Violence takes a toll on businesses in Papua New Guinea, Anglo American and Highlands Pacific form joint venture, and Sime Darby extends takeover deadline for NBPOL. Your weekly digest of the latest business news.

Businesses in Port Moresby are ‘tired and have lost hope’ in the security protocols in Papua New Guinea following frequent unreliable behaviour from disciplinary forces, according to David Conn, Port Moresby Chamber of Commerce and Industry President. Conn made the remarks following last weekend’s clash between PNG Defence Force soldiers and members of the Royal PNG Constabulary, which reportedly left four men in hospital with gunshot wounds.

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POMCCI’s David Conn

Anglo American and Highlands Pacific have formed a joint venture that will continue exploration and development work at the Star Mountains copper-gold project in Papua New Guinea. Anglo American will pay ASX-listed Highlands Pacific A$12 million in two tranches towards a farm-in agreement to establish the joint venture, and will secure 51% of the project if it spends a further A$30 million on exploration.

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Sime Darby has extended its takeover offer for New Britain Palm Oil Ltd to provide the European Commission with more time to examine the deal. The offer deadline has now been extended to January 20. Meanwhile, Kulim has accepted the offer made by Sime Darby Plantation for the sale of its stake in NBPOL.

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Pacific tuna. Credit: SPC

A proposal from the Parties to Nauru Agreement (PNA) and Tokelau on skipjack tuna has been withdrawn from the Western and Central Pacific Fisheries Commission (WCPFC) after Japan refused to agree to the measure, which would have set an agreed level of fishing. The Pacific Islands Forum Fisheries Agency has criticised the lack of action at the meeting.

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Papua New Guinea sits on a few large undeveloped gas resources with exploration potential that can go on for the ‘next 50 years onwards’, according to Wapu Sonk, National Petroleum Company PNG Managing Director.

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Oil and gas producer Santos has suffered a savage sell-off of its shares on the ASX after a credit downgrade from ratings agency Standard and Poor’s. Santos owns 13.5% of the PNG LNG project.

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Air Niugini will operate its inaugural service to Aropa airport in Kieta, Bougainville, this week. The airline did previously have a service to Kieta, which ceased in 1989 after 25 years.

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The United Nations (UN) is encouraging the PNG Government and the country’s resources industry to review a range of policy options put forward in the National Human Development Report, recently launched in Port Moresby, before further expanding mining and exploration activities in the country.

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Prime Minister Peter O’Neill

PNG Prime Minister Peter O’Neill has met with his Australian counterpart, Tony Abbott, in Canberra to discuss ongoing bilateral relations between the two countries. O’Neill said it was important that ‘ongoing high-level dialogue takes place with the nation’s close partner countries.’

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A building summit held in Port Moresby last week has recommended that PNG’s Building Act 1994 and regulations should be urgently reviewed and upgraded to international standards. Delegates also called for a Building Council, to oversee professional standards and liaise with government.

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Kumul Gamechangers, an initiative aimed at developing entrepreneurs and their business ideas, has received more than K1.2 million in financial support from the Australian Government to advance the program.

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The Bank of Papua New Guinea has encouraged Jiwaka to establish a bank in the province to capitalise on its thriving economy, according to analyst Garima Tonga.

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New Solomon Islands’ Prime Minister, Manasseh Sogavare.

The Parliament of Solomon Islands has elected Manasseh Sogavare as its new Prime Minister. Sogavare has served two previous terms as PM. His first job will be to pass a budget for government spending, as it expires at the end of the year.

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The 2015 Fiji Budget was passed in Parliament this week, despite a walkout by the 15 members of the Opposition, the first walkout since Fiji returned to parliamentary democracy.

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And finally, congratulations to the cocoa growers of Bougainville and the Wellington Chocolate Factory, after raising more than the minimum required to buy a tonne of cocoa from Bougainville. The cocoa will be made into high quality chocolate for sale in NZ.