Sode: PNGSDP is run by the people of PNG

Source: The National, Thursday,  February 7, 2013 

 

By MALUM NALU

PNG Sustainable Development Program (PNGSDP) Ltd chief executive David Sode said the company was controlled by Papua New Guineans for Papua New Guineans.
He said this after Prime Minister Peter O’Neill and the Ok Tedi Mine Impacted Area Association (OTMIAA) said that PNGSDP was still being run on remote control by BHP Billiton.
“We control our own destiny,” Sode said yesterday.

David Sode

“We are an independent company and we are not controlled by the State of Papua New Guinea or by BHP Billiton.
“However, we are committed to work with government’s development focus where we can find alignment.
“We have a board and management dominated by Papua New Guineans, all of whom are competent, professional directors and managers.”
Sode said PNGSDP’s sole objective was to provide social and economic development in PNG, and especially in Western.
It has a formal mandate from the state, BHP and Western people to carry out its “important and highly successful developmental work”.
“We are here for the long term,” Sode said.
“We are committed to serving the needs of people we can reasonably reach.
“All the value in Ok Tedi goes to the state and to PNGSDP.
“We remain committed to deliver our programmes to the very people we are mandated to serve.
“No third party benefits in any way from Ok Tedi.”
“The structure of PNGSDP and its processes, agreed to by the state and BHP Billiton under the Ninth Supplemental Agreement, are directed towards ensuring that the full benefits from Ok Tedi flow to the people and provides long term financial security to the people of Western province on a scale unprecedented in PNG.
Sode encouraged the state and BHP to deal with their issues themselves so that the maximum benefits continued to flow to the nation and to Western.
“We acknowledge the people who have welcomed us and continue to support our development programmes all over PNG and Western,” he said.  

PNG firm NBPOL named as a global sustainability leader

By Jemima Garrett for Pacific Beat 

Updated Wed Feb 6, 2013 6:36pm AEDT

Papua New Guinea's biggest palm oil producer has been named as the world's leading sustainable agricultural company by a London-based independent assessment organisation.

New Britain Palm Oil, which has farms in Papua New Guinea and Solomon Islands, was ranked number one among agricultural companies.
The FFD Projects director James Hulse says it was the only company to score well in all categories.
"In terms of all of those, it is certified, it is engaging with its suppliers and it is working with the community and within the community to really try and improve best practice as to how it goes about its plantations," he said.
"New Britain Palm Oil are one of the few companies to have a fully integrated, segregated, supply chain that I believe is almost entirely RSPO certified."
The Forest Footprint Disclosure Project ranked 100 companies from every region of the world, including Colgate-Palmolive, Gucci and Heinz, in its 2012 assessment.
Backed by $US 13 trillion in invested capital, the FFD Project engages with smallholders, and works with them to improve yields and reduce the area of land that needs to be farmed.
It rates agricultural companies highly if they have independently verified sustainable certification of their products.
The FFD Project also rates the timber industry, oil and gas, cattle producers and many others.

Risky business

New Britain Palm Oil was a foundation member of the industry certification body, the Roundtable on Sustainable Palm Oil, but it has found the process is expensive.
"I think there are financial advantage to becoming RSPO certified," Mr Hulse said.
"There have been a number of studies done that show, yes, there has been an investment but, yes, there has been a return in terms of improved yields and lower input costs."
Mr Hulse says companies need to be aware of the risks of being associated with deforestation.
"There are big reputational risks for companies. There are also legislation risks We are starting to see with logging around the world Europe the US and obviously Australia is now working on its own illegal logging laws, and we've also got operational risk.
"These are food commodities that are operating under increased supply constraints and increased demands, from population growth, from changing diet and also from climate change and it is causing a massive squeeze - you know the world missed the credit crunch but I don't think it is going to miss the commodity crunch.
"It is a well understood theme among investors. So really a lot of what we are doing is about supply chain management for companies. It is about risk management within the context of feeding the world and not expanding into deforested lands."

Carbon footprint

Oil palm plantations are one of the biggest threats to tropical rainforests.
Deforestation accounts for 15 per cent of the world's carbon dioxide emissions and takes a toll on biodiversity.
Big companies and their investors are increasingly seeing it as a risk to their reputation.
In June 2012 the FFD Project merged with the Carbon Disclosure Project create the world's largest natural capital disclosure system covering the carbon, water and forests.
Mr Hulse says it is important that the issues are understood separately, and that with deforestation there are global supply chains.
"A lot of companies aren't actually aware of what is going on within their supply chains," he said.
"What we would like to do is bring them together to look a little bit more realistically at how companies use natural capital and how they impact on the environment more generally.
"And the Carbon Disclosure Project obviously gives us some huge reach - it has been backed by more than half the world's investable capital. There are 4,000 companies around the world that are reporting to it. The scale of the CDP is going to be hugely important for us to get the message across."

