OTML suspends production to fix ruptured pipeline

OK Tedi Mining Ltd has temporarily suspended production at the Ok Tedi mine following concerns over a series of small ruptures in the company’s pyrite pipeline, The National reports.

The pipeline, commissioned in 2008, transports pyrite concentrates 128km from the tailings processing plant at the mine, along the Tabubil-Kiunga highway and on to Bige to underwater storage pits.

Four small ruptures occurred in some sections of the pipeline in the past weeks causing spillage in a localised area along the highway.

Although the ruptures had been repaired and a clean-up programme implemented, OTML board and executive management had decided to take a cautious approach and have suspended ore production at the mine and mill to allow further investigations and tests on the pipeline.

This would determine the cause of the problem and provide information for redesigning and upgrading of the pipeline to prevent these failures occurring again.

OTML environmental science officers and community relations staff were engaged in testing and monitoring the environment surrounding the ruptures in addition to supervising the clean-up operation.

Managing director Nigel Parker said yesterday: “We are taking a careful, responsible approach to managing the situation and are consulting with affected communities and with regulatory authorities including the Western administration and the Mineral Resources Authority.”

 

K17 billion for free education

But, Sir Julius says: Dump your MPs if they fail to provide

 

By JEFFREY ELAPA

 

FREE and universal basic education in the country will cost the government more than K17 billion over the next decade, Education Minister James Marape said during debate in parliament last Friday, The National reports.

He said a cabinet meeting in Wabag last year decided on free education and that had been endorsed by the national executive council.

Marape said as a responsible government, it had to consider other important sectors to make sure they did not stuff up "when a large chunk of money is injected into free education".

New Ireland Governor Sir Julius Chan said education was a right, as stipulated under the United Nations charter, and the government should provide free education.

"First and foremost is the future of the nation and, in order to have a literate society, the government should invest in education," he said.

Sir Julius said none of the nation's wealth was going to the people and the only way was to give free education to children.

"It is the best way to distribute wealth and it is best to invest in our human resources."

He said through free education, "money will be put into the pockets of the people, which will then raise their standard of living".

"It is time for the people to demand free education from their political representatives.

"If they do not do that, then throw them out in the 2012 general election," Sir Julius said.

He said if he could provide free education in his province, "there is no reason why the government cannot" do that.

 

Sir J: Demand your MP for free education

FORMER prime minister and New Ireland Governor Sir Julius Chan has bluntly told the people of Papua New Guinea to throw out their respective members of parliament in the 2012 general election if they are not willing to provide free education, The National reports.

Sir Julius and his government have lead the way in providing free elementary and primary education through to Grade 8 since 2008, subsidising 75% of fees for Grades 9 to 12, providing K1,200 per year for all provincial students in tertiary institutions and providing four post-graduate scholarships at K50,000 per annum for specially selected faculties like mining engineering, environment, fisheries and agriculture.

He told parliament last Friday that the people of PNG should demand the national government do what the province had already done and provide free education for all children.

 "The grassroots people of this country are hurting and the LNG project has done them no good  – it has only forced the prices of rice, bread, tinned fish, rental and other costs to double and triple," he said. 

"The rich are getting richer and the poor are suffering."

Sir Julius said if the government wanted to help the people of this country, "help the future of this country, they should provide free education now".

He said free education not only ensure a bright future for children but it would put thousands of kina in the pockets of hard working mothers and fathers.

Sir Julius said the government had talked about universal primary education for years, "but they have done nothing".

"This is unforgiveable, look at the billions of kina of wealth coming out of 'mama and papa graun' and where does it go? 

"It should go, first and foremost, towards the future of our country, towards providing education for all our young people and towards putting some kina in the pockets of their mothers and fathers."

He said his province spent K12 million every year for free education. 

"We constantly hear about how strong our economy is, about the 8% growth and about how great the LNG project is and about how much money we are earning from high gold and copper and oil prices. 

"But none of this seems to get to the people on the ground."

Sir Julius said the people should demand that "government provide free elementary and primary education in the 2012 national budget, and that they extend this to at least 50% subsidised secondary education in the 2013 national budget".

"It is time for the people to take control of their government. And it is very simple.  Every NGO, every community-based organisation, every women's group, every village planning committee, ward development committee, LLG and province, every man and woman in this country should write, phone or talk to their national MP and demand; demand that they support free education in the 2012 budget.

"And they should make it clear if their MP does not support free education, he will be thrown out of office at the 2012 elections and replaced with someone who will."

