Government to take ownership of Ok Tedi mine in 2014

Source: The National, Monday, April 8, 2013

By MALUM NALU

Prime Minister Peter O’Neill says the government will take ownership of the Ok Tedi mine as of January 1, 1014, but management will remain.

He made this clear at a press conference last Friday to announce a restructure of all state-owned petroleum and mining assets, and state-owned entities (SOEs).

“We will take possession of the mine,” O’Neill said.

“The mining lease has already expired on March 31 (2013).

“We have extended it to get our house in order, but the ownership of the mine will be transferred to Papua New Guinea on the first day of January, 2014.”

O’Neill said BHP Billiton gave the mine as a “gift” to the people of Western province and Papua New Guinea, however, that never was the case as BHP retained control of the mine through PNG Sustainable Development Program (PNGSDP) Ltd.

“BHP gave that (mine) as a ‘gift’ to the people of Papua New Guinea and Western province, but the ‘gift’ never really happened,” he said.

“Some of us are starting to discover that now, so it’s easy if you read my article (published in the papers last week), to digest what’s the real story.

“We have made a terrible error, and I’m the first one to admit that.

“We have to correct the situation.

“I think it’s in the best interest of all Papua New Guineans that we are allowed to go down the road to take over ownership.

“We are not trying to take over management.

“I’m the first to acknowledge that I have no knowledge of running a mining company.

“The management will continue to manage, we’ve already had discussions with them, but the ownership must go to where it was intended: that was that it was intended to be a gift to the people of Papua New Guinea.

“I have never seen anywhere else in the world where a gift is controlled by someone who’s already given it.

“All we are trying to do is do the right thing.

“Whether they come to the party or not is irrelevant.”

O’Neill said pollution of the Fly River was “unacceptable”.

“This is unacceptable in any country,” he said.

“What the government should have done was to help the landowners to go and seek damages and sue BHP in a court of law that our landowners were pursuing.

“But what has happened has happened.

“I don’t want to rewrite history.”

PM spells out IPBC's job

By MALUM NALU

Prime Minister Peter O’Neill says Independent Public Business Corporation (IPBC) has not delivered its core mandate since its inception in 2002.

“IPBC was created for a specific purpose and not to be involved in risk taking commercial ventures, and the financing of the LNG project through IPBC is an example of how this entity’s conduct has strained the state’s resources, and incurred additional costs to the state,” he said.

“The restructure of IPBC will ensure that the focus is on rehabilitation through a public private partnership for our state owned businesses like Air Niugini, Eda Ranu, PNG Power and PNG Ports Corporation so the delivery of the services they provide improves at a cost affordable to our people.

“This is the mandate of IPBC.”

Under the restructure, a trust created will be known as the Kumul Trust.

The serving prime minister will hold a special share called the Kumul Share (having veto power), while all the former prime ministers will jointly hold an ordinary share.

“By having our former prime ministers as shareholder/trustees, we will be drawing from their wisdom and vast experience,” O’Neill said.

“I’m confident this structure will have political and commercial integrity.”

The Kumul Trust will be managed by independent and highly professional managers.

“Today’s announcement delivers on my commitment that the government’s investments, on behalf of the people, will be managed in a transparent, competent and accountable way,” O’Neill said,

“I’m certain these changes will be welcomed by the people of Papua New Guinea, and especially landowners in resource development areas.

“I’m also certain they will be welcomed by companies we are partners with in the development of our mining, oil and gas resources.”

O’Neill said all staff of Petromin and IPBC would be redeployed to the new entities, and would not suffer any loss of entitlements.

He said legislations to give effect to the new structure were now being prepared for parliament to approve.

Petromin assets split up

Source: The National, Monday, April 8, 2013

By MALUM NALU

Petromin PNG Holdings Ltd, and the Independent Public Business Corporation (IPBC) will be wound up and their assets and interest transferred to new Kumul entities to be set up, Prime Minister Peter O’Neill announced last Friday.

“All mining assets and interests for the state will be transferred to a new entity known as Kumul Mining Holding Ltd (KMHL),” he said.

O’Neill making a point at last Friday’s press conference where he announced the restructure.-Nationalpic by MALUM NALU

“This includes the state’s interests in Bougainville Copper Ltd (BCL), Ok Tedi Mining Ltd (OTML), and the state’s interest in Ramu Nickel project, currently held by Mineral Resources Development Corporation (MRDC).

“Also to be transferred to KMHL are the State’s interests in Tolukuma Mines, which are currently held by Petromin.

“All petroleum asset and interests owned by the State will be transferred to an entity known as Kumul Petroleum Holding Ltd (KPHL).

