The Department of Works and Highways now has a new Acting Secretary following the recent termination of the former Secretary. Prime Minister (PM) James Marape on Tuesday 13th August confirmed that Cabinet has made the decision to appoint Deputy Secretary, Mr. Gibson Holemba to replace former Works & Highways Secretary Mr. David Wereh. The prime minister also confirmed that Mr. Wereh is being posted overseas to take up appointment as Papua New Guinea’s ambassador to the Philippines. Marape said a formal letter signed by the Governor-General effecting the decision has been dispatched to Mr. Wereh, and that he was looking forward to seeing a smooth transition. “Cabinet has made the decision to get Mr. Holemba to take the place of Secretary Wereh, who, in an earlier Cabinet decision, is being transferred to the Philippines as the PNG ambassador to the Philippines,” said the PM. “The Public Services Commission and Department of Personnel Management have initiated this process while they find a permanent replacement. “Three deputy secretaries were shortlisted, and Mr. Holemba was appointed by a majority Cabinet decision as the acting secretary. Mr. Holemba will remain so until the Department of Personnel Management advertises the position for someone to take up the position on a permanent basis.” Prime Minister Marape acknowledged the contributions made by Mr. Wereh during his time as Secretary for Works & Highways, especially in implementing the Connect PNG Programme. “On behalf of the country, I want to offer our highest commendations to Secretary Wereh. He served well, with high work ethics; he is the author of Connect PNG Programme, and his legacy will remain. “During his time, he has maintained decorum and high works standards at the department, but it is best to move on after holding the position for some time. It is good for his career that he moves on to another place to allow someone else to come in so that we do not compromise Connect PNG Programme,” said PM Marape.  On concerns raised by former prime minister and Member for Ialibu-Pangia, Peter O’Neill against Mr. Wereh, Prime Minister Marape said Government is taking this seriously and will be investigating the claims. “Mr. O’Neill did raise some serious issues in terms of how the Works department was run, among them concerns about contracts being given to one or two contractors only. This will be investigated. “But the major focus of our government to open up the country with enabling infrastructure remains and we will continue this going into the future,” said PM Marape.

Tax holidays, although a good incentive for investments especially in the extractive industry, has the potential to lead to poor tax revenue collection from the sector in the long run. This was revealed in a research which was conducted by Ms. Ann- Tania Sipori at the recent 2nd Geoscience, Exploration & Extraction 2024 (GEE 2024) Conference in Port Moresby city. Before presenting the findings of her research to the audience in a packed APEC Haus, Ms. Sipori, who is the Mineral Resources Development Company (MRDC) Technical Manager, made it clear that the research she conducted was independent and does not reflect the views and opinions of the MRDC. She said a tax holiday is something to be reconned with because of its pros and cons in tax revenue for the country, which may lead to people having to pay higher taxes. She said it is a topic that not everyone wants to talk about, hence the reason for her independent research. She deduced from the research that a tax holiday is not the only form of incentive that a government can give to major developers in the resource sector as there are other forms of incentives that can be used such as Capital Gains Tax, which is a levy placed on profits from the sale of an asset. Ms. Sipori said Papua New Guinea (PNG) needs to look at countries like Indonesia and even Australia on how these countries manage their incentives and tax holidays. She said there are different varieties of tax holidays and there are different applications for tax holidays for different settings, and it also depends on the kind of project agreement signed with an operator. “These agreements are key to how tax holidays are interpreted,” she further explained. However, she concurred that there are some advantages to tax holidays acting as incentives. “Part of it is attracting new foreign investors, but from the MRA (Mineral Resources Authority), exploration has decreased, so did the tax incentive work?” she questioned when referring to what the MRA said at the GEE 2024 Conference on the decline of mining explorations in the country over the past few years. “Is tax holiday the only trump card to securing direct investment, no. It may be ineffective to promote business because we have just seen the decrease in exploration activities." She concluded by saying that there are options to collecting tax revenue, especially from the extractive resource sector and that should be explored further by the State instead of just looking at giving tax holidays to major developers in the future.

