PNGSDP: LNG plant a possibility in Daru

By MALUM NALU

The PNG Sustainable Development Program has ambitious plans for the proposed Daru international deep sea port, including the development of an LNG plant, The National reports.

This is with the likelihood that Western province could soon become the next frontier of PNG LNG project expansion following on from the Southern Highlands.

Western is already becoming a multi-million dollar oil and gas exploration ground for companies such as New Guinea Energy, Talisman Energy Inc, Mitsubishi Corporation, Esso PNG Exploration Ltd and Oil Search.

The proposed Daru international port  could also support the creation of an industrial hub at nearby Oriomo, be the point of export for Ok Tedi mine with mine life now extended to 2024, and be the port for the proposed Purari hydroelectric project in neighbouring Gulf province.

The project got off to a start  last Friday with a groundbreaking ceremony at Tawo’o Point in Daru by PNGSDP CEO, David Sode, for the first stage of the project at a cost of K15 million.

Sode (left) speaking at the launching of the first stage of the proposed Daru international deep sea port at Tawo’o Point last Friday.-Nationalpic by MALUM NALU

According to a PNGSDP information paper, it had been developing the Daru Port project over a number of years.

“Having undertaken considerable work to de-risk the project, PNGSDP is now seeking a partner(s) for the construction and operation of the port,” it said.

“The Daru port project represents a considerable investment by PNGSDP in the transformation of the Western province economy and is expected to be a commercial business in its own right.

“The port will enable the creation of an industrial hub at Oriomo and support the development of an LNG plant at Daru.”

The paper said PNGSDP first began work on the Daru Port concept in December 2005.

“In 2008, tenders were called for a port design that included 78ha of reclaimed land and approximately 400m of quay face,” it said,

Because of various factors, PNGSDP decided that the project should be placed on hold until after the Ok Tedi Mining Ltd (OTML) mine life extension (MLE) feasibility study was completed.

“In 2010, PNGSDP decided to invest US$14 million in geotechnical surveying and analysis that would resolve some of the uncertainties that had been revealed in the previous tendering,” the paper said.

“This surveying programme is nearing completion and, together with ongoing discussions with potential customers, has informed a new master plan for the port.”

Objectives of the geotechnical survey include:

·         Establishing the level of dredging required for deep water access to the port;

·         Establishing the availability of material that can be used for land reclamation, collecting data for sedimentation and current modeling;

·         Collecting data that can inform the port’s structural design and identifying fresh water sources on Daru Island; and

·         Identifying a source of quarryable rock close to Daru.

Daru to get new K10 million wharf

By MALUM NALU

Daru will have a new K10 million wharf trestle in August this year, The National reports.

This follows the launching of the project last Friday by PNG Sustainable Development Program (PNGSDP), effectively giving the green lights to contractor Curtain Brothers to start work.

Curtain Brothers’ employees start work on the Daru wharf trestle last Friday.-Nationalpic by MALUM NALU

The project signboard was unveiled by Western province Governor Dr Bob Danaya and South Fly MP Tony Subam

“The existing Daru wharf was condemned two years ago as the trestle had deteriorated to an extent that it was unsafe to use,” said PNGSDP chief executive officer David Sode.

“This affected movement of cargoes in and out of Daru significantly, with the flow-on effect on businesses, costs and reliability of coastal shipping.

“PNGSDP is providing K10.2 million for the reconstruction of the trestle.

“A contract has been awarded to Curtain Brothers to undertake the rehabilitation work.

“The wharf will be available for regular use by year end.”

Curtain Brothers project manager Tony King assured everyone that the project would be completed by August.

“The trestle wharf is being completely demolished,” he said.

“You’re going to get a brand-new trestle wharf.”

“We expect the project to be completed by August.

“We look forward to having the job completed on time.”

PNGSDP launches K100 million worth of projects in Daru

By MALUM NALU

Sleepy Daru town, disparaged as one of the least-developed in PNG despite being in the province of the giant Ok Tedi mine, came alive last Friday with the launching of over K100 million worth of projects by PNG Sustainable Development Program (PNGSDP), The National reports.

These included the K40 million Daru Airport upgrading with the first-ever Air Niugini flight in 12 years last Friday, K10 million Daru wharf trestle, K52 million water and sewerage project, and  K15 million first stage of deep sea port.

