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Mining exploration surge
The Papua New Guinea mining industry is dancing due to the conducive fiscal regimes implemented by the government for mineral exploration and mining development.
These incentives have resulted in a significant increase (about 113%) in the number of exploration licence (EL) applications in 2003 and 2004.
Minister for Mining, Sam Akoitai told a mining seminar in Port Moresby recently that the incentives are attracting some new players from the Asia region. Among them are the South Koreans looking for investment opportunities in the PNG mining sector.
Dr Jin-Kyun Han, leader of Korean delegation who represented Korea Resources Corporation (government entity), said there are a lot of investment opportunities in PNG and Korean companies are currently exploring them.
The mining industry contributes up to 52 percent of the country’s export revenue. This dominance on the PNG economy started from the days of the giant Bougainville Copper Mine.
Unfortunately nearly all the mines have a mine life of less than 10 years and in this respect, the future of the mining industry on PNG economy looks gloomy.
PNG needs more mines and therefore these mining seminars and conferences both locally and internationally could stimulate exploration.
“As a result of these incentives, there has been a significant increase (about 113%) in the number of exploration licence (EL) applications in 2003 and 2004. Most recently the government has also embraced other related incentives designed to bring sufficient capital funds into the country for mining development purposes,” Akoitai said. —By Brian Tobia
Kiribati’s new EU fish deal
The European Commission, on behalf of the European Union, and Kiribati have initialled a six-year fisheries partnership agreement (FPA). The new agreement, which provides fishing possibilities exclusively on tuna, will come into force on September 16. The new protocol will continue to provide fishing possibilities for 16 vessels. The annual EU financial contribution will amount to 478,000 Euros, representing the same amount of compensation as under the current protocol: 416,000-Euro compensation for a reference tonnage of 6400 tonnes of tuna catches per year, plus a specific allocation of 62,400 Euros to support the application of Kiribati’s national fisheries policy. The contribution by vessel owners will amount, as now, to 35 Euros per tonne, and the EU’s to 65 Euros. The current protocol comes to an end on 15 September, 2006. The 16 vessels will include 12 longliners and four purse seiners. The technical conditions governing tuna fishing have been revised to take account of the practices specific to highly-migratory species fisheries. These include the placing of observers on board EU vessels and the obligation to employ fishermen from the African, Caribbean and Pacific (ACP) states. Pending the creation of a regional observers’ scheme within the framework of the West Central Pacific Fisheries Commission (WCPFC), Kiribati will appoint the observers. The Fisheries Partnership Agreement also includes a vessel monitoring system (VMS) protocol. Thirty percent of the total financial contribution has been earmarked for the promotion of sustainability through Kiribati’s national fisheries policy. It will increase to 40% in the second year and to 60% the following years.
The current fisheries agreement with Kiribati, which entered into force in 2003 for a period of three years, was the first such agreement between the EU and a Pacific country. The new agreement, which is founded on the partnership approach, puts increased emphasis on the promotion of sustainable and responsible fisheries in Kiribati’s waters. The vessels are from Spain.
Sales revenue goes up
Papua New Guinea-based Oil Search Ltd’s sales revenue for the second quarter to June 30 came in at US$140.2 million, taking the first half revenue to US$315.4 million—a 42% improvement on a year earlier. “This was achieved despite slightly lower production over the previous corresponding period and a material underlift position,” Oil Search Managing Director, Peter Botten said.
Despite that, the outlook for the second half was “strong,” he said.
“The company will continue to push for project sanction for the PNG Gas Project, as well as maturing other gas commercialisation options. It will also see a return to significant exploration in PNG and the Middle East, with the major PNG programme commencing with the Arakubi well and extending through 2007, and with wells in Yemen and Egypt,” he said.
Pay hikes for MPs and civil servants
Solomons’ MPs are likely to double their salaries under a new pay structure recently approved by the Parliamentary Entitlement Commission. According to a Solomon Star report, the prime minister, Manasseh Sogavare, will get at least S$140,000 or US$20,000 under the new pay structure, while ordinary MPs will get more than double their current income. Opposition leader, Fred Fono, says the new salary hikes and fringe benefits will drastically reduce the government’s ability to implement its widely publicised rural development policy. He has described the salary increases and the recent acquisition of 46 new cars for ministers and permanent secretaries as extravagant. Public servants too are in line for a six-percent pay rise.