He said if the people spoke with one voice, politicians would have no choice but to finally become the servants of the people instead of being the masters.

Crop diseases hit Madang

THE cocoa pod borer and the Bogia coconut syndrome have struck Madang, threatening efforts by the Kokonas Industri Koporesen (KIK) and the Cocoa and Coconut Institute (CCI) for the province to be the leading cocoa and coconut exporters, The National reports.

KIK and CCI chairman Sir Makena Geno last week told of the re-emergence of the diseases on Karkar and the other five districts.

Sir Makena was in the province for the launch of the cocoa coconut improvement project and the presentation of five sawmills to five vocational schools – Karkar, Danip, Talidik, Ramu and Simbai.

He said the two diseases would be destructive if serious networking between educational institutions, business houses, civil society organisations, non-governmental organisations and stakeholders did not exist.

Extending an invitation for these bodies to join in the fight, Sir Arnold Amet gave K1.32 million for the provision of 2,000,000 cocoa trees and 100,000 coconut trees to be provided by CCI and KIK under a memorandum of agreement signed that day.

Sir Makeno, in accepting the K500,000 cheque for seedlings and nursery materials to be provided with technical expertise for interested  farmers in the six districts, said these two pressing issues would now be their main focus.

He said his area of concern would be to eradicate these diseases before “it kills the industry as well as the growers’ interest”.

Of the money, K250,000 will be for a coconut mill at Murunas; K500,000 for cocoa seeds; K125,000 each for the two new 10-seater vehicles, one for the police and the other for monitoring the projects by the provincial government.

Through this MoA, the Madang government aims to raise an annual export of K16 million, at K8,000 per tonne with a target population of 48,000 people to be impacted by the cocoa and coconut improvement programme.

He said K820,000 had been spent to get the five sawmills to be set up at the vocational schools with training to be provided for locals under the technical vocational education training.

Service to the nation

Policewoman Maureen Undaba was among more than 100 people recognised for their services to Papua New Guinea at this year's Order of the PNG New Year awards investiture ceremony held at Government House yesterday, The National reports. 

It was also Governor-General Sir Michael Ogio's first official investiture engage  ment since he was sworn into office.

Undaba was recognised for her services to law and justice.

Former Catholic archbishop of Port Moresby Sir Brian Barnes, former politician Sir Akepa Miakwe from  Unggai-Bena in Eastern Highlands and Madang businessman and former politician Sir Peter Barter were also among those awarded.

 

Nautilus to raise US$153.32mil for Solwara-1

CANADA's Nautilus Minerals intends to raise US$153.2 million for its deep-water polymetallic mining operation for its Solwara-1 project in the Bismarck Sea through a public offering of shares, The National reports.

The planned offering would be conducted through a syndicate of underwriters led by TD Securities Inc and Credit Cuisse Securities Inc, Nautilus said.

The company said proceeds from the offering would be used to fund the development of the Solwara-1 copper-gold project.

Proceeds would also be used to fund the company's equity contribution associated with the production-support vessel joint venture agreement, and for general working purposes, Nautilus said.

The offering is expected to raise gross proceeds of approximately C$150 million.

The company also will grant the underwriters an  over-allotment option to purchase up to that number of additional common shares equal to 15% of the common shares sold pursuant to the offering.

The option will be exercisable for a period of 30 days following closing of the offer.

The company intends to use the net proceeds from the offering to fund the development of the Solwara-1 project, to fund the company's equity contribution associated with the production support vessel joint venture

agreement and for general corporate purposes.

Final pricing of the offering will be determined in the context of the market prior to the filing of the final short form prospectus.

Nautilus said the common shares would be offered in all provinces of Canada except Quebec by way of a short form prospectus and other jurisdictions outside of Canada pursuant to applicable private placement exemptions.

Our money woes

PAC takes govt to task over public accounts

 

By FRANK SENGE KOLMA

 

PARLIAMENT was yesterday asked to declare that there are no public accounts for 2007, The National reports.

The parliamentary Public Accounts Committee (PAC) made the recommendation after it found that the records of financial receipts and expenditures for that year were "unreliable, incomplete and not based on proper records or accounts".

This state of collapse persisted across the entire public sector in 2008 and, despite slight improvements in 2009, the condition persisted last year and in the first four months this year, the PAC reported.

The three reports tabled yesterday, covering 2007, 2008 and 2009, were scathing and pointed. No department, provincial government and national agency or entity was spared.

Treasury and Finance Minister Peter O'Neill described the reports as "embarrassing".

O'Neill said this after PAC chairman Martin Aini presented the reports.

