Friday, May 04, 2012

Welcome to Goroka market

MALUM NALU
Goroka Market is one of the markets in PNG that is known for its high quality fresh fruit and vegetables.
Visitors to Goroka, as well as local residents, fill the market every day to buy locally-grown fresh fruit and vegetables.
Air travelers, especially, make it a point to buy Goroka fruit and vegetables before their fly departs from nearby Goroka Airport.
Market bags, made by innovative local craftsmen from empty rice and flour sacks, are readily available.
After travelers do their marketing, they can then get a craftsman to quickly sew up the bags before they are air freighted.
Enjoy these images that I took last Sunday, April 29:
























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A Goroka and Eastern Highlands Bob Cleland has never left

By MALUM NALU

Coming back to Goroka and Eastern Highlands province last Saturday was for legendary kiap (patrol officer) Bob Cleland, like arriving at a place he’d never quite left.

Bob Cleland being presented an Eastern Highlands flag by outgoing provincial administrator Munare Uyassi last Saturday.-Pictures@MALUM NALU
Cleland was feted like royalty the moment he stepped onto the tarmac in Goroka – the Land of Eternal Spring – on which he first set foot on 59 years ago in 1953.
Asaro mudmen and other Eastern Highlands dancers welcomed him back to Goroka, and he was greeted by senior provincial government officials including outgoing provincial administrator MunareUyassi, as blind children from the Mt Sion School for the Blind outside Goroka sang that famous and movingGoroka anthem “Welcome to Goroka”.

National Gaming Control Board CEO Edward Mike Jondi, Cleland's partner Elizabeth Green, Cleland and Uyassi listen to the welcome song
As “Welcome to Goroka, the land of Nokondi, from Daulo Pass across to Kassam Pass…” reverberated through the perennial springtime climate, one could almost feel the majestic mountains surrounding Goroka rise in salute to this great man.
The irony is that he helped to build roads over both the Daulo and Kassam passes.
Cleland, now aged 81, was clearly overwhelmed by the welcome.
After lunch at the Bird of Paradise Hotel, we took a drive along the Highlands Highway to the summit of Daulo Pass, which Cleland supervised building of as a 22-year-old kiapin 1953.
All along the way, from Goroka through the great Asaro Valley and the ascent to Daulo Pass, he pointed out places of interest and recalled memories of another day from more than 50 years ago.
At the summit of Daulo Pass, he checked out old landmarks, pointed out landmark sections of the road, and gazed down at the magnificent panorama of the Asaro Valley.

Bob Cleland points out the panorama of the Asaro Valley from Daulo Pass
The Goroka policemen who provided us escort couldn’t help but listen spellbound as Cleland told them about how he supervised the building of the stretch from Asaro Bridge through Daulo Pass and on to Watabung using local labour.
We planned to drive down further to Watabung, however, because of the death of a well-known local leader Kapo, had to put it off for another day.
Watabung has a special place in Cleland’s heart at it was here that he brought his young bride, Julie, in 1955, and where their first daughter Susan grew up after being born at the ‘European Hospital’ in Goroka in 1956.
His widely-acclaimed book, Big Road, first published in 2010, but not widely on sale yet in PNG, tells the story of the building of the Highlands Highway, particularly the Daulo stretch between Asaro and Watabung in Eastern Highlands in 1953, which he personally supervised as a 22-year-old kiap.

Big Road
The 'big road' today is the Highlands Highway running from the port of Lae and through the highlands provinces of PNG.
Big Road describes the initial construction by hand, in 1953 and 1954, of the Daulo section of the road, which runs over the 2,478m Daulo Pass and which gives access westward to the great Waghi Valley.
Cleland, before the Daulo Pass, helped the late Rupert Haviland built part of the road over the Kassam Pass.
The big road was neither designed nor built by engineers but bykiaps, with local villagers using only picks, shovels and thousands of hours of backbreaking labour.
Cleland was also involved in the first Goroka Show in 1956 and designed the Eastern Highlands provincial flag, in particular Nokondi – the fabled spirit who had one eye, one ear, one leg and one testicle.
That was why, in true Gorokaand Eastern Highlands style, he was given a hero's welcome last Saturday.
Later that evening, at the Bird of Paradise Hotel, Cleland was special guest at the launching of the 2012 Goroka Show, where his reminisces enthralled the spellbound audience.

