Nautilus Minerals halts construction in PNG

StockMarketWire.com 

Nautilus Minerals has decided to preserve its cash position by terminating the construction of the equipment for its Seafloor Production System. It announced in June 1, 2012 that it was in dispute Papua New Guinea as to the parties' obligations to complete the agreement entered into in March 2011. 

To date, an agreed commercial resolution has not been achieved and Nautilus believes the avenues for achieving such a resolution within the timeframe that Nautilus could reasonably continue to carry the total development costs for the project have now been exhausted.

It has decided to terminate construction and all of the relevant supplier agreements contain provisions for termination without penalty. The company has also been forced to reduce staff numbers with approximately 60 positions being made redundant.

Nautilus' CEO, Mike Johnston, commented: "While terminating the equipment build for the Seafloor Production System and reducing staff numbers to this extent was a difficult decision, it was appropriate. Nautilus has a highly prospective ground position, which includes 19 identified prospects in Tonga, including the recent high grade discoveries in the NE Lau Basin and a 410m tonne Inferred Mineral Resource in the Central Pacific.

"Despite this setback, the company remains committed to maximising shareholder value by achieving its objective of developing the world's first commercial seafloor copper-gold project and launching the deep water seafloor resource production industry, whilst maintaining an environmentally and socially responsible approach."

PNG migration law to be reviewed

  

 
International Organization for Migration

Papua New Guinea - A high-level meeting held last week in Port Moresby, Papua New Guinea saw the launch of an International Organization for Migration (IOM) programme of technical assistance to the Government's Immigration and Citizenship Service Authority for a review of the National Migration Act and Regulations.
PNG has seen 10 years of uninterrupted economic growth, supported by the mining industry, a major liquefied natural gas project and spin-off effects on the construction, wholesale and retail sectors. This growth represents new opportunities for the thousands of foreign workers and investors who are arriving in the country in increasing numbers.
This rapid economic growth also brings challenges which require the improvement and updating of migration laws. IOM will help legislators to review rules relating to existing visa categories, assessment criteria and flexible entry arrangements for skilled migrant workers and foreign investors.
It will also assess how PNG deals with abuses of the visa system to create a clearer and more comprehensive approach to the treatment of unauthorised non-citizens.
The current PNG Migration Act dates back to 1978. Since then, only a limited number of minor amendments have been introduced.
PNG Minister for Foreign Affairs and Immigration Rimbink Pato told the Port Moresby meeting that “Immigration laws are an important tool in achieving economic growth, especially through support for tourism and the facilitation of business and increased levels of inward investment. Just as importantly, immigration laws and procedures play a vital security role in ensuring well managed borders."
IOM Chief of Mission Giuseppe Crocetti noted “the urgent need for this major review to take place with a view to identifying options and making recommendations for responding effectively to the increasing volume and complexity of people movement across PNG’s borders.”
IOM’s technical assistance will also support options for incorporating PNG’s obligations under the Refugee Convention and its corresponding Protocol into national legislation. Faced with a current refugee population of about 9,000 West Papuans and a small component of non-Melanesian refugees, this issue is pressing, as current PNG legislation does not specify how a refugee status determination (RSD) system would work.
With funding from the Australian Department of Immigration and Citizenship (DIAC), IOM will support the legislative review process over the next two years as a part of a broader on-going capacity building programme in PNG. Legislation and policy drafting assistance will follow the initial assessment and build on the recommendations from an initial review report.

3rd PNG Human Rights Film Festival opens in Port Moresby tomorrow!

Starting this week, the PNG Human Rights Film Festival will run for five days from Wednesday, 14 November until Sunday, 18 November 2012 at the University of Papua New Guinea Main Lecture Theatre.

 Each day of the Port Moresby festival will focus on a different Human Rights theme where international and PNG films will be screened followed by a panel discussion:

• Wednesday: Violence Against Women
• Thursday: Discrimination and sexual health
• Friday: Business, Environment and Human Rights
• Saturday: Refugees, asylum seekers, and people smuggling
• Sunday: Ending impunity for Torture and Inhuman treatment.

