million unbanked population by 2027, with 50 percent of them to be women.

“NFIS3 aims to integrate the unbanked into the formal economy, alleviate poverty, reduce economic inequality, and raise living standards for all,” she said.

“The NFIS3 highlights that the Bank recognises that expanding financial services can encourage the participation of more Papua New Guineans, especially those in rural areas and urban settlements, in development activities in both the formal and informal

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sectors of the economy, and that the benefits of growth and technology need to be widely shared,” Mrs. Genia said.

As account holders, people are more likely to use other financial services to start and expand businesses, invest in education or health, manage risk, and weather hard financial times, which can improve the overall quality of their lives, she added.

PNG’S TECHNOLOGY ADVANCES IN THE FINANCIAL SECTOR NFIS3 also highlighted that the COVID-19 pandemic also reinforced the need for increased digital financial inclusion. The Digital Financial Services aspect of the strategy involves the deployment of the cost-saving digital means to reach currently excluded and underserved populations with a range of formal financial services suited to their needs “that are responsibly delivered at a cost affordable to customers and sustainable for providers.”

The widespread availability of smartphones and internet usage has also enormously transformed the way Papua New Guineans live, work, and communicate. In addition, the current strategy also outlined that mobile financial services offered to customers by banks are transforming PNG’s financial sector—with the goal of attracting the underserved and financially excluded into the formal financial system.

INVESTOR & STAKEHOLDER SUPPORT The last two NFIS strategies have highlighted over the years that traditional commercial banking models have proved extremely costly for servicing rural areas, due to the lack of buildings, geography, and limited infrastructure.

To address the issue, the Bank of Papua New Guinea sought to bring more people into the formal banking system, supported by other major commercial banks since the implementation of the first NFIS. Bank of PNG has been running an initiative to target residents in rural and isolated areas. This refocusing of the banking sector is expected to ensure greater access to financial services through financial education, deployment of mobile and electronic banking channels, and accelerated microfinance programmes.

The first two NFIS strategies have progressed in changing the landscape of financial service delivery in the country by increasing the number of new bank accounts across different banks in the country.

The third NFIS provides a roadmap for Papua New Guinea to accelerate financial inclusion efforts through a series of specific activities for a wide range of stakeholders, including development partners and financial institutions.

During the launching, financial institutions and stakeholders such as BSP, Kina, Westpac, Digicel, Savings and Loans Federation, Nationwide Micro Bank, Women’s Micro Bank, People’s Micro Bank, and Kada Poroman Microfinance participated in a signing of contract ‘I-Commit’ pledging to reach measurable inclusion targets.

These initiatives highlighted in the current strategy show the financial inclusion work that CEFI is doing to provide Papua New Guineans with financial literacy, knowledge, and information in accessing and utilising PNG’s financial sector.

Bank of Papua New Guinea Acting Governor Mrs. Elizabeth Genia presenting the NFIS 2023-2027 to Chief Secretary Ivan Pomaleu during the launching.

References: 1) Bank of Papua New Guinea https:// www.bankpng.gov.pg › fina... Financial Inclusion | Bank of Papua New Guinea (PNG) Port Moresby, ...

2) World Bank https://www.worldbank. org › topic Financial Inclusion Overview 3) Wednesday 25th April,2023 Launching of the Third National Financial Inclusion Strategy 2023-2027 Hilton Hotel (Attended) 4) CEFI Website - https://www.thecefi. org/press-releases/ Link to Photos, Videos, Audios, Speeches & Media Release. https://drive.google.com/drive/folders/1tva1ioG4Y7ZdPv64TT0D6t1Kg2lUP5FP?usp=share_link ISSUE 2, 2023 – www.pngbusinessnews.com

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FINANCE

PM Marape Launches National Gold Bullion Policy 2023

P

rime Minister Hon James Marape says the landmark National Gold Bullion Policy 2023 complements his government’s vision to fully industrialise the economy.

He said this on 12 May 2023 when launching the comprehensive policy in front of a full-house crowd in Port Moresby.

PM Marape was accompanied by Acting Minister for Commerce and Industry Hon Soroi Eoe, whose department was responsible for drawing up the policy.

PM Marape assured small-scale mining operators that the policy was not intended to disrupt or undermine their operations but to provide opportunities for greater benefits.

The policy provides a framework that will encourage the accumulation of national wealth through the extraction, production, storing, and trading of gold.

The State’s participation in Papua New Guinea’s gold industry is only

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limited under the current royalty-tax regime with foreign-owned mines in PNG. The Government, therefore, is keen to rebalance the sector towards greater public ownership of mines, undertaking explorations, engaging in mining activities, and supporting this policy for refining, minting, and trading State-owned gold.

Through this policy, the Government will provide a regulatory framework and build a vibrant domestic gold bullion ecosystem to create sustainable wealth to improve the quality of life and the socio-economic status of its population.

“This policy complements my government’s intentions to fully industrialise our economy by harvesting and adding value to our vast natural resources”, PM Marape said.

“Since the early days of gold prospecting and gold mining, our economy has grown, and so too have the challenges facing the gold industry. The National Gold Bullion Policy represents a significant step forward

in the responsible and sustainable management of PNG’s gold resources.

It represents a significant opportunity for us to maximise the value of our gold resources for the benefit of our people”.

PM Marape said the National Gold Bullion Policy would, among others: • Aim to address downstream processing of core gold into bullion bars and promote the trading of the bullion bars through a transparent and accountable process in the country; • Create a more transparent and efficient process for the sale and export of gold, ensuring that all gold produced in the county is refined onshore into bullion; • Establish a competent domestic gold bullion programme to refine PNG’s high-grade gold; • Advocate for the establishment of a gold refinery that meets London Gold Bullion Standards; and • Work towards getting more gold in PNG to be processed in the country.

PM Marape and Acting Minister for Commerce and Industry Hon Soroi Eoe with the National Gold Bullion Policy 2023. Via PM’s Office Media

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PNG BUSINESS NEWS 83

FINANCE

BSP: Lower Commodity Prices to Reduce Foreign Exchange Inflows

L

ower commodity prices and the delay in the Porgera gold mine’s resumption are expected to prolong distress in PNG’s foreign exchange market, according to the Bank South Pacific (BSP) Quarter 1 2023 Economic Insight report.

BSP’s Group General Manager for Treasury, Mr Rohan George, said “FX market turnover in the March Quarter fell 2.4%, from the December Quarter 2022. A pullback in commodity prices, in particular oil, copper, and palm oil, and the January holiday season reduced FX market turnover volumes”.

