Companies and dealers ‘adversely  affected’ foreign exchange availability in Papua New Guinea, Bougainville Government considers large-scale mining, and Asian Development Bank commits K1.7 billion to PNG. Your weekly digest of the latest business news.

Papua New Guinea’s Treasurer Patrick Pruaitch wants central bank regulations tightened to prevent falling exchange rates. He says companies and foreign exchange dealers have adversely affected the availability of foreign exchange within PNG by conducting transactions in overseas locations.

Meanwhile, the Governor of the Bank of PNG, Loi Bakanai, says tough penalties, which include fines and imprisonment, will be imposed on companies that do not comply with foreign exchange control directives issued earlier this month.

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ABG President John Momis

The President of the Autonomous Region of Bougainville (ABG), Dr John Momis, says the government is considering allowing large-scale mining because of its need for revenue. The ABG has passed the Bougainville Mining Law, which recognises that owners of customary land own all minerals in, on or under their land and gives special powers, rights and protection to owners.

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The Asian Development Bank will provide US$637 million (K1,705 million) to PNG between 2016 and 2018. The ADB’s Partnership Strategy focus on upgrading national transport networks, rural primary healthcare, urban water supply and sanitation, and access to credit through the Microfinance Expansion Project, co-financed with Australia.

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Meanwhile, the ADB‘s Pacific economist Christopher Edmonds says PNG’s government still faces a difficult task in getting benefits from growth to the country’s remote areas. But he says there is slow progress towards developing infrastructure and service delivery.

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Trading of shares in New Britain Palm Oil has been suspended, and it will be delisted on 7 April, after its takeover by Sime Darby.

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Oil and gas company Santos has too much debt in the current environment of lower oil prices and “simply must raise capital”, Credit Suisse analysts say. In a note to clients, they say the company needs the oil price to average about $US83 a barrel over the next five years to break even on a free cash flow basis.

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Kina Petroleum has announced a net profit of US$38,834,218 million (K98,090,977) for the year ending December 31, 2014.

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Frieda River. Credit: Xtrata Copper

Owner of the Frieda river gold and copper project, PanAust Ltd, has received a fresh takeover offer from its major shareholder. The bid values PanAust at about $A1.1 billion (K2.22 billion). Chinese investment group Guangdong Rising Assets Management currently owns about 22.5% of PanAust.

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The Mineral Policy and Geohazards Management Department says mining a retention licence will be introduced in the revised Mining Act. According to Acting Director, Winterford Eko, the licence would involve a five-year lease. Eko added that the revised Mining Act would also focus concerns raised by landowners regarding minerals on land they claim to own.

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ExxonMobil PNG has signed an agreement to sell 25 megawatts of electricity to PNG Power. The MOU provides for the supply of long-term gas sales to a new state-owned gas-fired power generation unit to be built near the LNG plant. Under the agreement, PNG Power will build the necessary infrastructure to the LNG plant so that the supply of electricity can begin. Work is expected to be complete in time for the Pacific Games.

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An earthquake measuring 7.4 on the Richter scale disrupted business and traffic in East New Britain this week, reports the Post-Courier. Workers ran out of their offices, shoppers left their shopping and scurried out seeking refuge in open spaces in fear of their lives. The earthquake occurred offshore about 80 km southeast of Rabaul.

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The national parliament will debate two new agricultural bills shortly, designed to transform the struggling sector. The benefits include more transparency, wider participation, greater accountability and governance, and more money for farmers.

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Coffee roasting. Credit: Pacific Islands Trade & Invest.

The Coffee Industry Corporation’s Chief Executive Officer, Anton Benjamin, has told this week’s agricultural summit that replacing old coffee trees will cost K300 million and about four billion seeds are needed. He said coffee production has been declining since it peaked in 2011.

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The CEO of The Parties to the Nauru Agreement (PNA), Dr Transform Aqorau, has denied a claim by NZ Labour Party Fisheries spokesman, Rino Tirikatene, that PNA is more concerned about income than sustainability. Aqorau says the number of fishing days sold has been the same for the last four years, ‘and there has been no significant increase in the catch in our waters over that time’.

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Almost 70 new varieties of potato and sweet potato will soon be available to Pacific Island countries, says the Fiji-based Secretariat of the Pacific Community. Peru will supply the new potato varieties. Peru, Argentina, Bolivia and Ecuador will supply the sweet potato tissue cultures. The new varieties are reported to be disease-resistant and nutrient-rich.

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A pricing review for rice products in Papua New Guinea has been launched and will examine the current structure to determine whether to continue, amend or deregulate current regulatory arrangements applying to the industry, says the Independent Consumer and Competition Commission (ICCC).