Two mine villages in the Western province will finally be connected to the rest of the province thanks to a new road link that is currently in the works. The funding of this road link project is facilitated by Ok Tedi Mining Limited (OTML), through the National Government’s Tax Credit Scheme (TCS) and OTML has already awarded the road construction contract worth K36.1 million from Atemkit to Kavorabip in North Fly district. The 28.74 km road will serve as a critical link for the two villages of Atemkit and Kavorabip, whose people include the principal landowners of the Ok Tedi Mine operation. Currently, the two villages are only accessible by helicopter. “The people of Atemkit and Kavorabip are principal landowners just like the people of Finalbin and Bultem. Unfortunately, it took Ok Tedi and the Government too long to recognise them through such infrastructure projects,” said OTML Managing Director & Chief Executive Officer Mr. Kedi Ilimbit. “Today we are witnessing the signing of a road construction project that will link these very people to the rest of Western Province,” added Mr Ilimbit. Fly Engineering & Asset Management Limited (FEAML) a local company was awarded the project, which is expected to be completed within 30 months. FEAML Managing Director Joel Dangkim, expressed his sincere appreciation to OTML for being the successful bidder and committed to completing the project to expectations. Meantime, the member for North Fly district, James Donald thanked OTML and the National Government for their collaboration in having the project approved for delivery. “Though this has taken a long time, we are thankful and grateful for this project to finally begin,” said Mr. Donald. Also present at the signing was Western Governor, Taboi Awi Yoto, who thanked the landowners and people for supporting the mine over the years despite the challenges faced.

Poultry farming in the East Sepik province is set to further expand with a new hatchery established in the Yangoru- Saussia district. This new hatchery, located at Haripmo Farm, should enable the province to produce its own day- old chicks to supply the out-grower farmers starting in September. The new hatchery has the capacity to produce 20, 000 day-old a week, says the Farm Manager, Mr. Chris Prestwood. “We will start with producing 5,000-day-old chicks on September 1, 2024, and will ramp up to between 10,000 to 20,000 chicks a week,” Mr. Prestwood said. The Minister for International Trade and Investment and Yangoru-Saussia MP, Richard Maru is excited about this latest development in his electorate. “This is a very exciting news for the province as we will be able to support thousands of families in the district and two Sepik provinces to go into owning village-based chicken farms.” The people from areas along the Sepik River said it cost them up to K150 to buy a whole life chicken, which Mr. Prestwood described as ridiculous. “This ridiculous price will be a thing of the past for our province, with the day-old chicks being produced at our own farm under our Sepik Fresh label. We are happy that wholesalers in both Maprik and Wewak are already lining up to order from the farm to sell day-old chicks as distributors and our own people can go to the farm to place their orders,” said Minister Maru. He also added that the farm needs to be expanded next year to meet the demand for eggs, chicken meat, day-old chicks of both East and West Sepik provinces. “Chicken will become a major livestock industry in our two provinces, especially when our village-based chicken out- growers have their regular supply of day-old chicks produced at the Haripmo Farm to supply their total demand so they don’t have to wait for day-old chicks from Lae.”

The people of Yangoru- Saussia and Angoram districts of the East Sepik Province (ESP) can expect better access to services and to the main centers all thanks to a newly set up bridge. The local Member of Parliament (MP) for Yangoru- Saussia and Minister for International Trade and Investment, Richard Maru, told his people that the long awaited Bararat Bridge in the Sepik Plains is now up and positioned. “This next three weeks the contractor, China Shenyang International Corporation, will concentrate on the causeway. This bridge is set to be completed over the next four weeks and ready for opening,” said Minister Maru. Tears of joy flowed freely as the local people of Sause and Angoram deep in the heart of the Sepik Plains, realized their lifetime dream of finally getting a bridge to connect them to the provincial capital Wewak, will soon become a reality in weeks after 49 years of Independence. The new bridge will also see 14 village in both Yangoru-Saussia and Angoram districts connect all the way down to Timboli where the Middle Sepik High School is located. Minister Maru added, “To God be the glory for the great things He is doing in transforming our Yangoru-Saussia District.”

Prime Minister (PM) James Marape has given his assurance to companies operating in the extractive industry that his government continues to support the mining sector. The PM when giving his keynote address at the official closing of the 2nd Geoscience, Exploration & Extraction 2024 (GEE 2024) Conference in Port Moresby city on Friday 09th August, said his government is doing this through reforms to mining policies and laws with aim to get in the right investors to do explorations and developments in the countrys mining sector. He then went on to reveal to the participants, international guests and heads of major mining companies that policies are being developed in the backroom of the government think- tank that would encourage transparency in securing the investments of true potential companies to develop the mining sector. We are looking at a transparent way of ensuring the best companies are participating in exploration as well as development of our resources, and also the mining department as well as MRA (Mineral Resources Authority), are asked to look at the possibility of putting our resources to auction. The auctioning of mineral resources is one of many approaches to assigning mineral rights to developers. Rights are sometimes assigned via informal processes such as first- come- first- serve, or other formal processes such as administrative processes. However, the advantage of an auction is that it is a competitive and transparent method of assigning rights, and maximizing revenues for developing countries. So, we are looking at this. The first- come- first- serve is the first law to go in as far as the reform we are pushing for next year (2025). He explained that this approach should put a stop to companies that do not have the capacity to do business in the resource sector from getting exploration and development licenses and environmental permits. Marape said PNG has 100million ounces of gold in the ground and only 20million ounces have been extracted. That is in addition to sufficient resources in copper and silver yet to be extracted. As such, it is vital that the right investors are engaged in exploration and development. We are seriously looking at the laws so to ensure we protect the environment in the context of resource harvest, but at the same time, we get better return on investments for our country, so as those who chose to invest in our country. PM Marape then went on to encourage more investors to invest in the mining sector, stating that PNG remains a free market economy that is governed by democracy and a very independent robust court system.

