Papua LNG spending to help restore Papua New Guinea’s foreign exchange market, Bank of China opens representative office in Port Moresby and New Porgera clarifies future payments to Barrick.

The Bank of China opened its representative offices in Port Moresby in June 2023. Credit: NEC

Resources

According to ANZ Research, inflows associated with the Papua LNG project will restore balance to the foreign exchange market by mid-2024.

IT notes that the project will, during its construction phase, represent to over a quarter (27.3 per cent) of PNG’s 2022 GDP, and in real terms deliver K18 billion in new spending. When production comes onstream in 2028, gas output will lift by 60 per cent, hence boosting total real GDP by K10 billion, which equates to 15.1 per cent of 2022 GDP.  (ANZ Research)

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After recent speculation about the shared benefits of the Porgera mine and the costs associated in paying for its maintenance since is April 2020 closure, New Porgera Limited has clarified that local shareholders (landowners, Enga Province and Kumul Mineral Holdings Limited (KMHL) will receive 53 per cent of the mine’s economic benefits over the 20-year life of the mine, with Barrick Niugini Limited (BNL) receiving the remaining 47 per cent.

Since Porgera intermitted operations, BNL has absorbed US$540 million (K1.9 billion) in care and maintenance costs. The State, KMHL and BNL have agreed that KMHL’s initial dividends will be redirected to BNL to reimburse it for these costs. All other shareholders will receive their dividends directly. (New Porgera Limited)

Infrastructure

Rendered image of the Portside Business Park. Credit: Steamships

Steamships has started to actively market its 38-hectare Portside Business Park precinct, adjacent to the port of Motukea outside Port Moresby.

Steamships Managing Director, Rupert Bray, notes the company is proactively working with the respective PNG Government agencies to have the precinct earmarked a SEZ.

‘Portside Business Park will not only generate economic activity but also promote downstream processing, manufacturing and the export of local goods and services, encourage domestic and international investment, create employment, and develop infrastructure.’

• Read Bray’s interview with Business Advantage PNG here.(Steamships)

Banking

Last week the Bank of China opened a representative office in Port Moresby. The Bank’s Chairman, Ge Haijiao, travelled to PNG to be part of the opening ceremony.

‘I want to give assurance to the Bank of China. Our economy has immediate need for having more than two banks. We are working very hard and we’ve been waiting to attract new banks into our market,’ said Prime Minister Marape, speaking at the occasion.

At the moment, the Bank of China has a Representative Office License only, meaning the office is not a branch were people can open accounts and transact, but a hub for the bank and its business in PNG and the Pacific. (NEC)

Sport

Former NRL Strategy Chief Shane Richardson has suggested in The Australian that PNG’s quickest entry into the NRL’s ‘big league’ could be via an alliance with the Brisbane Tigers.

Currently playing in the Queensland Cup competition, along with the PNG Hunters, the Tigers recently launched its official AUD$25 million bid to become the next team in the NRL in 2026.

Meanwhile, chairman of the ARL Commission, Peter V’landys, notes PNG is ‘at the top of the list’ to win the [NRL] code’s coveted 18th licence. V’landys is currently in ‘commercially sensitive’ discussions with the Australian government on ways for a PNG team to enter the NRL. (The Australian)