According to Mr George, FX turnover for 2023 increased by 8.9%, compared to the prior year”. However, he also advised that

outstanding FX orders with BSP increased sevenfold (700%) in the past quarter, with post-Christmas import orders increasing rapidly, whilst FX inflows fell.

The kina mid-rate was stable against the U.S. dollar at 0.2840. The Australian dollar fell 1.5%, reflecting weaker commodity prices, concerns of an economic slowdown, and a pause in interest rate increases.

Mr George noted that BPNG FX intervention in the March Quarter remains unchanged, but rose 59% from one year ago. He added: “Despite increased BPNG intervention, the PNG FX market continues to miss the foreign currency contribution from Porgera.”

“After subdued FX inflows in the March quarter, we do not expect a pickup in FX inflows in the June quarter. BPNG will continue to support the market, however, subdued commodity prices and the uncertain global environment will see outstanding FX orders remain at high levels and subsequent FX order execution times lengthy”, Mr George concluded.

To manage volatility in foreign currency flows, businesses should place FX orders (with correct documentation), as soon as possible, ensure orders are cash backed whilst awaiting execution, and tax clearance certificates are current and reflect the expected FX order execution time, BSP advised.

Minister Maru Names Mr Popotai New Director of PNGX

M

inister for International Trade and Investment, Hon Richard Maru, recently announced the appointment of Mr Benny Popoitai as the Director of Papua New Guinea National Stock Exchange (PNGX).

Mr Popoitai’s appointment was made pursuant to Section 12 (1) of the Capital Market Act 2015.

“It gives me the great honor and privilege to announce the appointment of Mr Popoitai as a state-nominated Director to the Board of PNGX” Minister Maru said.

“Mr Popoitai brings a wealth of experience to the domestic capital market. He has been a distinguished person within PNG’s financial sector, especially with the Bank of Papua New Guinea (BPNG) as Deputy Governor, Acting Governor, and currently the Director of Financial Analysis and Supervision Unit (FASU) within BPNG”.

“Mr Popoitai’s experience and expertise will guide the market to major reforms for growth as he has been at the forefront of BPNG’s regulatory reforms over the years and his appointment adds value, creditability, and public confidence to our market”, said Minister Maru.

Minister Maru said that since the inception of capital markets in PNG in 1997, there has been no significant

84 PNG BUSINESS NEWS

progress to grow the markets until 2015 when the sector went through reforms to build regulatory fundamentals to a modern standard to keep up with the fast changes in technologies and ways of doing business in the capital market space.

“Since then, there has been no public interest representative on the stock exchange over the past 24 years to improve governance and provide direction for the development of our market.

Mr Popotai’s leadership will greatly help to further the reforms, especially in the new bond market and the proposed platform for SMEs to raise capital”, said Minister Maru.

Minister Maru added that Mr Popoitai’s appointments will also improve transparency and collaboration in the working relationship with the Securities Commission of Papua New Guinea (SCPNG) and PNGX. “SCPNG and other stakeholders must work with Mr Popoitai and the PNGX for further market developments”, said Minister Maru.

01

P. O. Box 5053 Boroko, 111 NCD . Papua New Guinea Telephone: (675) 308 4400 | Facsi mile: (675) 3212818 Email: ipa@ipa.gov.pg | Website: www.ipa.gov.pg

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PNG BUSINESS NEWS 85

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PNG BUSINESS NEWS 87

FINANCE

PNGX to Adopt New Listing Rules Starting July

P

NGX, Papua New Guinea’s national stock exchange, will adopt new Listing Rules from 3 July 2023.

The new Listing Rules are a key step toward the development of a more effective secondary market in Papua New Guinea. They contribute to ensuring that PNG has a world-class capital market that is internationally respected and recognized.

PNGX’s Listing Rules govern the listing of issuers and the quotation of securities, continuous disclosure obligations, and some aspects of a listed entity’s conduct. All companies listed on PNGX are required to comply with the Listing Rules.

The existing PNGX Listing Rules were introduced in April 1999 and were closely based upon the Listing Rules of the Australian Stock Exchange. They were last amended in November 2012. The new Listing Rules provide a modern framework and market structure meeting the highest world standards.

The proposed Listing Rules were released for consultation in October 2022. The new Listing Rules are largely unchanged from the consultation version.

The new criteria for a company to qualify for listing are set out in the Rules. In brief, they are: • Working capital of at least 300,000 kina and • Either a. profit for the last 3 full financial years of at least 1 million kina and 500,000 in the previous 12 months or b. assets of at least 4 million kina.

• The company must have at least 200 shareholders.

• The directors must be fit and proper for a listed company.

Full details are set out in the Rules available on the PNGX website.

Ms Elizabeth Wamsa, PNGX General Manager, said: “We welcome discussions with companies thinking of listing now or in the future. With the new extractive

industries coming on line shortly and growing demand for new opportunities from investors, the market sentiment will be ideal for listing.”

“We would like to thank the market for their feedback during the process of developing the new Listing Rules”, said PNGX Chairman, Mr David Lawrence.

“We also thank the Securities Commission of Papua New Guinea for their support and approval of the new Rules.”

PNGX and investors in the PNGX markets have an interest in high standards of corporate governance practices by the Boards of companies in which they invest.

The proposed rules refer to reporting corporate governance matters as set out in the PNGX Corporate Governance Standards.

These standards are presently released for consultation until 5 May 2023. Subject to the responses received, it is expected that they will also take effect on 3 July 2023.

PNGX to Move to T+2 Settlement from July 2023

P

NGX, Papua New Guinea’s national stock exchange, will move to faster settlement of trading from 3 July 2023.

PNGX’s Business Rules, which govern the trading and settlement of all trades on the market by stockbrokers, will be amended to require settlement on the second day after a trade (T+2), which is faster than the current 3 days (T+3).

The proposal was released for consultation in October 2022 with the new Listing Rules.

The change from T+3 to T+2 brings the PNG market in line with markets around the world.

T+2 means quicker payment for investors when they sell shares. It also reduces the risks

88 PNG BUSINESS NEWS

to investors, stockbrokers, and PNGX. Ms Elizabeth Wamsa, PNGX General Manager, said: “We would like to thank the current stockbrokers and the Securities Commission of Papua New Guinea for their support for this change”.

“Making the market more efficient is one way we can try to attract more stockbrokers, more investors, and more listed companies”.

The amendments to the current Business Rules are the precursor to a comprehensive rewrite of the Business Rules to be completed in the second half of 2023.

“This change improves the efficiency of the PNGX market. It is another step in ensuring that PNG has a world-class capital market that

is internationally respected and recognized”, said PNGX Chairman, Mr. David Lawrence.