Alluvial gold mining continues to play a significant part in the country’s resource sector with its annual export revenue contributing significantly to the nation’s annual budgets; however, there negative implications that come along with it. These negativity impacts were stressed by Mr. Rodney Biri, who is a tutor for Agriculture Research at the University of Goroka in Eastern Highland province. Mr. Biri, who hails from Central Bougainville, shared his experience with PNG HAUSBUNG at the margins of the 2nd Geoscience, Exploration & Extraction 2024 (GEE 2024) Conference in Port Moresby after giving an enlightening presentation on the subject. He said alluvial mining or small-scale mining, poses a significant threat to the environment with the use of the liquid metal mercury and the methods used to extract the gold deposits. Meanwhile, Mr. Biri also thanked the Mineral Resource Authority (MRA) and its sponsors for hosting the GEE 2024, stating that it has given him the opportunity to talk on this important matter, and helped him to appreciate the other important matters as well in the resource sector. “I find it very helpful in that people come in and share their ideas. People talk about mining, and I realized that no one was talking abut the impacts of alluvial mining. I was the only who did, and it was greatly appreciated by the participants.”

Employees at the Ok Tedi Mining Limited (OTML) from the Enga province have successfully raised K80, 000 to support their affected people in Mulitaka following the landslip in the Enga province. The proceeds are from cash donations from the Engan workforce and community in Tabubil as well as a corporate dinner hosted in Tabubil that was attended by the Tabubil business communities including OTML. Speaking at the corporate dinner recently, the group’s lead, Edward Maiapu said, “Although the Mulitaka incident has garnered a lot of support from PNG and the global community, there are certain social issues in the affected three villages that the community cannot utilize the donated funds to resolve. This includes the customary obligations of compensating death to ensure peace prevails.” Seeing this need, the OTML Engan workforce decided to raise funds to address this issue to ensure the families of the deceased come to terms with the loss. Mr. Maiapu said the team plans to present the fundraising proceeds to the leaders of the three impacted villages in the coming weeks. OTML Managing Director and Chief Executive Officer Mr. Kedi Ilimbit commended the Engan workforce for taking the initiative to raise funds for a much needed and culturally important issue that emerged from the Mulitaka Disaster. “The Engan workforce have shown us that they are from the area, have done their due analysis of the impact and found an area that would be left unattended to, thus they took the lead in providing a solution for that,” Mr. Ilimbit said. “Such an initiative is to be commended and sets a precedent for us here at OTML and also across PNG to stand up and do what we can within our means to assist in any given situation.” OTML is a 100% PNG owned mine and is committed to conducting its operations in an environmentally, socially, and economically responsible manner that respects cultural heritage and human rights. OTML will be announcing its donation support to the Mulitaka Appeal soon.

Injuries and deaths are a constant concern for operators in resource projects and although relying on traditional methods to prevent such risks, the introduction of new technologies have very much improved safety in mining or even petroleum projects. In today's second session of the 2nd Goescience, Exploration & Extraction Conference in Port Moresby, this topic was presented by Ok Tedi Mining Limited (OTML) expert in safety Mr. James Bu, who stressed that integrating the latest in technologies in assessment and monitoring is key to safety especially with Slope Failures, a serious risk in mining operations. On that note he said OTML is taking lead in investing in new technologies and training of engineers and geologists on the use of the technologies so to manage operations safely. "It's a change in the risk management in the mine activities, said Mr. Bu. New technologies introduced like satellite monitoring, radar methods and software advancements have helped a lot. Mr. Bu said these technologies have helped engineers and geologists make informed decisions so to prevent incidents and saving lives. He added that he continues to further work with software developers to establish an integrated system whereby all data on the monitoring of slope failures can be accessed on a one stop shop platform to better monitor, give warnings on soil movements, slope stability and potential slope failures. OTML is located in the remotest part of Western Province and operational risks are constant, hence the mining company continues to invest in safety and maintain international standards in mine safety.