There will also be two official launches at the Port Moresby festival:

• The Crying Meri photo exhibition on domestic violence in PNG will be officially opened on Wednesday, 14 November 2012 at 11.30am by photographer Vlad Slokin and will be on display throughout the event.
• The Komuniti Tok Piksa series of films on HIV and AIDS in PNG will be officially launched on Thursday, 15 November 2012 at 5.00pm.

The Port Moresby event will open from 10am to 7pm every day and is open to the public. Entrance for adults is K1 and children under 18 years old enter for free. Human Rights information stalls, exhibits and cultural performances will be set up in the UPNG Forum area and Buk Bilong Pikinini will organise children’s activities. 

Following Port Moresby the festival will also travel to Buka (24-26 November) and Goroka (30 November – 1 December). For full information and programmes visit www.hrff.org.pg and www.facebook.com/pnghrff.

The 2012 PNG Human Rights Film Festival is sponsored by: OHCHR, The European Union, Airlines PNG, Pacific MMI, Department of Foreign Affairs & Trade, Oxfam, UNDP, WHO, The Voice Inc., British High Commission, The University of Goroka, The Human Rights Film Network, UNWOMEN, National Fisheries Association, and City Pharmacy Limited.

All media are encouraged to attend the various sessions and events at the festival. For further information, comment or interview please contact Lisa Smyth lisa.smyth@one.un.org, 321 2877 or Alithia Barampataz alithiamb@gmail.com, 7155 9980.

Cost of PNG LNG rises to $US19 billion

By AAP

The cost of a liquefied natural gas (LNG) project in Papua New Guinea part-owned by Santos and Oil Search has increased by $US3.3 billion ($A3.18 billion) to $US19 billion ($A18.34 billion).
The PNG LNG project, the country's largest resources project, is being operated by Esso Highlands Limited, a subsidiary of Exxon Mobil Corporation, and Oil Search has a 29 per stake partner.
Santos, Japan's JX Nippon Oil and Gas Exploration, a unit of JX Holdings, and the Papua New Guinea government are also stakeholders.
Esso has indicated the cost estimate for the project has risen from $US15.7 billion to $US19 billion, due mainly to foreign exchange factors, Oil Search said on Monday.
Delays from work stoppages and land access issues, and adverse weather conditions have also added to the cost of the PNG LNG project, it said.
The increased cost is expected to be met in line with the project's existing financing terms, Oil Search said, and it expects to contribute an additional $US300 million ($A289.90 million) in equity.
Santos expects to contribute an additional $US130 million ($A125.62 million) in equity.
"The increase in the estimated final costs of the project is disappointing," Oil Search managing director Peter Botten said in a statement.
"The extent of the change is considerably beyond the upper end of what might have been expected from cash drawdowns and project progress to date.
"In addition, the estimated foreign exchange impacts and the amount allowed for additional contingency is higher than we would have anticipated.
"Oil Search intends to fully review the revised estimates and is committed to working with the operator to seek to mitigate these estimated cost increases."
But Mr Botten and Santos chief financial officer Andrew Seaton each said the PNG LNG project remained a "highly robust economic project".
The project remains on track for first production in 2014.

What Australia can learn from PNG

by Danielle Cave 

The recent Lowy Institute PNG New Voices Conference was a much-needed shock to the complacency I have become attuned to as a member of Australia's international policy community.
It was the best Lowy Institute conference I have ever attended. In fact it was the best conference I have ever attended full stop. This is because again and again the speakers demonstrated qualities that are rare in Australian-based public discussion: passion, frankness, courage, creativity and a talent for generating new ideas. The determination to get their views across shown by those who participated was infectious. 

