Energy regulator announces an increase in power prices to support the rehabilitation of PNG Power, Nambawan Super threatens to lock out its government tenants and Wafi-Golpu negotations continue. Your business news in a nutshell.

Last Friday, France’s President Macron became the latest world leader to drop in on PNG this year. During his brief visit, France agreed to support PNG’s upgrade of its port infrastructure and mobilise funding and expertise to support renewable energy integration in PNG Power’s system, as well as provide assistance related to climate change. Credit: The National/PacNews

Finance

Foreign exchange orders have been taking between three and eight weeks to process this year at BSP Financial Group, according to CEO Mark Robinson. He is reported as saying BSP is prioritising foreign exchange orders related to trade:

‘We are trying to prioritise trade, which is really imports, obviously, and that would be fuel, food, medicines and other essential items, we would always push to the front of the queue.’ (The National)

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Nambawan Super Limited (NSL) has issued a final letter of notice to the State seeking payment of its outstanding rental arrears. According to a statement issued by the fund, if payment of K60 million accrued in 2023 is not received before Friday 4 August, with further consistent monthly payments, then NSL will look to conduct another lockout of several State tenancies occupying NSL buildings. (Nambawan Super)

Mining and energy

K92 Mining has awarded EPC contracts worth US$81 million (K291 million) to CITIC HIC Australia Pty Ltd, Jord International Pty Ltd and Metso Outotec Australia Limited for work related to Stage 3 of the Kainantu gold mine expansion project.

Commissioning of the mine’s 1.2 million-tonne-per-annum Stage 3 Expansion Process Plant is expected at the end of Q1 2025. (K92 Mining)

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Morobe Governor Luther Wenge has told a public forum that a special mining lease (SML 10) for the K18.5 billion Wafi-Golpu gold and copper project will be signed in November.

‘I met with the developers recently and we have agreed on this schedule,’ he is reported as saying by The National.

Meanwhile, Wafi-Golpu Joint Venture Head of External Relations David Wissink has told The National that the Wafi-Golpu Joint Venture was currently meeting with the State Negotiating Team to progress the permitting of the project. (The National)

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National Energy Authority Chairman Joseph Gabut has announced an immediate 9 toea increase across all of PNG Power‘s electricity tariffs – the first such rise since 2013.

‘Since 2013, PNG Power has absorbed all cost increases from fuel and other CPI components whilst kept the same retail tariff for electricity. It is quite clear that PNG Power can no longer survive without passing on its costs to consumers,’ he said in a statement.’ (National Energy Authority)

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In related news, PNG Power will pay independent power producer NiuPower K3 million per week to ensure the independent Power Supply maintains supply to the Port Moresby grid, according to Kumul Consolidated Holdings Managing Director David Kavanamur. The announcement follows Niupower’s notice that it would reduce power supply to the grid from 31 July for not being paid sufficiently. (Post-Courier)

Trade

PNG is set to open a new trade office in Shenzen Province, China, as early as October, according to Minister for International Trade and Investment, Richard Maru.

‘With more mining and petroleum projects coming on board, China will continue to be our biggest market in the future. We have to consolidate and deepen our relationship with China in order to secure future market not only for our resources industries but also our non-renewable sectors of forestry, fisheries, and agriculture,’ he said in a statement. (Ministry of International Trade and Investment)

Aviation

Minister for International Trade and Investment, Richard Maru has also said talks had begun with China Southern Airlines to open direct flights between Port Moresby and Guangzhou Province. (Ministry of International Trade and Investment)

Agribusiness

The Gulf Provincial Government and the Coffee Industry Corporation have signed a five-year agreement to progress and increase coffee production in the province.

‘This signing will open up ways to get coffee out and at the same time to provide training for farmers and rehabilitation to the coffee trees as well as replanting exercise to increase from current three million coffee trees to five million trees,’ said Gulf Governor, Sir Chris Haiveta. (Loop PNG)

Minister for International Trade and Investment Richard Maru and Kumul Consolidated Holdings’ Managing Director David Kavanamur are among over 30 expert speakers at the 2023 Business Advantage Papua New Guinea Investment Conference, to be held on 10 and 11 August in Brisbane. For more information and to register to attend, visit www.pnginvestmentconference.com.