Treasurer Ian Ling-Stuckey announces a deal with the Bank of Papua New Guinea to improve the availability of forex in the country, the Australian Government and the International Monetary Fund pledge to help PNG in its medium term revenue strategy, and Lihir Gold Mining to pay K54 million directly to landowners. Your weekly digest of business news.

Treasurer Ian Ling-Stuckey. Credit: PNG Parliament

PNG’s Treasurer, Ian Ling-Stuckey, announced last week a deal with the Bank of PNG to release US$600 million into the market for 2020. This cash injection will help address the country’s ‘chronic foreign exchange [forex] availability’ issues.

‘BPNG has been releasing about US$30 million (K1 million) into the market [monthly]. Today, after agreement, and together with advice of the International Monetary Fund (IMF), we have been able to solicit and receive a guarantee from the Bank of PNG to release annually US$600 million (K2 billion),’ said Ling-Stuckey. (The National)

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Last week, during a forum in Port Moresby, Bruce Davies, Australia’s High Commissioner to PNG, said that the Australian Government is partnering with the IMF to help the Pacific nation in its medium term revenue strategy, which is about taxation. He said: ‘Tax is a vital source of income to any nation, including PNG, where it represents three quarters of government revenue. An effective taxation system underpins the government’s ability to deliver services and achieve growth.’ (The National)

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Lihir Gold Mining Limited will pay K54 million every year starting in 2020 in compensation and relocations benefits to the 13 groups (eight tenement landowner groups and five relocated villages) under the new Compensation and Relocation Agreement (CRA) of the Lihir Mining Project.

This figure is projected to amount to K2 billion in the next 20 years and it will have 5 per cent increases on base amounts every year to cover for the Consumer Price Index (CIP).

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A ferry point service at the old Matakan plantation is set to help passengers travelling between Kokopo in East New Britain Province and Namatanai in New Ireland Province. The ferry service will help boost economic activities in the area. ‘This is an opportunity with the ferry point established here in Matakan and you, the people of West Coast Namatanai, will benefit economically from the services that will soon be established here,’  said local MP Walter D. Schnaubelt, who has announced K1.5 million for projects in the Matakan area. (The National)

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Aireon-ADS-B.

PNG Air Services Limited (PNGASL) has signed an agreement to deploy the Aireon space-based Automatic Dependent Surveillance-Broadcast (ADS-B). Given PNG’s mountainous terrain and power outages, using this system will help to provide (and maintain) the highest standards of air-traffic safety and efficiency in the country. ‘Today’s announcement marks a significant milestone for PNGASL as we continuously strive to provide the highest standards of safety and efficiency for air traffic within and routed through our airspace,’ said Captain Ted Pakii, CEO and Managing Director of PNG Air Services Limited. (Aireon)

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In its recent PNG Investor Site Tour, Oil Search management mentioned that it is set to extend life of legacy oil assets. Its plans for Kutubu include ‘opening play for exploitation in other areas (Agogo and Hedinia-lagifu)’ while there are plans to extend the field life of Gobe. (PNGX)

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2020 Budget figures show that PNG’s annual debt repayments to China are forecast to increase 25 per cent to about $67 million by 2023. China is PNG’s biggest bilateral creditor, although the 2020 Budget documents released last week reportedly don’t disclose the total debt with China. (Reuters)

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Last week, during the opening of the new NICTA Punaha ICT Haus, the Minister for Communications and Information Technology Timothy Masiu, launched PNG’s ICT roadmap framework. The framework aims to help identify and address policy gaps in the ICT sector. ‘I want to stress on the need for capacity building within our key institutions that deliver services to our people,’ said Masiu. (Post-Courier)

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Coffee beans. Credit: James Kubina

A K4.5 million dry processing factory mill has opened in Kokopo to help coffee farmers export beans. The East New Britain provincial government owns 51 per cent of the factory; the other 49 per cent belongs to the Taiwanese company New Britain Resources Development (NBRDL). ‘Two years ago we did the ground breaking ceremony here and now we see the factory … [it] will have a great impact on people in this part of the country,’ said Ian Mopafi, Chairman of the Industry Coordination Committee, which overlooks the Coffee Industry Corporation‘s Productive Partnerships in Agriculture Project. (Post-Courier)

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Bank South Pacific (BSP) has launched its biometric registration scheme. BSP Retail General Manager, Paul Thornton, said ‘to help to protect customer identity, BSP will be requesting our new and existing customers to register their biometrics [fingerprints] at their respective branches.’ The biometrics system will be key in improving the system and providing safer and secure transactions. (The National)

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As well as reviews of the 1992 Mining Act, 2005 Mineral Resource Authority Act, and 1997 Mining Safety Act, ‘the State is looking at new policy developments which include geohazard management policy, mine waste management policy, small scale mining policy, and downstream mineral processing policy,’ according to Emmanuel Donigi, Senior Officer at the Department of Mineral Policy.

‘We are also looking at how to ensure there is visibility on the production and export to protect tax base through the establishment of the mineral production and export data repository at MRA.’ (The National)

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Photograph of the week

The three board members present at the inaugural Coral Sea Cable Company Board Meeting. Credit: Coral Cable System

The inaugural Coral Sea Cable Company meeting took place last week in PNG’s capital city, Port Moresby. The company directors Keir Preedy (Solomon Islands), Lindley Edwards (Australia) and Paul Komboi (PNG) got together to discuss ‘technical, governance and reporting requirements for the ongoing management’ of the Coral Sea Cable, which is set to increase connectivity in the Solomon Islands and PNG. (Coral Cable System)