These projects are at various stages of development and form part of PNGSDP’s overall effort to create an alternative economy for the Western province to replace the contributions of the Ok Tedi mine.

Regular Air Niugini flights are expected to start later this month, Daru wharf trestle is expected to be completed by August, water and sewerage project is expected to be completed by next June, while first stage of deep sea port is expected to be completed by December 2012.

PNGSDP chief executive officer David Sode took along with him representatives of the World Bank, Australian High Commission, Air Niugini, PNG Ports Corporation, Water PNG, Curtain Brothers, and National Airports Corporation, among others, on the first-ever Q400 flight to Daru to witness the launching.

Sode…’projects will completely transform Daru’.-Nationalpic by MALUM NALU

Western province Governor Dr Bob Danaya and South Fly MP Sali Subam were also present on the day

“These people (guests) are here today because they believe in Daru,” he told a fullhouse crowd at the United Church grounds in Daru.

“We have all the wealth, and if it is distributed properly, we will have all the reason to be happy.

“It is very important that people have a part to play in the development of their resources.

“Local people must be participants in their own resources.”

Sode said the opening of these projects would open the floodgates for many development opportunities in Daru, and in preparation for that, PNGSDP – as the major shareholder of Ok Tedi Mining Ltd – would be putting a lot of emphasis on elementary education in Western province.

“We must concentrate on health and education to prepare the people for the big projects to come,” he said.

PNGSDO was established in 2002 by an agreement between BHP Billiton and the State of PNG.

Under this agreement, BHP gifted 52% ownership of the Ok Tedi mine to the people of PNG, especially the Western province.

With the departure of Inmet Mining, PNGSDP now owns 63.4% of the mine, the PNG government owning the remaining 36.6% - meaning OTML is 100% PNG-owned.

The company is registered in Singapore and its operation based in PNG, and has a mandate to manage its investment in Ok Tedi mine to promote sustainable development in Western province and PNG as a whole.

Lessons from Western province for PNG

By JOHN FOWKE

Former kiap (patrol officer)

Papua New Guinea’s “poorest” region, the resource rich Western Province, home to the multi billion kina Ok Tedi mine, ranks just above Zimbabwe but below the Democratic Republic of Congo in terms of human development.

This is according to new data unveiled by Deakin University’s expert in international development, Professor Mark McGillivray, at the recent PNG: Securing a Prosperous Future Conference.

“If PNG’s Western Province was a country there would be an international outcry about their plight, given its appalling low levels of human development,” McGillivray said.

 McGillivray’s analysis used the principles of the Human Development Index (HDI) to create a new measure which specifically looked at the districts and provinces in Papua New Guinea. 

This has not been done before.

"The HDI is well-known and widely used in research and policy circles,” McGillivray explained.

 “It combines achievements in health, education and income and is primarily used to compare levels of human development between countries.

“The Human Development Index is typically applied at the level of countries, not to parts of countries. 

"This means that it is blind to achievements and disparities within countries.

“When we apply the principles of the Index to provinces and districts within PNG, we find not only huge disparities but levels of human development that are extremely low by international standards.”

McGillivray said, based on one version of the HDI, PNG is ranked 121 out of 137 countries, so down towards the bottom.

“Robert Mugabe’s Zimbabwe has the lowest level of human development and is ranked 137, at the very bottom,” McGillivray said.

 “The conflict-affected Democratic Republic of Congo is ranked 136.

“Yet if the resource rich Western Province was a country it would be ranked in between Zimbabwe and Congo and as such among the three very poorest in the world in terms of human development.”

And that’s just the Western Province.

 What about my dear, poor old Gulf? 

What about populous but forgotten places like Gumine, Baiyer River, all of the Sepik apart from Wewak?

 Inland Morobe?

To say nothing of the outpatients department at the nation’s largest hospital at Taurama? 

What the hell is wrong?

Why is it necessary that Angau Hospital, the nation’s second largest, and Tari Hospital, serving more than 150,000 people, are both under the administration and operational control of Medecins Sans Frontieres, directed to PNG by a very dissatisfied WHO some five years ago? 

Where is any sign of shame or remorse, or attempted restoration of efficiency and services here in the 'Land of the Unexpectedly Well-rewarded Ruling Class'?