"It is quite embarrassing. We all know of the systematic breakdown in the public service and it is a matter that the government is addressing," O'Neill said.

"We will take the PAC recommendations very seriously and we will deal with certain officers implicated in the report."

The following was typical language throughout the reports tabled yesterday:  "Corporate governance remains poor, internal controls are weak or non-existent, accounting is poor or failed, financial statements remain unavailable, accountability and transparency are poor, reconciliation of internal finances is poor or non-existent and staff competence and resourcing of a majority of entities is inadequate.

"The situation with trust accounts is no better.

"By 2007, the public service had illegally assumed unfettered power and discretion over the use and application of trust monies regardless of appropriations in many instances."

It had become so that parliament had been asked to exert its authority over the entire public sector to return fiscal discipline and accountability by censuring departmental heads, chief accounting officers and to dissolve and restructure the entire Department of Finance.

Presenting the reports, Aini said: "The committee rejects the public accounts of PNG for the financial year 2007 as unreliable, incomplete, misleading, untimely and of limited value to users.

"This is a serious finding and one that requires immediate address by parliament."

The auditor-general, whose constitutional role was to inquire into and report on all public accounts, had disclaimed the public accounts for the same year.

Among others, Aini said his committee had found that:

*Monies had been spent in excess of the appropriation limit or without valid appropriation;

*Monies were spent in breach of the constitution;

*Cheques where backdated to the previous financial year;

*Constitutional requirements were ignored;

*Entire departments were incapable of reconciling their own small internal back accounts for years;

*Huge and illegal cash advances were made to officers;

*There existed no accounting manuals, no performance plans and reports; and

*Heads of departments and senior public servants were untrained, ignorant of their duties and were incompetent and in many cases immune to the operation of the law.

This indictment on public accounts and records on the handling of money continued into 2008 where, in addition to national departments, provincial governments and local level governments, hospital boards' business arms and statutory corporations and all provincial authorities were also found to be non-existent and unreliable and incomplete.

This state of affairs pervaded at the district level where the government's popular district services improvement programme (DSIP) funds had been distributed.

The PAC reported "slight improvement" in the making, keeping and submission of accounts in 2009 but, for the most part, the overall management and recording of transactions with public monies, property and stores "remain poor and failed in many cases".

Asset lists did not exist so it was difficult to keep track of what was owned by the state.

Aini said: "These failures have resulted in deteriorating services to our people and a failed system of delivering development to our citizens.

They are also matters of

profound national embarrassment.

"These failings continue to the present time, unaddressed.

"The committee has tabled 20 reports to this house with similar findings and detailed recommendations, yet, they have not been debated or considered."

O’Neill: Reports embarrassing

TREASURY and Finance Minister Peter O'Neill described the parliamentary Public Accounts Committee report to parliament yesterday as "embarrassing", The National reports.

O'Neill said this after PAC chairman Martin Aini presented its report.

"It is quite embarrassing. We all know of the systematic breakdown in the public service and it is a matter that the government is addressing," O'Neill said.

"We will take the PAC recommendations very seriously and we will deal with certain officers implicated in the report."

He said the national government was updating the public government accounting system, had transferred all trust accounts back to the Central Bank and was strengthening the internal audit for checks and balances.

O'Neill said the report cited serious cases of mismanagement and clear breaches of the Public Finance (Management) Act.

"We have disciplined one or two officers already to show that this government is serious in weeding out mismanagement of funds," he said

"This government is taking pro-active action and we will take all the recommendations and address them one by one," O'Neill said.

50% free education for primary schools

By ISAAC NICHOLAS

 

PARENTS can now breathe a sigh of relief after Education Minister James Marape announced the national government's intention to pay the first six months of school fees for students attending primary schools next year, The National reports.

Marape said during question time in parliament that it was the current government's policy on school fee subsidy beginning with free education for elementary schools from 2008 up to now.

"This year, the national government allocated K178 million for school fee subsidy which is in line with the government policy to give 100% access to basic education."

Marape said the policy towards 2013 was 100% school fee subsidy for elementary to primary schools.

"One of the fundamental reasons parents are not sending their children to school is school fees and this will complement the universal basic education policy."

Marape said the national government was responsible to help parents with school fees.

"By next year, the first half of the primary school year will be free," Marape said.

He said this in response to Enga Governor Peter Ipatas who said to succeed any nation must develop its human resources.

"The national government has rightly put resources into the education sector ... we must not compromise quality education for our children."

Ipatas said in Enga the provincial government had subsidised education for the past 12 years.

