United Nations’ Trivedy says Supplementary Budget is essential but not enough, Telikom and bmobile merger approved, visas for SME workers on hold. Your weekly digest of the latest business news.

Roy Trivedy

Plans for a Supplementary Budget, announced by the government, are essential but not enough, says the UN Country Representative Roy Trivedy. He reportedly said the government must also look at areas where it can reduce its expenditure. He said the government also needs to plan growth in agriculture, tourism, fishing and forestry.

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The Post-Courier reports that the Independent Consumer and Competition Commission has approved the proposed merger between Telikom PNG and bmobile. But it has withdrawn the clearance application for the proposed merger of Telikom and PNG DataCo.

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The Immigration and Citizenship Authority has imposed a moratorium on all new visa applications and extensions for working resident employment visas for foreigners engaged in small and medium enterprises in the retail business sector. Acting Chief Migration Officer, Solomon Kantha, said the decision follows concerns about increasing numbers of foreigners working in reserve businesses.

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The ANZ’s David McGowan.

The ANZ Bank has warned electronic fraud is picking up, and businesses need to be more aware of cyber security. David McGowan, Head of ANZ’s Group Investigations said there’d been attempts to steal about K1.8 million over the last five years, as a result of increasing use of technology and the lack of strong cyber security systems and processes by business. Most common attempts of fraud were card skimming, credit card fraud, merchant fraud and phishing, he said.

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The value of exports from PNG to China in 2016 was US$1.661 billion, a fall of US$224 million from 2015, according to the latest Pacific Trade and Invest report. The total value of exports from China to PNG last year was US$669.358 million, a fall of US$320 million from the previous year. China’s biggest export items in 2016 were machinery, sound equipment and televisions (US$112,627 million), while PNG’s biggest export items in 2015 were mineral fuels and oils (US$785.61million), wood (US$587.34 million) and nickel (US$200 million).

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Newcrest Mining says it paid K69.9 million in royalty payments in calendar 2016 and a further K40 million in January-June of 2017.  Newcrest recorded an underlying profit of US$394 million (K1.249 billion) for 2016-17 in results released on Monday.

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Kainantu gold mine.

K92 Mining is preparing to mine and test a 2000 tonne sample from the Kora section of its Kainantu gold mine in Eastern Highlands province. Kainantu’s current resource is over two million ounces, which includes the Irumafimpa area and Mt Kora deposit. But landowners are threatening to close down the Mt Kora mine, claiming the company had failed to honour its commitments in the project memorandum of agreement.

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PNG Power has reportedly launched its own home ownership scheme, which involves providing 15 per cent of the value of the house, up to K40,000.

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The Acting Secretary for the Department of Petroleum and Energy, Kepsey Puiye, says there are several areas in the Mamose region which could have oil reserves. He identified the areas as the Sepik/Ramu Basin, Cape Vogel Basin and the New Ireland and Bougainville Basins.

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PNG will be the first country to receive a new patrol boat under an Australian initiative to assist 12 Pacific countries’ maritime security. Australia’s Foreign Minister Julie Bishop says the first boat is scheduled to be completed in October 2018.

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PNG Air has commenced charter services to Cairns for Newcrest Mining. CEO Muralee Siva says there will be three flights a week.

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Kina Securities reportedly says it expects to report an underlying profit of K10 million and a statutory net profit after tax (NPAT) of K3 million for the June 2017 half-year.

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Crocodile skins are exported to the European market to be used in shoes and bags

PNG’s exports into the European market have increased from K1.7 billion (€500,000) to K2.8 billion (€750,000) in the last five years. The EU Ambassador to PNG Ioannis Giogkarakis-Argyropoulos told The Post-Courier the 50 per cent increased is the result of the EU’s Economic Partnership Agreement.

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And finally, Australian firm Mayur Resources plans to ship fine-grained sand from Gulf Province to Sydney. Managing Director Paul Mulder reportedly said Gulf sand was valued by cement makers and the most sought after construction sand. It is in short supply in Sydney. Mulder said it was cheaper to ship the sand from PNG.