O’Neill defends loan to buy into Oil Search, economy vulnerable unless security boosted, Manus Detention Centre focus of Abbott/O’Neill talks. Your weekly digest of the latest business news.

Prime Minister Peter O’Neill has defended the US$1.2 billion (K3 billion) loan the government has taken out to buy a 10% stake in Oil Search. O’Neill says the loan is US$300 m (K802 million) less than the loan it replaces, the interest rate is lower at under 5% and officials are wanting to renegotiate the loan at under 2% within 24 months.

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The head of Papua New Guinea’s Security Coordination and Assessment Office is calling for a boost to the country’s military and police force to overcome years of neglect. Ian Jinga says security for PNG’s LNG project is a major concern, and the country’s largest-ever economic project remains vulnerable.

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The management of the Manus Island detention centre, a more rapid redirection of aid and visas on arrival for PNG nationals arriving in Australia are likely to be the main focus of prime ministerial talks this week when Tony Abbott arrives on Thursday for a three-day visit.

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Air Niugini representatives have told the Lae Chamber of Commerce and Industry (LCCI) that, while it is still open to providing a direct Lae–Cairns flight, it needs to be guaranteed that the route is economical. LCCI  President Alan McLay says a survey will be carried out to gauge the potential for the service.

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Lady Winifred Kamit

A new group of business leaders in Papua New Guinea have set out to reduce poverty and drive up economic growth by promoting equal opportunities. The Business Coalition of Women is being jointly funded by the International Finance Corporation and AusAid, although its patron, Lady Winifred Kamit, says for most women in Papua New Guinea with aspirations in business and public life, the odds are stacked against them, and the new coalition wants to change that.

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Partners to the Nauru Agreement, the PNA, may require the United States to pay much more for the right to fish in some Pacific economic zones next year.

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The number of licensed private security firms in Papua New Guinea has more than doubled in the past four years. There are now 460 registered firms operating in PNG, employing nearly 25,000 security guards.

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The Fiji–Papua New Guinea Business Council will host quarterly events to provide updates on investment opportunities available in both countries.

‘There are a lot of opportunities available to businesses outside PNG such as Fiji, to participate and take advantage of the growth potential seen in the country,; Bank of South Pacific Chief Executive Officer Robin Fleming told the group last week.

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Forty years after it was first discussed, construction work is expected to begin later this year on the 3MW Divune hydropower project in the Oro Province. PNG Power says said it expects to complete the project in 2015.

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Highlands Pacific has reported a $US37.2 million (K97.8 million) loss for the year, which includes a US$15 (K39.5 million) asset write-down of the company’s investment in the Ramu nickel mine in Papua New Guinea. The loss also includes a US$12.6 (K 33 million) write-down of previously capitalised exploration and evaluation costs for the Frieda River copper project.

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Crater Gold says it is confident it will be producing high grade gold at its project at Crater Mountain in the third quarter of this year, subject to government approvals. In his financial report for the last half of 2012, Managing Director Greg Starr said an independent review had suggested the mine, straddling the border between the Simbu and Eastern Highland Provinces, could produce 60,000 to 100,000 ounces of gold.

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Canada’s Eaglewood Energy has been granted an initial licence to construct and operate the first gas condensate processing facility and pipeline in Western Province, subject to a final agreement with the national government.

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Panguna. Credit: VLAD SOKHIN

Autonomous Bougainville Government President Chief Dr John Momis has told the Bougainville Parliament that a meeting will be held on 12 May between landowners and Bougainville Copper Ltd regarding the possible reopening of the Panguna Copper Mine.

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Kina Asset Management Limited (KAML) has reported a record profit of K8.1 million, an increase from K4.1 million from 2012. Company chairman Sir Rabbie Namaliu says KAML has an 18% increase in its investment portfolio, rising from K42.7million to K50.3million over the year.

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The Solomon Islands Prime Minister says his government is addressing some of the difficulties the logging industry is having with commercial banks operating in his country. Westpac Bank has given notice that it will close all logging company accounts at the end of March. Bank of South Pacific and the ANZ Bank already refuse to hold logging company accounts.

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Finally, from the highlands of Papua New Guinea to the mountains of Nepal, a group of academics is harnessing the power of the smartphone to try to save languages at risk of disappearing forever by the end of the century.