ANZ to help push financial inclusion goal in PNG

Source: The National,Wednesday, February 6, 2013 

 

ANZ bank chief executive officer Mike Smith has assured Treasurer Don Polye that the bank will assist Papua New Guinea in areas of “financial inclusion” and “financial literacy”.
He gave the assurance in a remark at a breakfast meeting of the Port Moresby Chamber of Commerce and Industry on Monday.
Polye said his department and the Bank of PNG was going out in a big way to promote financial inclusion at grassroots level and asked if ANZ had any policies in this area.
“I think it’s a very important point,” Smith said,
“Certainly, ANZ wishes to continue to invest in Papua New Guinea.
“I think it’s absolutely right that financial inclusion should be a high priority for the country.
“I think the issue is how fast it can effectively be created, how you can bring banking products and banking services to the wider population.
“That, of course, is helped enormously by technology.
“I think if you had asked if this was possible 20 years ago when banks relied enormously on branch networks, it was a much more difficult thing to do.”
Smith said the other important thing, one in which ANZ had played a part in a number of countries, was the whole issue of financial literacy.
“I think the opportunity you have in this country (to promote financial literacy) is quite extraordinary,” he said.
“I think it has to be based on the whole education system.
“As a bank in Papua New Guinea, we will certainly take our role seriously and help you with that process.”
 The POMCCI, meantime, has welcomed Smith’s positive outlook on PNG.
“Your presentations have always been thought-provoking, certainly they’ve always been positive,” vice-president Ken Dunn told Smith.
“The business community appreciates the interest that ANZ is showing in Papua New Guinea and the effort you put into improving your banking system.”

Simberi produces 13,000oz of gold

Source: The National,Wednesday, February 6, 2013

By MALUM NALU

SIMBERI gold mine in New Ireland produced 13,291 ounces of gold in the fourth quarter of last year at a cash operating cost of US$1,253 per ounce, according to the company’s quarterly report released yesterday.
Simberi is a significant, long-term development project , which is poised to increase production to approximately 75,000oz of gold in the financial year to June 2013.
The mine was developed by Allied Gold Mining PLC between 2004 and 2012, when it was acquired by St Barbara Ltd.
An expansion project is underway to further lift production to an estimated 100,000oz of gold per annum.
The December 2012 quarterly report said the operation experienced some unexpected downtime in the mill and this led to a reduced throughput for the quarter.
“Recoveries increased from 83% to 89% and, as the processing plant reliability improves, gold production is expected to improve in line with the second-half guidance.
“The ore milled reduced from 464,000 tonnes to 432,000 tonnes for the quarter.
“Two new leach tanks were commissioned in December and will be fully operational and in use from this month.
“The grade of ore milled remained unchanged for the quarter at 1.1 grammes per tonne (g/t) gold.
“Improved mine planning and more efficient mining operations resulted in an increase in ore mined from 504,000 tonnes to 592,000 tonnes for the quarter.
“The delivery of additional trucking and excavator capacity to the operation next month will see these volumes increase further to meet the increased milling capacity once the oxide project is commissioned.”
The report said expansion was being achieved through the installation of a new semi-autogenous grinding (SAG) mill, two new leach tanks, additional elution circuit and improved tailings treatment facilities.
“All of the major components are now on site and erection of steel work is progressing satisfactorily,” it said.
“Final civil works are near complete.” 
 

PNG extends ban on no-confidence vote

By Eoin Blackwell, AAP Papua New Guinea Correspondent

 

PAPUA New Guinea's parliament has voted to extend a ban on votes of no confidence to 30 months into a government's five-year term.

PNG's opposition backed away from supporting the law, saying it will take the matter to the Supreme Court to undo it.
The bill passed into law in PNG's single House of Parliament on Tuesday with a vote of 90 to 14, well above the 74 votes needed to make the constitutional change.
Prime Minister Peter O'Neill said the law - which extends the ban from the previous 18 months - will give government more time to do its job instead of shoring up numbers to defend itself politically.
"This is not about increasing my power," Mr O'Neill said.
"It is about locking in to place the long-term political stability our nation, especially our people, have been denied for so long.