Bob Cleland, who took part in the first Goroka Show in 1956, reminisces at the 2012 Goroka Show launch.
His relationship with Goroka and Eastern Highlands is more than special.
When Cleland arrived in the New Guinea Highlands in 1953, many tribes had just seen their first white man only 20 years before.
He was one of a team of young Australians charged with introducing a new form of justice to tribes that had previously settled disputes with spears, axes and arrows.
He was 22, fresh from university as a graduate engineer.
As a kiap, Cleland had a triple role of magistrate, policeman and administrator.
But he was not only a kiap, he was also the boss’s son.
His father Donald (later Sir Donald) Cleland, was administrator of Papua New Guinea for 15 years from 1951, so his trial by fire in New Guinea was particularly intense.
Right from the start, Cleland was charged with building some of the most-challenging sections of the ‘big road’, linking the Highlands with the coast.
In the early 1950s there was no way into or out of the Highlands except by plane or on foot.
Yet the region was densely populated, home to hundreds of thousands of villagers, and alluringly fertile.
A road connection had to be built, and it had to be constructed by hand – no bulldozers or diggers.
The Eastern Highlands district commissioner then was the legendary Ian Downs, from Scotland, who first came to PNG as a 21-year-old kiap.
He’d been posted to the Highlands only five years after Australian explorers Jim Taylor and Mick Leahy discovered that hundreds of thousands of people lived in extensive upland valleys amid what had always been assumed to be impenetrable mountains.
Running right throughout Cleland’s book itself is the ‘big road’ itself, the Highlands Highway that was carved out of mountains and mud with shovels, sweat and tenacity.
Big Road is a pioneering tale that paints a vivid picture of the majesty of the mountains and the mingling of two cultures.
Cleland served 23 years altogether in PNG from 1953-1976.
After Watabung, he was transferred to Kainantu for two years, attended the Australian School of Public Administration (ASOPA) in Sydney, and then served in Daru, Balimo, Lae, Kokopo, Chuave and then ended up in Goroka, where he was executive officer of the Eastern Highlands Area Authority (which became the Eastern Highlands provincial government in 1977) from 1975-1976,
The new authority needed a common seal, and when Cleland asked members what was something traditional covering the whole Eastern Highlands, they quickly decided on Nokondi.
That same image is at the centre of today’s Eastern Highlands provincial flag.
“Those 23 years were the best years of my life,” Cleland tells me.
“It was a very rewarding job.
“If you did a job properly, you could see the results.”

Increasing liquidity levels worry Central Bank

By MALUM NALU
The increasing level of liquidity is the main cause of concern to the Bank of PNG, according to its quarterly economic bulletin released yesterday (Thursday), The National reports.
Governor Loi Bakani said the main issue that the Central Bank was confronted with was the increasing level of liquidity in the banking system in recent years, caused by the foreign exchange reserve build-up related largely to dollar-denominated mineral tax earnings, high export earnings and inflows related to the PNG liquefied natural gas (LNG) project and other private foreign direct investments.


Bakani…concerned at increasing levels of liquidity.


“This is compounded by the fast drawdown of trust accounts held at the Central Bank,” he said. “Whilst the high liquidity levels do not appear to influence inflation via the credit channel despite strong economic growth, it is still a threat to price stability and soundness of the financial system.
Bakani was concerned that the Central Bank was incurring an increase in the cost of monetary policy management by issuing Central Bank Bills (CBBs) to sterilise some of the excess liquidity.
“Efforts made to transfer some of the trust account funds to the Central Bank and opening of all new trust accounts with the Bank of PNG have not been really successful as the government continues to hold high trust account balances with commercial banks,” he said.
“The kina continued to appreciate against most of the major currencies on the back of the strength of the US dollar as investors look to it as a safe asset in light of the Euro debt crisis and weak global economic conditions.
“The kina’s appreciation was supported by high foreign exchange inflows associated with the LNG project, mineral tax receipts, and high commodity export earnings.”
Bakani said up to April 20, 2012, the kina appreciated against the US dollar by 3.6% to 0.4836, and against the Australian dollar by 1.7% to 0.4670.
He said that while the kina appreciation was a positive development to curb inflation, it had the potential to adversely affect the export sector.
“In this regard, the Central Bank has been actively involved in the foreign exchange market to ensure stability in the movement of the kina exchange rate,” he said
Bakani said the level of gross foreign exchange reserves as at April 30, 2012 was K9,074.9(US$4,442.2) million, compared to K9,226.4 (US$4,340.1) million as at end of December 2011.
“The increase in the US dollar value is due to the latest payment of mineral tax for the government while the decline in the kina value reflects the appreciation of the kina against the US dollar,” he said.
Meanwhile, Bakani said inflationary pressures in the domestic economy would come mainly from domestic demand pressures associated with high inflows and spin-off activities relating to the construction of the LNG project and increased government spending.
“The upside risks to domestic inflation will stem from: the volatility in import prices; a fall in prices of export commodities; depreciation of the kina exchange rate; and higher than budgeted government expenditure,” he said.
Bakani cautioned the Government to be disciplined in its spending, particularly during the national election period, to keep within the 2012 budget.