“It is part of a larger, long-term PNGX program to further develop the market.

But to be able to fund those future changes, PNGX needs to have confidence there will be structural change and increased activity in the market by way of initiatives such as privatisation of SOEs, greater on-market activity by superannuation funds, tax reform, and incentives for listing, wholesale corporate debt market and more trading activity by retail investors”.

“We can’t justify spending millions of kina based on current levels of activity without stakeholder commitment to growth”, he said.

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91

TOURISM

PNGTPA Taps Justin Olam as Tourism Brand Ambassador

P

apua New Guinea rugby league icon and Australian NRL Melbourne Storms star centre Justin Olam is officially the PNG Tourism Promotion Authority’s tourism brand ambassador.

The formal announcement was made in the presence of Minister for Tourism, Arts and Culture Hon Isi Henry Leonard and other notable dignitaries that were in Brisbane on Friday to witness the official signing of the engagement.

Other representatives present were Olam’s manager David Rawlings, first secretary to the minister Elijah Tapie, PNGTPA’s Chief Executive officer Eric Uvovo, marketing director Alice Kuaningi and staff Simon Dari Pih. Minister Leonard, who witnessed the signing of the contract between Olam and PNGTPA said, “Olam will certainly be a great ambassador for TPA and the country given his status as one of the top rugby league players in the World.”

“I am humbled and excited as well by this bold step taken by PNGTPA and our rugby league icon Justin Olam to help showcase what PNG will offer in tourism using rugby league as its vehicle”, Minister Leon-

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ard said.

“Rugby League as we know is the national sport for the country and to use Olam as PNGTPA’s tourism brand ambassador to help us promote Papua New Guinea as a beautiful country is encouraging. My ministry under the Marape-Rosso Government is in full support of the direction taken by PNGTPA”, the tourism minister said.

Meanwhile, after signing his contract, Olam said he is humbled by the gesture and direction taken also

by PNGTPA. He is keen to be part of this programme and looks forward to working with TPA. “I am very honoured to be the Tourism Ambassador for the PNGTPA and Destination Papua New Guinea. I am appreciative and so encouraged that Minister for Tourism, Arts & Culture, Hon. Isi Henry Leonard and his delegates are here in Brisbane to witness my official engagement”, Olam said.

“Papua New Guinea is my home and I want to help support initiatives which allow the rest of the world to see just how beautiful our country, PNG is”.

“Our diverse and rich cultures, our pristine waters and environment and

our wonderful people make for an ideal tourist destination, which I look forward to sharing what PNG has to offer”, Olam said.

He further added that he will have an eight-week break and looks forward to travelling to PNG so he can work with team PNGTPA to start immediately on promoting this amazing destination.

Olam has some great ideas too and so excited that he can now be able to engage more in promoting PNG. He has an online following of over 300,000 plus followers and aims to promote and showcase places he will be visiting in PNG, to inspire his followers and fans. The resharing of posts and positive messages will be a multiplier effect.

He said, “Rugby league in PNG is fanatical and I can use my platform and relationships in the NRL to support Tourism and encourage visitors from Australia and the Pacific Regions”.

Olam said, “There are a lot of positive initiatives happening for the benefit of PNG like the discussions for the 18th NRL team and how that can benefit and be supported through the tourism sector and the PNGRL working together”.

Minister for Tourism Arts and Culture Hon. Isi Leonard, Australian NRL player Justin Olam and CEO of the PNG Tourism Promotion Authority Eric Uvovo

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PNG BUSINESS NEWS 93

TOURISM

Minister Gives Thumbs Up to Sports Tourism

M

inister for Tourism, Arts and Culture Hon Isi Henry Leonard is impressed with the initiatives taken by the PNG Tourism and Promotion Authority (PNGTPA) to help promote Papua New Guinea as a tourist destination.

PNGTPA in a nutshell is pushing for sports tourism as one of its vehicles under the MICE segment (Meetings, Incentives, Conferences, and Exhibitions).

“We have well-developed sporting facilities and infrastructure such as Stadiums, Amenities, International Airport, Hotels, Restaurants, etc., which are important facilities any destination would have. We are building back better and Sports Tourism is one important segment for PNGTPA to develop and promote”, the agency said in a statement.

Minister Leonard, accompanied by his f irst secretary Elijah Tapie, were able to witness and be part

I

of the various meetings held by PNGTPA and several high-prof ile rugby league executives including Norm Black, the Founding Managing Director of Trip-A-Deal, and Australian National Rugby League CFO Shaun McMartin and NRL Vaughan Vitale (Government Partnership).

Minister Leonard, after attending several meetings, was impressed by the way Sports Tourism can take a new direction amidst PNGTPAs new Marketing Strategy.

“I took the off ice during the COVID-19 period and it was a short but very challenging period at that time. When I returned, the Marape-Rosso Government had that conf idence in me to continue on my role as the Minister for Tourism, Arts, and Culture”.

“We want to be innovative to see the growth of Tourism in PNG. Just by sitting through all these various meetings, I am encouraged and to be honest, I am happy

MY

to see how TPA is conducting its meetings. Such networking will enable and develop important partnerships with stakeholders abroad, especially in Australia where Australia is a major source market for PNG Tourism”, Minister Leonard said.

The sports tourism activities included meetings with various relevant partners in bringing an NRL premiership round to PNG in 2024 or 2025, and also making the off icial announcement of PNG’s rugby league icon and Melbourne Storms center Justin Olam as TPA’s brand ambassador (see related story – Editor).

“I believe Sports Tourism is a way forward and by looking at it, it is a great concept. My Ministry under the Marape-Rosso government will support this and ensure we fulf il the planned activities in order to unite both Australia and PNG through sports tourism”, the tourism minister said.

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COMPANY NEWS

Port Moresby Supply Base and Port for Resource Project Staging The PNG Business and Logistics Park is operating as a ‘supply base’ for an increasing number of tenants keen to take advantage of its location, modern port, and facilities as they stage their projects for the country’s long-anticipated next LNG construction phase. Perfectly located on Fairfax Harbour between Port Moresby and the expanding LNG plant, the park provides a range of businesses with purpose-built industrial facilities and offices, as well as various accommodation options. Park tenants benefit from a full suite of on-site logistics services, taking advantage of the park’s project cargo specialisation, as well as its port’s 24/7 operating capacity.

C

ompanies involved in the next LNG construction phase –a mammoth construction project located in some of the world’s remotest terrain – need to do as much preparation and prefabrication as possible in Port Moresby where they can readily access essential infrastructure and services prior to sending project cargo via charter vessel to site.

