Papua New Guinea and Australia sign economic partnership agreement, seafood venture for New Ireland, and K200 million for SMEs still on its way. The business news you need to kickstart your week.

James Marape and Scott Morrison. Credit: NBC News

Agribusiness

The Ilimo Dairy Farm has announced that it will start feeding cassava to its cows in an effort to ensure the diet of the animals is ‘PNG self-sufficient’. Ilan Weiss, Chairman of Innovative Agro Industry, said that ‘the cassava provides a good quality carbohydrate, meaning energy, and can replace the maize.’ The cassava will be brought on a daily basis from farmers in Central Province. (Post-Courier)

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SP Brewery has reported a total reduction in sales of 40 per cent during PNG’s first lockdown, which included a ban, or severely restricted sale and distribution of, liquor. (Post-Courier)

SMEs

The K200 million designated for SMEs’ support during the pandemic has not been released to the designated financial entities (Bank South Pacific, K100 million; National Development Bank, K80 million; and Department of Commerce and Industry, K20 million). Minister for Commerce and Industry William Duma said recently that ‘necessary documents to assure the funds get across through the banks were still not finalised’ which means SMEs will have to wait to get the promised financial support. (Post-Courier)

Fisheries

The New Ireland Development Corporation, Pamex Limited and Commodity Management Partners Limited have signed an agreement to launch a seafood joint venture in New Ireland Province. (Post-Courier)

Australia

Prime Minister Marape and Australia’s PM, Scott Morrison, signed the Papua New Guinea-Australia Comprehensive Strategic and Economic Partnership (CSEP) during an online summit in Port Moresby and Canberra. The CSEP advances relations between both countries and encompasses six pillars: Strong Democracies for a Stable Future; Close Friends, Enduring Ties; Economic Partnership for Prosperity; Strategic Cooperation for Security and Stability; Social and Human Development and Near Neighbours, Global Partners. Read more about CSEP here

Resources

Work on Misima Island. Credit: Kingston Resources

In its June 2020 report, Kingston Resources announced it has successfully completed an A$8.4 million [K20.9 million] capital raising. The funds will be used to ‘progress the Pre-Feasibility Study, approvals and Resource expansion drilling at the 3.2Moz Misima Gold Project and advance exploration at the Livingstone Gold Project in WA (Western Australia)’. Kingston also said that it has secured 100 per cent ownership of Misima Gold Project, acquiring Pan Pacific Copper’s 19 per cent interest. (Kingston Resources)

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COVID-19 hasn’t had any impact on the PNG LNG export to buyers of LNG said Wapu Sonk, Managing Director of Kumul Petroleum Holdings to The National. He said ExxonMobil has ‘done a good job at maintaining operations’ and that ‘the only impact that affects the revenue is the price of oil and LNG which have been, and continues to be, very low due to the COVID-19 and the market conditions,’ he said.

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The CEO of K92 Mining, John Lewins, spoke about the increase in the price of gold, which has increased by about US$500 (K1,708.33)/ounces over the last 12 months and has reached record highs over the last week. According to Lewins, the Kainantu gold mine is set to produce 100,000 ounces in 2020 ‘so every US$100 (K341.2)/ounces increases our revenue for the year by US$10 million (K34.12mil).’ (The National)

Photograph of the week

Credit: Prime Minister Office NEC/Facebook

Last week, Prime Minister Marape launched the rehabilitation of the Awar coconut plantation in Bogia, Madang Province. Awar is one of 10 plantations in Bogia that will be redeveloped.

During the launch, Marape said:

‘We want the landowners and communities to go into agriculture and take ownership and manage such run down plantations be it copra, cocoa, coffee, tea and others. The Marape-Steven Government plans to help you by upgrading and sealing the road from Madang to Bogia and further into the East Sepik region so you can bring your copra and cocoa to the markets. We want you the people of Awar, Bogia and Madang province living along this proposed Northern Road corridor to go into agricultural activities.’