Thursday, May 03, 2012

Street arts and crafts of Goroka

By MALUM NALU

One of the feature of Goroka is the street arts and crafts, ranging from paintings, bilums, bows and arrows, clay Asaro mudmen, everything.
Last Saturday afternoon, while in Goroka, I enjoyed all the street arts and crafts all the way from Bird of Paradise Hotel to outside the Eastern Highlands provincial government complex.
Here are some of the pictures I took:
A bilum explosion of colour in Goroka.

Bilums hung up for all to see.

Colours of Goroka.

An expatriate family admiring bilums on the streets of Goroka.

Bilums of Goroka.

Legendary former kiap (patrol officer) Bob Cleland (left) chatting with an expatriate against a coloutful backdrop of bilums.

I met these guys and gals outside the Bird of Paradise Hotel.

I love these guys and gals!

Outside the Bird of Paradise Hotel.

Outside the Bird of Paradise Hotel.

Art vendor outside the Bird of Paradise Hotel.



Craft of the Bird of Paradise Hotel.

BCL keen on reopening Bougainville copper mine


By MALUM NALU

Bougainville Copper Ltd (BCL) remains committed to reopening of the controversial Bougainville copper mine, according to chairman Peter Taylor, The National reports.
 He reaffirmed at BCL’s annual general meeting in Port Moresby on Tuesday that the vision to return to active exploration and profitable mining remained, with active support of local stakeholders.
  “We face the coming year with enthusiasm for the tasks ahead, and anticipate good progress toward the vision of reopening the mine,” Taylor said.
 “We have many initiatives in place, we believe we are ready to go, we are engaged with the Autonomous Bougainville Government (ABG) and the landowners, and we recognise that to a large extent, the time table rests in their good hands.
 Taylor said prime minister Peter O’Neill had confirmed in parliament that BCL had, by right of the Bougainville Copper Agreement (BCA), permits to operate at Panguna for a further 21 years from 2011.
 “There are also encouraging indications that funding for Bougainville and the drawing down of powers to the ABG including the power to license and regulate mining will be invigorated under his government,” he said.
 Taylor said several new developments had occurred which should help facilitate the re-negotiation of the BCA.
 “To make things clear, the BCA is an act of the PNG national parliament, and as such can only be modified or repealed by the parliament,” he said.
 “However, it is recognised by all stakeholders including BCL that the agreement was drawn up in times and circumstances that differ from those prevailing today, and that significant changes need to be made to accommodate the views, rights and aspirations of all stakeholders including the landowners and the people of Bougainville.
 There is widespread agreement today that Bougainville’s economic future needs mining if it is to be able to fund services for the people from its own resources, as well as address future opportunities for economic and social development.  
 “A re-commencement of mining at Panguna cannot take place unless all parties: the landowners, the ABG, the national government of PNG, and BCL, are acting in close accord, now and into the future.
 “Funding and sovereign risk assurance for the project will require a united effort.
 “There will need to be a fair and stable regulatory regime that gives investors the confidence needed to commit to a project that will cost in excess of US$3 billion
 “It is pleasing to note that Landowners and others in nine areas most closely affected by the mine’s operations, including Panguna, the tailings areas, Arawa, and the road and port leases, have all but completed the formation of legally-based associations capable of providing genuine representation to the process of reviewing the BCA.
 “The process of incorporation, which involves both legal and customary commitments, is most welcome, and should bring us closer to the capacity required to review the BCA to the benefit of all stakeholders.
 “It is a process conducted by the landowners themselves with the support of the ABG and president (John) Momis, and without the participation of BCL.”