The PNG Business and Logistics Park enjoys a reputation as the ‘perfect supply base from which to safely and efficiently stage projects for remote resource sector projects’.

It is privately owned and operated

by AES, a local company with nearly 70 years’ experience in PNG. AES provides its tenants with purpose-built industrial facilities – from cement silos, specialised workshops, and truck loading facilities, to office complexes, warehouses, laydown yards, and more. Importantly, over half of the 94-hectare park is yet to be developed, which means ample space is available for new tenants or those needing to scale up their operations.

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The PNG Business & Logistics Park provides tenants with the perfect strategic location and operational base for project staging. Specialising in project cargo, the park and its port is ‘making business easy’ in PNG. Pictured is one of the tankers that regularly transfer an average of 300,000 litres of fuel into a park tenant’s 5,000,000 litre, purpose-built storage tank.

Central to the park’s project staging capabilities is its modern and well-equipped port – ISPS certified – with 540 metres of berth. Its specialised RoRo facility spans 40 metres of clear ramp and its wharf configuration enables simultaneous loading of RoRo and containerised cargo on the one vessel.

With 24/7 capacity – 365 days a year, an in-house stevedoring team and its own power supply, the AES port doesn’t ‘sleep’. Moreover, it is home to an extensive f leet of specialised equipment, including ‘back up’ equipment and an onsite workshop to mitigate delays due to scheduled or unanticipated maintenance. Regular investments are made in new port infrastructure and equipment, such as a recently installed 100-tonne weighbridge.

The PNG Business and Logistics Park specialises in project cargo and has considerable experience servicing the oil and gas sector. It supports staging of upstream and downstream projects, as well as onshore and offshore projects, playing a significant role in the safe and

efficient transportation of all sorts of project cargo (e.g., prefab camps, bridge trusses, trucks, cranes) around the country for its oil and gas clients.

The PNG Business and Logistics Park’s philosophy of ‘making business easy’ is evident in its inclusion of a 300-person camp and 45-house accommodation complex. Park tenants also enjoy the convenience of a HACCP-certified restaurant and mess, as well as a range of recreation facilities.

Tenants value the complete package offering of the park in that they can work there, stage their projects there, store their equipment, ship their project cargo direct from its port, as well as live there. The PNG Business and Logistics Park is not only making doing business in PNG possible (especially for international tenants), but as easy as possible.

To learn more about the PNG Business and Logistics Park, including its private port, project staging and project cargo capabilities: www.aespng.com.

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COMPANY NEWS

37 Apprentices Sign Indenture with Ok Tedi and NATTB

T

hirty-seven (37) new apprentices have joined Ok Tedi Mining Limited’s (OTML) Apprenticeship Training Program, bringing the total number of apprentices currently undergoing the program to 73.

The first-year apprentices signed their Indenture Contracts with OTML and the National Apprenticeship Trade Testing Board (NATTB) on May 16th in Tabubil, Western Province.

The 37 apprentices include 19 men and 18 women who are enrolled in various trades including auto electrical, carpentry, cabinet making and joinery, electrical, heavy equipment fitter, maintenance fitting and machining, metal fabrication & welding, plumbing and refrigeration, and air-conditioning.

The apprentices will undergo 4 years of training, which will include practical placements within the company, extension, and block courses either onsite or through

98 PNG BUSINESS NEWS

various registered institutions in the country that will contribute to the final attainment of their trade certificates.

OTML General Manager People and Capability, Mark Stone welcomed the new apprentices and highlighted the importance of safety, discipline, and professional conduct while in training, emphasising the OTML values of Safety, Integrity and Teamwork to be used as guiding pillars in their apprenticeship journey.

He said safety “is the most important thing in everything we do. If we can’t do it safely, then we simply can’t do it! We want people to work hard but go home at the end of the day without having done any damage to themselves, others, or any equipment”.

NATTB Officer, Lyn Kila, appealed to the new hires to ensure they embrace the opportunity with OTML and do their best to successfully complete the training program.

Ms Kila said, “This is an opportunity that cannot be taken for granted and with the signing of this contract you are bonded by the contract to both NATTB and OTML. Follow the binding contract and the OTML rules and regulations to complete this training.

This is a privilege that you need to take advantage of for a good career path in life.”

Since 1989, a total of 1,093 apprentices have undergone the OTML Apprenticeship Training Program.

The apprentices and OTML Training Centre Staff at the indenture signing.

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PNG BUSINESS NEWS 99

COMPANY NEWS

Pacific Industries Celebrates 70 Years

I

n the challenging business landscape of Papua New Guinea, Pacific Industries Ltd has risen to prominence as a leading food and beverage manufacturer and distributor. Throughout its 70 years and three-generation history, the company has demonstrated resilience and adaptability, with recent strategic investments and expansions illustrating an unwavering commitment to maintaining a market-leading position in the industry.

Pacific Industries traces its roots back to the pre-World War II era, when the company manufactured beverages for the Australian Army stationed in Rabaul and across the Pacific. Since then, the company has experienced significant growth, staying committed to its founding principles of quality and innovation.

Currently, Pacific Industries manufacture and/or distribute Pepsi, Mountain Dew, 7UP, Mirinda, Pepsi Max, Gold Spot, Gogo Cola, KIK Energy Drink, Pacific Choice Soda Water, Vita Juice, Vita Water, PNG Pure Water, Gold Spot Cordial, PureAzz, Nutrimilk, Bega products,

and Scoops Ice Cream product range.

Recently, Pacific Industries made substantial investments to strengthen its operations and infrastructure.

Notably, the company has begun construction of a modern greenfield bottling plant in Port Moresby, with a total investment of K60 million.

This state-of-the-art facility reflects Pacific Industries’ dedication to adopting the latest technology and delivering products of the highest standards. The company’s association as the licensed bottler for PepsiCo in Papua New Guinea further solidifies Pacific Industries’ reputation as a trusted partner for global brands.

Recognizing the increasing demand for their popular Scoops Ice Cream products, Pacific Industries expanded its ice cream plant and storage facilities with a K10-million investment. This expansion will enhance production capacity, availability of the Scoops range across the country, and increase the variety of frozen product ranges that Pacific Industries offers through new product innovations. Pacific Industries current frozen product ranges include

Scoops Ice Cream, Kool Shake, Gold Spot Ice Blocks, Lamington, Milk Pops, Summer Split and ChocTop, with further ranges to be released soon.

This expansion not only enhances production capacity but also ensures widespread availability of their popular frozen goods across the country.