He commended the minister for his initiative but asked that the national government subsidy for elementary be worked out between the province and the department to ensure "there are no conflicting policies".

Marape said if there were parallel programmes in provinces "resources can be shifted to focus on school materials, infrastructure and library books".

High prices and increased coffee production: double blessing or double trouble?

By DAVID RUMBARUMA

General Manager

Awute Coffee Producers

 

This year the coffee industry is doubly blessed with a 14-year high coffee price and a huge crop never seen for many years.

These blessings are literally very good for the multitude of the coffee growers and many small village-based ground buyers.

Many of them have never ever held in their hands a thousand Kina at any one time in their lives.

This year, once in their lifetime they are able to hold a thousand kina.

What they do with such volume of cash is none of my business but it would be good for them to use wisely to improve their lives, solve many of their daily problems and social obligations, then, save some for the future.

But as is always the case during coffee season, many will turn to squander coffee money on alcohol and gambling.

 With these will come many social and community problems and thus, left with nothing to show by the end of the coffee season.   

 On the other hand, this dual blessing is already turning into nightmare for the middlemen who are the big coffee buyers: the processors and the exporters.

To them, these blessings are in fact curses. 

Prices are more than twice that paid for a kilo of coffee around this time of the year in 2010.

One has to spend more than twice the amount to buy same quantity of coffee.

 Already the increase in coffee production this year is putting a lot of pressure on the availability of funds and the processing capacities of many processing mills.

Banks in Goroka, Kundiawa and Mt. Hagen are running out of liquid cash very quickly and the risks involved in moving huge amount of hard cash around is costing more money too. 

These are readily transferred as added cost to the coffee stakeholders.

 Not only are those, the banks already putting minimum limits to how much each client can withdraw at any one time.

This too is having a negative effect going down to the growers. 

 Processors and buyers cannot get enough to do business resulting in many issuing credit receipts.

 All these combined to make doing business in coffee very difficult for the coffee buyers and processors.

Then again, there are big volume buyers who depend on stand-alone coffee processing facilities to process their parchment coffee into green beans for sale.

This lot of operators depends on each other for mutual benefit in the industry but many of these facilities have old processing machineries that cannot service everyone properly and on time.

 These machineries are working full steam non-stop seven days a week and are due to burst anytime. The cue is very long and valuable time is wasted.

The buyers are under pressure to deliver coffee to exporters from whom they got cash advances to buy coffee.

The multi-national coffee exporters are and have been acting as the banks for the coffee industry. They in turn are faced with the mammoth task of forking out more than twice the amount of money into the industry this year.

 They too are already feeling the pressure.

This year sees the demise of national aspiration for localising coffee export.

 The national coffee export companies are finding it extremely difficult to trade and few successful medium-sized exporters are already foregoing export and are selling locally to the big multinationals.

This in fact is a step backwards and signals a very sad turning point in the life of the coffee industry. Papua New Guinean companies are finding the going very tough and cannot maintain the pace year in year out anymore without government and the bank support.

Such financial and management problems in companies only become very obvious during such a time of high prices and bumper crop. 

Coffee processing capacity of the industry is now being tested.

 Enga, Western Highlands, Southern Highlands, Chimbu, Morobe and Madang do not have the capacity to process their respective production, while Eastern Highlands has, but the fact is in coffee business most of unprocessed coffee from these provinces are brought into Goroka and Kainantu to be sold. These are already putting excessive pressure on the number of coffee processing facilities in Eastern Highlands.

We have a big quality problem waiting to happen.

If it does, it will kill many businesses and destroy PNG's high standing on the world coffee market.

The danger of the highly distasteful chemical taint (Rio Flavor) reoccurrence this coffee season can not be ruled out in coffees from those areas known to have these problems before.

Here, Coffee Industry Corporation (CIC) must be very vigilant in, to ensure that its quality laws are adhered to by the licensees and the coffee buyers and processors.

CIC coffee inspectors, extension officers and scientists must ensure Rio Flavor does not pop up again. Measures must be taken now to ensure that it does not happen, because if it does, it will definitely:

(1)   Mean buyers will refuse to buy our coffee as experienced a decade ago;

(2)   Quality rating of PNG coffee will be destroyed that it will be very hard regain; and,

(3)   We will lose many good buyers who will be very difficult to get back later. 

The industry should be concerned that the highly-sophisticated chemical analysis laboratory funded by European Union and built in Lae in early 2000 for the purpose of carrying out analysis and research on the chemical taint in coffee has gone to the rats, so to speak,  and are now of no value.

