PNG Government likely to prepare mini-budget, Pacific Assurance Group urges Bank of PNG to lift restrictions, and Lihir mine temporarily ceases operations. Your weekly digest of the latest business news.

Treasurer Patrick Pruaitch has told PNG’s Parliament that the Government is likely to prepare a mini-budget in the next couple of months. Pruaitch said falling commodity prices, and the effects of the global financial crisis, had impacted negatively on the country’s cash flow projections. He also told Parliament this week that the economy is expected to grow by 11.3 per cent, lower than the projected 15.5 per cent.

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Pacific Insurance Group’s Johnson Tia. Credit: Post Courier

The founder of leading general and health insurer Pacific Assurance Group, Johnson Tia, says industry leaders are lobbying the Bank of Papua New Guinea to lift restrictions on insurance companies making offshore payments to overseas reinsurance partners. He says payments can take up to eight weeks, sometimes longer, to make offshore payments to reinsurance partners.

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Newcrest Mining Ltd has confirmed the Lihir mine was shut for 36 hours in response to the concerns of the local community. Country manager, Peter Aitsi, says mining operations resumed yesterday evening and negotiations over the Integrated Benefits Package (IBP) are continuing.

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Ok Tedi Mining Ltd (OTML) has declared a US$135 million (K354.89 million) profit compared to US$17 million (K44.69 million) in 2013.

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Bougainville’s re-elected President, John Momis

Bougainville’s re-elected president says one of his first moves will be talking with Rio Tinto on whether it is interested in re-opening the Panguna mine. John Momis won a resounding victory after counting in the autonomous Papua New Guinea region was completed at the weekend.

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An environmental study of deep sea mining has found the environmental and social impacts of mining the seafloor will be less than those at comparable land-based sites. The study, conducted by the not-for profit, US-based consultancy Earth Economics, was commissioned by Nautilus Minerals. Country Manager, Mel Togolo, warned the report needs to be read in its entirety and the comparison was with two other existing mines in the US and Australia and a proposed mine in Equador, South America.

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Nambawan Super Ltd spent about K84 million on repair and maintenance of its properties in 2014, repairing ‘a lot of neglect in the past’, according to Chief Executive Officer Garry Tunstall.

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New Britain Palm Oil’s beef herd has increased by 12% to more than 25,000 animals since January 2014, according to Chief Executive Officer, Nick Thompson. He expects beef production this year will be more than 2 million kilograms.

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Oil Search’s Peter Botten

Oil Search Ltd Managing Director Peter Botten says the PNG LNG project is more competitive that other major liquefied natural gas projects around the world due to Papua New Guinea’s low cost base with high-quality reservoirs, and its proximity to Asia.

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Kina Petroleum Ltd has announced that drilling operations have ceased at the Raintree-1 prospect in PPL 337, and the well will be plugged and abandoned. Once the Raintree-1 rig has been released, the company added, it will then be mobilised to the Kwila-1 site.

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Fiji’s National Provident Fund is investing more than $US105 million dollars in tourism sector projects, including the 250-room Marriott Hotel, the first phase of new residential lots in Natadola, and the refurbishment of the Holiday Inn.

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Australia’s Kula Gold Ltd has completed a A$2.22 million raising with an equity placement of about 55.5 million shares in the company. The company plans to use the funds to continue exploration activities, maintain infrastructure and community programs on Woodlark Island, and to provide capital for corporate opportunities.

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For ‘security reasons’, PNG Power Ltd has announced it will no longer be accepting cash payments at its premises throughout the country. Customers have been advised they will now be required to make payments through Easipay, using Digicel, Bmobile and BSP Mobile Banking, or by cheque at PNG Power centres for accounts worth K75 and above.

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And finally, the artisan Wellington Chocolate Factory (WCF) says one tonne of cocoa beans will shipped from Bougainville to Wellington in early August using the double hull ocean going canoe, Uto ni Yalo. The shipment is due to arrive in Wellington onIn brief: mini-budget on the way for Papua New Guinea, and other business stories 10 September, after a stopover in Vanuatu. WCF raised K72,000 via crowdfunding to build drying facilities on Bougainville and for the voyage.