The O’Neill Government seeks legal advice on the Nautilus Minerals ruling and other news in brief.

Prime Minister Peter O’Neill says his government is seeking legal advice following the arbitration tribunal’s decision on the dispute with Nautilus Minerals over the 30% shareholding in the Solwara 1 deep sea mining project. A binding decision ordered payment of US$118 million by October 23. That deadline has now passed without payment. O’Neill said the government was also seeking advice on the time limit to pay for its equity.

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The PNG Government has sacked all the directors of the PNG Sustainable Development Program (PNGSDP). But chairman Sir Mekere Morauta said the company is taking legal action in Singapore to prevent the move. PNGSDP has filed a request for restitution of the shares with the International Centre for Settlement of Investment Disputes, following the O’Neill government’s expropriation of 64.3 per cent of shares Ok Tedi Mining Ltd.

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Meanwhile, the Ok Tedi mine‘s 10 landowner groups have agreed to allow Papua New Guinea’s State to run and control the mine. The Deputy Governor of Western Province, Borok Pitalok, said PM O’Neill had given assurances to the people of Western Province that they would benefit more under the new board.

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Some of the nation’s airstrips are to get a long-awaited makeover. Civil Aviation Minister, Davies Steven, has signed an agreement aimed at revitalising rural airstrips. The partnership includes Mission Aviation Fellowship, provincial governments and Airlines PNG. The Institute of National Affairs‘ Paul Barker told Business Advantage PNG the agreement has taken several years to get up, and includes subsidies for fuel and other expenses.

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Papua New Guinea’s ranking has slipped five places on the global ease of doing business list. Doing Business 2014: Understanding Regulations for Small and Medium-Size Enterprises, an annual report by the World Bank, has placed PNG as 113 out of 189 economies it assessed. Last year, it ranked 108. Palau, Vanuatu and Tonga are the region’s most improved economies.

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‘Our reputation had clearly taken a battering,’ Chairman of Newcrest Mining Ltd Don Mercer, has told shareholders over the Australian Securities Investment Commission’s investigation into claims of selective analyst briefings. MD, Greg Robinson, also told the AGM the second large driver of cost after gold prices was currency followed by labour costs. All operations are being managed to be cashflow positive at $1450 an ounce which includes $1 billion in capital spending, he said.

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The head of the Palm Oil Council of PNG has suggested transport subsidies for agricultural produce, subsidising farm inputs and reducing the cost of agriculture-related financial credit. Ian Orrell says the high cost of production coupled with deteriorating infrastructure and lack of communication and power are challenging the industry. He claims the cost of producing a tonne of palm oil is twice that of Indonesia.

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Super fund NASFUND (NCSL) has recorded a net profit of K4.8 million last year, up 14% from 2011. The  2012 annual report said NCSL posted an asset value of K11.7 million, up 13.4% from the previous year. Membership savings deposit also showed K82.7 million, a 19.7% increase from 2011.

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A NZ climate change scientist predicts tropical islands in the Pacific will face more regular heat waves of unprecedented magnitude over the next century. Auckland University’s Dr Jim Salinger is also predicting more severe droughts will occur more frequently in New Zealand and the Pacific. He says global food supply will also be challenged, with falling crop yields in countries like Australia, India and Africa.

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The postal service in New Zealand is to cut its deliveries, as customers turn more to electronic communication. From June 2015, NZ Post will make as few as three deliveries a week in urban areas. A spokesman says there’s been a 30% decline in the volume of letters delivered since 2006.

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Samoa’s Vailima Breweries has launched a new beer using breadfruit to commemorate its 35th Anniversary. Technical manager Sean Hellesoe says Samoa Breweries had to bring in about a million kilos of malt every year and has now replaced 12% of that imported malt with locally-produced breadfruit. The new brew is called Vailima Natural.

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CSIRO scientists have discovered small nuggets of gold hidden inside the leaves of eucalyptus trees which, they say, could help prospectors discover new deposits. Geochemist Mel Lintern said it appeared the trees sucked up the gold particles from 30 metres below the ground through their roots. They warn, though, you would need the gold from 500 eucalyptus trees to make a single wedding band. Former Newmont Mining Geochemist, Nigel Radford, told the ABC it has the potential to make gold exploration much quicker and cheaper.