Sewa Bay shows potential for Highlands Pacific, El Nino weather conditions to continue into 2016, and import ban on fruit and vegetables. Your weekly digest of the latest business news.

Highlands Pacific Ltd, with international trading house Sojitz Group, has reported that ‘extensive nickel mineralisation’ has been identified during an exploration campaign recently completed at the Sewa Bay project in Milne Bay. Managing Director John Gooding said, with further work there may be the potential for the ultimate development of a ‘modest mining project’ at the property.

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The PNG National Weather Service predicts the current El Niño event will continue into 2016 and might surpass the 1997/98 El Niño event. ‘If this is going to happen, then the worst case scenario is that the whole country will be drastically affected,’ officials report.

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Agriculture Minister Tommy Tomscoll has announced a ban on the import of more than ten different fruits and vegetables, saying he is concerned about the free access to domestic markets of imported products which can be grown locally.

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The Lihir gold mine. Credit: Newcrest

Australia’s Newcrest Mining Ltd has lifted production at its mines by 10 per cent in the June quarter compared to the March quarter with output of almost 674,000 ounces. Despite various operational disruptions, the Lihir and Hidden Valley mines in PNG were key drivers in Newcrest’s improved performance.

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The latest Fresh Produce Report has estimated a total value of the garden food produced and consumed in PNG to be at K2.5 billion annually. The report estimates the value of Port Moresby markets at K420 million, while the annual value of the horticulture industry is estimated to be more than K2 billion.

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Nambawan Super has recorded a profit of K168 million for the first half of this year. Board chairman Anthony Smare said despite the good results, ongoing performance of the fund would be largely determined by the fortunes of PNG economy and PNG market.

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PNG Minister for Mining, Byron Chan, has welcomed China’s Zijin Mining to the country’s gold mining industry after it recently acquired a 50 per cent interest in the Porgera mine in Enga Province from Barrick Gold. Chan said Zijin’s entrance into the PNG market was a ‘show of confidence’ at a time when the industry had been hit hard by low commodity prices.

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The International Energy Agency says demand for oil has rebounded to its highest levels in five years, as consumers respond to lower prices and the global economy strengthens. However, global supply remains strong and the lower prices are unlikely to significantly dent production until next year.

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LNG is exported by ship. Credit: ExxonMobil PNG

Australia’s Santos Ltd, which is a stakeholder in the PNG LNG project, has reinforced that it does not intend to undertake a capital raising despite its share price on the ASX falling to an 11-year low recently.

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Marengo Mining  has asked to be delisted from the Port Moresby Stock Exchange (POMSoX) from 27 October, after the company moved to Canada from Australia. It will continue to trade on the Toronto Stock Exchange (TSX).

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A state of emergency has been declared in Southern Highlands province after severe frost and drought destroyed food gardens and water sources, The Post Courier reports. Governor William Powl assessed the situation as ‘very critical’ and one that needs urgent attention from the PNG Government.

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Beach Energy Ltd Managing Director Rob Cole said that Papua New Guinea was on the oil and gas company’s radar as it looked to diversify operations beyond the Cooper Basin in Australia.

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PNG Power’s Executive Director, John Mangos, says he wants to talk to investors to partner in new energy technologies, to achieve the government’s target of 70% having access to power by 2030.

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A new grocery and retail shop has opened near the main Lae market. Zenara Supermarket, a subsidiary of Big Rooster, has a retail, variety, grocery, wholesale and liquor shop, along with a fast food outlet.

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The Antelope 3 gas field. Courtesy: InterOil

InterOil analysis of the latest well test data from the Elk-Antelope gas field in Gulf supports a two-train liquefied natural gas project. Announcing a a loss of US$32.5m (K89.9m) for the second quarter, CEO Michael Hession said Antelope-5 well had exceeded all previous Antelope well results.

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A report from the University of Western Sydney says Pacific communities are over-represented in low paid jobs, islanders are less likely to go onto higher education, and almost one in two are not citizens.

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Papua New Guinea and Australian plan on developing a world heritage listing proposal for the Owen Stanley Ranges region and Kokoda Track. The plans, which are part of the Kokoda Initiative formed by the two countries, will be a key focus of discussions when Australia’s Minister for Environment, Greg Hunt, visits PNG this week.

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A new landowner company has been granted a mineral exploration licence (EL) by the PNG Government to undertake exploration in Eastern Highlands Province, The National newspaper reports. The company plans to search for mineral deposits in the mountains between Eastern Highlands and Madang.

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And finally, Melbourne researchers say it may only be a matter of years before an artificial leaf is fuelling every community, house and car on the planet. The machine they have designed relies on a so-far largely untapped fuel source—hydrogen—and draws heavily on the plant process of photosynthesis, in which a plant converts sunlight into energy.