PNG Government representatives (from Foreign Affairs, Treasury and Sports), business owners, senior NGO managers, economists, journalists, artists, students and future political candidates gave honest and considered views of where they see their country going and why PNG's politicians are not doing enough to deliver for the people they serve. Now, over email and social media, these same people are forming new networks, debating policy ideas and coordinating future meet-ups, interviews and events.
PNG public servants that spoke at PNG New Voices were careful to explain that 'the views in my speech don't necessarily represent the views of the government of PNG', before presenting fresh and frank perspectives, strong opinions and creative policy ideas. I can't image an Australian public servant able or willing to do the same.
Australia's international policy expertise within the public service is increasingly locked away from public view and public discussion. Trapped in rigid hierarchies and spread across about a dozen internationally-focused government departments, most will only reappear when they jump ship into a non-government or private sector role.
Too many of these specialists spend more time briefing, coordinating and thinking about their department's place in Canberra (and their branch's place in their department, and so on) than using their knowledge to inform international policy formulation. The burden and cyclical nature of the vast demand for briefings – for politicians, senior government employees and even for mid-level public servants – is inhibiting the strategic capabilities of the public service.
 Australian Government departments, intentionally or unintentionally, hinder public debate by putting up barriers that limit and discourage the participation of policymakers and public servants. The requirements to get clearance to engage in public discussion can be so demanding that a policymaker needs to assess whether it's worth their time and effort.
It's rare to see an Australian public servant ask a question in a public forum, let alone offer their opinion or idea on a topic. The barriers to participate in public discourse that have helped contribute to the over-cautious nature of Australia's internationally-focused policymakers need to be abolished. This inactive approach to participating in public discussion and debate is self-harming and short-sighted for Australia, a country which sees itself as a creative middle power.
Australia's international policy community is facing a serious predicament. The Prime Minister and Foreign Minister have, at their disposal, an over-cautious, under-utilised and under-resourced (in the case of Foreign Affairs) crop of international policymakers. Worst of all, new ideas are few and far between. Even when a policy idea does survive the gauntlet of an inflexible, hierarchical clearance processes, it will not always be well communicated and may not even come to the attention to other international policy segments of the Australian public. 
By putting a padlock on our public servants the  Australian Government is essentially under-employing one of its most important resources. This knowledge and expertise would help inform, not hinder, Australia's international policy debate.
The over 100 Papua New Guineans who participated in PNG New Voices taught me how much Australia could learn from Papua New Guinea if only we would pay attention and listen. New ideas were being thrown up by speakers and participants. Those of us typing up notes and tweeting via #PNGNewVoices struggled to keep up. I heard more good policy ideas on 22 October in Port Moresby than I have heard over the last year in Australia's foreign policy discussions (both publicly discussed and behind closed doors).
Are Papua New Guineans better at thinking outside the box? Does the Australian public service even value new ideas and creative policy thinking? Are government policymakers, so caught up with internal administration and briefing, less informed about international developments? Is Australia always destined to host an international policy debate where policymakers rarely take part?
Sadly, Australian government agencies are not known for their ability to generate new and creative policy thinking. But this could change. Change needs to trickle down from confident leadership, both at the political and departmental level, that trusts the capabilities of the public servants they employ.
No one at PNG New Voices defended or made excuses for poor policy. No one toed the line. Refreshingly, no one spoke from a dry and unimaginative set of talking points. No one took the opportunity to lecture another group or a country. And no one criticised those who disagreed with them, instead welcoming different views and seeing this as an opportunity to take part in an informed debate. After all, a strong public discussion means that policy has been challenged and debated, and a more informed policy is good for any country. Papua New Guineans at the conference understood and encouraged this. The same attitude to international policy debate needs to develop in Australia.
Australia's international policy community is performing at partial strength. Instead of foreign policy debates flourishing as Australia faces an increasing set of complex international challenges – hosting the G20 in 2014; wedged between our core ally and key trading partner; taking on a term in the UNSC; facing the possibility of conflict in Asia – the debate is flat. And worse off because of the lack of Australian policymaker participation.
It took listening to the depth of talent that exists within Papua New Guinea's crop of emerging leaders to appreciate just how lethargic and tepid Australia's international policy community has become. Where is the passion for informed and new ideas for Australia's future place in the world? And importantly, where are Australia's emerging crop of international policy leaders? I certainly can't hear them.
Photo by Flickr user auraneurotica photo.

