New petroleum firm to be set up, says Prime Minister

PRIME Minister Sir Michael Somare announced yesterday that a new national petroleum company will be established to manage the state’s interest in the oil and gas industry, The National reports.

He made the announcement at the 11th PNG Mining and Petroleum Investment conference at the Hilton Hotel in Sydney, Australia.

Sir Michael did not give details of the new petroleum company but said his government would review, rationalise and reform the state’s mining and petroleum interest participation that would form the basis for the new petroleum company.

Treasurer Peter O’Neill later reaffirmed Sir Michael’s announcement at a press conference.

He said the government had undertaken the initiative to park the state’s interest in a single entity.

The announcement was among new initiatives that the government had undertaken to make PNG’s investment environment conducive for investors and tap into the revenues generated by the vast petroleum industry in the country. 

Delivering his keynote address, Sir Michael told investors that his government had made the investment environment conducive by providing the necessary policy legislation for investors.

He said in early 2003, his government passed legislation to make investment in the country’s resources sector more attractive. In that year alone, spending of mineral exploration doubled in value to around K60 million well before the China factor caused an upsurge in commodity prices.

“My government will ensure Papua New Guinea’s competitive edge will be strengthened and maintained,” the prime minister said.

“To do this, the government, with consultative input from the industry, will immediately pursue a key number of initiatives.

“The government will continue to provide a stable environment in the form of political and policy stability and remain committed to a petroleum and mining regime where rules are widely known, fair and transparent and understandable.

“The government will ensure licence holders do not sit on licences but fast track development on our resources and review, rationalise and reform the department of petroleum and energy.”

Sir Michael said part of the review would involve setting up a petroleum resources authority with similar roles and functions as the Mineral Resources Authority.

The prime minister said the policy reviews were in line with the government’s Vision 2050 and its development strategic plan.

He admitted that the economy looked gloomy before his government took office but things had changed over the past eight years, resulting in an unprecedented consistent economic growth.

He said under his government’s tenure, the most notable achievement was the delivery of the K45 billion PNG liquefied natural gas project.

He was optimistic that revenue from the LNG project would transform the nation’s economy and improve the living standards of its people.

“Revenues from LNG, as I have explained, will underwrite many of our social and economic programmes over the next three decades.”

The prime minister urged potential investors to make Papua New Guinea their next investment destination.

 

 

More colleges and varsities needed, says administrator

By ZACHERY PER

 

THERE is a great demand for tertiary education as more and more students pass out from the school system, a high school graduation ceremony outside Goroka, Eastern Highlands, was told last week, The National reports.

Acting Eastern Highlands provincial administrator John Gimisive said lack of spaces at tertiary institutions was pressing the government to build more higher educational institutions to cater for the increasing number of graduates.

Gimisive was speaking at the graduation of Rintebe High School in upper Bena, Unggai-Bena district, last week.

He also raised concern that while the number of students leaving high schools and secondary schools were increasing, there were not enough tertiary institutions to complement this increase.

He told students, teachers, parents and guardians and guests at the graduation ceremony last Tuesday that students had to work hard to secure placing in PNG’s tertiary institutions.

“We have more primary and secondary schools under the reformed system with more child enrolments, but the tertiary level is not expanding.

“My concern is that there are not enough spaces at the universities and colleges for large numbers of students passing out from secondary and national high schools every year,” Gimisive said.

He said spaces were limited and students in secondary and high schools were competing for these spaces.

Gimisive said students studying overseas and others attending private and church-run agency schools, and those from other Pacific Island nations, also fight for the limited places at tertiary institutions.

However, he encouraged the graduating students not to feel let down if they did not get a university or college placing.

He said there were other avenues for leavers to further their education.

Expert technical advisory panel to review the Watut River System

Following representations to the Hidden Valley Joint Venture by the Member of Parliament for Bulolo Mr Sam Basil who raised landowner community concerns, an expert technical advisory panel will review sediment and pollution issues affecting the Watut River.

The panel will complement the existing regulatory processes and scrutiny of mining operations conducted by the PNG Government.

It will likely include international specialists with best practice experience relevant to the PNG natural environment

In recent discussions with Mr Basil it was agreed that terms of reference and membership of the expert technical advisory panel would be determined with a view to finalising details at a meeting in January.

Regulators will be key participants in this meeting and in ongoing discussions.

It is envisaged the expert technical advisory panel will be briefed on both historic and current studies and will visit the mine site.

The Joint Venture has provided Mr Basil with a briefing on the environmental management and monitoring of sediment run-off from the mine along with background information and a number of studies.

The Joint Venturers said that the expert technical advisory panel would be a vehicle for the constructive resolution of sediment related issues in a transparent and cooperative forum.

The meeting also discussed the establishment of multi stakeholder panels to consider the broader future development of Morobe Province.

 

Background

The Hidden Valley Mine is operated by the Hidden Valley Mine Joint Venture (HVJV) a 50:50 Joint venture between Harmony Gold of South Africa and Newcrest Mining of Australia.

The Hidden Valley Mine is located near Wau and Bulolo in Morobe Province.