And without any apparent cohesion among aspiring new MPs, aside from stated intent to remain in power by the existing, damaged and stale  “use-by-date-expired”  political groups, what hope is there for real, swift and meaningful reform? 
Lets hear something positive from the hopeful 3,000 candidates. 
But will we?

The shocking truth about Daru

By MALUM NALU

Today, please spare your thoughts and prayers for the people of Daru and Western province, who have needlessly suffered for so many years, because of neglect of both provincial and national governments and the squandering of billions of kina. 

A once-beautiful colonial town has been brought to its knees through years of neglect by politicians and public servants.

I was in Daru last Friday, June 1, for the launching  of PNG Sustainable Development Program projects, and what I saw around me truly bothered my conscience.

My thoughts and prayers also for my tambus (in-laws) in Iruupi village, where my late wife Hula comes from, one of the southernmost points of PNG, near the Torres Strait. 

May Daru and Western province rise like the phoenix from the sad ashes! 

I will help in what little way I can, that is my gurantee!

A picture of abject poverty on the mudflats of Daru, Western province, which I took last Friday. This waterfront settlement is used by the 'canoe people' of Daru. They, and many others in Daru, live in abject poverty because of years and years of neglect by both national and provincial governments.

The canoe people of Daru, who live on their canoes on the mudflats of this forgotten South Fly town, are a feature of the place. They, and many others in Daru, live in abject poverty because of years and years of neglect by both national and provincial governments.

A mother and her child cooking on a canoe on the mudflats of Daru

Last Friday, when we were driving in for launching of the trestle wharf renovation in Daru funded by PNGSDP, these people from the nearby waterfront settlement on the mudflats stood by and wondered what was going on. They have suffered from years of neglect by both national and provincial governments.

Daru post office last Friday, June 1. Goodness, Post PNG, with all the money you're making, why not set up a new post office for Daru?

Firewood vendors at a settlement at Tawo'o Point, Daru, where the international deepwater port is being built by PNGSDP. There is abject poverty in and around Daru because of years and years of neglect by both national and provincial governments.

Daru and Western province go to the dogs because of poiticians and public servants

By MALUM NALU

Deputy chief justice Gibbs Salika has blamed Western province politicians and public servants for the decline of Daru and the rest of the province.

Salika, who is from Western province,  said at the launch of several multi-million kina PNG Sustainable Development Program projects on Friday that he hoped the event put politicians and public servants to shame.

The canoe people of Daru, who live on their canoes on the mudflats of this forgotten South Fly town, are a feature of the place. They, and many others in Daru, live in abject poverty because of years and years of neglect by both national and provincial governments.

He was not present for the occasion, but in his absentia, his speech was read by master-of-ceremonies Roger Hau’ofa in front of Western Governor Bob Danaya, South Fly MP Sali Subam, and public servants.

Salika said the launching of the Daru airport upgrade, Daru wharf trestle upgrade, Daru barramundi hatchery, and the Ta’owo Point unloading facility were all worthwhile projects which should have been initiated by the provincial administration and its political leadership as it was their primary responsibility.

“The launching of these development projects is a testimony of that fact and could not have come at a better time,” he said.

“A better time, because this event must put to shame our political and administration leadership.

“Our leadership at the provincial and district level cannot and should not claim any credit whatsoever for these developments.

“Credit must go to PNGSDP and its management and staff.”

Salika said Western province politicians and public servants “went to sleep and are still sleeping”.

“I hope this launching wakes them up,” he said.

“The Western province is a huge province.

“It has a lot of natural resources and I believe it also has a lot of financial resources, it has a lot of money to spend, but I am told that our administration and its leadership do not know how and where to spend it.

“This to me is utterly disgraceful.

“We are failing our people.

“Our education and health services are not up to scratch.

“Our people have no clean drinking water in the village and the list goes on.

“The point I am making is that the large amounts of money the province has should be used to improve our education and health services, and look for ways to improve the living conditions of our people.

“That is the primary responsibility of the provincial government and its administration.

“The province and more so the Daru district needs a new lease of life.

“I hope this is the beginning of new and better prospects for Daru.”

Air Niugini to resume flights to Daru after 12 years

By MALUM NALU

Air Niugini will begin regular flights to Daru, Western province, later this month after a 12-year absence which has seen airfares between Daru and Port Moresby rise to among the highest in the country.

Air Niugini acting general manager-commercial, Dominic Kaumu, confirmed this in Daru on Friday (June 1)  after one of its Q400 aircraft landed there to break the 12-year drought.