In line with their vision for broader market reach, in December 2022 Pacific Industries opened a new distribution facility in Lae, representing an investment of K10 million.

This strategic move has strengthened their distribution network, enabling efficient delivery of their diverse product portfolio to customers throughout the region. Furthermore, the development of a distribution centre in Mount Hagen has also commenced.

Pacific Industries has also embraced diversification by venturing into the fast-food dining sector. The recent launch of their first Baker Boy restaurant has proved very popular with its high-quality and affordable offerings. The company has plans to open four more Baker Boy outlets in Port Moresby and expand into other

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COMPANY NEWS

PacTow Increases Ocean Towage Services Pacific Towing (PacTow) is increasingly performing ocean towages, including outside of Papua New Guinea and broader Melanesia. Recent months have seen the marine services company perform two towage projects from Northern Australia and another for an oil and gas major in the Gulf of Papua. PacTow anticipates further growth in ocean towage services as barges and vessels, as well as heavy plant and equipment are sourced internationally for the imminent construction phase of PNG’s next LNG project.

P

acTow is a PNG business in its 46th year of operation.

Employing in excess of 200 staff, the company operates out of PNG’s five main ports as well as in Honiara, Solomon Islands.

Although harbour towage represents approximately 70 percent of its business, PacTow also provides a range of niche services to the oil and gas sector and is Melanesia’s leading salvage operator.

General Manager Neil Papenfus reports that PacTow has provided international towage services for at least two decades but that these have increased in frequency over the last five years. Two significant projects were the 2019 towage of a stranded barge from Micronesia to Indonesia, as well as the 2020 tandem towage of a vessel and barge from American waters in Guam.

Papenfus says that PacTow has increased its capacity to perform long distance ocean tows and that this is “primarily due to the compa-

ny’s refleeting programme” which it embarked upon in 2020. The company’s 20-vessel fleet has been modernised and more than half of its tugs are Azimuth Stern Drive (ASD) tugs.

Several vessels in PacTow’s fleet are also specialised ‘blue water’ tugs ideally suited to long distance tows, including multi-week projects such as international tows and salvages.

The company’s diverse fleet and experienced crews have the capacity to tow a wide range of vessels and even ‘items’ as evident by its first three ocean tows for 2023.

PacTow delivers excellent, reliable, and safe marine services through PNG and the broader region. A well-maintained fleet, as well as a dedicated and exceptionally trained team underpin the company’s ongoing expansion and success. PacTow is part of a larger sea and land logistics group wholly owned by Steamships Limited. To learn more about PacTow: www.pacifictowingmarineservices.com.

Pacific Towing towed a replacement 250m oil transfer hose from Port Moresby to an offshore export terminal in the Gulf of Papua in February as part of the terminal’s scheduled routine maintenance. Pacific Towing also towed the replaced transfer hose back to Port Moresby.

Month

From - To

Distance

Project Item

January

Darwin to Port Moresby

980nm

Barge 83m x 25m

February April

Port Moresby to Gulf of Papua Offshore Oil Export Terminal

180nm

Cairns to Port Moresby

520nm

Oil transfer hose 250m long and 40cm diameter ‘flexi hose’ Tugboat 37m long x 14m wide; 667 GRT & 378 DWT

< Page 100 regions of Papua New Guinea to cater to a growing customer base.

With an extensive network and distribution channels spanning 11 branches in Papua New Guinea, Pacific Industries brands have established themselves as household names. Operating modern manufacturing plants in Rabaul and Port Moresby, the company is committed to ensuring a seamless production

102 PNG BUSINESS NEWS

process and reliable supply to meet increasing demand.

Moreover, Pacific Industries demonstrates its commitment to product quality by providing cold storage facilities in all 11 branches, ensuring freshness and upholding the highest standards for their valued customers.

Furthermore, Pacific Industries portfolio includes four Duffy cafes, incorporating their own coffee roasting facilities, and Kokomo Bakery. These

ventures complement their existing offerings, offering a diverse range of choices for their customer base.

With a rich history, strategic investments and calculated expansions, Pacific Industries remains dedicated to delivering high-quality products while actively contributing to the nation’s economic growth. Pacific Industries embodies a blend of tradition, innovation, and a commitment to excellence as it embarks on new ventures.

ISSUE 2, 2023 – www.pngbusinessnews.com

PNG Premium Fish Producers and Exporters Our Vision: Supplying the World with Premium Fish Products Our Mission: We commercially produce, market and distribute PNG Premium Fish consumption.

Launching of Zavath Seafood Limited in Singapore

ISSUE 2, 2023 – www.pngbusinessnews.com

PNG BUSINESS NEWS 103

COMPANY NEWS

Building Better Solutions

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F

rom mining camps, to health and education facilities, to retail and commercial fit outs, PNGFP’s NiuBuild provides complete project solutions throughout PNG and the South Pacific. In fact, you might be surprised to know that PNG Forest Products is the largest supplier of timber housing & infrastructure projects in the South Pacific. Having delivered more than 10,000 buildings, PNGFP supply PNG’s only preservative pressure treated kit-set buildings, engineered to PNG and Australian building codes, that are fully protected from termites and rotting.

NiuBuild’s team of Designers, Draftsmen, Engineers and QA Managers provide solutions that are cost effective, user friendly and serviceable even in the remotest areas. Having built in excess of 2,000 buildings in PNG including numerous Mining and Exploration Camps, PNGFP has supplied over 1,000 School Buildings and hundreds of Education and Health Facilities throughout the country.

Their prefabricated, transportable and modular buildings are designed for permanent large-scale infrastructure developments as well as temporary mining and exploration camps. The prefabricated system means ease of construction and allows for the involvement of local stakeholders in the camp construction stage.

NiuBuild has also developed an

104 PNG BUSINESS NEWS

2

innovative range of transportable, modular solutions for mining, gas and petroleum camps that provide instant accommodation without the need for on-site construction.

Each unit in the range is affixed to a steel chassis skid frame with lifting eyes for easy craning onto trucks for transport to site. The range includes a transportable duplex with ensuites; 4-Man duplex; 3-Storey stackable duplex and transportable ablution blocks.

Employing over 1,300 Papua New Guineans, PNGFP is committed to building a better future through sustainable manufacturing practices.

All timber is sourced from renewable PNG pine plantations while the processing plants are powered

by PNGFP’s own sustainable Hydro Power stations in Bulolo.