 It was officially opened in September 2010.

The Hidden Valley Mine has a workforce of more than 2,000 people: 95 per cent are PNG nationals and 50 per cent come from the local communities.

It is important to note that the Hidden Valley Mine has an engineered tailings storage facility and no mine processing residue, or tailings, is discharged into the river.

The mine related sediment in the river that has caused community concern was run-off from mine overburden and construction activities.

 The mine transitioned from construction to operation in October this year.

Mine sediment run-off is now significantly lower due to mitigation measures.

These measures included ceasing of side casting of waste rock and overburden in September 2009, ongoing revegetation of exposed slopes and erosion control, and the storage of waste rock in engineered waste rock facilities.

Hidden Valley Mine has a demonstrated record of working with local communities.

The Hidden Valley Joint Venture has been making voluntary compensation payments to communities along the Watut River for flood damage to crops and gardens, regardless of whether this was due to additional sediment run-off from the mine construction activity or by natural events such as landslips and heavy rain.

A sustainable development program is bringing education support, agricultural skills, health programmes and community facilities such as sanitation and water supplies, school classrooms, community halls and aid posts.

These programs were developed in partnership with the local and provincial government and are aligned with their development programmes.

 

Media inquiries contact:

Hidden Valley Joint Venture

David Wissink

Ph: (675) 472 1703 ext 243

Mobile: (675) 7100 2406

Fax: (675) 472 1705

Email: david.wissink@morobejv.com

 

Hon. Sam Basil, MP

Member of Parliament for Bulolo

Email: vipersco@yahoo.com.au

Facebook:

www.facebook.com/profile.php?id=698071613

 

The importance of research, science and technology

By SENIORL ANZU of NARI

The roles of research, science and technology are important for overall prosperity of any developing economy.

In agriculture, it is accepted that research, science and technology make positive inputs to agricultural development and eventually contribute to overall economic growth.

This happens when improved agricultural technologies and new innovations and knowledge generated through scientific research and innovative development are used in innovative ways by the farming and rural communities.

Papua New Guinea’s economic growth and social advancement remains in natural resource (renewable) sectors, including agriculture.

This sector is the mainstay of PNG where the majority of the population (85%) sustains their livelihoods.

Agriculture is the sector that must be targeted, irrespective of very exciting developments in other sectors at this present time.

The core contributions of agriculture are in the areas of food security, cash income generation, increasing gainful employment, reducing poverty and rural development - which would help realise broadbased economic growth.

That is where the government’s medium to long-term focus is for the future.

PNG agriculture also has potential for long term prosperity.

 This is through people empowerment and wealth creation, as singled out in the PNG Vision 2050.

Agricultural research and improved technologies are seen to be the most-critical catalytic agents in promoting the agriculture sector, economic growth and sustainable rural development.

PNG has distinct comparative and competitive advantage in developing its agriculture sector given the ample natural resources.

Basic opportunities in the agriculture sector lie in PNG’s rich resources and the potential to achieve substantial productivity gains through science-based agricultural technology and transfer of knowledge to communities.

Many of the potentials can be realised through increased productivity and diversified and expanded production.

They can be achieved through improved agricultural technologies and new knowledge created from science-based research which must be used by the farming and rural communities.

Technologies cannot be limited to one condition.

They can be borrowed from other countries.

Actors in the sector make assessments and adapt them to local conditions and circumstances.

Technologies can also be developed through innovations.

This is done through applied research, which requires scientific and systematic methods and processes.

Scientific research explores for truth and emphasises clarity of thinking using systematic processes.

Technology development translates research outputs into practical application for farmers and rural communities to use.

This is where institutions of research and technology development, higher education and training, and quality assurance come in.

They play a vital role in such an innovation system.

A number of institutions, universities and the private sector are incorporating science and technology in their research and development efforts.

 These are in the areas of crop improvement such as breeding, and biotechnology, crop diversification, pest and disease control such as management of the potato late blight infestation, and value addition.

 Over the years, the use of science and technology has helped developed various technologies that are appropriate for local conditions.

Examples of technological innovations involving National Agriculture Research Institute (NARI) include the development of plant-derived pesticides using locally-available resources, chemical control for taro beetle, hybrid taro varieties, crop propagation technique of marcotting, and the development of low-cost livestock feed using locally-available feed resources such as sweet potato and cassava.

 These and many others further need to be taken on further into our development contexts. They can contribute to increase productivity and empower growth and advancement.  

Globally, science and technology processes have been positively influenced by improvements in information and communication technologies, in human skills and in institutional development.

Challenges of modernisation are at our doors, and we need to accept them in all aspects and move to close the gap with the developed world.

For such to happen, knowledge and intellectual capacity is required.

Knowledge is created through research, science and technology development.

This knowledge, when adopted, helps in solving or alleviating constraints to development.

 It, as well, enables new opportunities for development to be explored.

Results from many empirical studies world wide have suggested a 30% or greater return on investments in agricultural research.

 Many developed nations invest at least 2% of their gross domestic product (GDP) in this area. 

The simple reason is that this investment gives a good return.

PNG has huge agricultural potential.

