PNG’s Monster Ball Tour

Pic by http://fullhouses.org

Certainly a nice way to have a conference by having it at the Hilton in Sydney. So looks like this year’s 11th PNG Mining Conference is proving to be as big as a Lady Gaga concert in Sydney (well maybe not quite), but the deals would be worth more!

So what’s up in the meet in down under? Somare is hoping (and I hope in conjunction with and in understanding with Momis) that Bougainville Copper Ltd (BCL) will be reopened within 2 years. Reopening alone will cost about $4 billion, so it would be interesting to find out who exactly will own the newly proposed BCL? Will it still be European owned or is Momis looking at new Chinese ownership or a combination of both?

I think Lady Gaga was like 4 years old when the mine was last operational, so its been a long time and allot of blood, sweat and tears have passed since then, but like Lady Gaga, you can dress her up all you like, but its still an ugly situation. You have Momis asking the PNG Govt for money on one end, then Somare’s telling the world the mine in Momis’ backyard will be opening soon? So how does that work?

It’s a nice thought to think that the Autonomous Bougainville Government should control their own destiny and be able to make their own commercial deals to control their own finances, but look where PNG is after Independence. But anyway, lets see how it pans out both commercially and politically, I don’t think its a ‘Bad Romance’ just yet.

Speaking of romance the media’s love affair with LNG news will cetainly continue with the big talk at this year’s meet to be obviously about the PNG LNG project. (You can download copies of PNG LNG speeches here). Our big hope in PNG will also be that we will finally make enough money to look after ourselves without Aid from Australia, but we’ll see how the government goes with its soverign wealth funds.

But of course we can’t let the fame of LNG get to our heads since we do need to maintain a poker face throughout the construction phase. A Dr Fereidun Fesharaki, is warning that PNG needs to lock up its Asian sales quickly because speed will be the only way we can compete against a cheaper LNG producing nation like Qatar who can produce LNG for a quarter of the costs in PNG.

So what else is happening on this Monster Tour? Well as reported in the Post Courier:

“…the first two days of the conference will feature mining sector presentations – PNG’s newest mines including the country’s first nickel production, the world’s first proposal for offshore deep sea mining for high grade seafloor massive sulphide deposits, as well as existing producers, advanced prospects and the exciting progress in the exploration arena. Presentations from the petroleum sector will feature the construction of the prestigious PNG LNG project, progress on other gas proposals, major new gas discoveries and other exploration.

In addition, a session has been dedicated to cover a cross section of landowner business ventures, which demonstrates the resource industry commitment and support for business development opportunities for landowner companies. The size, complexity and success of some of the better established landowner business ventures is a tribute to the progress that has been achieved by the resource communities over time. This is not always understood or acknowledged by some commentators on the resource industry.

The third day, on Wednesday 8 December, features a morning Seminar on Governance and Fiscal Management of Resources Revenues and two parallel afternoon seminars on PNG Petroleum and Mineral Exploration Updates.

The Seminar on Fiscal Management will highlight the success stories with investment funds stemming from resource projects, such as MRL Capital, as well as focus attention on the endeavours for further improvements in wealth management in PNG, such as the Sovereign Wealth Fund proposed by Department of Treasury, and proposals for a PNG Extractive Industry Transparency Initiative. This session will also include presentations from the banking sector and EFIC on their approach to sustainable financing, including social best practice and community welfare.

The Exploration Seminars provide a venue for a large cross section of our exploration sector to present on their activities. The diversity and number of companies clearly demonstrates the vitality and extent of current exploration activities and the presentations will reflect this as they will reveal the progress made on tenements all around the country, including some very exciting results.

The Chamber expressed appreciation for the strong support from a large number of sponsors, trade fair exhibitors and participation.”

