Kina Bank announces an equity raising, Ok Tedi Mining reports K50 million interim dividend and the Prime Minister aiming to reach agreements on major resource projects by the end of the year. The business news you need to kickstart your week.
The Independent Consumer and Competition Commission (ICCC) has said ‘no’ to Link PNG’s proposal to acquire 40 per cent of NASFUND’s shares in PNG Air as it could create a monopoly. Link PNG is a subsidiary of Air Niugini. (ICCC)
Last week, Ok Tedi Mining (OTML) announced an interim dividend of K50 million and an after tax profit (unaudited) of US140 million (K480 million). This was credited as the result of the company’s performance during the first seven months of the year. OTML Managing Director, Musje Werror, said that the company was prepared to resume safe operations on 14 September following an COVID-10 outbreak.
During the announcement, OTML’s Chairman, Sir Moi Avei, said that the OTML Board has approved an updated strategic business plan that includes an extension of the mine life from 2026 to 2029. Moi said: ‘This extension of mine life is the culmination of a number of years of detailed strategic planning work and will see the company generate an additional K10 billion of revenue to the benefit of all stakeholders.’ (OTML)
During a parliamentary update on key resource projects, Prime Minister Marape said that negotiations on Porgera, Wafi-Golpu, Papua LNG, Pasca gas project and P’nyang are expected to be completed by the end of the year. Marape reportedly said: ‘I can assure everyone and the people that we will remain focused on achieving a fair and equitable share of the benefits.
‘We have analysed the financial models of all these projects and if we negotiate a better deal, the country will receive significant benefits over the next 20 years. The impact on our economy will be significant.’ (The National)
Prime Minister Marape said that the K200 million for SMEs are set to be parked in Bank South Pacific (BSP) and the National Development Bank (NDP). It’s been reported that BSP will receive K100 million and has agreed on an interest rate of five percent over 15 years; NBD will receive K80 million and has agreed to four per cent interest rate over 20 years. (The National)
Kina Securities Ltd has announced an equity raising expected to generate up to A$91 million (K224 million). The funds will be used ‘to expand the capital base of the bank, enabling it to further pursue growth opportunities in the SME sector, and fund additional strategic projects which will enhance Kina’s digital leadership in PNG.’ (Kina)
The Australian Financial Review (AFR) suggested last week that Kina is restocking its ‘acquisition war chest’ to make a bid for Westpac’s Pacific unit. The AFR also said that Kina could be up against French back BRED-Banque Populaire in the bid for Westpac’s PNG and Fiji operations.
Meanwhile, Westpac‘s CEO Peter King told an Australian parliamentary committee last week that the strategic review of its Pacific operations ‘is ongoing and we haven’t made any decisions about what we will do,’ he said, noting the bank didn’t have a timeline for a potential sale. (The Australian)
The Post-Courier reports that the Cocoa Board of PNG is looking at supplying seedlings, building cocoa nurseries, running training and looking at other agriculture project in East New Britain Province in an effort to re-establish the cocoa industry in the area.
The Mariawatte Coconut Plantation is set to be rehabilitated thanks to a Memorandum of Understanding (MoU) between the Kokonas Indastri Koporesen (KIK) and Suau local level government, which was witnessed by Sam Basil and Charles Abel. ‘I’m pleased that KIK and Suau have signed the MoU to work together to rehabilitate the plantation, including the set up of the agriculture innovation and research centre in Milne Bay,’ said Basil (Post-Courier)
The KR Group of Companies opened its new K45 million shopping centre last week at 6-Mile in Port Moresby. (Post-Courier)
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