"It is a reform our people have been calling for - and most certainly our business sector, and our investors, have been calling for."
Debate on the law was gagged following a statement by Mr O'Neill and an opposition member.
Opposition leader Belden Namah and most of his 15-strong team voted against the bill, just four months after announcing their support for the measure, and he said he will follow through with court action.
One member of the opposition voted with the government.
"By this afternoon or tomorrow morning, we will file a Supreme Court reference because we have cited that in that particular amendment, it wasn't done properly," he said, telling reporters the law was not documented properly.
The man who just eight months ago was Mr O'Neill's deputy said the law was not about stability, but about concentrating power in the PM.
"What has happened now - those who voted for the bill - have become insignificant," he told journalists following the vote.
"They have weakened their own bargaining and negotiating power for projects in their districts. It's as simple as that.
"They have put themselves into voluntary exile ... from now on, Peter O'Neill is the most powerful man in the country."
PNG has lost two prime ministers to votes of no confidence since independence in 1975 - Sir Michael Somare and Paias Wingti.
However, the threat of a vote has been a significant part of the Pacific nation's political makeup, causing its prime ministers to become entrenched in money politics to keep colleagues on side.

South Sydney Rabbitohs expecting a big crowd for trial match against PNG Kumuls

By Josh Massoud  The Daily Telegraph

TRADITIONALLY a cardinal and mrytle affair, Saturday night's Return to Redfern trial clash will feature some very different faces.

Rabbitohs officials expecting hundreds of raucous Papuans to cheer on the visiting Kumuls, whose every move will also be evaluated by talent scouts from rival NRL outfits.

South Sydney's Bryson Goodwin with Papua New Guinea rugby league players (L to R) Glenn Nami, Israel Eliab, Joshia Abavu, Esau Siune and Dion Aiye at Redfern Oval ahead of their trial match this week. Picture: Brett Costello Source: The Daily Telegraph

Despite being the only nation to declare rugby league its No. 1 sport, PNG remains virgin territory for most recruitment officers.
The 20-strong squad that will tackle Souths this weekend is wholly comprised of PNG residents, with some based in remote highland regions where brutal 'eye-for-an-eye' tribal customs still reign supreme.
Dreadlocked prop Esau Siune hails from the village of Kundiawa in Simbu province, which is likely to be banned from hosting matches in this year's local competition because of repeated violence.
It's little wonder Rabbitohs three-quarter Bryson Goodwin was anticipating a physical contest after coming face-to-face with Siune and his team mates at Redfern yesterday.
"I'm sure they are going to be hard to play," he said.
"They've even got a guy nick-named the mini jukebox because he produces so many big hits.
"They'll be energetic and enthusiastic."
Recruitment officers learned that much last weekend, when they watched the Kumuls win the Cabramatta International Nines tournament after conceding just two tries.
Along with Siune, halves Dion Aiye and Israel Eliab attracted interest from Sydney-based player agents that could pave the way for NRL contracts.
PNG coach Adrian Lam expects more recruitment officers to flock to Redfern for Saturday night's game.
"From what I've heard there will be about six clubs with recruitment officers here," Lam said.
"I don't know why clubs haven't concentrated on Papua New Guinea more.
"They've become very familiar with the Pacific islands, but no-one from PNG really gets picked-up unless they come to school in Australia first."
About 2,000 tickets remain available for the clash - one of seven trials being held this weekend.
Friday night's Manly-Cronulla hit-out at Brookvale Oval will boast the most high-profile players, with the Sharks rolling out all their new recruits barring Luke Lewis (oblique tear).
Michael Gordon, Chris Heighington, Beau Ryan and Jono Wright have all been included in the 31-man squad, along with established Sharks Wade Graham, Ben Ross, Isaac de Gois and Anthony Tupou.
Canberra have named stars Josh Dugan, Jarrod Croker, Sam Williams and Josh McCrone for Saturday night's game against Melbourne in Geelong, while Canterbury and Newtown will round out the weekend's action with the annual Back to Belmore fixture.
Wests Tigers also tackle Penrith in Bathurst, where the Panthers have named a slightly stronger team that includes first graders Clint Newton, Blake Austin and Nathan Smith.

Council sends play equipment to PNG

---

Sunshine Coast Daily

COAST children aren't the only ones enjoying outdoor fun at playgrounds provided by the regional council.
Youngsters in Papua New Guinea also are getting in on the fun.
In the past few years, council has repaired and refurbished equipment replaced at local public playgrounds and sent it to the Coast's sister city of Alotau.

SECOND LIFE: Children in the PNG village of Alotau enjoy playground equipment donated by Sunshine Coast Regional Council. 