Perhaps one of the important sectors in the extractive resource business in Papua New Guinea (PNG) is alluvial gold mining, it has contributed quite a lot in mining revenues over the years, but activities in this sector has gone down in the past couple of years. This was revealed by the Managing Director for Mineral Resources Authority (MRA) Mr. Jerry Gerry when giving his keynote address at the opening of the 2nd Geosciences, Exploration & Extractive Conference (GEE 2024) in Port Moresby city yesterday. Mr. Gerry, when giving an update on the overall progress of the country’s mining sector, said alluvial gold mining or small-scale mining, has declined significantly. “We’ve seen a drastic decline in the last three years,” said the MRA Managing Director. “Last year it went down to around 36, 000 ounces from over 120, 000 ounces.” According to data on a graph which he referred to on the alluvial gold mining sector, 2008 saw an increase of production from 80, 000 ounces per annum to over 120, 000 ounces per annum in 2019. Fast forward to 2023, that figure was reduced to 32, 274 ounces per annum. That is an export value of K247million. Mr. Gerry later explained that assessments are being carried out to determine the cause behind the drastic reduction of activities so to revive it. The sector itself employs over 40, 000 to 80, 000 people.

The fuel prices for this month will slightly increase for all three petroleum products across the country starting today, Thursday 8th August. The Independent Consumer and Competitions Commission (ICCC) announced that the Indicative Retail Prices (IRP) for petrol, diesel and kerosene will increase on average throughout Papua New Guinea (PNG). These retail price increases were mainly attributed to higher oil demand in the United States (US) and the ongoing geopolitical tensions in the Middle East. The domestic retail fuel prices for this month are inclusive of the Import Parity Prices (IPPs) or the imported costs for each petroleum product, domestic sea and road freight rates for the third quarter of 2024, the annual wholesale and retail margins for 2024, and Goods and Services Tax (GST), including the applicable exercise duties, among other parameters. After adding all the various cost components, the maximum retail price movement for fuel in Port Moresby city will see petrol increase by 10 toea from K4.51 per liter in July to k4.61 per liter in August, diesel increase by 2 toea from K4.35 per liter in July to K4.37 per liter in August, while kerosene increase by 1 toea from K4.05 per liter in July to K4.06 per liter in August. The fuel retail prices in all other designated centers will change according to their quarterly approved domestic freight rates for the third quarter of 2024, and their respective annual retail margins for this year. The ICCC also states that as part of its enforcement and compliance of fuel prices, its Investigative Officers will conduct inspections to all service stations to ensure prices of declared petroleum products comply with the allowable maximum prices in the country. The ICCC officers will conduct compliance inspections in Lae, Mt. Hagen, Kokopo and Port Moresby cities. Inspection Administrators in other provinces will be supported by ICCC Agents and respective Provincial Administration in those provinces.

The 3- day 2nd Geoscience, Exploration and Extraction (GEE) Conference 2024 commences today in Port Moresby city with much to discuss on finding that fine balance between extractive resource projects and the maintaining of the environment. The GEE Conference is aimed at bringing into one room, geoscientists, engineers, NGOs, academics from Papua New Guinea (PNG) and overseas to share ideas, experiences and research findings. The general idea is to share information and utilise these data to PNG’s advantage in terms of the nation’s development, not just in the mining sector, but other sectors of the economy as well. This was further stressed by the Managing Director, Mr. Jerry Gerry when delivering the opening remarks on behalf of Prime Minister James Marape, who couldn't make it this morning due to other engagements. Mr. Gerry said geoscience intertwines with all other sectors, including environment protection. Having said that, Mr. Gerry explained that countries like Papua New Guinea (PNG) depends on the resource sector; mining and also petroleum. PNG's export revenue on resource projects makes 80% of revenue and it's something that makes a large part of the country's economy; however, he said working together to find that balance between extraction and preservation is important. He said the main concern is how a country can extract minerals at a sustainable manner, and this can be achieved through proper research by institutions and stakeholders in sustainable extraction. "Our involvement in geoscience is a calling to understanding all resources across planet earth," said Mr. Gerry. "How can we innovate; how can we extract responsibility?" He said new techniques are required, and the focus is now more on greener methods to extracting responsibility, and minimizing harm in the environment calls for the need to discuss further on this matter. As such, he encouraged all participants in the conference to have dialogue, share ideas, research findings so to put out there the suggestions and recommendations going forward. The Conference's theme is "Research & Innovation in Geoscience, Extraction & Extraction for Sustainability", and will run from the 7th to the 9th of August.