First LNG cargo loaded this week, O’Neill announces inquiry into asset sales by PNGSDP, and more room for mobile phone operators, says NICTA. Your weekly digest of the week’s top business stories.

Papua New Guinea’s  first liquefied natural gas cargo is being loaded on the Spirit of Hela this week for markets in China, Japan and Taiwan, according to PNG Treasurer Patrick Pruaitch. Six vessels will carry the gas regularly, says ExxonMobil PNG Managing Director Peter Graham. Each year, 6.9 million tonnes of LNG will be shipped to Asian markets.

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The government will set up a Commission of Inquiry to investigate PNG Sustainable Development Program Limited’s (PNGSDP) sale of its assets, says Prime Minister Peter O’Neill. But PNGSDP’s Chairman, Sir Mekere Morauta, says the company is incorporated in Singapore and does not come under the jurisdiction of the inquiry. Sir Mekere said the Government’s ‘unlawful expropriation’ of the Ok Tedi mine forced the company to sell some of its assets and give the others to the Fly River provincial government and village communities.

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NICTA’s Charles Punaha

There’s plenty of room for new players in the mobile market, according to the CEO of the National Information and Communication Technology Authority. Charles Punaha says three million people still do not have mobile phone. Punaha also said Awal Telecommunications of Dubai paid K16,500 (US$5,800) for its three licences. He said Awal intended spending US$260 million (K 732 million) on developing its infrastructure.
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Prime Minister Peter O’Neill has told the President of the Autonomous Bougainville Government (ABG) John Momis that his government does not intend to take control of the Panguna copper site and a final decision over the site will rest with the ABG.

Treasurer Patrick Pruaitch

Treasurer Patrick Pruaitch says the downturn in the value of the Kina value is only temporary and will be boosted once proceeds from the first shipments of the LNG project are paid to the country

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Bank of PNG Governor Loi Bankani says the government will be looking at further increasing assistance from its major creditor, the Asian Development Bank. He says the assistance will be directed to major infrastructure developments, including roads and houses for teachers.

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New Guinea Gold Corp is on the brink of selling its PNG subsidiary, New Guinea Gold Limited, to Kibush Capital Corporation for US$5.25 million (K14.7 million). New Guinea Gold holds the Mt Sinivit goldmine, in East New Britain.

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The National Fisheries Authority has signed a deal with PNG Microfinance Ltd (PML) to provide lines of credit of between K1000 and K500,000 to fisheries businesses to help them in buying logistics, fishing gears, farming equipment to expand their current operations and improve their productivity and cash income.

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The Independent Consumer and Competition Commission says prices for petrol, diesel and kerosene have all increased in May, due to the fall in the value of the kina and higher shipping costs. The price rise is between 4 toea and 6 toea per litre.

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Oil Search’s Peter Botten

Oil Search Limited CEO Peter Botten has defended the company’s decision to contest the gas deal between France’s Total and InterOil, saying original agreements should be honoured. He’s said at a Macquarie Group conference in Sydney both parties are in discussions in an effort to find a commercial resolution to the dispute. He’s also played down concerns about additional gas supply undermining PNG projects, saying that supply would increase, but so would demand.

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Marengo Mining executives say its Yandera copper project, located 95 kilometres south-west of Madang, is likely to produce 30 million tonnes of copper over the next three years. The initial mine life span is 20 years.

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Westpac has signed a A$100 million (K259 million) deal with Telstra Australia to provide domestic data network, primary internet access and outbound voice at Westpac branches in PNG and other Pacific Island nations.

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The Australian and Papua New Guinea governments have selected multinational Hassell Ltd and PNG-based Frameworks Ltd to prepare a master plan to redevelop ANGAU Memorial Hospital in Lae. The tender is expected to be offered in 2016–2017.

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The Papua New Guinea Coffee Corporation says a co-ordinated approach is needed to improve marketing the industry in Europe. Colin Smith from the European Specialist Coffee Association says PNG needs to have a stronger presence at trade fairs and exhibitions in Europe to be competitive and create demand.

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The cost of elections around the world, showing PNG’s as the world’s most expensive.

PNG elections are the most expensive in the world, according to a report by Australia’s Foreign Affairs Department. It says the PNG Government spent $US207 million (K583 million) on the 2012 elections, and the Australian Government spent another $US35 million (K98 million). This takes the total cost per voter to $US63 (K177). There were also 900,000 more voters than there should have been on the 2012 roll. There’s also been a steady rise in the number of candidates since 2007.

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Lucrative minerals on the Pacific ocean floor are on the agenda this week at a meeting of stakeholders in the Cook Islands. Even though commercial mining is not expected to start until after 2020, the Cook Islands already has legislation and an authority in place.

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Solomon Islands must prevent leaks at the country’s only gold mine, the United Nations warns. A report says the Gold Ridge mine has extremely high levels of contaminated water in its tailing dam after last month’s floods, which could affect about 8,000 people living downstream.

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President Anote Tong of Kiribati says all commercial fishing in the Phoenix Island Protected Area will be closed by the end of the year. The move is designed to allow tuna and other fish depleted by excessive fishing to return to natural levels. The PIPA covers about 400,000 square kilometres.