This asset belongs to the stakeholders, therefore,  the facilities must be brought back to function and be put to use as safeguard against this potential quality threat by Rio Flavor.

Finally, companies and businesses involved in coffee that are not careful in their activities will find out by the end of the year that they made huge loses instead of profit.

 The danger is great and it is in one's interest to take measures to ensure that sound business decisions and acceptable industry quality practices are employed from the outset to protect themselves to make profit and in doing so also play a responsible role in protecting our industry as a whole against such problems and we can continue to enjoy the high prices that will remain for a long time yet. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Then again, there are big volume buyers who depend on stand-alone coffee processing facilities to process their parchment coffee into green beans for sale.

This lot of operators depends on each other for mutual benefit in the industry but many of these facilities have old processing machineries that cannot service everyone properly and on time.

 These machineries are working full steam non-stop seven days a week and are due to burst anytime. The cue is very long and valuable time is wasted.

The buyers are under pressure to deliver coffee to exporters from whom they got cash advances to buy coffee.

The multi-national coffee exporters are and have been acting as the banks for the coffee industry. They in turn are faced with the mammoth task of forking out more than twice the amount of money into the industry this year.

 They too are already feeling the pressure.

This year sees the demise of national aspiration for localising coffee export.

 The national coffee export companies are finding it extremely difficult to trade and few successful medium-sized exporters are already foregoing export and are selling locally to the big multinationals.

This in fact is a step backwards and signals a very sad turning point in the life of the coffee industry. Papua New Guinean companies are finding the going very tough and cannot maintain the pace year in year out anymore without government and the bank support.

Such financial and management problems in companies only become very obvious during such a time of high prices and bumper crop. 

Coffee processing capacity of the industry is now being tested.

 Enga, Western Highlands, Southern Highlands, Chimbu, Morobe and Madang do not have the capacity to process their respective production, while Eastern Highlands has, but the fact is in coffee business most of unprocessed coffee from these provinces are brought into Goroka and Kainantu to be sold. These are already putting excessive pressure on the number of coffee processing facilities in Eastern Highlands.

We have a big quality problem waiting to happen.

If it does, it will kill many businesses and destroy PNG's high standing on the world coffee market.

The danger of the highly distasteful chemical taint (Rio Flavor) reoccurrence this coffee season can not be ruled out in coffees from those areas known to have these problems before.

Here, Coffee Industry Corporation (CIC) must be very vigilant in, to ensure that its quality laws are adhered to by the licensees and the coffee buyers and processors.

CIC coffee inspectors, extension officers and scientists must ensure Rio Flavor does not pop up again. Measures must be taken now to ensure that it does not happen, because if it does, it will definitely:

(1)   Mean buyers will refuse to buy our coffee as experienced a decade ago;

(2)   Quality rating of PNG coffee will be destroyed that it will be very hard regain; and,

(3)   We will lose many good buyers who will be very difficult to get back later. 

The industry should be concerned that the highly-sophisticated chemical analysis laboratory funded by European Union and built in Lae in early 2000 for the purpose of carrying out analysis and research on the chemical taint in coffee has gone to the rats, so to speak,  and are now of no value.

This asset belongs to the stakeholders, therefore,  the facilities must be brought back to function and be put to use as safeguard against this potential quality threat by Rio Flavor.

Finally, companies and businesses involved in coffee that are not careful in their activities will find out by the end of the year that they made huge loses instead of profit.

 The danger is great and it is in one's interest to take measures to ensure that sound business decisions and acceptable industry quality practices are employed from the outset to protect themselves to make profit and in doing so also play a responsible role in protecting our industry as a whole against such problems and we can continue to enjoy the high prices that will remain for a long time yet.

WIB promotes enterprising PNG woman

By PATRICK TALU

 

THE days of being seen as housewives and second class citizens is over for Papua New Guinean women, The National reports.

PNG women are now competitive and just as   business minded as their male counterparts.

Thus, the women's dreams and aspiration is now being motivated and empowered through Women in Business (WIB) initiative, a desk created by Small Business Development Corporation (SBDC).

Managing director for SBDC Diri Kobla, manager, business development and information services division, Nathan Timo and WIB officer Maria Kalap said SBDC had recognised PNG women as important development partners and endeavoured to promote and empower them in their business aspiration.

Kobla said the purpose of setting a desk for WIB at SBDC was to empower and assist women in business in PNG align with Vision 2050 and to achieve its development aspiration.

