In brief: 25 billion kina of mining investment in Papua New Guinea and other business stories

InBrief02

Over 25 billion kina of mining investments over next decade expected, and New Britain Palm Oil hit by kina's value. Your weekly digest of the latest business news.

At the Sydney PNG Mining and Petroleum Investment Conference, Mining Minister Byron Chan said PNG expects to see about five mining development projects with a combined capital investment expected to exceed $US 10 billion ( K25 billion) within the next decade.

In brief: Prime Minister resists arrest warrant and other stories

InBrief02

Prime Minister Peter O'Neill refuses to step aside after corruption claims, courts approve UBS loan repayments and Papua New Guinea's financial system is worth nearly K40 billion. Your weekly digest of the latest business news.

In an extraordinary week in politics, which saw the Attorney-General replaced and a new Police Commissioner appointed and then arrested, Prime Minister Peter O’Neill appears to have side-stepped a warrant issued to force him to answer questions about the … [Read more...]

In brief: O’Neill defends loan, call to boost police/military, Abbott in PNG

World 02

O'Neill defends loan to buy into Oil Search, economy vulnerable unless security boosted, Manus Detention Centre focus of Abbott/O'Neill talks. Your weekly digest of the latest business news.

Prime Minister Peter O'Neill has defended the US$1.2 billion (K3 billion) loan the government has taken out to buy a 10% stake in Oil Search. O'Neill says the loan is US$300 m (K802 million) less than the loan it replaces, the interest rate is lower at under 5% and officials are wanting to … [Read more...]

PNG Manufacturers look to the future

Workers in Lae packaging rice for the domestic market. Credit: Trukai

While 2013 was a quiet year for most of Papua New Guinea’s manufacturers, they remain positive about future prospects, as Business Advantage PNG’s exclusive survey of the sector reveals.

There is no question that Papua New Guinea's manufacturers – which account for about 9% of the country’s GDP – have been caught up in the general downturn in the country’s economy, with a combination of lower investment in the mining and petroleum sectors, lower commodity prices and a … [Read more...]

Papua New Guinea’s manufacturers seek level playing field on cheap imports

Port Moresby docks

Cheap imports into Papua New Guinea are posing an increasing threat to local producers, with reports of foreign companies ‘dumping’ goods in PNG or under-declaring the value of imports.

Imports are essential for any economy to function properly, but dumping—the importation of goods at or below their cost of production—is causing headaches for some of PNG’s producers. The General Manager of Goodman Fielder’s operation in PNG, Peter Tannahill, estimates the company loses … [Read more...]

Agribusiness [sector profile]

Planting oil palms at Ramu. © NBPOL

Papua New Guinea’s agricultural sector has a number of competitive advantages, including high seasonal rainfall, good quality soil and low-intensity methods. The absence of pesticides and artificial fertilisers presents opportunities for PNG to position itself as a leading organic producer.

Palm oil, coffee and cocoa are Papua New Guinea’s three most valuable agricultural commodities, together representing almost 80% of PNG’s total agricultural export values. Other agricultural … [Read more...]

A season of healthy growth

Sustainable, traceable palm oil has become PNG's largest agricultural export. Credit: NBPOL

Farming expertise, rich soil and high rainfall are behind Papua New Guinea’s organic strength.

Agriculture accounted for more than 30% of Papua New Guinea’s GDP in 2011, according to World Bank figures. The sector expanded at a moderate pace in 2011, with many cash crops responding to high international prices. PNG’s most valuable cash crops—oil palm, coffee and cocoa—generate almost 80% of the total agricultural export income. Other agricultural products include rubber, tea, … [Read more...]

An appetite for growth

Papua New Guinea food producer Trukai Industries (‘trukai’ means ‘good food’ in tok pisin) achieved a notable breakthrough at the end of 2007 when it began exporting long-grain rice to drought-stricken Australia, in spite of the fact that PNG grows little rice of its own.

The raw material is imported from Thailand then processed in PNG before being shipped to distributor SunRice in Australia. Trukai’s rice mill in PNG’s industrial heartland of Lae has been upgraded to conform … [Read more...]