MRA head says Wafi-Golpu mine negotiations are in their ‘final leg’, fuel prices expected to increase and coffee prices expected to drop. The business news you need this morning.

Works at Mendi Airport. Credit: National Airports Corporation via Facebook

Mining

Negotiations between the State and the developers of the Wafi-Golpu copper-gold mine in Morobe Province are ‘very much in the final leg of negotiations,’ according to Jerry Garry, Managing Director of the Mineral Resources Authority.

He is reported as saying that the details of the negotiations were confidential at this stage and that any development forum process that followed would be effective after the elections. (Post Courier)

Aviation

Construction works are progressing at Mendi Airport, in Southern Highlands Province, with an overall progress of 80 per cent, according to the National Airports Corporation (NAC). The upgrade project is being funded by the Asian Development Bank and the PNG government. Completed works so far include the aircraft pavement, security fencing, an H65 standard house, and an office facility. (Post-Courier)

Oil and gas

Despite the Government providing ‘some relief on taxes’ on fuel prices, the Independent Consumer Competition Commission has said that retail fuel prices are expected to increase over the next few months because of external factors ‘beyond our control’ such as the Russian invasion of Ukraine and China easing lockouts. (The National)

Banking & finance

Credit Corporation PNG has announced a 208 per cent increase in Core Operating Profit and a 250 per cent increase in Net Profit after Tax in the 2021 fiscal year. The company declared a total of 18.0 toea per share in dividend payments for shareholder for 2021. (PNGX)

Tower Insurance has agreed to sell its shares in its PNG subsidiary to Alpha Insurance Limited. The deal is valued at AU$7.9 million (over K19 million). Tower has said it remains committed to its Pacific operations in Tonga, Samoa, American Samoa, the Cook Islands and the Solomon Islands. ‘Our Papua New Guinea subsidiary has performed well and delivered solid results. We expect the company to continue to thrive under Alpha Insurance’s ownership,’ said Tower Chief Executive Officer Blair Turnbull. (Insurance Business)

Manufacturing

The Managing Director of SP Brewery, Ed Weggemans, reportedly said that business is up by about 30 per cent in the first quarter of 2022. The increase, he said, is result of the general election preparations and an increase in global agricultural commodity prices. (The National)

Agribusiness

Although coffee prices rose from K4.70 parchment price per kilo in January last year to K10 in January 2022, prices are likely to drop, according to the President of the Farmers and Settlers Association, Wilson Thompson. He cited factors such as the Coffee Industry Corporation’s 100 per cent levy on production, the war in Ukraine affecting coffee consumption and movement, the slow recovery of coffee after the frost, and lack of a price support program.

He reportedly said that ‘all the way to September, when [a] new government will be in place, there is unlikely to be any government intervention or actions on the coffee price.’ (LOOP PNG)