Community programs portfolio councillor Jenny McKay said council also had provided installation instructions, some spare parts and a safety management system to help maintain the playgrounds.
And photographs recently received by council staff showed the children of Alotau, on the northern shore of Milne Bay, were enjoying their equipment.
"We had reports of children walking considerable distances from nearby towns and villages to try out the new playground, so it's fantastic that they're enjoying it," Cr McKay said.
"Just like with our local playgrounds, safety was a top priority for council, so it was important that we provided all the information to ensure equipment was installed correctly.
"I really commend the staff in council's parks and gardens department who went above and beyond to make this happen for children in Alotau who otherwise wouldn't have had access to playground equipment like this.
"With the help of an aid group, Sunshine Coast Rotary Club and the Alotau Chamber of Commerce, council was able to ship this equipment to PNG free of charge."
Cr McKay said council had sent playground equipment to Vietnam previously and wou

PNG parliament puts its confidence in prime minister

By ABC PNG correspondent Liam Fox
 

Papua New Guinea's parliament has approved a constitutional change to protect the prime minister from votes of no confidence.

Members of parliament approve Peter O'Neill as prime minister last August. (Credit: AFP)

Papua New Guinea's parliament has approved a constitutional change to protect the prime minister from votes of no confidence.
No confidence votes have become a frequent feature of PNG politics.
But parliament has passed a constitutional amendment extending the grace period protecting a newly elected prime minister from such a vote from 18 to 30 months.
The amendment passed through parliament with the support of 90 MPs; only 14 voted against it.
The Prime Minister, Peter O'Neill, says it will improve political stability and allow the government to focus on delivering services and implementing policies rather than the constant fight for survival.
The Opposition says stability is earned, not legislated and the amendment will entrench bad governments.

First major survey of cervical cancer in PNG

February 4, 2013 at 4:06 AM by AHN 

Port Moresby, Papua New Guinea (IRIN) – A large-scale survey of cervical cancer will be launched later this month in Papua New Guinea (PNG), where more than 1,500 women die of the disease each year.

Young PNG women...prone to cervical cancer

“Results of the study will be available later in 2013 when, for the first time, PNG will have the necessary evidence to build a solid public health policy in this area,” Andrew Vallely, deputy director of science at the PNG Institute of Medical Research, who will be overseeing the study, told IRIN.
Cervical cancer is caused by the human papilloma virus (HPV), with the two most common types (HPV16 and HPV18) resulting in 75 percent of all cancers.
 While effective vaccines are available against both, authorities do not know how much or what type of HPV they are dealing with.
According to the World Health Organization, cervical cancer is the most common cancer among women aged 15-44 in PNG. 
There is no data on the HPV burden in PNG’s general population, but worldwide an estimated 11.4 percent of women harbour cervical HPV.


– Provided by Integrated Regional Information Networks.

Prime minister welcomes ANZ’s strong confidence

Source: The National, Tuesday, February 5, 2013 

 

PRIME Minister Peter O’Neill has welcomed the strong statement of confidence in Papua New Guinea’s future from ANZ Bank.
O’Neill said ANZ had a strong presence in the PNG banking and finance sector and its confidence was most welcome.
“The CEO of ANZ, Mike Smith, is optimistic about our future, and he understands and supports the steps my government is taking to secure our future –  including a focus on upgrading and expanding economic infrastructure and on improving productivity,” he said.
“I also welcome his comments about the potential for Papua New Guinea to benefit from the growth of the Asian region.
 “His views are in line with my own statements, and the policies my government has outlined as priorities for 2013.
“The report commissioned by the ANZ highlights the enormous potential of our resource sector.
 “Our challenge is to develop it responsibly, ensuring the benefits are shared, and ensuring the revenue inflows from resource development are responsibly managed.
“Every major investor I met also stresses the need for political stability.
 “That is why my government is absolutely committed to the constitutional change to ensure the prime minister chosen after the national elections cannot face a no-confidence in the first half of the five-year life of the national parliament.
“This will strengthen further the political stability we have achieved since my election in August last year.”
O’Neill said he looked forward to ANZ continuing to be a major player in the banking and finance  sectors and contributing to strong economic growth in the future.
 

