Newcrest axes PNG jobs in austerity drive

The Australian

GOLD miner Newcrest Mining will cut hundreds of jobs in Papua New Guinea in a push towards austerity.

The decision comes after the company launched a raft of cost-cutting projects across its operations last quarter.
The Melbourne-based gold miner, one of the world’s biggest, said it cut 208 jobs across a range of roles at its Lihir site from January to March. Newcrest said it also eliminated another 32 vacant roles at the site, its most expensive to operate.
Newcrest pinned its 11 per cent drop in third-quarter gold production on maintenance work at sites including Lihir and Cadia East in eastern Australia.
Newcrest’s priority is now on bolstering cash flow, “not maximising production ounces,” chief executive Greg Robinson said.
Some of the world’s largest resources companies, including BHP Billiton and Anglo American, have been cutting spending, shelving major projects and looking to run existing operations harder after pledging better capital discipline after years of heavy investment in new mines. This has resulted in hefty job cuts across the industry.
Commodity prices from coal to gold slumped as mine supply increased, the US moved to tighten monetary policy and economic growth in China cooled.
Newcrest has curbed spending over the past 18 months, which included closing its Brisbane office. This came after a sudden halt to a more-than-decadelong bull run for the gold market. Spot gold prices are currently down about 25 per cent from 2013’s highs.
In February, Newcrest reported a slide in first-half net profit — to $40 million from the $323 million in the same period a year earlier — as it posted write downs against exploration assets and extra tax charges tied to research and development.
“I think there is more room for us to move,” said Mr Robinson of the company’s ability to cut costs further, on a call today with analysts and investors. He said the Lihir mine would be a focus for cash savings and productivity improvements in the period ahead.
It costs the company $1344 an ounce to sustain operations at Lihir, compared with $875 an ounce at its Telfer mine in Australia, and $381 an ounce at its Cadia Valley site.
Newcrest separately confirmed Mr Robinson would stand down in early July, and will be replaced by Sandeep Biswas. The former Rio Tinto executive joined Newcrest as chief operating officer in January with the expectation he would take over Mr Robinson’s role in the latter half of 2014.
Shares in the company were recently up 1.5 per cent, outperforming a 0.5 per cent rise in the broader S&P/ASX 200. While third-quarter gold output fell to 551,590 ounces from 621,125 last quarter, production was still up 7 per cent compared with a year earlier.
The company also stuck to earlier estimates that gold output would reach the higher end of its 2.0-million ounce to 2.3 million-ounce guidance range this fiscal year.
Still, some fund managers are cautious. “Its balance sheet remains quite constrained, burdened by too much debt, and some of its major assets are simply being run for cash generation, which I believe is a very short-term approach,” said Ben Lyons, a Sydney-based portfolio manager at ATI Asset Management, who sold his fund’s holdings in Newcrest about 18 months ago.
In its half-year report in February, Newcrest said its operational cash flow had nearly halved, while debt-to-equity level jumped above 30 per cent from 17 per cent in the same period a year earlier.

Strong quake hits off Papua New Guinea

Reuters

 

An earthquake with a magnitude 7.5 struck off Papua New Guinea yesterday and a tsunami warning was briefly issued for the Pacific Island nation and neighbouring Solomon Islands, but there were no immediate reports of damage.
The quake, at a depth of 10 km, struck 68 km southwest of Panguna on the island of Bougainville, the US Geological Survey said, revising down the magnitude from an initial 7.8.
The Pacific Tsunami Warning Center later cancelled a tsunami warning for Papua New Guinea and the Solomon Islands and there was no threat to neighbouring Australia or across the Pacific Ocean.
At least six strong tremors have hit near Bougainville in the past week or so, including a magnitude 7.3 on April 11, but there have been no reports of major damage.
“Certainly it has been very active, more active than usual,” said Jonathan Bathgate, a seismologist at Geoscience Australia.
“(The spate of earthquakes) is relieving some pressure on this faultline, but we can’t rule out another large earthquake.”

Death notice for Alison Nalu

Family and friends of ALISON NALU, wife of GOROMP NAWATZ , mother of TONY and LEPUNG  and grandmother of STEVEN, are advised of her sudden death in Lae on Friday, Feb 7, 2014, after a sudden stroke.

Haus krai is at the family residence at Butibam village, Lae.