So when you invest in PNGFP

3

products and services, you are not only investing in the best value, highest quality engineered wood products in PNG, you are also investing in 1,200 local jobs and supporting the economy whilst also supporting the environment… and that’s an investment in PNG’s future! For more information contact the NiuBuild team on 478 8111 or email buildingsales@pngfp. com.

1: 32 man accommodation block 2: 160 Man Mess Hall at K92 3: Koki Primary School

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PNG BUSINESS NEWS 105

COMPANY NEWS

Remington Group Launches ‘Loyal to Local’ Campaign

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he Remington Group is proud to announce the launch of its ‘Loyal to Local’ campaign with the support of the Port Moresby Chamber of Commerce and Industry.

The core objective of this campaign is to inspire and encourage both business communities and individuals to reconsider their purchasing choices and embrace the power of buying locally, the group said in a statement.

By raising awareness about the vital importance of supporting local enterprises, the campaign aims to increase local business visibility, stimulate the local economy, and foster a sense of community pride through supporting local businesses, and ensure that PNG financial resources stay in country, Remington added.

The COVID-19 pandemic has had an immense negative impact on all businesses, and now with a global recession looming, it is more important than ever to support PNG businesses, the group said.

By consciously choosing to purchase from local businesses, both corporate entities and residents have the power to sustain local businesses and strengthen the national economy, Remington said.

Expressing his passion for the cause, Remington Group CEO Peter Goodwin says,” Our goal is to raise awareness around the importance of supporting local business houses”.

“The Remington Group itself is a 100% PNG-owned Group of businesses, we suffer when PNG based businesses, foreign missions and NGOs choose to buy equipment and products that we sell, from overseas sources. Even worse, then they expect us to service and sustain their purchases for them”.

“We all know how expensive it is to do business here. The high cost and unreliability of utilities, worsening law and order, foreign exchange shortages, bad roads and transport, rising unemployment, inflation… the list goes on and on.

We need local businesses to stay loyal to PNG, for the benefit of all concerned”.

“When we choose to buy from local businesses, we are supporting our neighbours, creating local jobs, and investing in the future of our community”, he added.

The Remington Group will be partnering with other local businesses to share what they are doing as “we strive to

106 PNG BUSINESS NEWS

support each other during these challenging times.”

This will feature different activities within its own Group of companies, from promoting other local businesses, discounts on our products and services, and working in partnership on initiatives to influence and support PNG businesses.

The Remington Group encourages businesses and individuals nationwide to seize this opportunity to make a difference by embracing the ‘Loyal to Local’ campaign and actively supporting each other through their purchasing choices.

“Together, we have the power to influence each other to benefit our communities, stimulate economic growth, and pave the way for a prosperous future,” the group said.

Remington Group CEO, Peter Goodwin (L) and POMCCI Consultant Brian Riches (R).

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COMPANY NEWS

Delnet: 25 Years of Providing Seamless Connectivity

D

elnet is the leading land and maritime communication and navigation solutions provider in the Philippines. With 25 years of experience, our company has maintained its mission to provide only the best products and services through innovative and consistent quality solutions and Delnet strives to provide seamless and continuous connectivity in the most remote locations and extreme conditions, locally and internationally.

MINING Performant and reliable data connectivity is an important requirement to maintain communications and coordination between various mining departments.

DELNE T HAS: Installed and implemented twoway IP connectivity to several companies. Included is the supply and installation of leaky feeder cable, which enables users to have in-tunnel communications.

Deployed hundreds of satellite phones in the Philippines for primary and back-up mobile communications.

Installed VSAT units in the biggest companies and telcos in the Philippines. These VSAT links enable primary IP connectivity, supporting dozens of employees working on-site.

We have provided work for major companies such as Shell, Boskalis (which is now dredging for islands in Manila Bay), Meralco, Philex Mining, and Energy Development Corporation.

OIL & GAS Delnet continues to play its role in maintaining equilibrium and appeasing the local oil and gas market.

Delnet has supplied, installed, and commissioned GMDSS radio communications, f leet broadband, and radar systems onboard the Big Three’s f leet of tankers and bulk carriers.

MARITIME

108 PNG BUSINESS NEWS

With a growing number of both local and international customers relying on Delnet for their f leets’ survey requirements and upkeep, we have partnered with major industry brands and have acquired several certif icates and accreditations.

Our service engineers come with licenses, certif icates, and manufacturers’ training and accreditation to attend to vessel requirements for supply, installation, commissioning and maintenance of communications and navigational equipment. ​Testifying to this is the commendation of a major shipping line of all its vessels to our care and maintenance, and the installation and commissioning of navigation and communications equipment for a Japanese shipbuilding company’s shipyards in Subic and Cebu.

COMPLE TE MANAGED SERVICE For major projects in demanding and unusual environments, Delnet offers complete managed service solutions, which cover all aspects of providing a total care package.

These unusual environments include complex mining projects involving mobile communications between vehicles and also establish wireless links in subterranean locations and tunnels.

Further, Delnet offers complete managed service for port and offshore-based vessels to port communications. We provide high bandwidth and economical service, thereby avoiding the high cost and low performance of VSAT links.

Delnet manages hybrid onshore and offshore projects whereby communications are provided to both vessel and land bound operations. We utilize the best technologies and guarantee highly reliable service levels.

As telecom and IT network designers and integrators, we seek to create customized solutions for each of our customers through specialized design, engineer-

ing, procurement, integration, installation, and maintenance for customer’s unique needs.

Contact information Email us info@delnetinternational.com Call us +63 (2) 8522-3947 ISSUE 2, 2023 – www.pngbusinessnews.com

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PNG BUSINESS NEWS 109

COMPANY NEWS

KPHL signs MoU with TotalEnergies to Launch National Career Database

By: PAUL OEKA

T

o increase job opportunities for Papua New Guineans, the country’s national petroleum frontrunner Kumul Petroleum Holdings Limited (KPHL) is aiming to reduce the breach for the recruitment of potential national candidates for major resource projects and industrial sectors within the country.

In a recent Memorandum of Understanding signing in Port Moresby with one of PNG’s major LNG operators, KPHL welcomed the commitment of TotalEnergies to support the unique nation-building platform WAN PNG. The MoU was signed on Tuesday the 5th of May by TotalEnergies with a sponsorship of K250,000, making PNGLNG a major sponsor for the launch of the WAN PNG recruitment platform developed by Ubidy, a global recruitment marketplace for employers, jointly with KPHL. The platform is dedicated to expanding opportunities for local Papua New Guineans and increasing the development and employment of local PNG talent with the newfound opportunities in the country’s booming resource and industrial sectors.