PNG - Australia AFL Taskforce Meets

Invest in Australia

The PNG-Australia AFL Taskforce is continuing to kick goals for the advancement of Australian Rules football in Papua New Guinea.

Co-chaired by Parliamentary Secretary for Pacific Island Affairs, Richard Marles, and PNG's Minister for Transport, Ano Pala, the Taskforce met in Port Moresby today to finalise a report that will set clear recommendations on how Australian Rules can be expanded and strengthened in PNG.

Established in partnership with the AFL, the PNG-Australia AFL Taskforce aims to have its recommendations become the foundation for enhanced partnership programs over the coming years.

"This Taskforce is an important step in the development of Australian Rules football in PNG and we know that well-organised sport can have a very positive impact on both individuals and communities," Mr Marles said.

"Through this collaboration between Australia, PNG and the AFL, the Taskforce aims to open up more opportunities for men, women and children to play the game in PNG, as well as increase the prospects for elite players to pursue their football at the highest levels."

Those attending this morning's meeting included PNG's Minister for Sports and Pacific Games, Justin Tkatchenko, Acting Chancellor of the University of PNG, Professor Ken Sumbuk, Australian Football League (AFL) Asia Pacific Development Manager, Andrew Cadzow and Chairman of PNG AFL, Scott Reid.

South Pacific coconut gene bank in PNG under threat

By Anne Moorhead in SciDev

The South Pacific's coconut palms are under threat

Flickr/adaduitokla

[SUVA, FIJI] The international collection of the South Pacific's coconut palm species, held at a field gene bank in Papua New Guinea (PNG), is under threat from a disease outbreak close to the gene bank.
The warning came at a meeting on the Pacific coconut research and development (R&D) strategy in Samoa last week (1 October–2 November), convened by the Australian Centre for International Agricultural Research and the Secretariat of the Pacific Community.
The deadly disease, Bogia Coconut Syndrome, is threatening the survival of gene banks of region's most important tree, the coconut, a number of which are endemic. Named after the town of Bogia on the north coast of mainland PNG, the disease appears to be caused by bacteria similar to, but distinct from, the better known Lethal Yellowing disease that attacks palm species.
Ironically, PNG was selected as the site for the gene bank in the 1990s because the country was relatively free of coconut pests and diseases.
In an attempt to contain the disease, movement of coconuts and coconut palms, both from the gene bank and for commercial reasons, out of the affected region has been banned, with roadblocks in place to help enforce this.
But these restrictions are preventing the gene bank from fulfilling one of its key roles: distributing useful varieties in support of R&D efforts.
The gene bank holds 3,200 coconut palms, representing 57 different varieties of Cocos nucifera, and is one of five international coconut collections around the world. Duplication will not be easy: some of the varieties are not kept in any other gene banks and will need to be collected again from the field.
Roland Bourdeix, coordinator of the International Coconut Genetic Resources Network, is arranging an urgent mission to PNG to assess the situation.
"We hope to rescue the collection," Bourdeix says. "We'll relocate it if there's a safe way to move the plants. We are also planning to duplicate [the gene bank] in another country."The crisis is at least providing an opportunity to rethink the strategy for regional coconut conservation," he says. "For example, we are exploring a concept called 'polymotu' — using small islands as gene banks by planting them with one or two varieties. The isolation keeps the varieties pure."
Richard Markham, research programme manager for the Australian Centre for International Agricultural Research, said: "At present, both the pathogen and its epidemiology are poorly understood".
"We are supporting research to try to identify the [Bogia Coconut Syndrome] vector and better understand the host range of this disease. Once we have that information, everyone will be better placed to assess the threat — both to coconuts and livelihoods in general."

This article has been produced by SciDev.Net's South-East Asia desk.