Prime Minister O’Neill on trade visit to China, state of emergency in Southern Highlands, and the future of trade tariffs on tuna exports to the UK. Your weekly digest of the latest business news.

Prime Minister Peter O’Neill

Prime Minister Peter O’Neill is leading a large delegation to Beijing to sign a trade deal that will ensure that PNG is included in China‘s free trade routes. In a media conference on Monday O’Neill reportedly said that this was a ‘very crucial visit’ planned many years in advance at the invitation of the Chinese President Xi Jinping.

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A state of emergency has been declared in Southern Highlands Province for the next nine months following civil unrest last week. Civil Aviation Minister Alfred Manase said Mendi Airport would remain closed indefinitely, all operations and activities would cease immediately and staff would be moved to other locations for their safety. The Civil Aviation Safety Authority (CASA) has been informed.

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A University of Papua New Guinea study has reportedly revealed that the country could face trade tariffs on its canned tuna exports to the United Kingdom market when Britain leaves the European Union. Unless a new trade deal is arranged, PNG will pay the World Trade Organisation applied tariff of 24 per cent for its exports to UK post-Brexit, the report claimed. Currently, PNG pays no export tariff to the UK.

At an UK-Australia investment event in London in April this year, State Minister for the UK’s Foreign and Commonwealth Office, Mark Field, promised that ‘PNG would not be disadvantaged’ by the UK’s exit from the EU.

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Seventy-five years after shepherding Australian soldiers to safety on the Kokoda track, Papua New Guinea’s ‘Fuzzy Wuzzy Angels’ have been remembered by the two countries via a joint memorial. The plinth and plaque was funded by a PNG company and built earlier this month by a team of Australian and PNG volunteers.

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National Superannuation Fund, Nasfund, has reportedly confirmed it is concluding a deal soon on offsetting its 50 per cent shareholding in Grand Pacific Hotel in Fiji. This followed a report by the Fiji Broadcasting Corporation that the Fiji National Provident Fund (Fiji NPF) has expressed interest in taking up a 100 per cent ownership of the hotel in Suva. The hotel was a joint venture between Nasfund, which held 50 per cent, and Lamana Development and Fiji’s NPF, both of which held 25 per cent.

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An artist’s impression of the ground floor lobby at Star Mountain Plaza.

PNG’s Star Mountain Plaza, which will host leaders from around the world at the APEC forum, is expected to open ahead of its planned schedule according to the developers. Data from independent reports project the Star Mountain Plaza development to bring in, over 20 years, more than $235 million kina in tourism revenue and other economic benefits.

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The Canadian company looking to mine Papua New Guinea’s seabed says it has secured finance to develop the controversial Solwara 1 Project. According to Nautilus Minerals, it has reached a US$34 million credit facility agreement for the project with lender Deep Sea Mining Finance.

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PNG produces some of the world’s best organic coffee, yet the coffee Papua New Guineans drink is of poor quality, international coffee tasting specialist and industry expert Andrew Hetzel reportedly told coffee stakeholders in Port Moresby last Friday.

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Mt Hagen airport.

Particulars of a direct air route from Jayapura, in Indonesia, to Mt Hagen in the Western Highlands Province are being finalised, according to Department of Transport secretary Roy Mumu. The sought-after route was requested by PNG Air.

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The second National Agriculture Summit is set to happen from July 17 to 20 at the Lae International Hotel in Lae, Morobe Province. Following on from the inaugural summit held in Port Moresby last year, the organising committee of the summit say they are ‘pleased’ to announce that the summit will become an annual event.

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Vitis Industries will venture into downstream processing of wine, honey, tobacco, vanilla and various coffee products in Wau, Bulolo district of Morobe Province. Speaking at the official opening of its new Mosin Fresh Cash and Carry and liquor shop, managing director Vicky Mosin said apart from coffee, Vitis will be also targeting other products within the next five to 10 years.

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About K750,000 in a week reportedly passes over the border into Indonesia’s West Papua Province, Minister for Inter-Government Relations Kevin Isifu estimates. Isifu revealed the figure when visiting the Wutung Border station with Minister for National Planning Richard Maru and vice Minister for Finance Johnson Wapunai.

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The Australian Foreign Minister, Julie Bishop, has said Australia will compete with China to ‘save’ Pacific sovereignty. According to the Sydney Morning Herald, Bishop has claimed the Australian government will give small nations ‘options’ so they are not saddled with debts that overwhelm them.

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Photograph of the week

The Kumalu River in Momeng is washing away parts of the Wau-Bulolo Highway. Kumalu flows into Snake River with the waters finally ending up in the Markham River. Photo: Pisai Gumar, The National