SOURCE: POST COURIER/PACNEWS

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9 thoughts on “PNG’s Monster Ball Tour

  1. Panguna, like the Ring in the Lord of The Rings is such a bueatiful prize with so much promise, yet so much problems… massive problems the first time, its not even twenty years since the crisis ended and they want to open that mine again. Could old problems surface again?
    I think Momis and Somare are pushing unrealistically to have the mine open. All the reconciliations have not been completed yet, alot of ex soldiers and government service providers such as nurses and teachers who served in Bville during the crisis have not recieved their entitlements, weapons have not been destroyed etc. I think Momis and the PNG Government should look at developing other industries to grow the wealth of Bville first and ignore the mine for at least a decade more (its not going anywhere).
    Also, with the involvement of China, why is the Papua New Guinea allowing another State to become involved in its internal political questions – the autonomy of Bougainville and the Panguna mine itself are internal political issues for PNG.
    As to the conference itself, i heard that a few state owned companies are hosting their board meetings in Sydney? I wonder do we, as the ultimate owners of these SOE’s have the right to request how much is being spent on these board meetings right now?

  2. What a junket! Must have been an opportune time for our government people to purchase some niceties for their loved ones. Krismas tu kam klostu ya.

    We look forward to our government getting serious about translating the wealth we are led to believe we have from the mineral sector into real tangible development for the masses of our people.

    1. Trangu, I do think that such events are necessary. We do have to go out to tell people what we’re doing locally, so it wouldn’t be all bad. But yes they do need to translate that talk into walking the walk

      1. I cry every time I have the opportunity to travel the 90km road between Kiunga and Tabubil. People there are actually poorer than where I come from although we have nothing like a billion dollar mine in my area. What a paradox!

        After selling how great we are as a mining destination to other people, the government must now tell our people what it plans to do differently to get those mining revenues into classrooms, health centres, roads, bridges, airstrips and wharves.

        And I hope someone had the balls to stand up and explain to the mining executives in Sydney the stupid amendment to the environment law and what they were trying to achieve with this piece of junk.

  3. So Emmanuel what is actually happening locally in PNG, other than that stupid beauty quest , I must say all those girls need to go and workout at the gym if they want to be proper contenders, and some grammar lessons would help them as well.
    Need less to say the PNG entry was not the best of the best, and her preparation was far from expected from a host country.
    Another typical display from PNG, nearly as good as the PNG National sport of rugby leauge.
    Sorry for the tone but I am very annoyed with the imposters in the PNG Government from the top to the bottom,in Sydney this week the Government is running around on their high horse talking up absolute rubbish , meanwhile there are so many infectected people dying from many different diseases because of mining and logging wastes left in the water systems, that are maturing unknowm malignate bacterias.
    Wait and see the result of the ocean tailings after a decade dumping in Mandang.
    Somare and his cronies are the ones that need to be reshuffled straight out of way of the country, check what this idiot you call a PM is up to now.
    PRIME Minister Sir Michael Somare yesterday axed his “close friend” Don Polye from the job of deputy Prime Minister and appointed another Engan MP and Foreign Affairs Minister Sam Abal as the new DPM.
    While Minister Polye still maintains his Works, Transport and Civil Aviation Ministry, his removal as DPM is expected to spark a revolt from within the Highlands bloc of the National Alliance Party who claimed last night that the PM acted in breach of the party constitution which says the job of Deputy PM should be given to one of the four regional parliamentary leaders. Mr Abal is not a regional leader of the Highlands bloc and is therefore not a heir-apparent of the deputy PM’s job. Sir Michael’s axe also fell on Attorney-General and Member for Rigo Mr Ano Pala who was replaced by the Governor of Madang and former Chief Justice Sir Anorld Amet. Sir Arnold flew to Kokopo yesterday on the government-owned falcon jet where he was sworn in by the Governor-General Sir Paulias Matane who is on holiday in his home province.
    Agriculture Minister John Hickey who had not been well lately had also been removed and his replacement is not yet known at this stage.
    It is not known exactly why Mr Polye had been removed. Earlier in the week, the Kandep MP said he had cut-short his electoral visit to be with the Prime Minister and support him after this newspaper broke the news of Sir Michael’s likely referral to a leadership tribunal. Mr Polye claimed he was a “close friend” of Sir Michael.
    Yesterday this newspaper exclusively reported again that the Public Prosecutor Jim Wala Tamati will be making a decision on the fate of the Prime Minister before the week’s end. If he refers the Prime Minister to the Chief Justice to appoint a Leadership Tribunal, Sir Michael will step down from office and allow his new deputy and Member for Wabag to become the Acting Prime Minister. Insiders also were of the view that Mr Polye was “most probably not ready yet” to be acting PM and therefore the Prime Minister acted responsibly to handover the reigns to a more mature and stable Mr Abal – a former foreign service officer and son of pre-independence political arch-rival of Somare, the late Sir Tei Abal. In the case of Mr Pala’s demise from the job of being the country’s top legal adviser, it comes after this newspaper’s exclusive coverage yesterday of the K15.5m payment to Madang businessman Mr Peter Yama.
    Finance Secretary Mr Gabriel Yer wrote in his letter of explanation to the government that he was powerless to stop the payment as a “compromise” had been reached between the Attorney-General, Solicitor General, Deputy Solicitor General and Mr Yama. Mr Yer had also prepared a report on the payment to the Prime Minister.
    Last night it was learnt that, the Bank of PNG was unable to put a stop payment order on the cheque that was paid to Mr Yama on November 17 and is currently held in his lawyer’s trust account. chorlea