Thus the same can be anticipated.

Some effective integration of the potential of the “national innovation system,” is required to harness this potential.

This also requires input by responsible actors so that scientific research, improved technologies and knowledge are incorporated in the existing systems and practices so as to create a knowledge-based economy.

Thus the need for and potential of agricultural development and the capacities and potentials of research, science and technology should be harnessed through relevant innovation systems.

Science and technology are critical for improved agricultural production and productivity. The use of research, science and technology at NARI stands to benefit PNG livestock farmers with the development of low cost livestock feed using locally-available feed resources such as sweet potato

Milne Bay butterfly habitats unspoiled says British scientist

There are plenty of healthy habitats for butterflies and other creatures on Milne Bay povince’s Calvados Chain of Islands which are largely unspoiled, says a British entomologist and Pacific butterfly specialist. John Tennent, a scientific associate at the Natural History Museum in London, said his research had identified several species not previously recorded from Milne Bay as well as a significant number of butterfly species and subspecies not known to science.

British entomologist and Pacific butterfly specialist John Tennent

He has just returned from several weeks touring Milne Bay’s eastern Louisiades islands and is on his way back to England to stat the real work of sorting, identifying and publishing.
“Small dots on the map do not do the islands justice.
"The rugged islands of some of the Calvados Chain are stunning and there is a lot of healthy habitat out there which, because of the difficult terrain, has remained largely untouched,” he said.
“The data obtained during this research will be of critical value to researchers in other disciplines including biogeographers.
“The final results will include a comprehensive book on the 250 or so butterflies of Milne Bay Province islands.”
British High Commissioner to PNG, Jackie Barson, said the publishing of a book on Milne Bay’s butterflies would be an asset to the province and add to the growing data which confirms PNG as a mega biodiversity hotspot.
“I congratulate Mr Tennent on completing his research in the islands of Milne Bay.
“While this has undoubtedly been challenging, collaboration with other organizations such as Conservation International and the PNG Binatang Research Centre has helped make his work a lot easier,” she added.
Mr Tennent has been in Milne Bay Province since April 2010 carrying out a survey of the islands’ butterflies and has visited 76islands in the Province, and recorded butterflies on 74 of them.
He expects to spend most of his time in the coming year working on the specimens and the data collected during his time here, before returning to Milne Bay to tidy up loose ends early in 2012.
On many islands he has worked closely with the staff of Conservation International, an organisation for which he has nothing but praise.
He has also provided assistance in identifying butterflies to the PNG Binatang Research Centre in Madang.

OTML soon-to-be 100% PNG-owned

MINING giant Ok Tedi Mining Ltd will soon become 100% nationally-owned following the exit of shareholder Inmet Mining Corp next year, The National reports.

OTML managing director Alan Breens said this was a result of an agreement between the companies in which OTML would repurchase the previously announced 5% net smelter royalty (NSR) that Inmet was to receive from OTML.

The NSR is a fee which is a specific percentage of the revenue generated by a mine by selling its product, minus production expenses.

After seeking approval from the OTML board, Canadian company Inmet will now receive at closing the cash payment of US$335 million in lieu of its entitlements under the NSR arrangement.

Under the prior arrangement for the NSR, Inmet would have exchanged its 18% equity interest to OTML and at closing for that transaction, would have received a cash payment equal to 18% of OTML’s working capital and a 5% net smelter royalty on revenues of product produced from the Ok Tedi mine thereafter.

The NSR would have applied during Ok Tedi’s current mine life.

Breens said the closing of the NSR repurchase was expected to take place on or before Jan 31 next year.

He said OTML would then become 100% PNG-owned, with the state owning 36.6% and PNG Sustainable Development Program (PNGSDP) owning 63.4%.

 

 

Beon guards refuse to escort Kapris

Warders want payment

 

By JAYNE SAFIHAO

 

DISGRUNTLED prison officers at Beon Jail in Madang are refusing to provide armed escort to Papua New Guinea’s most infamous prisoner William Kapris Nanua, when he appears this week in the Madang National Court in relation to a Bank South Pacific armed robbery charge, The National reports.

The Correctional Services officers started their sit-in protest last Wednesday after word got out that the 11-strong CS contingent from Port Moresby, which had arrived three days earlier to provide extra security during the trial, had been paid ahead of them.

They told their bosses during a near-confrontation at Beon that they would not provide the armed escort for Kapris and his alleged accomplices unless they were assured of payment this week.

The good news, according to a senior officer yesterday, was that CS Commissioner Richard Sikani had given an undertaking that these officers would be paid this week.

Escorted by armed guard or not, Kapris and his co-accused are due to appear today before Justice David Cannings to enter a no-case submission. It is understood that a decision is expected by the end of the week.

Kapris, a convicted rapist and habitual prison escapee, had been charged with a serious of bank robberies, including the BSP Madang branch in which more than K2 million was stolen on July 25, 2008.

Last Wednesday, tempers flared which nearly turned into a fist fight between the warders and their bosses over outstanding administrative issues regarding delayed overtime and operation allowances for guarding Kapris and his co-accused.