Mineral Resources Enga signs ‘milestone agreement’ towards the reopening of the Porgera mine, negotiations for sale of Telikom PNG and Air Niugini to upgrade fleet. The business news you can’t miss.

The 2022 Business Advantage Papua New Guinea Investment Conference was held in Brisbane last week. Credit: Stefan Daniljchenko/BAI

Investment

Attendances were higher than pre-COVID levels for the 2022 Business Advantage Papua New Guinea Investment Conference held in Brisbane last week. Read our full report here.

Mining

On 18 August, Mineral Resources Enga (MRE) and the Landowners of the Porgera Gold Mine finally signed the Porgera gold mine Shareholders Agreement. The document is considered another milestone towards the reopening of the Porgera mine, which has been closed since 2019. In a statement, Prime Minister Marape said ‘the long-overdue reopening of the Porgera gold mine is finally in sight following yesterday’s milestone achievement.’ (Office of the Prime Minister)

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Canadian mining company K92 Mining has recorded strong financial results for the second quarter of 2022. The company recorded a net income of US$5.1 million about (K17.5 million), which represents a 17 per cent increase from the same quarter last year. Quarterly revenue was US$37.4 million (about K128.6 million), a five per cent increased compared with the same quarter last year. (K92)

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John Kuwimb, current Director of Kumul Minerals Holdings, reportedly said that his ‘contract will expire on 18 August’. He reportedly said the company has decided not to renew his contract but ‘have it advertised and make a new recruit’. His comments come in response to news suggesting Kumul Mineral Holdings had appointed former Treasurer Dairi Vele as its new Managing Director. (The National)

Immigration

The PNG Immigration and Citizenship Authority (ICA) has opened a new K80,000 office at Motukea International Terminal. ICA’S Chief Migration Officer, Stanis Hulahau, said about the new facility: ‘The role of the officers who are going to work here now is to physically clear or process people arriving on vessels, yachts, cruise liners and fishing vessels, logging ships, cargo ships, particularly foreigners.’ (The National)

Energy

Prime Minister Marape and a delegation of senior officials travelled to Singapore recently to meet with Fortescue Future Industries (FFI) representatives and progress the conversation on the company’s intention to harvest clean energy in PNG. Marape said that since 2021, FFI has set up project sites in Gulf Province for hydro and West New Britain for geothermal. (Prime Minister Office)

During the visit to Singapore, the recently re-elected Prime Minister also continued conversations with different representatives on Papua LNG, Pasca LNG, P’nyang, Porgera and Wafi-Golpu. (The National)

Aviation

Air Niugini is looking at replacing two of its Boeing 767s next year, when the company will celebrate its 50th anniversary. CEO Bruce Alabaster reportedly said that the airline is also looking at replacing its Fokker and Boeing 737 narrow bodied fleet.

‘We are excited to get the replacement of our aircraft and we are doing much better than during the COVID-period so we are looking forward to an exciting next five years,’ he said. (Post-Courier)

Telecommunications

A final decision on the partial privatisation of state-owned enterprise telco Telikom PNG Ltd will be reached by the government, with superannuation funds reportedly given priority in the process.

Acting Managing Director of Kumul Consolidated Holdings, David Kavanamur, said: ‘We are looking at one partner and hopefully we should complete that. But (it’s) depending on what’s on the table, and what they are offering for the assets being offered on the market. There is a certain price that we are negotiating with the potential buyers.’ (The National)

National

By the end of December last year, the government’s debt was K48.1 billion. The debt, according to Benny Popoitai, Acting Governor of the Bank of PNG, comprises K25.2 billion from domestic sources and K22.9 billion from external sources. It represents 51.6 per cent of PNG’s Gross Domestic Product. (Post-Courier)

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The Independent Consumer and Competition Commission has announced that it will defer its Coastal Shipping Industry Review to 2023. (Post-Courier)

Agribusiness

The National Agricultural Research Institute (NARI) is piloting a sweet potato conservation and utilisation project in different primary schools across PNG. The NARI sweet potato project seeks to prepare a new generation of farmers and having them develop skills earlier than expected. (Post-Courier)

Photographs of the week

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The 2022 Business Advantage Papua New Guinea Investment Conference took place on 15 and 16 August at the Brisbane Convention and Exhibition Centre. Participants heard about the latest trends in telecommunications and cybersecurity and got updates on key sectors of the PNG economy, including mining, infrastructure and SMEs. See you next year!