Funeral service will be at St Andrew’s Lutheran Church, Ampo, on Thursday, Feb 13, 2014, starting at 12pm followed by her burial at Butibam Village Cemetery.

Further information can be obtained from DAVID NALU on 71908604 or LEPUNG NALU on 70313333.

Sylvester Pokajam steps down as PNG fisheries boss

From Mariannas Variety News
Mon 03 Feb 2014

MAJURO, Marshall Islands — A long-serving Papua New Guinea fisheries chief who is expected to step down this week was recognised Wednesday for “transforming fisheries” in his country and for his regional advocacy on behalf of island nations’ fishing interests.
Sylvester Pokajam, managing director of PNG’s National Fisheries Authority or NFA, is being replaced by deputy John Kasu in a move by the government’s cabinet, according to reports.

Pokajam during his term as PNG fisheries chief.

Pokajam has headed PNG’s fisheries office during a time of unprecedented expansion of domestic fish processing plants and played a key role in the development of the Parties to the Nauru Agreement or PNA fisheries bloc. He is reportedly the longest serving head of a government department, having held the NFA post for about 10 years through several governments.
“He ran a good organisation, which is reflected in the huge fisheries investments in PNG,” said Dr. Transform Aqorau on Wednesday.
Aqorau is the CEO of PNA, based in the Marshall Islands. “Sylvester deserves credit for transforming PNG fisheries.”
Aqorau, who is from the Solomon Islands, has worked in national fisheries in the Solomons, for the Forum Fisheries Agency and in recent years for PNA. “When I started in fisheries, there were no on-shore investments in PNG,” he said. But PNG now leverages the issuance of fishing licenses with investment requirements for distant water fishing nations. “He created an environment encouraging on-shore investments,” said Aqorau.
But Pokajam was also keenly focused on fisheries work in the region, and put up NFA money to support regional stock assessments.
PNG fisheries’ money was crucial to fully establishing the Majuro-based PNA office that has helped quadruple revenue from fishing fees to the eight PNA member nations over the past four years. “In 2009, PNG put up $1 million to support establishment of the PNA office,” Aqorau said, adding Pokajam was outspoken in support of Pacific interests at international fisheries meetings. “We will miss his great advocacy for the Pacific islands,” said Aqorau. “He made his mark.”
Pokajam’s departure “will leave a big gap in the region,” said colleague Maurice Brownjohn, a founding member of the NFA board established in 1995 who continues on that board while currently working as commercial manager for the PNA, based in Majuro.

Prominent lawyer Donigi dies of heart attack

By MALUM NALU

Prominent lawyer, author and former diplomat Peter Donigi died of a heart attack at Port Moresby General Hospital last Thursday morning.

Donigi, 63, from Wale Lowan village along the West Coast of East Sepik, served Papua New Guinea with distinction as a lawyer and senior diplomat with postings in Germany, and PNG’s Permanent Representative at the United Nations in New York accredited to the Holy See.

Peter Donigi

He is survived by wife Diana and six daughters Stephanie, Amanda, Yasmine, Caitlin, Davita and Loretta.

Donigi was one of the first batch of graduates from the Legal Training Institute in 1973 and served as deputy secretary for Foreign Affairs and Trade under Sir Anthony Siaguru in 1975, before becoming a diplomat.

He previously taught at University of PNG, specialising in constitutional law.

As an academic and writer, Donigi wrote many books on law and published many articles, dealing with constitutional and resource law including human rights,

He was outspoken on matters concerning resource law and ownership rights of indigenous peoples, including the controversial Boka Kondra Bill – which pushed for Papua New Guineans to have greater ownership of mining, oil and gas resources and fair and equitable benefit sharing arrangements

Donigi was lead counsel of Opposition Leader Belden Namah’s legal team at the time of his death.

Namah described him as “a great man who brings out the best in people with his genuine humbleness and achievements as a constitutional lawyer and diplomat”.

“The nation has lost one of its greats.

“He is a great loss to us (Opposition) and the country.

“We pray for peace and comfort for his family, colleagues and the people of East Sepik.”

Australian grant a boost for Manus women

Australian High Commission

A women’s group in Lorengau will hold sewing classes and create clothes and handicrafts for sale after receiving 20 electric sewing machines from Australia’s High Commissioner to PNG, Ms Deborah Stokes.

Ms Stokes last Thursday officially handed over the machines to the Pihi Lorengau Women’s Group during a visit to Manus Province.

