Chief Secretary indicates SABL leases will be returned soon, and Woodside CEO says Oil Search bid his ‘full price’. Your weekly digest of the latest business news.

The Chief Secretary to Government, Sir Manasupe Zurenuoc, says he hopes that land leased fraudulently to investors under the SABL system will be returned to landowners ‘in the not too distant future’. More than five million hectares of land, or more than 10% of PNG’s total land mass, is estimated to have been affected by the illegal leases.

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Woodside Petroleum Chief Executive Peter Coleman has told Fairfax Media he has little appetite to increase his recent A$11.6 billion bid for Oil Search. Coleman said he had a “very positive” meeting with PNG Prime Minister Peter O’Neill, who has signalled the government would welcome Woodside’s entry into the country, and could be open to selling its about 9.8% stake depending on the price.

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Three superfunds, Nambawan Super (14.7%), Comrade Trustee Services (3.2%) and Nasfund (4.9%) have taken up stakes in the newly established Kina Bank.

Kina Securities CEO, Syd Yates, says Kina Bank (formerly Maybank) has 1500 shareholders. Yates told Business Advantage PNG: ‘The key focus for us is to work on the integration. We will also be doing a modernising of our brand. This will gradually cut over the next few weeks. All our branches will gradually be changed.’

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Alluvial mining. Credit: Ramumine.

Irish businessman Denis O’Brien has scrapped the potential US$2 billion (K5.76 billion) flotation of  Digicel less than 72 hours before its shares were due to begin trading in New York, blaming weak stock market conditions.

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The Mineral Resources Authority’s Exploration Manager Dulcie Saroa says there are about 80,000 active alluvial miners in PNG. Ms Saroa says produced 1190 ounces of gold, and generated a total revenue of nearly K400 million from its gold and silver exports in 2014.

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Australian miner Marengo Mining has incurred a net loss of US$6 million (K17.59m) for the fiscal year 2015. a decrease of $7.6 million (K22.28m) from 2014.

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Communications Minister, Jimmy Miringtoro, says he will introduce cross-media ownership laws into the next session of parliament. He said he was particularly concerned at the way the rights to broadcast NRL had been taken away from a free-to-air television station and given to a pay television broadcaster.

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The Bank of PNG Governor, Loi Bakani, says the landowner trust account for LNG revenues has about K108 million, which would be distributed after the completion of the Government’s mapping exercise on landowning units in the LNG-impacted areas.

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A PNG Ports Corporation-funded 30-metre port extension has been opened in Kimbe. Built by Curtain Bros, the extension cost K45 million to service the palm oil industry.

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The government has signed a deal with China’s Covec PNG and Curtain Bros to build an Asian Development Bank-funded road network project in the Highlands. Works Minister Francis Awesa says the two roads (Nipa-Ambua and Halimbu-Nogoli) will cost K187 million and K88 million respectively. Local landowner company, Hela Builders, has been subcontracted to complete half the project.

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Private Enterprise Minister Ben Micah says he is talking to major companies in Europe and Asia to build a rail line from Lae to Ramu where all shipping containers passing through the Lae Tidal Basin, will be stored.

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The National Fisheries Authority’s John Kasu. Credit: Niugini Black Bass Research

National Fisheries Authority Managing Director John Kasu says the lifting of the ‘yellow-card’ warning on tuna exports means EU countries will continue importing PNG tuna. PNG’s tuna exports to the EU are worth about US$1.5 billion (K4.3b).

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Fiji’s tuna exporting companies are in a crisis as low tuna stocks worsen, forcing them to lay off workers and to downsize their operations to save costs to stay afloat, according to Solander (Pacific) Ltd’s General Manager, Radhika Kumar.

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Senior PNG government delegates are among a 50-member trade, investment and tourism mission heading to Southern China later this month. The Pacific Trade & Invest program features a special forum in Guangzhou, the Maritime Silk Road International Expo and the Canton Fair.

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At least four million people in the Pacific face hunger, water shortages and risk of disease this year and next due to droughts and erratic rains, influenced by climate change and the likely development of a ‘super El Niño’. Esmie Sinapa, Oxfam in Papua New Guinea Country Director, says Oxfam is preparing to distribute water saving equipment for PNG and Tonga.

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Australian miner Highlands Pacific Ltd has reported that exploration results at the Star Mountains joint venture with Anglo American plc have confirmed significant copper and gold mineralisation at the Olgal prospect.

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… and, finally, the Fiji government is making scouting compulsory for older primary school children. Education Minister Mahendra Reddy, says because scouting promotes good citizenry and independence, all Year 6 and 8 students will be made to join the movement from next year.