Prime minister welcomes ANZ’s strong confidence

Source: The National, Tuesday,  February 5, 2013 

 

PRIME Minister Peter O’Neill has welcomed the strong statement of confidence in Papua New Guinea’s future from ANZ Bank.
O’Neill said ANZ had a strong presence in the PNG banking and finance sector and its confidence was most welcome.
“The CEO of ANZ, Mike Smith, is optimistic about our future, and he understands and supports the steps my government is taking to secure our future –  including a focus on upgrading and expanding economic infrastructure and on improving productivity,” he said.
“I also welcome his comments about the potential for Papua New Guinea to benefit from the growth of the Asian region.
 “His views are in line with my own statements, and the policies my government has outlined as priorities for 2013.
“The report commissioned by the ANZ highlights the enormous potential of our resource sector.
 “Our challenge is to develop it responsibly, ensuring the benefits are shared, and ensuring the revenue inflows from resource development are responsibly managed.
“Every major investor I met also stresses the need for political stability.
 “That is why my government is absolutely committed to the constitutional change to ensure the prime minister chosen after the national elections cannot face a no-confidence in the first half of the five-year life of the national parliament.
“This will strengthen further the political stability we have achieved since my election in August last year.”
O’Neill said he looked forward to ANZ continuing to be a major player in the banking and finance  sectors and contributing to strong economic growth in the future.

ANZ: ‘Asian century’ to benefit PNG

Source:  The National, Tuesday, February 5, 2013

THE so-called “Asian century” – the projected 21st-century dominance of Asian politics and culture – could have very significant long-term implications to Papua New Guinea, according to ANZ chief executive officer Mike Smith.
He told a Port Moresby Chamber of Commerce and Industry breakfast meeting yesterday that since the 1980s, there had been an enormous shift with the extraordinary rise of China and increasingly, other economies in Asia such as India, Indonesia and Vietnam.
“Today, emerging economies account for more than two-thirds of global growth, of which China accounts for about half,” Smith said.
“Fundamentally, like Australia, PNG’s growth is now being driven by the urbanisation and industrialisation of Asia, and the prosperity of both countries is being underpinned by a super cycle in mining and energy and increasingly in agriculture.
“While I know that much of the discussion about this opportunity in PNG has focused on individual projects and short to medium-term issues, the Asian Century also has very-significant long-term implications.”
Smith said he was optimistic because he sensed there was also an increasing focus on the major issues PNG needed to overcome to ensure it took advantage of the Asian Century.
“To help take this step further, some commentators have suggested that there may be an opportunity to explore these longer-term issues through a well thought-out and measured policy document,” he said.
“For example, Australia recently completed an Asian century white paper and perhaps there is an opportunity for a discussion about whether an equivalent in PNG is worth consideration in the coming years.
“I believe PNG business has a huge amount to offer in informing and in contributing to the nation’s response to the Asian century and in helping to maximise the nation’s future success and prosperity.”

Revenue surge from resources by 2030

Source: The National, Tuesday, February 5, 2013

By MALUM NALU

PAPUA New Guinea’s resources sector could be earning as much as US$38 billion in annual export revenues by 2030, six times current levels, according to ANZ bank chief executive Mike Smith.
Smith said these increased earnings reflected diversification of resource industry benefits beyond Ok Tedi and beyond copper and gold, which included agriculture.
He told a Port Moresby Chamber of Commerce and Industry breakfast meeting yesterday that this could be the case if modest gains could be made in market shares for key commodities.
“This research is broadly indicative of the opportunity in PNG based on some work we did in 2011 on the size of the natural resources opportunity in Australia,” Smith told business executives.
“It uses many of the same assumptions about global demand for resources, to help think about the longer-term opportunity in PNG.
“And even on more-conservative assumptions, it suggests that annual revenues from resources could reach US$25 billion by 2030 – more than four times current levels.”
Smith said the sharp increase in export investment and required investment dwarfed current levels.
“While, as I said, these estimates are only broadly indicative, even the more-conservative estimate implies capital investment in PNG of around US$130 million between now and 2030… and the creating of more than 100,000 new jobs in mining, energy and support services,” he said.
 “Importantly, it implies a significant diversification of activity in projects beyond Ok Tedi, and in a range of commodities beyond copper and gold, principally as a result of significant growth in LNG,” he said.
“Of course, urbanisation and higher living standards in Asia are not just driving demand for minerals and energy – they’re driving an increase in global demand for food and I believe agriculture has the potential to be the next sector in PNG to experience significant Asia-led growth.
“Here, there is enormous upside in commodities like palm oil and coffee, upside that will also require significant investment that could in turn create a wave of additional jobs in rural communities, something I know is incredibly important in PNG.”

Thieves ransack office of PNG corruption taskforce

By PNG correspondent Liam Fox of ABC

Thieves have ransacked an office belonging to Papua New Guinea's anti-corruption taskforce, stealing laptop computers and files.

About 20 men are believed to have tied up three security guards and broken through a heavy steel gate to get to Taskforce Sweep's administration office.
The office was left trashed with paper strewn everywhere and drawers emptied onto the floor.
Taskforce Sweep's chairman Sam Koim says staff are still trying to establish what has been stolen.
He says some laptops and investigation files are gone but the break-in will not deter his officers.
"This is not going to discourage us. No-one will intimidate us," he said.
Taskforce Sweep's investigations have led to the arrests of dozens of politicians, bureaucrats and businessmen over the past 18 months.

