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Inspection Trip

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China Engineers

PORT MORESBY:

A technical team from the China Machinery Engineering Corporation or CMEC arrived in Port Moresby on Sunday for a week-long inspection trip.

From the 5th to the 10th of November, they will inspect all ranches and abattoirs owned by PNG’s state-owned livestock company, Livestock Development Corporation (LDC).

The CMEC team is sent from their headquarters in Beijing, China.

The visit follows a Memorandum of Understanding signed between LDC and CMEC earlier this year as a company to company arrangement that was sanctioned by former Agriculture Minister John Simon.

Under this MOU CMEC will inspect all ranges and abattoirs in PNG and design and construct several state of the art abattoir facilities in designated sites, in line with the PNG Government’s downstream processing and food security policies.

The inspection started on Sunday afternoon at Tiaba, abattoir, 12mile, just outside the Port Moresby city.

Before inspecting the abattoir, LDC Managing Director Terry Koim took the team around the 35 hectares land to show them the potential of production if the abattoir is revived.

The engineers were amazed with the amount of land, saying with an abundance of free land, PNG has the potential to be a global exporter of cattle and China being a major beef consumer, can be it’s biggest client.

Apart from Tiaba, the Chinese delegation will also visit LDC establishments in Launakalana in Central Province, Wariman and Urimo in East Sepik, Sagalau in Madang and Baiya in Western Highlands Province.

As part of the MOU, CMEC with its vast experience in engineering design and construction of reliable power projects in well over a 100 different countries, will further assist LDC with renewable energy generation to promote commercial agriculture.

Carrying on from where the former Minister left off, Minister for Livestock Hon. Seki Agisa acknowledged Prime Minister James Marape’s visit to China last month, affirming the need for CMECs visit.

CMEC is one of China’s reputable companies entrusted to roll out vital infrastructure projects in more than 100 countries under the China “One Belt, One Road” program.

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Households Affected by Election Related Violence Receive Food Rations

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Household relief

The International Organization for Migration (IOM), working in partnership with the national, and provincial disaster centers, are distributing food rations to households affected by election related violence in Enga, Southern Highlands, Hela and Jiwaka provinces.

The relief efforts were made possible through financial assistance from the USAID Bureau for Humanitarian Assistance.

Last week, Food rations of rice, cooking oil, tinned fish, sugar, and salt have been distributed to over 700 households comprising of over 3900 people.

It has been over a year, since the Election-related violence broke out in various provinces, mainly in the Highlands region.

Food crop gardens and shelters were destroyed, which affected the livelihoods of women, children, people living with disabilities and the elderly.

The relief efforts target households headed by women and the elderly, especially those hosting people living with disability.

These homes were identified through IOM’s displacement tracking matrix information.

Community leaders and women from these areas shed tears as they noted the hardships that affected groups were dealing with. Especially in providing meals for their families.

“It will take months for us to replant and harvest our crop fields destroyed during the fight. Providing enough food for families has been difficult and we are thankful to USAID and IOM for this assistance,” said Mambu Gene, a women’s representative.

“We faced several difficulties and several families had to skip meals. We did not have enough money to buy food and this help is appreciated,” she added.

Jiwaka Provincial Disaster Coordinator, John Kupul extended his thanks to the people and government of the United States for supporting affected communities. He appreciated the partnership of IOM and Jiwaka Provincial Disaster Centre, made possible through funding from the USAID/BHA.

Kupul noted that this partnership will go a long way to improve the lives of the most vulnerable populations. “This partnership has saved lives,” he said.

Related: https://insidepng.com/stop-election-violence/

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News

PNG Prime Minister Welcomes Newmont Corporation

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Newmont Welcomed

Prime Minister James Marape of Papua New Guinea (PNG) yesterday extended an official welcome to Newmont Corporation, the world’s leading gold company, marking its acquisition of all Newcrest operations in PNG.

In a joint press conference with Mr. Peter Toth, Chief Development Officer of Newmont, Prime Minister Marape highlighted the significance of this corporate transaction. Which now places the world’s top two gold companies, Newmont and Barrick, in PNG.

“It adds value to Papua New Guinea’s global branding as an investment destination,” said Marape. “What this country effectively has now is the world’s No. 1 gold company.”

The Prime Minister also revealed that Newmont has agreed to establish its headquarters in PNG and will conduct an Initial Public Offering (IPO) on the Port Moresby Stock Exchange, enabling PNG residents to buy shares to the value of K100 million.