“This include the state’s interest (16.575%) in the PNG LNG project currently held by Kroton, a subsidiary of IPBC; 0.2% interest in the PNG LNG project held through a Petromin subsidiary called Kumul LNG Ltd, the state’s interest in Eda Oil currently held by Petromin, and exploration licences and other assets/interests held by Petromin.

“The IPBC will be wound up and all the state owned enterprises will be transferred to a new entity called Kumul Corporation Holding Ltd.”

Restructure of all the state’s investment in petroleum and mining assets, and the state-owned enterprises (SOEs) in the country, follows a decision by the national executive council (NEC) last fortnight to restructure and consolidate investment by the state in petroleum and mining ventures, and all the SOEs.

O’Neill said the restructure was a major decision by government to provide more transparency and accountability, and more focus in the way the state’s investment in mining and petroleum assets, and SOEs, were managed.

He said the restructure and consolidation of these state-owned assets were necessary to remove inefficiencies, and duplication and overlapping of participation.

“Through this restructure we are creating a commercial framework that is cohesive and focused.

“It will result in efficiency that will maximise benefits that will flow to the State.”

O’Neill said Petromin was a good example of what was tested globally by oil and gas majors, found wanting, and discarded.

“Oil Search shed mineral assets in Porgera gold mine to concentrate on oil and, and look at where it is now,” he said.

“Petromin bought into Tolukuma Gold mine in 2008, but continues to make a loss from this venture.

“Its total losses (in sales) stood at K45 million as at Dec 2012.

“The state’s position is not made any better with duplication and overlapping of participation in the PNG LNG project, with Kroton holding 16.57% in the project, while Petromin holds 0.2%, both for the state.

“This is not only confusing, but it also creates an environment for Kroton and Petromin to compete for nomination which is undesirable.”

Father, son flying high

Source: The National, Monday, April 8, 2013

Narara family continues to make PNG aviation history

By MALUM NALU

When the wheels of the Etihad Airways Airbus A330 Flight 055 lifted off the ground in Abu Dhabi bound for Brussels on March 30, 2013, another milestone in Papua New Guinea aviation history was made.

At the controls of Flight 055 was Captain Granger Narara, of Dobu Island, Milne Bay,  and his co-pilot was none other than his oldest son, Nigel Narara. 

Proud moment...Captain Granger Narara and his co-pilot, oldest son Nigel Narara, inside the Etihad Airways Airbus A330 cockpit before flying from Abu Dhabi to Brussels on March 30.-Picture courtesy of GRANGER NARARA

This is the first time that a PNG father and son team was in control of an international airliner and a great achievement for PNG aviation and the Narara family.

Granger’s younger brother, Captain Tico Narara, is the first Papua New Guinean in command of the Airbus A380, the biggest commercial airliner in the world, for Emirates Airlines.

Nigel first went to Dubai in the United Arab Emirates as a seven-year-old child in 1991, when his father left Air Niugini to work with Emirates Airlines as an A310 captain.

Nigel completed all his primary and secondary education in the UAE and went on to Embry Riddle Aeronautical College in Prescott, Arizona, USA in 2001 to do a degree in aeronautical science, until the events of Sept 11, 2001 put an end to those dreams.

He then transferred to the Royal Queensland Aero Club at Archerfield in Brisbane in 2003 where he completed his commercial pilot’s license and instrument rating.

He started his flying career with Airlines PNG, where he worked from 2004 – 2006, flying the Twin Otter based in Port Moresby and Kairik.

In 2007, Nigel was able to secure a job as a cadet first officer with Air Arabia, a low cost airline based in the UAE, flying the Airbus A320 on a regional network,   until Aug 2012 when he was employed by Etihad as a first officer on the Airbus A330.

“This is the highlight of my 36 year flying career, being able to fly with my son”, Narara said.

“An achievement like this is a great way to tell the world that PNG can and does produce some of the best aviators in the world, something that we as a nation can all be proud of/

“This success is also being replicated in many other top notch professions, notably in the international oil and mining sector where the number of PNG professionals around the planet is increasing.

“We can be very proud that as a small nation we are able to produce pilots, engineers, oil and gas operators and many other professionals that can stand up and be counted amongst the best in the world.”

Nigel said: “I have always wanted to fly with Dad, he wasn’t as hard a captain as I thought he would be.”  

His mother,  Regie, , said: “ Nigel was destined to be a pilot since he was a baby and has always dreamt of flying with his father, so this is a dream come true”. 

Nigel’s two-year-old son Kingston, the next generation of Narara flyers, was also there to greet his dad and bubu (grandfather).