UN says Australia's PNG refugee camp is inadequate

Channel News Asia

SYDNEY: A United Nations report Monday criticised Australia's immigration camp on Papua New Guinea (PNG), warning living conditions are harsh and asylum-seekers' detention arbitrary.
The UN High Commissioner for Refugees called for no more children to be sent to the camp on remote Manus Island, which was established as part of Australia's plan to ship refugees offshore to deter more from coming.
In its report, the UNHCR warned of "very significant inadequacies in the legal and operational framework governing the transfer, treatment and processing" of asylum-seekers.
Detaining asylum-seekers on a mandatory and indefinite basis, without possibility for review, amounted to "arbitrary detention which is inconsistent with international human rights law", it added.
"The key failing is that there are in place no legal frameworks for the processing of refugee claims," UNHCR regional representative Richard Towle told the Australian Broadcasting Corporation.
The Australian government said it was committed to working with the UNHCR, which has a long-standing opposition to offshore processing, and would do so in regards to the processing centre on Manus.
"We continue to work closely with the PNG government regarding the assessment of asylum claims. Processing has not yet begun, but will occur in due course," a spokeswoman for Immigration Minister Brendan O'Connor said.
Papua New Guinea had assured Australia that asylum claims would be assessed in line with the Refugee Convention, she added.
A UNHCR team that visited Manus for three days last month said both Australia and PNG were committed to adequate procedures and conditions being in place despite the difficulties faced in remote Pacific locations.
But it said at the time of their visit, living conditions for most of the 221 detainees on Manus were harsh and, for some, inadequate.
"The hot and humid weather made the temporary accommodation very uncomfortable," Towle said.
The government spokeswoman said the standard of facilities at Manus were "in line with the living standards and amenities for local PNG residents".
"Detainees have access to health, mental health, education and recreational services," she said.
Australia began dispatching asylum-seekers to Manus Island in November as part of a new policy of sending boatpeople offshore to deter others from making the risky journey to Australia which has claimed hundreds of lives.
Canberra's other offshore camp, on the small Pacific nation of Nauru, has also been criticised by rights advocates, with Amnesty describing conditions there as "appalling" and likely in breach of obligations to refugees.
Australia last year dealt with a record 17,202 asylum-seekers arriving by boat. The majority pay people-smugglers for passage from Indonesia on leaky wooden vessels, and sinkings are routine.

PNG likely to extend no-confidence ban

By EION BLACKWELL of AAP

PAPUA New Guinea's parliament is expected to decide tomorrow whether to extend a ban on votes of no confidence from 18 months to 30 months in a bid to ensure political stability.

Prime Minister Peter O'Neill is expected to secure about 80 votes to pass the law, which will ban votes of no confidence in the government until 30 months after it is first elected.
The bill passed its first test in November with 102 votes, but in late January opposition leader Belden Namah - who at first praised the bill - announced the opposition was withdrawing its support.
"It goes against the spirit of the constitution in that it restricts or removes the parliament's function of keeping the executive government accountable to the parliament," he told local media on Sunday.
"We will not support the bill and we call on the members of parliament not to vote for the bill."
A spokesman for Mr O'Neill said he expected the bill to pass despite the protests of the 15-man parliamentary opposition.
At the first passage of the bill in November Mr O'Neill warned that constantly shifting parliamentary loyalties meant governments were planning for survival, instead of implementing policies.
"It's no wonder our health and social indicators have been in decline, and infrastructure like roads and bridges and ports are in (an) appalling state, our schools and education facilities are run down.
"We cannot allow this to continue."
AAP understands Mr O'Neill needs 74 votes to pass the bill into law.
Votes of no confidence have been a thorn in the side of successive prime ministers since PNG gained independence from Australia in 1975.
PNG's first prime minister, Sir Michael Somare, lost the top job in 1980 after a vote of no confidence.
In 2003-04, the Somare government failed in its bid to have the so-called grace period extended from 18 to 36 months.
He was PNG's longest-serving prime minister after a nine-year run, but was deposed by parliament on August 2, 2011, in favour of Mr O'Neill.
That move sparked a constitutional crisis that ended in mid-2012 after a general election which put Mr O'Neill back in the prime minister's seat with the backing of about 94 of PNG's 111 MPs.

PNG ship tragedy probe to start soon

By EION BLACKWELL of AAP

PAPUA New Guinea police say once funding is released they will start a formal investigation into the sinking of the Rabaul Queen a year ago that claimed the lives of over 140 people.