A proud moment...Captain Tauedea Ugava, who flew us on the Air Niugini Q400 to and from Daru on Friday, with PNGSDP CEO David Sode after the historic Q400 landing in Daru, which heralded the return of Air Niugini to Daru after 12 long years of suffering for the people of Daru and Western province.

Hundreds of people lined up the perimeter of Daru Airport to watch the Q400 land with many openly shedding tears of joy.

The last Air Niugini flight to Daru was on March 4, 2000, after which it had to stop services because of the unsafe state of the runway.

The Q400 was able to land because of a K40 million airport upgrade funded 50-50 by PNG Sustainable Development Program (PNGSDP) and Fly River provincial government through South Fly funding, with construction undertaken by Global Construction and supervised by National Airports Corporation.

Airlines PNG has had a virtual monopoly in the Daru-Port Moresby route over the last 12 years, with airfares now being K999 one way.

Kaumu said in Daru that Air Niugini fares would be cheaper than Airlines PNG, however, could not disclose the figures.

“We will begin operations about mid-June,” he said.

“We will be using the Dash 8 to Daru.

“We will also be using the Q400, but at a reduced capacity (passengers) because of the length of the runway.

“At this stage, not daily (flights), but at least three flights a week and we build up from there.

“I’ve spoken to a number of people and the information we’re getting is that everyone wants Air Niugini back.”

PNG LNG Projects spends K4.3 billion

By MALUM NALU
The PNG LNG Project has to date spent more than K4.3 billion (US$2.1 billion) in PNG to date, according its quarterly environmental and social report released this week, The National reports.
The report said that to date, more than K880 million (US$424 million) had been spent with landowner companies (Lancos) for all project-related activities.
“This quarter, K195 million (US$94 million) was spent with Lancos, representing an increase of 30% from the previous quarter,” the report said.

Welded pipe ready for commencement of lowering along the onshore pipeline route.-Picture courtesy of ESSO HIGHLANDS

“The total in-country project-related spend to date is now over 4.3 billion Kina (almost US$2.1 billion).
“In its two and half years of operation, the Enterprise Centre has supported more than 1,300 local businesses with training and business development programmes.”
The report said the project’s construction was progressing well and in line with the schedule.
“Numerous milestones were achieved during this quarter including: reached 50% of the Komo airfield’s bulk earthworks; completion and delivery of the second drilling rig; completion of the second of four horizontal directional drilling operations; finalisation of the offshore pipeline detailed design; and a record 453 truckloads of equipment moved from Lae to Hides in one month,” it said.
“During this quarter, the upstream infrastructure contractor, who achieved over 10 million work hours lost time incident free, was recognised by the project for excellence in worker involvement in safety, effective subcontractor management and collaboration and teamwork.
“In addition, the Esso Highlands Ltd ground transport workers achieved an outstanding safety record of over 7.5 million km driven by a fleet of more than 125 passenger vehicles with no lost time Incidents
“The project has reached a major workforce development milestone with more than one million hours of training now provided to the project’s workforce, including over 164,000 training hours this quarter alone.
“This quarter, pre-construction surveys were completed for supporting infrastructure for the onshore pipeline.
“The surveys covered areas such as valve stations, drilling platforms and access roads.
“Pre-construction surveys assess areas of ecological interest, weeds and water quality at project worksites, while identifying potential archaeology and cultural heritage sites.
“The only pre-construction survey remaining is on the 24.8km Hides Spineline.”
The report said with construction activity at its peak this year, the project workforce stood at more than 16,200 people.
“The total number of PNG citizens trained to date for both construction and production roles across all project sites reached more than 8, 500,” it said.

Highlights included:

• In January, the first intake of operations and maintenance trainees from the Production Operations Training Centre in Port Moresby left for Nova Scotia, Canada to undergo one-year of advanced skills training.

• At the Juni Construction Training Facility, the first intake of trainees graduated in March with an Australian Quality Training Framework standard Certificate II in General Construction and Civil Construction. Meanwhile, the second intake of 20 trainees commenced their training program in January.

• Jason Maisasa from the PNG Institute of Medical Research (IMR) was selected to undertake the Biomedical Equipment Repair Training program in Dallas, Texas, through MediSend International.

