New resources projects moving forward, Prime Minister Marape tells resources industry, Fortescue’s CEO visits the Purari hydropower project and the ADB welcomes changes to Kumul Consolidated Holdings legislation. The business news you need today.

Prime Minister James Marape delivers his speech at the 2021 PNG Chamber of Mines and & Petroleum Conference. Credit: Office of the Prime Minister and NEC

Mining & petroleum

During the 2021 Chamber of Mines and Petroleum Conference, the CEO and Managing Director of Ok Tedi Mining Limited (OTML), Musje Werror, explained Ok Tedi’s mine life has been extended from 2029 to 2032.

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The Napa Napa refinery is at risk of closure at the end of the year, Hulala Tokome, Puma Energy’s Country Manager, told The National. The closure would be the result of the proposed customs tariff on imported refined fuel products, which will see a 5 toea reduction tariff for diesel and petrol. The closure would mean losing 150 jobs as well as losses in taxes to the state.

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The Oil and Gas (P’nyang LNG Project) (Amendment) Bill 2021 was passed in Parliament last week. The bill means that the changes brought to the 2020 amendments won’t generate inconsistencies with the P’nyang LNG project application process. Minister for Petroleum Kerenga Kua reportedly said ‘the gas agreement for the P’nyang gas project is anticipated to be concluded within December this year. Which will essentially include the broad terms which included the preservation of the receipt in place prior to the 2020 amendments.’ (Post-Courier)

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During his keynote speech to the 2021 PNG Mining and Petroleum Conference and Exhibition, Prime Minister Marape reassured the industry about upcoming mining and petroleum projects, and said that ‘Papua [LNG], P’nyang and, of course, the Pasca project is now being moved into our State Negotiating Team level. And for the mining space – Porgera and Wafi-Golpu remain our two projects that we are moving towards conclusion.’

Superannuation

The National Superannuation Fund (Nasfund) has signed an agreement with Digicel so that Nasfund members can make super contributions using the CellMoni platform. The CellMoni wallet can be loaded in any of the 1,2000 CellMoni Authorised Agents in PNG. (Nasfund)

Resources

Julie Shuttleworth, Fortescue Future Industries‘ CEO, visited PNG to meet with stakeholders and visit the FFI Purari Hydropower Project Camp in Wabo, Gulf Province. ‘Studies to potentially develop up to seven hydropower projects and 11 geothermal energy projects in PNG have made progress with scoping studies and an early-stage pre-feasibility study well advanced,’ reported The National.

‘If these projects were to proceed, and subject to further studies and approval, they would generate renewable electricity for the purpose of producing green hydrogen and green ammonia, creating a significant new domestic energy and export industry for PNG, which currently heavily relies on imported oil.’ (The National)

State-owned enterprises

The Kumul Consolidated Holdings Authorisation (Amendment) Act 2021 was published in PNG’s National Gazette last week and has been lauded by the Asian Development Bank (ADB) because it is a ‘key step in efforts to reform governance, increase transparency and improve performance in state-owned enterprises’.

The Act delivers several reforms that provide a clear definition of ministerial, SOE board and management roles as well as establishing processes for SOE director selection. ‘These reforms will enable KCH to ensure PNG’s SOEs are sustainable, well-governed organisations that deliver reliable, affordable, and efficient services,’ said KCH Chairman, Moses Maladina’. (ADB)

Banking

After passing the Central Bank Amendment Act 2000 last week, it’s been highlighted that the Bank of PNG Governor can only be re-elected twice and not serve as Governor for more than eight years. The current Governor, Loi Bakani, has served as for almost 12 years and his second term was set to lapse in 2023. Treasurer Ian Ling-Stuckey thanked Bakani for his ‘near 12 years of service as Governor, a long time indeed to lead any organisation, let alone one as important as the Central Bank.’ (Post-Courier)

National

Industrial gas producer Motukea Gas Company has diversified and is now processing medical oxygen. Its Managing Director reportedly said the company could produce up to 400 cylinders of medical gas a day. (The National)