ADB’s new PNG strategy
ADB will work with Papua New Guinea (PNG) on implementing its Medium Term Development Strategy (MTDS) under a new Country Strategy and Programme endorsed by ADB’s Board of Directors. ADB will focus on supporting improvements in public financial management, private sector development, the transport sector and health, including efforts to combat the spread of HIV/AIDS. ADB’s new Papua New Guinea strategy and programme (2006-2010) anticipates a total grant and loan financing of US$290 million for 2006-2008, with one major new priority investment per year supplemented by grant assistance and additional funding for successful ongoing projects.
SPTO’s new Chinese website
The South Pacific Tourism Organisation (SPTO) has established a new website to market regional tourism to the Chinese-speaking public. The website, in Mandarin Chinese, is registered under the domain www.spto.cn <http://www.spto.cn. The site has some 200 pages of information and provides a comprehensive overview of the South Pacific with complete profiles on SPTO’s 12 Pacific Islands member countries, including French Polynesia. “Over the course of the last 12 months, we have been seeing more and more Pacific Islands nations granted Approved Destination Status from China and this now presents a great opportunity for increasing visitor numbers in the region,” said Peter Dawkins, SPTO’s Internet and marketing manager.
EU team helps Fiji sugar
A team of European consultants is in Fiji to help the government develop a sugar adaptation strategy, a requirement to access funding allocated by the European Union (EU). Under the ACP/EU Sugar Protocol, Fiji and other African, Caribbean and Pacific states, get preferential market access for sugar in Europe. The survival of Fiji’s sugar industry is very important for the country, especially its rural population, who are heavily dependent on the sugar industry. Over the past 30 years, the sugar industry has been heavily dependent on the additional income, calculated at about 60 million Euros annually, received from exports to the EU under the Sugar Protocol. Exports to the EU accounts for about half of Fiji’s total sugar exports.
Total Oil buys Fiji’s Shell
Shell has finalised the sale of its business in several Pacific Islands including Fiji, says Shell Fiji Ltd general manager, Peter Walsh. Walsh said the company had signed sales and purchase agreements with buyers for the sale of its businesses in Fiji, Tonga, New Caledonia, Vanuatu and French Polynesia. They were conditional upon government’s approval and were expected to be completed in late 2006 or early 2007.
Walsh said the agreements covered Shell’s distribution, marine, lubricants, commercial fuels and retail businesses.
“Shell’s businesses in Fiji and Tonga will be purchased by Total Oil, a French company partly owned by the French government. Shell businesses in New Caledonia, Vanuatu and French Polynesia will be purchased by Albert Moux and Partners,” he said.
Samoa’s remittances up 6%
Samoa’s economic performance in tourism and remittances has increased. The Central Bank of Samoa’s latest report for May 2006 has revealed a six percent increase in private remittances of about US$16 million. It’s an increase of 23 percent compared to the same month the previous year. Tourism earnings increased to nine percent to about US$9 million—14 percent higher than in May 2005. Based on seasonal trends, tourist arrivals were estimated to increase three percent to 8,319 in May. Contributing largely were overseas teams arriving for the Samoa International Game Fishing Tournament and visitors to the annual Congregational Church conference.
Nickel growth boosts economy
New Caledonia’s economy is understood to have grown four percent last year, despite the regular bouts of industrial unrest that brought the territory’s life to a grinding halt on at least a couple of occasions. Despite tourism having remained stagnant at about 100,000 visitors, Asia’s insatiable appetite for nickel seems to have done the trick for Noumea. Exports of that crucial ingredient in steel grew by five percent, enough to meet 60 percent of the territory’s import bill. Transfers from France too grew by five percent to US$1 billion in 2005.
Tongan banks, ATMs run out of cash
Some Tongan banks have almost had a run on them after the government doled out redundancy packages to some 800-odd former government employees and public servants last month. Some account holders are known to have requested withdrawals of over $10,000 at a time—mostly for settling pending bills and splurging on goodies.
ATM machines too ran dry as hundreds queued to withdraw their money. Banks claimed the $200,000 that was disbursed to customers’ accounts by the government was all withdrawn in a matter of hours. Car dealers and stores stocking white and brown goods expect sales to boom in the short term. Most used car dealers’ inventory is expected to be bought up by redundancy recipients. Only the news of the tragic death of the country’s royals in a road accident in California seemed to have put the brakes on all that splurging—temporarily.
Global award for another water bottler
The Brussels, Belgium-based International Taste and Quality Institute (ITQI) has awarded its “Superior Taste Award” to Fiji-based mineral water bottler ‘Island Chill’. The award comes after a recommendation from ITQI’s panel of European chefs and beverage experts for its taste and high standards of quality and hygiene.
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