Fortescue and Papua New Guinea Government sign landmark agreement to venture into green energy productions, the Bank of PNG flags two new projects and Minister apologises over Pasca A negotiations. The business news you need today.

Credit: PHAMA Plus

Agribusiness

The Coffee Industry Corporation (CIC) has rolled out its revised green bean standard and regulation policy guidelines for coffee trade in PNG. The new standard is reduced from 13 to five grades to comply with international standards, and is aimed at ensuring competitive prices for producers. PHAMA Plus in conjunction with the CIC and the Australia and New Zealand governments recently conducted a workshop for the Southern region to make sure all coffee stakeholders are informed about the new standards and regulatory policy guideline. (PHAMA Plus)

Travel

Air Niugini has advised that the runway upgrading works at Madang Airport have been delayed by six days continuing until 22 August. This means that all flights to Madang are temporarily suspended until 22 August and are scheduled to resume on Monday 23 August.

The national airline said in a statement that the National Airport Corporation is forecasting to finish works in November, weather permitting. (Air Niugini)

Energy

PNG and the Australian company Fortescue Metals Group, considered the world’s fourth largest producer of iron ore, have signed a Deed of Agreement to partner in a potential venture to develop green energy. The agreement, which Prime Minister James Marape, has deemed ‘historic’ paves the way for Fortescue through its industry company Fortescue Future Industries (FFI) ‘to explore and later look into developing renewable energy sources that will cover hydro, solar, wind and geothermal power’.

The signing, a statement said, ‘now allows the company [Fortescue] to begin work on acquiring relevant licenses to progress work.’ Fortescue is already looking at sites in Gulf and West New Britain Provinces. (Department of Prime Minister and NEC)

National

The K210 million Rangeview Commercial Plaza in Waigani is expected to be completed on schedule and it ‘should start trading in March,’ reports The National. The commercial plaza is part of a residential project in the Rangeview precinct. Lamana Development Ltd is undertaking construction. (The National)

Banking

The Bank of PNG is working on two projects, the SME Accelerator Program and the Financial Consumer Protection, that will be rollout to the public soon.

The first project aims to encourage financial institutions to lend money to MSMEs through the establishment of a Credit Guarantee Facility; the second aims to ‘improve financial market conduct’.

‘With the Financial Consumer protection, we will make sure all the information is disclosed fully and the information is transparent to the borrowers about the fees and charges of lendings,’ Assistant Governor, Ellison Pidik, is reported as saying. (Post-Courier)

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Nambawan Super (NSL) has responded to claims that the PNG government has approached the super fund to discuss joining the acquisition of Digicel Pacific. The Chief Executive Officer of NSL, Paul Sayer, clarified that the government hasn’t approached the fund regarding the potential deal.

‘NSL is the trustee of more than K8.5 billion in savings of everyday, hardworking Papua New Guineans and it is essential the fund is prudent in its consideration of all possible investments,’ he is quoted as saying. (Post-Courier)

Mining and petroleum

Petroleum Minister Kerenga has apologised to Twinza Oil after the State failed to meet the expected timeline of the Pasca A gas project announced last month. Responding to Twinza’s public pronouncement on the delays, he told Parliament he had expected Twinza ‘to discuss their disagreements from the draft agreement but instead the developer went to the media with their grievance’.

A ‘confidentiality and non disclosure agreement’ was to be put to Twinza while negotiations were ongoing. Kua told Parliament progress needed to be made on the gas agreement for Pasca A by 16 August. (Post-Courier)

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Explosives and blasting systems company Orica has opened a K2.55 million additional bulk emulsion manufacturing plant in Lae, Morobe Province.  It’s been reported that the additional site will supply mine sites in PNG (Simberi, Kainantu, Woodlark, Porgera) and the Solomon Islands.

‘This plant is relatively small from a manufacturing perspective and will make about 20 tonnes a day or up to 30 tonnes with a bit of effort and that’s a volume close to 7,000 tonnes a year,’ said Denis Brassard, Orica’s Territory Manager for PNG and the Pacific Islands. (The National)