Mineral Resources Authority to prioritise Porgera and Wafi-Golpu, Papua New Guinea’s Forestry Industry struggling, and over K1.4 billion of new road contracts announced. The business news you need today.

Prime Minister James Marape announced K1.4 million for new road contracts in Hela Province. Credit: Department of Prime Minister and NEC via Facebook

Infrastructure

Over K1.4 billion of new road contracts were awarded last week, announced Prime Minister Marape during a ceremony in Hela Province. The new contracts are on top of those already under Connect PNG, the government’s road program.

The new contracts include: K159 million for the Ramu-Madang stretch of the Ramu Highway in Madang; K147.5 million for the first stretch of the Wewak-Vanimo Highway up to Aitape; K115.9 million for the Momote Airport-West Coast Road in Manus; K164 million for upgrade of Imulima Bridge-Moreguina stretch of Magi Highway in Central; K70 million for Bautauma-Imulima Bridge section of Magi Highway in Central; K138.5 million for New Britain Highway from Kimbe in West New Britain to Kokopo in East New Britain; K400 million for Yalu Bridge-Nadzab Four-Lane Highway in Markham Valley of Morobe; K50 million for sealing of Kiunga-Tabubil Highway in Western; K15 million for sealing of Daru Town roads; K66 million for Bulolo Highway resealing; and K80 million for sealing of Halimbu-Koroba Road in Hela. (Department of Prime Minister and NEC)

Telecommunications

The Independent Consumer and Competition Commission (ICCC) has raised its concerns about price reductions at the wholesale level not being being passed down to consumers. (The National)

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To further cooperation in e-governance technologies, the PNG’s Department of Information and Communication Technology and the Estonian tech company Cybernectic signed a Memorandum of Understanding at the World Expo 2020 in Dubai. (Post-Courier)

Forestry

The logging industry in PNG seems to be struggling, according to comments by the PNG Forestry Industry Association Executive Director Bob Tate. He reportedly said that continuous taxation changes in the industry and a decline in demand have impacted the sector – there are about 20 to 25 medium-size mills operating, which represent an almost 50 per cent decline compared to previous years.

Tate reportedly said: ‘The industry is looking terrible, it is depressed with nothing in the horizon in the short term to give any confidence to industry players.’ (The National)

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Meanwhile, the Managing Director of the Climate Change and Development Authority, William Lakain, reportedly said that the ‘Government is considering to end logging in the country by 2030’ to protect PNG’s rainforests. (The National)

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Mining company Mayur Resources, via its subsidiary Mayur Renewables PNG, has obtained its first forest carbon concessions in PNG. Mayur’s Business Director Sinton Spence explained in a statement that the ‘carbon credits from the forest concessions will provide Mayur with a tangible path to “net zero” for its projects’. The concessions will also enable Mayur’s participation in international carbon trading markets.’ (Mayur Resources)

Mining

K92 Mining has started the year with records in production and budget recoveries. The company has achieved the stage two expansion of the Kainantu mine and exceeded updated production guidance. Its Chief Executive Officer, John Lewins, said that the company is now looking at the stage 2A expansion, increasing nameplate throughput by more than 25 per cent to 500,000 tonnes per annum. (K92 Mining)

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The reopening of Porgera and Wafi-Golpu are the two projects the Mineral Resource Authority (MRA) will focus up to April and May. Managing Director, Jerry Garry, told The National: ‘Firstly, we want to permit Wafi-Golpu and get Porgera to reopen as quickly as possible.’ Garry also said the MRA has other two national projects to roll out this year, including a survey of potential deep copper and gold bodies throughout the country and a database to monitor copper and gold production from all the mines in PNG. (The National)

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And talking about Porgera, the Enga Provincial Executive Council has endorsed the new Porgera project framework. The endorsement is an ‘important step forward’ toward reopening the mine. (Post-Courier)

Fisheries

A K105 million fisheries hub project in Morobe Province could be a game changer for the sector. The Voco Point Coastal Fisheries Hub will have a waterfront facility for landing and unloading, space to sell fresh fish, a facility to process and distribute frozen fish and other marine products, and an office complex for the National Fisheries Authority (NFA). The hub is expected to support and improve the collection and distribution of fish. ‘It [the hub] will create an enabling environment for our fishing co-operatives, SMEs to sell their catches and for buyers, retail shop, supermarkets, institutions and catering companies,’ said Minister for Fisheries, Dr Lino Tom. The project is expected to be completed by October 2023. (Post-Courier)