    1. Thanks William and don’t apologise for your annoyance…there’s allot of things to be sorted at home and although I think the Mining Conference is a necessary part of mining yes all still has to be done. Our Budget so far looks promising…but then that’s all we have are promises. We have a PM that’s got a Court Case on and Ministers being shuffled every month, a Speaker who wont let anyone speak to democratically debate anything of substance and then we’re expected to beleive that our interests will be taken care of when the money begins to flow.

      There are always different styles of management for different stages of development. Maybe Somare’s government was good for getting us this far, but perhaps it takes a Morata like approach to manage finances to take us through to 2050. I’m not saying Morata is the solution, but he did allot in terms of economic reform to get things like our Superfunds etc in order, so maybe something like that is needed.

      All in all less government would be nice, so that we can have more local businesses making money within the country for the country. What about legislation and grants to promote activity among SME’s for people to help themselves? And more importantly lift the minimum wage and pay doctors and teachers better. I could go on but that’s just some so far…

  4. The Sydney Minning conference as the past is just a “come in spinner’ for your Government to lure mainly intial slings to your Government induviduals .
    Just like the recent comment of setting up a LLBA onshore refinery, remember what happened to your last refinery MRO …12.5kg dore bars were stolen by police and people dress as police for ad on behalf of ministers and government who then sold it through RH to Maylasia.
    Recently mentioned that PNG lost 400mUS in a currency exchange of the 2BillionUS borrowed from UAE for this LNG fiasco costing PNG 50m every month, although Somare’s tried to say it was in Kina.
    The cost of producing gas from PNG to the end whole sale return has not ever been declared and I can assure you by the time PNG starts selling gas it will be worth less and be avalible from around the world and half of what you PM thinks its worth.(dont tell him I told that, because he already knows).
    Morata cant be any worse—but PNG mentality is everyone owes PNG and charity is now inshrined in your culture, so why work when we have the wantok system.
    It is pleasing to notice that your PM and his family of corruption have now been put on notice through your legal system finally, may be now a proper course of action may take place , and I wish PNG will hurry up and audit this Somare family internationally before billions disappear.
    I feel sorry for PNG in the coming future as minning ,oil and gas will just rape the beautiful PNG enviroment and leave the country poor.

  5. This annual event cost PNG in many ways. Every year when it is on and I leave my Sydney office for lunch I witness landowners, public servants and politicians on a pre Xmas shopping spree. Nothing wrong with that some may say but I think of those back home who are missing out on the luxury as they watch the LNG cargoes being trucked in while wondering what benefit if any they will see. Next time I might take some discreet video for PNG to see, maybe even head to kings cross or the casino to witness misuse and waste of funds that could have saved a life or educated a child. I weep for the country I love, that I invest in.

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