The overloaded MV Rabaul Queen sank on the morning of February 2 last year with as many as 411 people on board, after being smashed by huge waves about nine nautical miles (16 km) off Finschhafen, as it made the overnight trip from Kimbe to Lae.

PNG police say they will start a formal investigation into the sinking of the Rabaul Queen.

Police minister Nixon Duban says police will begin an investigation into PNG's worst maritime disaster once funding is released by the government on February 7.
"As of last year the Royal PNG Constabulary through its crimes directorate drew up a plan of action including a terms of reference for the investigation, and assembled an investigation team made up of senior police detectives selected from around the country," Mr Duban said in a statement.
"We are waiting for the 2013 financial year to open, which should be after February 7, and the police investigation will swing full speed into operation."
A commission of inquiry in June last year found there was no basis whatsoever to carry an excess of 295 passengers on board Rabaul Queen.
The commission, headed by Judge Warwick Andrew, was scathing of ship owner Captain Peter Sharp and made a series of recommendations for changing practices at PNG's National Maritime Safety Authority (NMSA).
"The evidence before the commission shows that the shipping operation of Captain Sharp has been compromising the safety of crew and passengers for many years," the report said.
"Captain Sharp demonstrated to the commission that he had little or no respect for people, including those in authority.
"The safety of passengers was not of paramount concern to Captain Sharp. He made it clear in evidence that he put profit ahead of safety."
The report called on the NMSA to take immediate steps to revoke the appointment of Mr Sharp as a recognised surveyor of ships.
Of the report's 25 recommendations, 14 were aimed at improving the capability of the NMSA.
AAP has been unable to contact the authority to determine if any of the recommendations - which include six-monthly safety checks on PNG passenger ships - have been implemented.

Ok Tedi villagers back prime minister

Source: The National, Monday, February 4, 2013

LANDOWNER umbrella group Ok Tedi Mine Impacted Area Association (OTMIAA) says it fully supports the stand of Prime Minister Peter O’Neill not to be pushed by either BHP Biliton or PNG Sustainable Development Program (PNGSDP) into extending mine life to 2025.
OTMIAA president Nick Bunn said his association represented nine regions of the Ok Tedi impacted area communities, comprising 165 villages of more than 100,000 people and would support O’Neill until all issues affecting the people and Community Mine Continuation Agreement (CMCA) communities were sorted out.
“The 16 leaders of the nine regions, who are members of OTMIAA, have pledged to work together with the government to ensure that all the long-standing concerns and issues relating to environmental damage impacting on human health and social welfare within the CMCA regions are sorted out before any mine life extension can be considered,” he said.
Bunn called on the prime minister to urgently set up a royal commission of inquiry, headed by prominent and eminent international scientists and jurists, to investigate the whole Ok Tedi saga and report the findings to the government for action to be taken.
 Bunn highlighted the following concerns:

• The Ok Tedi 9th supplemental agreement act must be reviewed and amended to get rid of BHP control and manipulation; 
• The memorandum of agreement (MoA) 2006-07 was overdue for review;
• Overdue dividend payments held within the Western province People’s Dividend Trust (WPPDT) must be released to the CMCA people’s entity immediately as promised in the MOA of  June 29,  2007;
• Landowner issues within the Bige dredging lease mining purpose (LMP) 37 and LMP 79 pyrite storage pond area must be sorted out;
• Issues raised by villages along the Fly River system which are affected by mine waste but were not included in the CMCA agreement must be sorted out;
• Deteriorating health, nutrition and water issues in the whole Fly River system;
• Landownership issues within the mine lease area (MLA) currently going through court; and
• Landowner local business development, localisation and training programmes need to be prioritised.

BHP: No link with OTML, PNGSDP

Source: The National, Monday, February 4, 2013 

 