"More importantly, our focus is on women who are doing small business at informal sectors like selling ice block, small scale faming, and textile businesses.

"We do that by way of sponsoring them for skilled training.

"We also provide seed capital to the women to start up their small businesses with the skills they have acquired from the training," Kobla said

Kalap said SBDC had many success stories from the first batch of women trained in Port Moresby under WIB sponsorship at the Women Textile Training centre.

"These women have progressed well in various businesses they are engaged after being skilled and trained here.

"Most prominent is one of our first batch graduands operating a successful business in Goroka town in Eastern Highlands," Kalap said.

She said the second batch sponsored by WIB would end their training next week.

They are Regina Wani, originally from East Sepik but based in Madang representing Momase region, Betty Daniel from Wabag, Enga (highlands) and Veronica Stevens form NCD (southern).

At a low key ceremony, yesterday, Kobla presented two industrial and one locker machines to the women with a small unspecified seed capital to start their business.

The women were grateful for the training and support from SBDC.

Freeway ban

Police stop truckies from using Burns Peak road

 

By ANGELINE KARIUS

 

HEAVILY loaded trucks and semi-trailers will be banned from using the Poreporena Freeway in Port Moresby as police and transport authorities review the use of the freeway by other types of heavy vehicles, The National reports.

The ban order was issued by acting deputy police commissioner and operations commander Fred Yakasa.

It followed a road second accident inless than a week involving a heavy vehicle along the Burns Peak section of the freeway – a steep downhill section that connect downtown Port Moresby CBD and the wharf with the rest of the city's industrial, commercial, administrative and residential suburbs as well as Jackson International Airport.

Although no casualties were reported in the Tuesday night accident, it happened several hundred metres from the Konedobu police headquarters.

However, last Wednesday, another heavy vehicle caused a fatal accident in the same area, nearer to the busy SVS supermarket, in which two people were killed and several others injured.

The accident spot in this area has come to be known as the "deadman's corner" by city residents.

During the past two years, at least 13 people, both motorists and pedestrians, had been killed as a result of mechanical failures by mostly heavy vehicles.

Acting police commissioner Tony Wagambie was understood to have written to the road transport board and the PNG Road Safety Council to review and impose laws aimed at stopping heavy vehicles from using Poreporena Freeway – either downhill at speed or at a snail's pace up the Burns Peak.

"Police will put up road blocks at the Hohola and Konedobu roundabouts to divert trucks and semi trailers from accessing the freeway," Yakasa said.

"The roadblocks will begin from 5am to 9pm beginning (immediately) to monitor the roads until an alternate route is sorted out by relevant authorities," he said, adding that people's lives were more valuable and were irreplaceable and must be protected at all cost.  

 

Counting begins in Bougainville

By STEPHANIE ELIZAH

 

COUNTING for the North Bougainville by-election began at midday yesterday at the United church building in Buka town under tight security by the Bougainville police service, The National reports.

The counting was officially conducted by the Bougainville Electoral Commissioner and North Bougainville by-election returning officer Reitama Taravaru.

In his opening remarks, Taravaru urged the officials to do good work so that the result "is accepted by all parties".

He thanked the people of North Bougainville for the peaceful polling.

A crowd of curious onlookers and scrutineers gathered at the church observed in silence as the first batch of ballot papers from the Atolls and Nissan constituencies were counted.

At first count, candidates Lauta Atoi received 119 votes, second was Dr Joseph Vilosi on 97 votes and Taehu Pais on third with 36 votes.

The result was from 265 ballot papers counted of which 258 were valid votes.

The second counting began immediately last night with preliminary indications expected to unfold later today.

"Despite the late start to counting, we will finish on Friday because there are not many ballot papers to count," Taravaru said.

He attributed the number of votes to the poor turnout of voters at polling sites last week.

"Not everyone turned up for voting mainly because many voters believed that the candidate who wins this by-election will not have enough time to deliver impact projects before the national election in 2012," he said.

He said counting was to have started on Monday but counting officers needed to be paid their allowances as well as undergo training on counting.

Ok Tedi gets new hydraulic shovel

Caption: The new shovel making its first load of copper ore at the Ok Tedi mine after the commissioning.

 

Ok Tedi Mining Limited (OTML) has received a new hydraulic shovel.

The shovel, known as the Bucyrus RH200, was commissioned on  May 21.

The shovel was purchased for US$10 million (K24 million).

This is the first hydraulic shovel owned by OTML since the mine started operation 30 years ago.