In the same conference, Prime Minister Marape provided an update on the Wafi-Golpu Mine project in Morobe. Indicating that the government expects to make a major announcement regarding the project at the upcoming PNG Mining and Petroleum Conference in Sydney, Australia, next month.

“We’re now at the stage where the principle of what constitutes the Mine Development Contract (MDC) and Special Mining Lease (SML) is waiting to be agreed upon,” said Marape. “We want to have these two key documents ready at the same time, and we’re hoping that at the December Mining and Petroleum Conference, we will make an announcement to the market.”

The Wafi-Golpu project, now controlled by Newmont, has a 36-month timeline to reach a Final Investment Decision. Marape expressed his confidence in the process, pointing to the successful collaboration between stakeholders in establishing an MDC and SML for the Porgera Mine in Enga.

Marape thanked Wafi-Golpu partners Harmony, Newmont, and Kumul Mineral Holdings for their commitment to the project and emphasized the importance of adhering to the agreed timeline. He also called for increased local employment and content, with preference for nationals over expatriates, and encouraged the procurement of goods and services within PNG to stimulate the local economy.

Earlier: https://insidepng.com/marape-welcomes-ramu-nickel-expansion-plans/

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Environment

Carbon Trading Benefitting Communities

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Carbon Trade

Tavolo Community Conservation Association is one success story of the future of carbon trading in Papua New Guinea.

The people living within the conservation area have benefited from school fee assistance and also household support through a family package. Thanks to benefit sharing arrangements between Tavolo Community Conservation Association, the Government of PNG and international Partners.

The Community based organization is located in East New Britain Province in the Pomio District it is the combined initiative of the people of Tavolo, Lausus and Mukus.

Chairman of the Association Peter Kikele says the association has partnered with the Government and other relevant stake holders. This is to ensure they benefit from Carbon Trading as part of their efforts in conserving large areas of forests in their area.

After the sale of their carbon credits they have a family package that they give to members of the clan. As part of a benefit sharing arrangement.

The benefit sharing arrangement involves the Government of Papua New Guinea the agencies that facilitate the sale of Carbon Credits and the clan members that have given the right for the sale of carbon from their area.

Kikele says that they are well off conserving their flora and fauna. In the past they had logging which not only destroyed their environment but also yielded minimal benefit in terms of monetary return. This time with the sale of Carbon Credits they have conserved their forests and have enough disposable income to pay for their children’s education and also build homes using modern materials. Kikele says that is a much better outcome compared to logging that happened in the past.

Recent: https://insidepng.com/capacity-building-for-environment-conservation/

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Business

Potential of Kava Industry

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Kava

Papua New Guinea is looking at maximizing its potential in establishing and commercializing a Kava Industry in the country.

The idea birthed out of a conversation during the 14th World Indigenous Business Forum held in Port Moresby. Where International Trade and Investment Minister, Richard Maru, learned from indigenous Fijian business owners that the demand for Kava had outgrown the supply.

PNG Prime Minister James Marape greets International Trade & Investment Minister Richard Maru at the 14th World Indigenous Business Forum.

Maru said the cultivation and sale of kava both in domestic markets and as a processed export product is an important source of income for thousands of smallholder farmers and their families across the Pacific.

“Because of its associated relaxing benefits and the removal of trade restrictions in many countries. The demand for kava has increased and thousands of smallholder farmers across the region are now engaged in kava production,” said Maru.

Maru said Kava has become one of the main sources of economic importance to many Pacific Island countries and as a significant contributor to GDP, foreign exchange earnings, and balance of payments through exports for some countries.

“In 2020, Fijian kava exports were worth over A$43.6 million and in 2019, Vanuatu’s kava exports were worth A$48.4 million, with these figures set to grow in coming years.

“While some of these exports are to other Pacific Island Countries, larger markets include New Zealand, New Caledonia, Europe, and the United States, partly due to the large Pacific Island communities living there.

“The bulk of this trade is associated with selling kava as a beverage.

“With a growing quantity being exported as an ingredient, for nutraceutical and pharmaceutical products,” said Maru.

The growing popularity and demand for kava in Papua New Guinea is due to more Fijians travelling into Papua New Guinea, for work or visiting families and more Papua New Guineans trying out Kava.

“Papua New Guinea has the potential to become the biggest producer of kava in the world.

“If we establish kava as an industry and undertake multi-cropping with kava being planted under the cocoa trees to fully utilize the land. So our farmers can make money from both cocoa and kava using the same land. This is one industry that is ready to boom,” Maru added.

