Datec up for sale by tender, Horizon Oil set to leave Papua New Guinea and K92 Mining plans for investment. The business news you need to kickstart your week.

Datec operations. Credit: Datec

National

A company established in August this year, Niugini BioMed, could receive US$2.85 million (K10.2 million) to work on a treatment for COVID-19 from existing drugs. Prime Minister Marape has said that the process to approve the funding hasn’t been completed yet but leaked cabinet documents, reports The Guardian, ‘appear to show K10.2 million being awarded to Niugini BioMed Ltd.’

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Enga Province is open for business. This is the message that Governor Sir Peter Ipatas gave to those who attended the signature of a landmark agreement between the Enga Power Hydro and Power China (PNG) to develop the Pilikambi Hydro. Ipatas said: ‘Enga is a last province, but in terms of service delivery Enga is first in the country and is not sleeping anymore, it is moving.’ (Post-Courier)

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Credit: Air Niugini/Facebook

Last week, Air Niugini resumed services between Port Moresby and Hong Kong after being interrupted because of COVID-19 global international travel bans.

The weekly service is operated in partnership with Cathay Pacific Airways and will include opportunities to bring essential travellers and freight, including live crabs, lobsters and other products. (Air Niugini)

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PNGX has welcomed the announcement of PNG Securities Commission’s reform and the search for a new Chairman. The reform could help PNGX move forward as it will ‘remove uncertainties’.

‘An energetic and progressive Securities Commission guided by a Board with the highest standards of ethics and performance is essential to developing capital markets which can make PNG the financial centre of the Pacific,’ said PNGX’s David Lawrence. ‘We look forward to working with the new Securities Commissioner in due course.’ (PNGX)

Telecommunications

Datec, which is owned by Telikom PNG,  has been put up for sale by tender. The Managing Director of Kumul Consolidated Holdings, Isikeli Taureka, reportedly said Datec is a ‘non-core’ business for KCH and its sale will generate financial resources for the merger of bmobile and Telikom as well as support the preparation the market entry of ATH Vodafone, which is set to become PNG’s third mobile carrier.

In an interview with Post-Courier, Taureka said: ‘Ninety-five per cent of Datec’s operations relate to the sale of paper products, laptops, printers and so on, while only five per cent relate to ISP (Internet Service provider) services … KTH has to concentrate its efforts on its primary function, which is to steadily improve the delivery of telecommunications services for all Papua New Guineans.’

Mining

A core from Kainantu’s Kora deposit. Credit K92 Mining

K92 Mining continues to deliver positive news and has announced its plans to invest US$250 million (K855.55 million) in capital over the next three years so that it can reach a production level of more than 300,000 ounces per annum according to John Lewins, K92’s Chief Executive and Director. K92’s head expects to increase the number of employees from 730 (including 130 casuals and 200 contractors) to 1000 in early 2021 and to 1500 by the end of 2022. (The National)

The mining company also announced last week some positive drilling results in the Karempe vein system at the Kainantu gold mine. Lewins said: ‘The results at Karempe highlight the strong exploration potential at Kainantu. By the end of this year, we plan to have 10 drill rigs on site … We expect to increase the number of drill rigs in 2021.’ (K92)

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Environment, Conservation and Climate Change Minister, Wera Mori, reportedly told The National that he was going to sign an ‘approval in principle’ to allow the Wafi-Golpu project developers, Newcrest Mining and Harmony Gold, to use the deep sea tailing placement method (DSTP) for mine waste. This comes after weeks of discussions between the Morobe government and landowners, who have rejected the DSTP method, preferring an on-land dam system to store mine waste.

Although Mori said ‘we will go ahead. I am ready to sign,’ Morobe governor Ginson Saonu has made clear his position about the proposed DSTP: ‘The people of Morobe have spoken, saying yes to Wafi-Golpu and no to DSTP.’ (The National)

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Horizon Oil has sold its PNG assets, valued at US35 million (K11.79 million), to Arran Energy Investments. Horizon Oil’s CEO, Chris Hodge, said that the decision to sell wasn’t easy.

‘While undoubtedly a substantial, good quality resource, our ability to realise the value in PNG was becoming increasingly long-dated and uncertain … highlighted by the impairment write-downs taken earlier this year.’ The transaction is expected to be completed in the fourth quarter of 2020.