The company previously owned and operated a fleet of electric shovels but since decommissioning them a few years ago, OTML has been contracting Star West Limited, a part locally-owned contractor company, to supply and operate hydraulic shovels.

OTML's purchase of the new hydraulic shovel also signifies a start for OTML where it will start owning and operating most of the heavy mobile equipment in preparation for mine life extension.

OTML mine executive manager Alan Merritt while commissioning the new shovel said the shovel will produce 2,200 tonnes of ore an hour.

He said OTML is expected to experience less downtimes with the new shovel now operating.

"It's a big day for us at the Ok Tedi mine as we take delivery of our first hydraulic shovel. The shovel will help boost production, initially the production of limestone for the river system," Mr Merritt said.

Ok Tedi mines limestone so that it can be added to the river system to neutralise the sulphur in the waste rock.  

Bucyrus project manager Russell Jenkinson, who was at the Ok Tedi mine supervising the assembly of the shovel over the last seven weeks, said the Bucyrus RH200 shovel is popular with other mining projects in PNG such as Newcrest Lihir Gold and the Porgera Joint Venture Project.

Ok Tedi last year produced 159,821 tonnes containing copper, 15,131 kilograms of contained gold and 45, 774 kilograms of contained silver.

OTML's export earnings last year was K 4.741 billion, which represented 18 per cent of the Papua New Guinea's gross domestic product.

In February 2011, OTML became a company owned fully by Papua New Guinea interests.

 This followed the exit of Toronto (Canada) listed company, Inmet Mining Corporation as a shareholder. Inmet Mining's 18 per cent share, which it held since 2002, was bought by OTML for US$335 million and cancelled, leaving OTML as a company owned today by PNG Sustainable Development Program Limited with 63.4 per cent and the State of PNG with 36.6 per cent.

Foreign office firm on Indon violation

PAPUA New Guinea will not accept a "pilot error" apology from Indonesia after one of its military helicopters violated PNG's airspace last month near the Wutung border post in West Sepik, Foreign Affairs and Immigration Minister Don Polye told parliament yesterday, The National reports.

Polye said he had summoned the Indonesian ambassador for an explanation on why the military chopper flew 5km into PNG territory on April 14.

"It is a very serious concern to the PNG government and I have summoned the Indonesian ambassador expressing the PNG government views," he said.

"Should Indonesia wish to cross over, there are arrangements under the bilateral agreements between the two countries to follow including notifying PNG authorities and requesting permission from relevant PNG authorities, including foreign affairs."

Polye said the incursion by the Indonesian military helicopter was a clear breach of the bilateral agreements.

"The response the Indonesian ambassador gave was that it was pilot error.

"I am not satisfied and I have ordered PNG authorities that there will be no diplomatic discussion or to accept an apology from the Indonesian military until the issue is resolved at the government to government level."

Polye said he would present a report to parliament over the incursion.

The foreign affairs minister said this during question time in response to West Sepik Governor Simon Solo, who said, at 10am on April 14, an Indonesian military aircraft flew 5km into the Wutung side of the border and was clearly seen by Papua New Guinean citizens and villagers doing business there.

Solo said the people were even refused entry into Batas, on the Indonesian side of the border, because of the incident.

Polye said the security of the people along the border "is of great concern to the government".

"I have ordered an investigation but I think we should increase patrol along the border region," he said.

He said the border was not adequately patrolled and there was a need for immediate government decision to relocate defence force bases at Murray Barracks, Lae and Moem barracks to the border region.

MPs caught in 10% scams condemned

MPs caught in 10% scams condemned

NATIONAL Planning and Monitoring Minister Paul Tiensten has hit out at MPs who are being misled into paying commission from the people's money into a scam network in Waigani, The National reports.

He said the MPs were allowing certain individuals soliciting commission for the release of district cheques without informing police and the secretary and minister responsible.

Tiensten said the scam had networked from National Planning, Finance and Treasury and even connected to private financial institutions, including the central bank, Bank South Pacific and Westpac and some police personnel.

He gave an example where more than K2 million for the new Erima Primary School was squandered through this scam and two people had been picked up and locked up at the police cells only to see them walk out again.

Tiensten told the MPs that there were processes and systems in place for the cheques to be paid directly to districts instead of MPs trying to become project managers and public servants by delivering the cheques.

"These are people's money and not for MPs to start running after public servants in corridors of parliament to collect the cheques and MPs driving round with cheques in taxis."

He said there were some good officers in planning, finance, treasury, banks and police but "there are some rotten apples spoiling the name of these good organisations".

