Green light for Telstra’s acquisition in Papua New Guinea, Newcrest posts disappointing six month results and flights to Lihir Island resume. The business news your need this week.

Artistic impression of the proposed Vanimo facilities. Credit: The National

Petroleum & gas

A gas agreement has been signed for the ExxonMobil-led P’nyang gas project in Western Province, while TotalEnergies has confirmed the Papua LNG project will go into FEED stage in June this year. (Business Advantage PNG)

Mining

Newcrest Mining has recorded underlying profits of US$298million (K1.05 billion) for the half-year to 31 December 2021, a 46 per cent fall on the corresponding period in 2020.

According to a company statement, the fall was partly due to ‘lower production at Lihir due to the expected decline in grade as the mine plan transitioned into Phase 15, heavy rainfall limiting access to high grade ore (additional pumping has been installed) and major maintenance activity’, as well as lower gold and copper prices, higher freight costs, and disadvantageous exchange rates. (Newcrest Mining)

Telecommunications

The Independent Consumer and Competition Commission has given clearance to Telstra Corporation Ltd to acquire Digicel PNG. (Post-Courier)

Fisheries

The National Fisheries Authority (NFA) has unveiled plans for a new fisheries hub in Vanimo which is being built in partnership with the West Sepik Provincial Government. The design documentation of the facility was received last week by NFA’s Acting Managing Director Justin Ilakini from Kemkai Investment Ltd architect Jerry Nakau. The architect reportedly said the facility will be built in two stages and would cost about K25 million. (The National)

Tourism

After suspending flights to Lihir Island on 2020 because of the COVID-19 pandemic, PNG Air announced last week that regular commercial flights to Kunaye Airport in Lihir Island have restarted. Flights to Lihir will operate on Tuesdays and Thursdays, and return flights will operate on Wednesdays and Fridays. (PNG Air)

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Jiwaka Province’s Tolsi Cultural Heritage Reviving Centre is set to received K30,000 on behalf of the National Tourism and Promotion Industry (TPA). (Post-Courier)

Economy

The Institute of National Affairs Executive Director, Paul Barker, told The National that PNG is failing to attract domestic and foreign investors because of ‘high transport cost, costly and unreliable utilities, high risks from changing policies, inefficient public administration, weak tenure security and corruption.’ (The National)

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Last week, the Internal Revenue Commission (IRC) launched its annual work plan, Building the foundation of a robust, modern and efficient tax administration by 2020, in which the intention is to focus on seven strategic pillars. The IRC’s 2022 gross budget prediction is for K10.509 billion, an increase of 16 per cent or K1.327 billion from 2021. (Post-Courier)

Finance

BSP Financial Group Limited (BSP) has announced a net profit after tax result of K1.075 billion for the financial year ended 31 December 2021. The result is a 33.4% increase compared to 2020. (BSP)