In his remarks during the signing, managing director for KPHL Wapu Sonk said they have previously learnt from past instances in the PNG LNG project that job participants within

110 PNG BUSINESS NEWS

the sector faced significant difficulties when using different recruitment platforms.

This had influenced and prompted the state entity to establish WAN PNG, which is a national career database and career portal.

“What we did was to build from lessons learnt in the PNG LNG project where we have different people processing the different applicants.

We wanted to invest in a platform that every Papua New Guinean will register their interest ahead of time for jobs,” he said.

“KPHL has identified an opportunity to assist petroleum and other industries’ development and had established the WAN PNG portal. Similar to our support of Kumul Petroleum Academy, (and) plans for a fabrication facility and construction academy, we have a responsibility to play a much bigger role in the industry than just passively holding the State equity in petroleum developments,” Mr Sonk said.

The platform is managed by KPHL to increase the sustainable employment of local talent. This commitment by TotalEnergies demonstrates their intention to maximise national content in this LNG project with respect to employment of qualified Papua New Guineans during construction and operation,

he added.

“The platform will provide a clear pathway to employment no matter whether one is a student, school leaver, university graduate, employed or unemployed. It will provide access to training, life skills, career advice and employment opportunities,” Mr Sonk said.

An official and representative of TotalEnergies expressed during the signing of the MoU that the firm is very glad to contribute to the platform, mostly to the rollout and the expansion of such an important tool for development.

“We understand that this is such an important aspect to bring out competency towards the development of the Papua LNG project,” the official said.

KPHL’s strategic vision for the future includes investment in initiatives that serve to diversify the economy beyond the extractive industry, in which the establishment of WAN PNG is part of the strategy to build a foundation for broadening employment opportunity across regions and industry sectors throughout the nation.

The development has shown that Kumul Petroleum and its partners recognize their responsibility as a National Oil Company to deliver greater prosperity to the people of Papua New Guinea.

Photo from left to right: Luke Liria (KPHL), Richard Kassman (TotalEnergies), Wapu Sonk (KPHL), Jean Marc Noiray (TotalEnergies), Marie-Alix Dognin (Total Energies), Evan Shellshear (UBIDY).

Credit: Kumul Petroleum Holdings Limited

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12th – 13th September 2023 Port Moresby, Papua New Guinea

Key Speakers Hon. James Marape Prime Minister Papa New Guinea

Hon. John Rosso Deputy Prime Minister Papua New Guinea

Hon. Sam Koim Commissioner of Taxation

Hon. Kerenga Kua Minister for Petroleum and Energy

Hon. Geoffrey Kama Minister for Environment Conservation and Climate Change

Peter Larden Chairman & Managing Director ExxonMobil PNG

Obed Batia CEO PNG Power

Jean-Marc Noiray Managing Director, TotalEnergies PNG Ltd

Elizabeth Genia Governor Bank of Papua New Guinea

Luke Lira EGM Corporate Affairs Kumul Petroleum Holdings Ltd.

Ronald Maketa Managing Director National Energy Authority

Stanis Hulahau Chief Migration Officer Immigration & Citizenship Authority

Augustine Mano Managing Director Mineral Resources Development Company

Wapu Sonk Managing Director Kumul Petroleum Holdings Ltd

David Manau Secretary Department of Petroleum

For more information visit

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PNG BUSINESS NEWS 111

COMPANY NEWS

Steamships Establishes Portside Business Park

S

teamships Limited recently took possession of Motukea North from Curtain Bros Limited. This is a significant milestone for Steamships in its plans to develop the 38-hectare site to the north-west of Motukea Wharf into Portside Business Park.

Steamships Managing Director, Rupert Bray, said “We see the Portside Business Park precinct as the future industrial and commercial hub for Port Moresby. Steamships is proactively working with the respective PNG Government agencies to have Portside Business Park become a Special Economic Zone. This industrial park has the potential to become the catalyst for economic development in both the resource and non-resource sectors.” Mr. Bray added that “Consistent with the PNG Government’s National Development Goals, Portside Business Park will not only generate economic activity but also promote downstream processing, manufacturing and the export of local goods and services, encourage domestic and international investment, create employment, and

I

develop infrastructure.”

Portside Business Park will be developed and operated by Steamships’ property arm, Pacific Palms Property.

It will be a mixed-use industrial development with three core zones – an Industrial Zone with a wharf and open-yard storage; a Light Industrial Zone with warehouses and flexible warehouse with office mezzanines; and a Commercial Zone for supermarkets, petrol stations, banks and ATMs, primary healthcare, food & beverage outlets, a business hotel, and other businesses that support the locators at Portside Business Park etc. It is anticipated that the total investment to develop the Park to its full potential will exceed PGK 1billion.

MY

With direct access to Motukea International Port and its own deepwater wharf, the project also has key road frontage along the Napa Napa Road, giving tenants access to key trading centres within 20 minutes of the site - including Papa Lealea LNG Site, Puma Energy Refinery, Baruni Industrial Centre, Waigani Business District, Port Moresby Downtown, and Jacksons International Airport.

Steamships’ General Manager Corporate Affairs, Mr. Vele Rupa, believes “the Portside Business Park demonstrates the interconnectivity between key stakeholders including the State, Provincial and local level Government, landowners, and the landowner companies”.

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Regulator of Exploration and Mining Manager of Mineral Resources

Mining Haus, Poreporena Freeway P.O. Box 1906, Port Moresby National Capital District, Papua New Guinea

Phone: (675) 321 3511 Facsimile: +(675) 321 5711 Email: info@mra.gov.pg www.mra.gov.pg

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PNG BUSINESS NEWS 113

COMPANY NEWS

Fueling Progress: SGS Ignites Growth in Papua New Guinea Energy Industry We are proud to offer a large range of services in Papua New Guinea (PNG) with a number of local locations in key industry hotspots across the country.

W

ith positive growth of the PNG economy since 2021, powered largely by the extractives sector, we have supplied a large number of services to aid major operations throughout the region.

This has ranged from our Upstream services, and plant and terminal operations to drilling tool supply and inspection.

LOCAL SERVICE, GLOBAL EXPERTISE The increased demand for the highest level of quality in operations at many leading sites across PNG has seen us offer local service and experience with global expertise and backing. This has meant that we have employed a large number of personnel over the last two years, directly aiding industry growth within the region.

A COMPREHENSIVE RANGE OF SERVICES In Papua New Guinea, we offer an extensive array of services designed to cater to exploration industries. Our surface well testing service evaluates productivity by gathering fluid samples, measuring pressure and temperature, and analyzing data to determine flow rate and other characteristics. Slickline operations involve setting and retrieving downhole tools, measuring wellbore characteristics, conducting interventions like perforating and logging, and supporting coiled tubing and snubbing operations.