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News

Four PNGDF Pilots Qualify

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PNGDF Pilots

Four pilots in the Papua New Guinea Defence Force have qualified as the pilots, loadmasters and maintenance personnel for the recently gifted PAC 750 aircrafts.

The up-skilling of these airmen follows the Defence Corporation Program between PNGDF Air Element and the Royal Australian Air Force (RAAF) through the Flights of Excellence Program.

Part of this program includes the recent acquisition of two new PAC 750 aircrafts by the PNGDF Air element.

PNGDF Pilots Qualify
PAC 750 Aircraft.

Commanding Officer of PNGDF’s Air Transport Wing, Nancy Wii said the future looks bright for the air element.

“Five years we had a Pac 70 aircraft in our hanger not knowing what to do. Our RAAF partners have come along, and Fenix 701 got airborne, Fenix 702 and Finex 703 ready to be airborne, our latest aircraft,” said Wii.

The acquisition of the new planes increases PNGDF’s aviation capabilities to transport a section for patrol along the land borders, maritime surveillance and provide humanitarian assistances during natural disasters.
It increases PNGDF’s PAC 750 fleet to three, following the Australian Defence Force’s support to remediate the PNGDF’s first PAC 750 in 2021.

PNGDF Pilots

Assistant Minister for Defence, Matt Thistlethwaite, said the addition of the planes supports regional security and protects the common interests of both countries.

“They will play an important role of delivering PNGDF’s long term goal of developing its sovereign aviation capability. As they are put to work, they will be supported by the joint Flights of Excellence Program,” said Thistlewaite.

PNG Deputy Prime Minister, John Rosso while thanking the Australian Government said the PNG government has not supported the Air Transport Wing for a long time.

PNGDF Pilots
PNG Deputy Prime Minister John Rosso (left) and Australia’s Assistant Minister for Defence Matt Thistlethwaite addressing the media.

Recent: https://insidepng.com/pngdf-welcomes-nuship-gilbert-toropo/

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Health

Supporting SJA

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Island Mobile Hire Cars

A hire car company in Port Moresby has gifted St John, a fully kitted ambulance. This is to help continue its work, responding to health emergencies in NCD and neighboring provinces.

The Island Mobile Hire Cars handed over a brand-new Land Cruiser to St. John worth K170,000 as its dedication to the welfare of communities in Papua New Guinea.

Island Mobile Hire Cars’ Executive Officer to the Managing Director, Malcolm Mamatta said they recognize the vital roles St.Johns play.

“We are proud to be part of their mission and to contribute this fully kitted ambulance to enhance their capacity to save lives,” said Mamatta.

Hire car company supporting SJA with a fully kitted ambulance vehicle.

The running of an emergency service like St John is costly and there were reports of St. John Ambulances stoned while ambulance officers were attending to emergencies.

The handover of a fully kitted ambulance will increase the capacity of the responses by ambulance officers.

SJA Chief Executive Officer, Matt Cannon said the new ambulance is fully kitted with medical equipment and supplies which is needed to save lives.

“The addition of this ambulance to their fleet will enable them to continue to respond promptly to accidents, injuries and other medical emergencies. Ensuring that residents in targeted regions receive the car they need,” said Cannon.

Island Mobile Hire Cars

Related: https://insidepng.com/news-march22-rotary-club-of-port-moresby-supports-st-john-ambulance/

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Autonomous Region of Bougainville

Process in Judicial Review

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Process in Judicial Review

There’s notable development made in the ongoing discussions between the Autonomous Bougainville Government and Bougainville Copper Limited (BCL) in relation to the Judicial Review Dialogue.

This includes the appointment of five Bougainvillean directors to reflect it’s local representatation.

“I am pleased to advise that good progress has been made in our ongoing discussions with Bougainville Copper Limited (BCL) aimed at amicably ending long-running Judicial Review proceedings in the National Court of PNG, “said Toroama.

In January 2018, the Bougainville Government refused an extension of BCL’s exploration licence (ELO1).

In April 2018, the Court granted a leave to BCL for a judicial review of the decision.

Toroama said much has happened since then, including the historic referendum that’s paving Bougainville’s path to independence.

“BCL has also continued its transition as a local company, and the ABG currently has 36.45% shareholding in BCL. Through this, the process of transferring another 36.45% presently held by the National Government started,” said Toroama.

Judicial Review
Panguna Mine Pit

In total, the ABG and people of Bougainville are set to have a 72.9% ownership stake in BCL.

