Treasurer Ian Ling-Stuckey met with two global rating agencies to talk about Papua New Guinea and its lending history, US pledges about K2.8m in Pacific and Prime schemes Minister Marape gives the green light to the Japan Development Institute to work on a new master plan for the special economic zone (SEZ). The business news you need.
Prime Minister Marape gave ‘full support’ to Japanese consulting firm Japan Development Institute (JDI) to develop a master plan for the development of Special Economic Zones (SEZs) across PNG.
According to the statement, Minister of International Trade and Investment Richard Maru and PNG Ambassador to Japan Samuel Abal pledged with JDI CEO and Chairman Shoichi Kobayashi to “move forward” the SEZ master plan as a matter of urgency, starting with the Pacific Marine Industrial Area in Madang. (Prime Minister’s Office and NEC)
Treasurer Ian Ling-Stuckey met with global rating agencies S&P Global and Moody’s to discuss PNG’s credit rating and see if it can be lowered. PNG is currently listed in the S&P rankings as a “B”, a “highly speculative grade”. Ling-Stuckey reportedly said, “It just means that we and our global PNG businesses are facing much higher interest rates.” (Post-mail)
Nambawan Super described the current market conditions as the “perfect storm for investors” due to the global environment of high inflation, supply chain disruptions, rising energy prices and rising Central Bank interest rate.
Despite adverse conditions, which include expected inflation in PNG between 6 and 8% for 2022, “Nambawan Super is working hard to maximize our profits and minimize potential losses in the context of these difficult economic conditions,” said CEO Paul Sayer. . (Nambawan Super)
During the first United States-Pacific Island Countries Summit in Washington DC, President Joe Biden said the United States was pledging $810 million (about K2.8 million) in programs for the Pacific, including the allocation of $130 million (about K457 million K) into new investments that support climate resilience. (U.S. Department of State)
After his recent trip to Philippines, Minister Richard Maru announced that the Asian country will send a delegation to Central Province in November to help identify the suitability of PNG for large-scale rice cultivation.
“PNG needs to identify up to 90,000 hectares of land to grow rice to produce the rice initially to feed our own people and export the surplus to the Philippines,” Maru reportedly said. (Post-mail)
Mining and petroleum
The Japanese company Sojitz Company received an invitation from Prime Minister Marape to invest in the upstream and downstream processing of LNG in the country. The company has been present in PNG since 1963 and “particularly it wants to break into the petrochemical industry in PNG for which it already has an agreement with Kumul Petroleum Holdings Ltd to produce ammonia,” Marape said. (Post-mail)
Newcrest Mining posted a profit of US$872 million (K3.07 billion) for the 12 months ending June 30. While gold production at its Lihir gold mine in PNG fell 7% year-on-year from 732,000 ounces to 682,000 ounces (due to “major maintenance activity, autoclave availability and unplanned downtime”), the company expects “higher extraction rates”. ‘ in 2023. (Newcrest Mining)