By MALUM NALU

BHP Biliton says the company “now has no association whatsoever with Ok Tedi Mining Ltd (OTML) or PNG Sustainable Development Program (PNGSDP)”.
The Australian newspaper reported this at the weekend after The National’s lead business story last Friday about Prime Minister Peter O’Neill warning that the government might not approve the extension of the mine life of the nation’s biggest single taxpayer, Ok Tedi, unless BHP Billiton agrees to amend the terms of the copper-gold mine’s ownership.
Also at the weekend, Ok Tedi Mine Area Impacted Association (OTMIAA) said in a statement (see separate story) it fully supported O’Neill’s stance not to be pushed by either BHP or PNGSDP into extending Ok Tedi mine life to 2025 until all issues affecting the mine and Commmunity Mine Continuation Agreement (CMCA) communities were sorted out.
“BHP’s preference was to close the mine early,” the BHP spokesman said.
“This was not acceptable to the PNG government which was concerned about the socioeconomic impacts of early closure.
“The PNGSDP is an independent company, which has provided a lasting legacy for the people of PNG.”
Journalist Rowan Callick, whose article in The Australian last November infuriated O’Neill into banning then-OTML chairman Prof Ross Garnaut from entering PNG, wrote an article at the weekend explaining BHP’s non-involvement in PNGSDP and OTML.
“Following a series of environmental problems, BHP - which built the mine in the then-remote Star Mountains in PNG’s Western province in the early 1980s - pulled out of the venture,” he wrote.
“Through an agreement with the PNG government of the day that involved a form of indemnity over environmental damage, BHP placed 63.4% of the ownership in the hands of PNG Sustainable Development Program, a trust that was chaired by leading economist Ross Garnaut.
“The PNG government holds 24.4% of Ok Tedi Mining, and the Western province government 12.2%.
“Under the rules established a decade ago, two-thirds of the dividends that PNGSDP receives are held in a fund for use only after the mine’s eventual closure.
“The figure has now reached US$1.4 billion.
“The other third goes into a development fund, which deploys about US$100 million a year, of which a third is spent on projects in Western pro­vince and two-thirds in the rest of the country.
“In 2011, the mine paid US$543 million in taxes, about 16% of the PNG government’s income.
“Last November, Prof Garnaut resigned as chairman of PNGSDP and was replaced by former prime minister Sir Mekere Morauta.
“Recently, BHP ceased appointing three of the seven PNGSDP directors.
“They are now chosen by the board itself, which also includes PNG government nominees.
“But BHP must agree to any changes in the core terms of reference under which the trust operates.”

PNG ups the ante in with BHP over Ok Tedi mine row

Rowan Callick | The Australian 


PAPUA New Guinea Prime Minister Peter O’Neill has warned that the government may not approve the extension of the mine life of the nation’s biggest single taxpayer, Ok Tedi, unless BHP Billiton agrees to amend the terms of the copper-gold mine’s ownership.

Mr O’Neill told members of the Port Moresby Chamber of Commerce and Industry on Thursday that he was “not in a hurry” to grant an extension to the mine — whose permits expire later this year — even though it provides a quarter of the country’s export receipts.

Following a series of environmental problems, BHP — which built the mine in the then-remote Star Mountains in PNG’s Western Province in the early 1980s — pulled out of the venture.

Through an agreement with the PNG government of the day that involved a form of indemnity over environmental damage, BHP placed 63.4 per cent of the ownership in the hands of PNG Sustainable Development Program, a trust that was chaired by leading economist Ross Garnaut.

The PNG government holds 24.4 per cent of Ok Tedi Mining, and the Western Province government 12.2 per cent.

Under the rules established a decade ago, two-thirds of the dividends that PNGSDP receives are held in a fund for use only after the mine’s eventual closure. The figure has now reached $1.4 billion.

The other third goes into a development fund, which deploys about $100 million a year, of which a third is spent on projects in Western Province and two-thirds in the rest of the country.

In 2011, the mine paid $543m in taxes, about 16 per cent of the PNG government’s income.

Last November, Professor Garnaut resigned as chairman of PNGSDP and was replaced by former prime minister Mekere Morauta.

Recently, BHP ceased appointing three of the seven PNGSDP directors.

They are now chosen by the board itself, which also includes PNG government nominees. But BHP must agree to any changes in the core terms of reference under which the trust operates.

Last month, OTML chief executive Nigel Parker told PNG’s The National that more than 100,000 people in 156 villages had unanimously backed the extension of the mine’s operations until 2025.

But this requires government approval. And Mr O’Neill told the Port Moresby chamber that those seeking the extension, particularly BHP through PNGSDP, had to clearly indicate to the government that the mine life extension would make a real change in the country.

“So far, I am not convinced,” Mr O’Neill said.

The Prime Minister said he did not believe the parliament made the right decision 10 years ago in agreeing to the mine’s new governance.

 “We have given (BHP) protection from the environmental damage that caused misery for our people,” he said. “This is not the sort of development I want to encourage. We are quite happy to wait” (for BHP to agree to changes in the mine ownership structure and governance). The resources are not going to run away.”

A BHP spokesman said last month that the company “now has no association whatsoever with OTML or PNGSDP”.

  “BHP’s preference was to close the mine early,” the spokesman added.

 “This was not acceptable to the PNG government which was concerned about the socioeconomic impacts of early closure. The PNGSDP is an independent company which has provided a lasting legacy for the people of PNG.”