As a result, the ABG and BCL have agreed on terms for a deed of settlement that would result in BCL ending the judicial review proceedings once the parties have delivered on a series of undertakings.

These include BCL contributing funds to assist Panguna reburials and reactivating the Bougainville Copper Foundation education scholarships program.

For its part, the ABG has agreed, consistent with the Bougainville Mining Act 2015, to reconsider BCL’s EL01 extension application with a view to extending the exploration licence for five years.

“It must be stressed that this would NOT be a mining licence; the issuance of which is subject to a separate process. BCL has agreed to file a notice with the court for the discontinuance of the Judicial Review,” said Toroama.

An extension of EL01 will allow BCL to continue its program of community support and work cooperatively with the ABG, landowners and the broader community to achieve mutual goals.

An abandoned bridge near the once busy mining area of Panguna.

Any future redevelopment of Panguna under a mining licence will inevitably require the involvement of many project partners. The ABG will continue to progress dialogue with landowners and important stakeholders in preparation for the eventual granting of a mining licence in the near future.

In the meantime, required feasibility related activities must be progressed under an exploration licence; these activities will take years to complete before the project sees actual mining development stage.

“Panguna is also a Bougainville-wide agenda given its relationship with the Bougainville Crisis. This fact, coupled with evidence of strong backing across Bougainville from prior consultative forums undertaken by the ABG in North, Central and South Bougainville supports my decision to pursue this path as President,” President Toroama said.

Related: https://insidepng.com/key-bougainville-plans/

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News

Calls for Reinstatement

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Calls for Reinstatement

Calls by Koiari Landowners for the reinstatement of Obed Batia has been echoed by the Papua New Guinea Trade Union Congress (PNGTUC).

The Trade Union Congress made the call to reinstate Obed Batia as CEO for PNG Power Limited (PPL).

The demand comes amidst mounting controversies around PPL’s management and the alleged government interference.

Anton Sekum, Acting General Secretary of PNGTUC said in a statement that the National Executive Council’s (NEC) decision to align PPL’s employment contracts with the provisions of the Essential Services Act, without declaring a state of emergency, points to “ulterior motives”. Sekum questioned why the policy specifically targets PPL employees, while other essential service providers are unaffected.

Sekum also criticized the replacement of experienced PPL staff with less experienced personnel. Claiming that the subsequent termination of employment, intimidation, and reduction of employee benefits are demotivating factors that could lead to decreased productivity.

The forced resignation of Obed Batia, along with the signing of new employment contracts prohibiting union affiliation, has received particular attention. The PNGTUC has called for Batia’s reinstatement, arguing that these actions will not help turn PPL around.

Furthermore, Sekum highlighted that the frequent power blackouts have worsened. Since the NEC-backed intervention program began at the start of the year.

Speculation continues over a K1 billion loan from a syndicate of lenders, funded in December 2022. Which will reportedly be appropriated in the 2024 budget to rehabilitate PPL. Sekum questioned why the proceeds from this loan was not included in the 2023 budget. Suggesting that parking public funds with Limited Companies could allow for disbursement outside the oversight of government apparatus.

In a call to action, Sekum urged the government to reinstate Batia, dismiss the current PPL board and its chairman, and adopt a fresh approach to resolving PPL‘s issues.

This situation continues to evolve, with the stakeholders eagerly waiting for the government’s response.

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News

PNG Closes Embassy

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PNG Closes Embassy

Papua New Guinea has announced a temporary closure of its embassy in Israel due to on-going attacks between Israel and Hamas.

PNG Foreign Affairs Secretary, Elias Wohengu released a statement dated 26th October 2023 and explained the stand PNG government has taken to temporarily close the embassy as of 17th October.

Wohengu said the two foreign affairs officers assigned to set up the embassy were recalled back because of the security concerns.

The PNG government is also aware that 18 PNG citizens departed Israel through the assistance of Australia’s repatriation exercise that was extended to Pacific Island countries at the start of the conflict.

PNG opened it’s embassy in Jerusalem in September, months before Hamas launched it’s suprise attack.

During the initial attack, Prime Minster Marape had cautioned Israel on how it should respond to the Hamas attack.

However the attacks have escalated since and the death toll is now in the thousands.

PNG Closes Embassy
PNG Prime Minister James Marape and Israel Prime Minister Benjamin Netanyahu Officiating the opening of the PNG Embassy in Jerusalem, early September this year.
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