Kingston Resources announces strategic review of Misima gold project, Digicel takes PNG Government to court as Telstra takes control, and direct flights to Fiji and Solomons return. The business news you need today.

Misima gold mine.

Aviation

Air Niugini has announced direct flights to the Solomon Islands (Honiara) and Fiji (Nadi) will recommence on 6 August following relaxation of border restrictions by both Pacific nations. (Air Niugini)

***

PNG Air is working towards the restructuring of its external debts. Once completed, the airline will release audited financial statements for 2019 and 2020. Stanley Stevens, PNG Air’s acting Chief Executive Officer, said: ‘Unfortunately, the release of the audited financial statements for those years is delayed pending completion of a restructuring of PNG Air’s external debts.’

The restructuring will improve the airline’s financial position after ‘the reduction in aviation revenue associated with the COVID-19 pandemic and the generally depressed state of the PNG economy,’ said Stevens. (PNG Air)

***

After trespassers spilled oil and broken bottles on the runway, the National Airports Corporation has announced the indefinite closure of the Wapenamanda airport in Enga Province. (Post-Courier)

Mining

Following a strong definitive feasibility study, the Board of Kingston Resources is ready to commence a strategic review of the company’s interest in the Misima gold project. The review will consider strategic options to move the mine’s development forward and maximise value for shareholders. Mining advisor ICA Partners has been appointed to support the review process. Misima has been described as ‘one of the best underdeveloped projects in the Asia Pacific region.’ (Kingston Resources)

Economic zones

It’s been reported that PNG has invited Asia-Pacific Economic Cooperation (APEC) countries and trading partners to invest in the Ihu Special Economic Zone (ISEZ) in Gulf Province. Department of Foreign Affairs and International Trade Secretary, Elias Rahuromo Wohengu, reportedly said ‘only China had responded to be part of the national project.

‘We want shipping ports open for international shipping line to export the products that would come out from the Ihu Special Economic Zone Project,’ he said. (The National)

(Note: The ISEZ’s Peter Kengemar will present to investors at the 2022 Papua New Guinea Investment Conference in Brisbane on 15 and 16 August. For further information, visit www.pnginvestmentconference.com.)

Telecommunications

Telstra has announced it has completed the accquisition of Digicel Pacific, following receipt of all necessary government and regulatory approvals.

***

According to the latest available data on internet users in PNG, only 12 per cent of the population has access to the internet, according to Alberto Cimas, Deloitte PNG’s Director of Consulting. The data shows that users do not have full or continuous internet access.

‘In other words, they simply use internet just to check Facebook once in a while, but they count as “internet users” when they shouldn’t,’ said Cimas.

‘Additionally, according to the latest data, only eight per cent of PNG’s population use social networks. ‘We can assume that only a very small percentage use social media continuously or on a daily basis. In other words, usage of social media in PNG can be considered irrelevant.’ (The National)

Taxation

Digicel PNG has filed proceedings in the International Centre for Settlement of Investment Disputes against the PNG government because of the new Super Tax law. The new law was introduced in 2021 to charge an additional tax to companies in the telecommunications sector and licensed banks that dominate the market. BSP Financial Group, the other company affected by this law, recently filed a special Supreme Court reference to declare the income tax unconstitutional. (Post-Courier)