O’Neill sacks two more Cabinet ministers, Exxon expects LNG exports to start early and Ok Tedi Mining profits plunge 80%. Your weekly digest of the latest business news.

Prime Minister, Peter O’Neill, will assume the role of Treasurer, after he sacked Treasurer Don Polye and Industrial Relations Minister Mark Maipakai from the Cabinet. Deputy Prime Minister Dion will be Labour Minister until a permanent appointment is made. Polye says he will continue to support the government. The latest sackings come less than two weeks after Minister for Petroleum and Energy, William Duma was fired, along with Higher Education Minister David Arore.

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The board of PNG Power has suspended CEO John Tangit, pending an investigation. Chief Financial Officer, Brendan Raftery will act as CEO.

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The first shipments of PNG LNG is set to sail ahead of schedule. Exxon chief Rex Tillerson has told analysts in the US the first shipments may now leave Port Moresby within the next four months, rather than later in the year, as originally planned.

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State-owned Ok Tedi Mining Ltd’s net profit plunged 80 per cent to K47.806 million (US$17 million) in the year to December, 2013. The company has blamed the drop on a fall in world metal prices, failures in its processing plant, flooding in a pit and high fluorine levels in its copper concentrate. No dividend will be paid this year. Dividends and taxes from OTML contribute about a quarter of the PNG government’s Budget.

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PNGSDP Chairman, Sir Mekere Morauta

The chairman of PNG Sustainable Development Program (PNGSDP), Sir Mekere Morauta, has rejected a claim by Prime Minister Peter O’Neill that the Eminent Persons Group (EPG) has failed to resolve differences between the National Government and the PNGSDP. Sir Mekere says instead the Prime Minister rejected the advice and recommendations of the EPG. PNGSDP is seeking restitution, through Singapore’s courts, of the 63.4% of Ok Tedi Mining Ltd expropriated last year by the State, or failing that, compensation for the shares.

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Telikom PNG assets will be integrated with PNG LNG fibre-optic cable and PNG Power assets and handed to the newly constituted state-owned enterprise, PNG DataCo Ltd. Minister for Public Enterprise and State Investments Ben Micah said the company will be independent of the Independent Public Business Corporation.

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The long awaited 2013 K100 million Special Intervention Fund for infrastructure development on Bougainville will be placed in a trust account this week. Projects include roads upgrades, the reopening of the Aropa Airport, water supply and sanitation projects and the rebuilding of Arawa General Hospital.

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East Sepik Province is set to host the country’s biggest oil palm project, predicted to create 20,000 jobs for the local people, and generate over K6 billion over the next decade. The government has allocated K100 million to build infrastructure which includes roads, power lines, water supplies and bridges.  The developer is Malaysian–based Wilma International Co Ltd which says it will contribute an initial K3.5 billion to develop 100,000 hectares in phase one. It also wants to develop another 100,000 hectares in the second phase.

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The New Britain Palm Oil Group revenue fell by 17.5% to US$558.7 million (K1.3 billion) due to lower palm oil prices and lower production in 2013. Chairman Antonio Monteiro de Castro said the group’s profit before tax dropped significantly from US$81.6 million (K197.57 million) in 2012 to US$ 17.3 million (K41.8 million) in 2013.

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Sir Brown Bai

Two commercial banks have dropped fees on some accounts, to encourage savings, as part of the government’s plan of financial inclusion. BSP’s chief executive officer Robin Fleming said its fee-free products include the Kids Savings Account for children aged 0-5 and its Sumatin Account for full time students aged 15-25. ANZ has also announced fee exemptions for some accounts whose holders are under 18 years and over 55.

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New Ireland is being opened up to tourists and investors after former Prime Minister Sir Julius Chan unveilled a platter of projects and plans. High-rise apartments, a shopping mall and office buildings will built on vacant prime land in Kavieng. The National Aviation Authority has allocated K4 million to expand the airport to take international flights.

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PNG superannuation fund Nasfund has reported a 50% increase in net profit in 2013, compared to 2012. The 2013 net profit was K332.350 million. Chairman Mel Togolo has warned it would be ‘arduous’ to continue the last two years of growth, with the kina ‘expected to depreciate by 10%’, declining exports and stronger import demands.

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The Internal Revenue Commission has released new monthly remittance and annual reconciliation forms and made changes to the processing of a range of taxes, including the Business Payments tax, Management Fee Withholding tax, Interest Withholding tax, Royalty Withholding tax and Foreign Contractor Withholding tax.

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A World Bank report on poverty in the Pacific says governments must introduce social protection schemes, such as old age pensions and disability payments. It says more than 20% of people in Papua New Guinea, Tonga, Tuvalu, Solomon Islands, Samoa, Kiribati, Fiji and Vanuatu are unable to meet all of their basic needs.