"This scam is entrenched and MPs must be careful with whom you are dealing with because there are people using the secretary's name and minister's name to steal people's money."

Tiensten said there had been numerous paid public advertisements and notices in the media about these imposters and, yet, MPs did not take heed of the advice.

He said this when responding to questions from Jimi MP Wake Goi in parliament yesterday.

Goi said it was an expensive exercise to bring services to remote districts.

He said last Nov 25, he got a faxed copy of two cheques, a K1.8 million for Jimi district market and a K4.8 million for Jimi High school.

"They faxed the copies of the cheques and asked me to go meet them to get my cheque on condition that I pay them some money."

 

Aussie miner eyes PNG prospects

 

WESTERN Australian nickel miner, Mincor, has sought to expand its geographic footprint and diversify its operations with A$30 million (K77 million) deal targeting gold and copper in Papua New Guinea, The Western Australian newspaper reported yesterday, The National reports.

Under the terms of the deal with PNG-focused, unlisted explorer Niuminco, Mincor will spend A$15 million in exploration at the Eddie Creek gold project to earn a 51%  interest and a further A$15 million (K38.5 million) to earn up to s 72 % interest in three exploration licences in the country.

The Eddie Creek pro­ject is located between gold fields of giant Hidden Valley and Wafi-Golpu mines currently under development by Morobe Mining Joint-Venture.

Mincor may also subscribe for A$5 million (K12.5 million) worth of shares as part of a capital raising by DSF International Holdings, which is buying out Niuminco.

DSF is an Australian security exchange-listed company which has been suspended from trading.

The new listed entity will be renamed Niuminco.

"The A$30 million transaction represents the most significant new business development initiative undertaken by Mincor since its successful acquisition of the Otter Juan nickel mine in 2007," Mincor said in a statement.

Mincor managing director David Moore said the venture would offer the company some of the best prospects in PNG for world-class deposits.

He said Mincor had established a strong rapport with Niuminco/DSF, and believed that their extensive experience in PNG would be of great value to the joint venture in the years to come.

Mincor shares closed A$0.04 or 3.33% lower to A$1.01 at the end of trading yesterday.

Porn bearer lied

Martin Ogoba, from Northern, used name and village of Manus relative

 

MANUS MP Job Pomat has refuted claims the man, arrested and charged with possessing pornographic material is from Manus, The National reports.

Pomat, the minister for Provincial and Local Level Government Affairs, was angry yesterday the person, claiming to be Martin Wojeiba, had tarnished his village Rosun.

To complicate matters, the real Martin Wojeiba turned up at the Boroko police station to notify police that the culprit had used his name in vain.

By the end of the day, police had worked out that the person they had in custody was Martin Ogoba, 23, from Kausada village, Northern.

Earlier, Pomat had visited the suspect at the Boroko police station cells because he was not convinced the suspect was from Rosun village where he was from.

He said the man admitted to him that he was from Popondetta, Northern.

"There is no such person from Rosun and he was lying," Pomat said.

Police arrested Ogoba last Saturday as he was attempting to blackmail and extort money from former Miss PNG and television presenter Antonia Singut. 

He was charged with possessing pornographic material while police investigate the blackmail and extortion claims which may involve two other accomplices.

Police had to apologise to the real Wojeiba, who was obviously angry when he fronted up at the Boroko police station to demand an explanation.

Wojeiba, in his 40s, however, told the investigation detectives that he and Ogoba were related.

He said he was shocked to see his name on the front page of The National and went to thestation to clear his name.

Officer-in-charge of the sexual offence squad senior Sgt Tinol Pakiapon apologised to him and later questioned the detainee, who admitted his real surname was Ogoba, not Wojeiba.

"We have since unreservedly apologised to Martin Wojeiba for the inconvenience this story may have caused him and his family," Pakiapon said.

"After viewing the contents of the sex movie, we have established that the video was produced abroad and the characters in the sex tape are foreigners."

He said anyone attempting to blackmail or extort favours from the young journalist would be arrested.

The suspect's mobile phone containing several hardcore pornographic movies was confiscated.

He faces attempted blackmail and extortion charges.

EMTV acting general manager Peter Jackson had condemned the pornography claims made against Singut, labelling them as the work of sick-minded people.

He confirmed that the newsroom was being bombarded by numerous malicious telephone calls that had left other female staff intimidated and threatened as a result of the allegations since early this year.

NCD Central divisional police commander Fred Sheekiot said the suspect would face an extra charge of giving police a false address.

Sheekiot declined to comment further on how police officers failed to record correct particulars when charging individuals.