Australian High Commissioner HE Ms Deborah Stokes with members of the Pihi Lorengau Women's Group during the presentation of the 20 sewing machines.

Australian High Commissioner Ms Deborah Stokes presenting a sewing machine to Pihi Lorengau Women Group Representative Ana in Manus.

“I am delighted to provide the women of Manus with more opportunities to enhance their sewing and business skills, display their talent and generate income,” Ms Stokes said.

Empowering women and girls to enable them to reach their full potential and enjoy equal opportunities is crucial for the future prosperity and viability of this country.

“The Pihi Lorengau Women’s Group are deserving recipients of these machines through Australia’s Direct Aid Program.

“I look forward to seeing exhibitions and sales of unique and wonderful Manusian clothes and crafts to boost tourism and contribute to the Manus Provincial Government’s Medium Term Integrated Development Plan.

“I wish to acknowledge the important role of Lorengau Town Mayor, the Hon Ruth Mandrakamu, and Manus Acting Provincial Administrator Andrew Posong in advocating for this project.”

Sewing classes and exhibitions are to be held at the Provincial Women’s Conference Centre.

The Direct Aid Program is a flexible small grants program funded by the Australian Government to advance developmental objectives and address humanitarian hardship.

The program is available on a not-for-profit basis to individuals, community groups, non-government organisations and other entities engaged in development activities.

The program focuses on supporting small-scale development projects and activities that involve the beneficiaries in the identification, design and management of the projects.

For more information about the Direct Aid Program visit www.png.embassy.gov.au

Manus stakeholders have their say on Lorengau market roof renovation

Australian High Commission

Australia and the Manus Provincial Government are inviting key stakeholders in Manus to have their say about the renovation of the Lorengau main market roof.

A market Vendor putting a plastic canvas as cover.

Centre view of the Lorengau Market with timber shingles rotten.

Left Wing of the Lorengau Market with cracked roofing.

The Australian Government and Manus Provincial and Technical Services Division invited key stakeholders to a consultation session at Sapau Haus, at 9am on Friday 31 January.

Australia’s High Commissioner to PNG, Ms Deborah Stokes, who inspected the market on Thursday, said the market will be renovated for the Manus people and be a market Manusians can be proud of. 

The renovation is fully funded by the Australian Government and will be constructed by the Provincial Technical Services Division in close consultation with key stakeholders in Manus. 

“Our initial discussions with Manus leaders last December agreed on this consultation process to ensure the voices of stakeholders are heard in the planning of this vital infrastructure,” Ms Stokes said.

“Australia and the Manus Provincial Administration will continue to discuss specific issues with stakeholders to ensure the design meets their requirements and they agree to the scope and timing of the renovations.”

After stakeholder approval of the concept design, an architect will prepare a detailed design of the roof, which is expected to be built of metal.  Construction is expected to commence in July and be finished by December.

The Manus Local Level Government has already demolished a dangerous, collapsed section of the roof in consultation with the Manus Provincial and Technical Services Division.

Built in the late 1970s by the Manus Local Level Government, the Lorengau main market comprises eight interconnected wooden shelters over concrete slabs and market stalls. Some parts of the roof have collapsed, timber shingles are missing and some support posts are rotted and twisted.

“The market is a hive of activity each day but vendors face challenging conditions with the roof no longer waterproof and collapsing in parts,” Ms Stokes said.

“Australia is funding the renovation of the market roof through the additional assistance package for Manus to support economic activity on the island.”

Australia and PNG’s additional assistance to Manus includes initiatives in healthcare, education, roads and activities for youth.

“Australia is providing K1 million in specialist medical equipment and instruments for Lorengau hospital and a master plan to guide future development of the hospital,” Ms Stokes said.

Construction of 13 schools kits under the additional assistance package will be finished in time for the new school year. A further seven kits are expected to be built by the end of March. The Australian-funded kits include a double classroom with a teacher house, ablution block, water tanks and full furniture fit out.

The projects are part of an AU$24 million (K51 million) additional development package that Australia is providing to the Manus Province. This is an addition to Australia’s existing planned support under the Partnership for Development to Manus Province (approximately AU$16 million or K34 million from 2012-15) in health, education, law and order, transport, governance, climate change, and disaster reduction.

Further information on Australia’s engagement with Manus can be found in the Manus Fact Sheets available at www.png.embassy.gov.au