Yandera assets upgraded

By MALUM NALU
Marengo Mining yesterday announced a substantial increase in measured resource at its world-classYandera copper mine in Madang province, one of the largest undeveloped copper projects in the Asia-Pacific, The National reports.
It also announced that the land-based tailings option had been selected.
The report said there were:
• Significant conversion of tonnes to the measured category, increasing confidence in the possible minimum 20 year mine life plan;
• Identified higher grade zones near surface (grading +0.5% copper for initial potential years of production;
• Confirmed large areas of elevated gold and molybdenum grades;
• Improved recoveries for copper, gold and molybdenum. High grade concentrate from the recent metallurgical test work programme; and
• Encouraging results from first hole of the Dirigi exploration programme.
Marengo’s managing director and chief executive officer, Les Emery, said the resource update supported the previously stated goal of achieving a minimum operating life of at least 20 years.

Helicopter with stinger attached for radiometric survey at Yandera.-Picture courtesy of MARENGO MINING

“The measured resource category has increased by over 100% and substantial additional resources have been upgraded from the inferred to indicated category,” he said,
“Drilling activity continues at Yandera, both on further in-fill tasks within the Yandera Central deposit and on nearby exploration targets
“Furthermore, areas of higher grade (+0.5% Cu) have been identified that, with the advantage of topography, can potentially be targeted for the initial years of possible production.”
“The resource estimate incorporates assay results from 465 diamond drill holes totalling 145,335 metres, which were drilled up until the end of 2011.
“The Yandera copper-molybdenum-gold project, reviewed as a part of this 2012 updated resource modeling study, has so far demonstrated and confirmed that this area contains significant amounts of copper mineralisation.
“The tonnages reported, for example above a nominal 0.25% copper lower cut-off, and the coincident contained metal tonnages are significant.”
Regarding tailings, Emery said following a review of the tailings options for the completion of the feasibility study, and discussions with various stakeholders, it had been decided to go forward on the basis of a combined rock waste dump and tailings storage facility.
“The facility will be located in close proximity to the Yandera project and processing areas, with the copper concentrate being transferred to a coastal shipping facility by a small diameter pipeline, which will where possible, follow existing infrastructure corridors to a coastal loading facility,” he said.

Lloyd Hurrel, PNG coffee pioneer, dies at 95

By MALUM NALU
Papua New Guinea’s multi-million kina industry coffee industry has lost one of its pioneers, Lloyd Hurrell, who passed away on Tuesday last week in Australia, The National reports.

Hurrell…chairman of Coffee Marketing Board from 1964-1979

Hurrell, 95, was the pioneer chairman of the then Coffee Marketing Board (CMB) from 1964 to 1979.
“He was the leading coffee planter based in the Wau-Bulolo area and became the most influential and respected man in PNG coffee history,” said Coffee Industry Corporation chief executive officer Navi Anis.
“ The PNG coffee industry will miss a great man who has very much foreseen and paved the way for the multi-million kina industry coffee industry today that affects lives of ordinary Papua New Guineans that farm coffee.”
While serving as chairman of CMB, he contributed immensely in expending coffee plantings and promoting business enterprise for indigenous Papua New Guineans.
He was instrumental in setting up the CMB, then the Coffee Industry Board and also the Coffee Industry Fund (a stabilisation fund) in 1975.
His service to the PNG coffee industry was recognised in June 1969 with the award of the Order of the British Empire (OBE) and in 1980, he was awarded the Companion of the Most Distinguished Order of St Michael and St George (CMG).
A framed photo (A3 size) of him still hangs today in the CIC board room which was named after him.
Lloyd Hurrell was born in Wingham, NSW and educated at Hurlstone Agriculture High School.
He trained as a teacher at the Armidale Teachers College (Australia) and taught in 1937 and 1938.
In 1939 he joined the Department of District Services and Native Affairs as a cadet patrol officer and was posted to Rabaul.
In February 1940 he joined the New Guinea contingent for Australian Armed Forces when World War II broke out and took part in the famous Kokoda Track campaign.
After the war he returned to his pre-war job as patrol officer, looking after Finschhafen, Menyamya and Wau in various periods.
In 1953 he resigned and began his life as a farmer.
He became deputy provisional chairman of the CMB, created in 1963 and after four months, he was elevated to the chairman’s post.
In the 1960 elections he won the New Guinea Coastal seat and became a member of the Legislative Council.