Reforms to Papua New Guinea’s capital markets, Securities Commission of PNG to investigate the potential sale of minority stake in Trukai Industries, and Newmont and Newcrest told of government’s expectations. Your news in brief.

Minister for International Trade and Investment, Richard Maru. Credit: Ministry for International Trade and Investment

Agribusiness

International Trade and Investment Minister, Richard Maru, is querying the potential sale of the 33.77 per cent of Trukai Industries held by Melanesian Trustee Services (trustee of the Pacific Balance Fund) to Australia’s SunRice Group (which already holds the remaining 66.23 per cent of the company).

Maru said that the sale would allow a foreign company to ‘own and control 80 per cent of PNG’s rice market’. He has asked the Securities Commission of PNG to investigate the proposed deal and report back within 21 days. (International Trade and Investment Ministry of Papua New Guinea)

SMEs

Micro, small and medium enterprise owners can now access Zoneshare, a new co-working space in Port Moresby for entrepreneurs looking to broaden their networks and potentially improve their business image. The space, owned by Hitech Industries, has 30 individual workstations, free wifi and costs K90 per day to use. (The National)

Aviation

Air Niugini and PNG Air have resumed flights into Wapenamanda Airport after they were suspended on 13 June because of civil unrest in the area. (PNG Air)

Finance

PNG’s stock exchange has welcomed the announcement last month by Richard Maru, Minister for International Trade and Investment that amendments to existing securities laws will be introduced to Parliament in August 2023 to compel companies which are listed abroad and doing business in PNG to also list on PNGX.

‘This has the potential to significantly grow the PNG capital market,’ said PNGX Chairman, Mr David Lawrence. (PNGX)

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Teachers Savings and Loan Society (TISA) Chief Executive Officer, Michael Koisen, says that TISA has so far achieved three of the five licensing conditions outlined by the Bank of PNG following the issue of a provisional commercial banking licence to TISA in May. (Post-Courier)

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Tower Ltd has announced the conditional sale of its Solomon Islands business to Trans Pacific Assurance Limited. The sale price is around SBD$17 million (K7.3 million), subject to adjustments and approvals. The sale is expected to complete this year, and follows Tower’s sale of its PNG business to Alpha Insurance in 2022. (Tower)

Mining & Energy

The PNG Government has outlined its requirements for approving Newmont Corporation‘s proposed acquisition of Newcrest Mining at a meeting this week with senior executives from both companies.

‘These requirements include building a township at Nadzab (no fly in and fly out), maintaining the listing in our Papua New Guinea National Stock Exchange (PNGX), [and] provide Papua New Guinea investors an opportunity to invest in the Wafi-Golpu Mine,’  said Minister for International Trade and Investment, Richard Maru in statement. He said another requirement is that company must be domiciled in PNG. (Minister for International Trade and Investment).

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On 28 June, Canadian company K92 Mining reported the death of two workers after an ‘incident involving a vehicle on the underground main incline’. Mining operations are suspended during investigation, processing stockpiles and other operations remain unaffected. K92’s CEO and Director, John Lewins, on behalf of the company, has extended his deepest sympathies to the family, friends and coworkers of the two colleagues who lost their lives. (K92 Mining)

Photograph of the week

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Mayur Resources has commenced construction works at its Central Cement & Lime Project in Central Province. The official groundbreaking ceremony was held on 29 June and was attended by Local Member Hon Keith Iduhu, Ward Councillor Kaia Podi and representatives of local clan villages [pictured].

Construction crew, mobile machinery and building materials have arrived at the site, including two 30 tonne excavators, a 6WD all terrain truck, a D7 dozer, drill rig and service truck. (Mayur Resources)