We also offer exceptional Technical Staffing Services in PNG, providing skilled professionals to meet your project needs with unrivaled expertise and local knowledge We ensure quality at every stage of the project lifecycle, from initial exploration to production, safeguarding operational excellence and project success.

EVALUATING ENVIRONMENTAL IMPACT We also offer well site and PVC sampling services aimed at analyzing water or soil for contaminants that may pose risks to the environment, human health, or nearby communi-

114 PNG BUSINESS NEWS

ties. This analysis plays a crucial role in evaluating the potential impact of drilling activities on the surrounding environment.

Additionally, our camp services are designed to meet the specific needs of industries operating in remote or challenging environments, including mining, oil and gas, construction, and exploration projects. These services prioritize supporting the operational requirements and well-being of personnel working in these remote sites.

CUTTING-EDGE DRILLING SOLUTIONS One of the key operations in the PNG region is our subsidiary, Redback Drilling Tools, who provides cutting-edge drilling solutions and services to support efficient operations.

With expertise in supplying, maintaining, and inspecting high-quality drilling tools, we are a trusted partner for local companies, contributing to the growth of the drilling industry.

This is supported with our full suite of energy solutions such as comprehensive electrical engineering services, including inspections, testing, compliance assessments, risk assessments, power quality analysis, and energy efficiency optimization.

SUPPORTING PNG’S INDUSTRIES ACROSS THE FULL OPERATIONAL LIFECYCLE Our comprehensive solutions are tailored to meet the unique challenges and requirements of the local market.

With an extensive range of services we can support the full lifecycle of your operations, whether it’s evaluating well productivity, conducting inspections, optimizing energy efficiency, ensuring product quality and safety, or enhancing operational efficiency.

At SGS, we play a vital role in supporting PNG’s industries, contributing to their success and growth. Our expertise, reliability, and commitment to regulatory compliance are essential in fostering safe, sustainable, and environmentally responsible business practices.

ABOUT SGS We are SGS – the world’s leading testing, inspection and certification company. We are recognised as the global benchmark for sustainability, quality and integrity. Our 97,000 employees operate a network of 2,650 offices and laboratories, working together to enable a better, safer and more interconnected world.

NON-DESTRUCTIVE TESTING (NDT) AND SUPPLY CHAIN SERVICES Our Non-Destructive Testing (NDT) techniques ensure quality control and safety in various industries.

Additionally, our oil condition monitoring services optimize maintenance and operational efficiency.

With our supply chain services, we enhance compliance, product quality, logistics, and supply chain efficiency.

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YOUR HILLTOP HAVEN

CROWN HOTEL Port Moresby

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.

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

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151 Rooms Single/Twin Share Executive room Suites - 1 bedroom & 2 bedroom Swimming pool Gymnasium

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Conference & Events The Cafe - All day dining Rapala Restaurant Fine dining Heritage Bar Pondo & Pokies

PNG BUSINESS NEWS 117 @Crown Hotel Port Moresby

COMPANY

Kedi Ilimbit Appointed as New Managing Director and CEO

T

he Board of Ok Tedi Mining Ltd (OTML) has appointed Mr Kedi Ilimbit as the Company’s Managing Director and Chief Executive Officer effective 17th April 2023.

Chairman of the Board, Mr Jeffrey Innes said that Mr Ilimbit was appointed following an international search campaign and a thorough assessment of candidates.

Mr Ilimbit was originally employed by OTML from 1995 to 2004 starting as a graduate mechanical engineer and working in various roles. He left OTML and worked at various mines in Australia including Blackwater, Peak Downs, Saraji, Prominent Hill, Cannington and Koolyanobbing, in senior and managerial roles. He returned to OTML in 2015 and has worked in Mine Maintenance, Processing, Asset Management and Operations & Community Support and is the current Acting CEO. “The Board looks forward to working with Kedi and the Leadership Team to ensure the continuing success of Ok Tedi and the satisfaction of all our stakeholders’ expectations,” Mr Innes said.

Mr Kedi Illimbit, the new MD/CEO of OTML

Enzo’s Pizza Servicing Manu Auto Port

R

esidents of Manu and it’s surrounds can now treat themselves to an ENZO’s Pizza. The latest addition to PNG’s favourite Pizza outlet is conveniently located at the recently reopened Puma Station on Taurama Road.

ENZO’s Pizza Country Development Manager Sudeep Geethanandan said, “Our vision is to make ENZO’s more accessible to all Papua New Guineans.

By opening at outlet at the Puma Service it gives our patrons the added convenience and security.”

The new outlets operate seven days a week and are open from 9am-9pm. The new store brings ENZO’s Pizza of fering in Port Moresby to seven stores, and the national coverage for the chain to 11 outlets across Port Moresby, Lae, Hagen, Goroka and K iunga.

“We are growing at an exponential rate making us the fastest-growing Quick Service Restaurant brand in Papua New Guinea. We are making it more

118 PNG BUSINESS NEWS

accessible to our pizza-loving customers with the opening of these ENZO’s new outlets,” says Mr. Geethanandan.

Treat yourself, your family, friends, or your team to one of

ENZO’s saucy, toppings-loaded, hot, and deliciously cheesy pizzas today, and share your images with us using the hashtag #YumiCelebrate on Enzo’s Facebook page @ enzospizza.p.n.g ISSUE 2, 2023 – www.pngbusinessnews.com

100%

PNG OWNED

YOUR LOCAL PRINT PARTNER

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The largest & leading Engineering, Architecture, and Project Management organisation in the South Pacific.

Proudly PNG

Years of Engineering the Future

Our Services:

• Architectural Design • Professional Project Management • Procurement & Planning • Civil & Structural Engineering • Building Services Engineering • Quantity Surveying/ Cost Planning • Construction Management • Pre/Feasibility Studies

Our Industries:

• Resources • Energy & Renewables • Government and Social • Civil & Transport Infrastructure • Commercial Residential & Industrial

Our Value Proposition:

• Over 45 years of in-house multi-disciplinary professional design, project management, and construction support and supervision • Experts in compliance with local statutory regulations and authorities • Registered with relevant Pacific, Australian, and New Zealand Professional Institutions such as IEPNG, IEAust, and IPENZ • Permanent presence in the pacific with deep knowledge and understanding of local context for infrastructure delivery

Papua New Guinea · Australia · Solomon Islands · Vanuatu · Tonga · Samoa · Fiji

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PNG BUSINESS NEWS 121

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