InterOil enters into agreement for Gulf LNG


 InterOil Corporation has signed a binding agreement with Pacific Rubiales Energy (PRE) to explore and further appraise the Triceratops structure on petroleum prospecting license (PPL) 237 in Gulf province, The National reports.
Under the agreement, PRE can earn a 10% net (12.9% gross) participating interest in PPL237, including the Triceratops structure located within that license.
 The transaction contemplates staged initial cash payments totaling US$116 million, an additional carry of a portion of the costs of an agreed exploration work programme, and a final resource payment.
PRE’s gross participating interest is subject to the PNG government’s back-in rights provided for in relevant PNG legislation.
This transaction is not associated with the planned sale of an interest in the Elk and Antelope fields and related LNG equity partnering process targeted for the second quarter of 2012.
In accordance with the agreement, the farm-in is subject to the accomplishment of certain milestones over a one-year period (generally, execution of definitive documents and acceptance of registration of the assignment documents by the PNG government) and other standard industry conditions.
Key commercial terms to acquire a 10% net participating interest in the PPL237 license, including the Triceratops structure, include the following:
·         An initial cash payment of US$20 million;
·         Additional cash payments aggregating US$70 million for the Triceratops structure US$26 million for the balance of PPL237; and
·         A carry, of an additional 25% of the expenditures associated with a 250km 2D seismic programme, the drilling, testing and completion of the Triceratops-2 well appraisal well currently underway and six additional appraisal wells planned on the Triceratops structure, and the drilling, testing and completion of four new appraisal wells planned for other locations within PPL237.
PRE is entitled to be repaid the 25% carry from cash flows from production and from reimbursement by the PNG government in the event it decides in due course to exercise its back-in rights under relevant PNG legislation.
Based on current cost assumptions and assuming the full work programme is completed, the initial cash payments and work program consideration are estimated to represent a combined total value of US$345 million, plus a final resource payment.
“InterOil and its partners are pleased to enter into this mutually-beneficial transaction with Pacific Rubiales, a company with a market capitalisation of US$ 9 billion and a track record of successful exploration and production development demonstrated by current production of over 250,000 barrels of oil per day,” said Phil Mulacek, chief executive officer of InterOil.

“We look forward to continuing our relationship with PRE and to accelerating appraisal and development of the Triceratops gas and condensate field in PNG.”

Wednesday, May 02, 2012

Bougainville Copper Ltd posts K3.7 million loss in 2011


Bougainville Copper Ltd (BCL) yesterday (Tuesday) announced a loss of K3.7 million in 2011, compared to an anticipated loss of K7.3 million, The National reports.
 Because of this, no dividend would be paid, chairman Peter Taylor announced at BCL’s 45th annual general meeting in Port Moresby.
 “Overall, income and costs were generally within budget, admin and exchange losses being over, offset by a similar amount under budget for BCA renegotiation,” he said.
“Interest of K2.2m earned on court-held IBDs has been brought into account this year.
 “Due to the loss recorded and the need to preserve cash for future development the company will not pay a dividend.
“The company has sufficient funds to cover its recurrent expenditure under the current plan and is debt free.”
Taylor said he was more optimistic about the future of this company than any year out of the previous 20 years.
 “There are activities on foot in several areas that can positively assist Bougainville Copper Ltd make a return to profitable mining,” he said.
“Some of these are within the control of the company itself, others less so.
 “The most-beneficial change has been the focus of Panguna landowners and other Bougainvilleans on the re-development agenda, and the initiatives they have taken to contribute to momentum.”
Taylor also talked about BCL’s:
  • ·         Investment strategy; 
  • Ongoing tax dispute with the Internal Revenue Commission of PNG;
  •    Litigation in the United States;
  • ·         Corporate governance;
  • ·         Safety;
  • ·         Risk management;
  • ·         Bougainville Copper Foundation
  • ·         Significant events, beginning on Bougainville; and
  • ·         Bougainville Copper Agreement
 Taylor said Prime Minister Peter O’Neill had confirmed in the Parliament that BCL had, by right of the BCA, permits to operate at Panguna for a further 21 years from 2011.
“It is possible that some further remediation work will be carried out on site with the co-operation of landowners, to make areas safe whether mining proceeds or not,” he said.
“President (John) Momis has been proactive in assisting the company carry out safety work. 
“Again, the landowners will be informed and involved as appropriate.
“The vision to return to active exploration and profitable mining remains and, I am pleased to say, with the active support from local stakeholders to which I have earlier referred. “