Japan funding K2 billion for roads and bridges, the National Executive Council prevents PNG Power defaulting on overdraft and PanAust buys 80% share of Frieda River project. Your weekly digest of the latest business news.

Prime Minister Peter O’Neill has announced the K2 billion aid from Japan will be used to build major roads and bridges on the Sepik Highway and Bougainville, as well as roads and bridges linking the East and West New Britain provinces, over the next three years.

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Fuel prices rises, general expenses and the value of the PNG kina against the US dollar have been cited as the reasons why the National Executive Council has bailed out PNG Power with K10 million to prevent the state-owned company from defaulting on its overdraft. PNG Power exceeded its K48 million overdraft facility with Bank South Pacific by K12 million.

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Frieda River project

PanAust has bought an 80 per cent share of the Frieda River copper-gold project from Glencore Xstrata. Highlands Pacific owns the other 20 per cent. Company officials are talking to Guangdong Rising Assets Management, a 22 per cent shareholder in PanAust, about a full takeover bid for PanAust, after rejecting an earlier bid in May.

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The Mineral Resources Authority is hoping to formalise the development of alluvial mining or small-scale mining through a convention, to be run in Lae next month. It says alluvial gold and silver generates revenue of over K300 million a year.

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Central Province Governor, Kila Haoda, has warned of a potential influx of settlers from the proposed trans-island highway linking Port Moresby to Lae. But NCD Governor, Powes Parkop, says poor access from Port Moresby and Central to the rest of the country is part of the problem.

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Tourism operators have renewed calls for the PNG government to spend more on developing the tourism industry. They say they’ve not seen any real indications of genuine investment, despite government promises.

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Energy Minister Nixon Durban

The long-awaited petrochemical park will be built at Konebada, outside Port Moresby, says Petroleum and Energy Minister, Nixon Duban, who named Japan’s Sojitz Corp as a potential investor for the industry.

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West New Britain Governor Sasindran Muthuvel has given K200,000 to AdFX Advertising for one mobile and one digital billboard, to be used for advertising and public announcements, which include health, education and law and order messages.

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Santos, 13.5 per cent shareholder in the PNG LNG project, has announced a ‘significant’ gas discovery in Western Australia, with officials saying they are confident it was a ‘high quality reservoir’, but would not describe the size of the find. The day before this announcement, Santos announced an unexpected 33 per cent increase in the first-half dividend after the early start-up of the PNG LNG project, even though its first half net profit fell by 24 per cent to A$206 million.

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Gold miner St Barbara has confirmed it is negotiating the transfer ownership of the Gold Ridge mine to the Solomon Islands government. Local landowners have welcomed the news, saying they want the mine to continue.

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Trade Minister Richard Maru says a loan of  K6 million will be provided by the National Development Bank to the Anitua group of companies to complete a major integrated livestock project on Lihir Island in New Ireland Province. The project breeds pigs and poultry for the domestic market and the loan will be used to build an abattoir, hatchery and buildings. 

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The Solomon Islands Government has passed a new law that makes it easier to register businesses in the country. An online registry will be established so small business owners can file their business names from their home or local area. The registry will be part of the online companies register, Company Haus. More than 1,000 new businesses are registered in SI each year.

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PNG’s Mosquitos celebrate. Credit: Malum Nalu

Finally, Papua New Guinea’s national Australian Rules football team has won a thrilling International Cup grand final over rivals Ireland by three points at the Melbourne Cricket Ground. The PNG Mosquitos were crowned champions following a 6.9 (45) to 6.6 (42) victory, reversing the 2011 result in the decider against the Irish.