Commerce Division
Commerce Division plays an important function of the Department. It develops and/or supports government policies, plans, programs, projects and activities that encourage growth and development of domestic private sector and micro, small and medium-sized enterprises. Its functions are geared towards promoting greater national participation of Papua New Guineans in the economic building process by creating sustainable income earning opportunities, jobs, and increase middle-income class.
The Division performs two distinct but related work programs:
1. SME Enterprise Development
Development of PNG National Content Policy for the extractive sector to encourage national participation in economic impact projects with direct linkages to domestic supply-chains, goods and services, labor, and equity. More emphasis on landowner umbrella subsidiary companies and SMEs for business spin-off and contracts. Core Activities: Drafting the National Content Policy, supporting Government SME Agricultural Fund, the MSME Policy, Reserved Activity List (RAL).
2. Special Projects and Provincial Liaison
Supporting ongoing and new mining and petroleum projects.
a. Mining Projects
- Undertakes State’s obligation in all mining projects with special mining license to assess business development and procurement plans and reports submitted to MRA/DCI by Project Developers per the Oil & Gas Act 1992 and Mining Development Contracts. Core Activities: Supporting MRA in assessing business development and procurement plans and reports of mining companies; administration of the Government Business Development Grants for new projects.
b. Petroleum Projects
- Oversee, monitor and evaluate investments on national content plans, programs and activities of the developer or investing companies in the country. Core Activities: participating in SNTs and assessing and monitoring impacts of national content programs of the LNG companies; administration of the Government Business Development Grants for new projects.
Functions and Objectives
Functions
Facilitate, Promote and Support the development of SMEs and maximize participation of national entrepreneurs in both ownership and businesses in PNG through formulation of policies and work programs;
Promotion of Domestic Commerce & Trade;
Assist landowners and landowner companies to participate actively in the spin-off activities resulting from the major resource development projects within the country;
Encourage Project Developers and its sub-contractors to procure goods and services locally with a view to grow the local economy;
Maintain constant dialogue and networking with the Provincial and District Business Development Officers in the provinces to promote business entrepreneurship within the country;
Liaise with State Agencies, NGOs and other private entities responsible for the promotion of business under the purview of the Ministry; and
Assist in the development & implementation of programs/ activities aimed at encouraging fair trade practices through the enforcement of norms and standards.
Objectives
i. To provide support on the implementation of the SME Policy 2016 and Master Plan 2016-2030 which is currently under review;
ii. To provide a standard approach to Business Development grants to monitor evaluate and ensure transparency and accountability in the disbursements of payments to Landowners SMEs; and
iii. Managing Special Projects Mining and Oil & Gas in providing assistance to the mining review and assisting landowners in the oil & Gas in benefit sharing.
• PRIME MINISTER MARAPE SAYS PAPUA NEW GUINEA TO BE BIGGEST WINNER IN WAFI-GOLPU MINE.
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Words & video by PM's Media Unit.Thursday April 06, 2023
Prime Minister Hon. James Marape says the State and Papua New Guinea will be the biggest winners in the giant Wafi-Golpu Mine in Morobe with a 55 per cent take in the economic benefits of the project.
A happy PM Marape said this after today’s (Thursday April 6, 2023) landmark signing of the Framework Memorandum of Understanding between the Independent State of Papua New Guinea and Wafi-Golpu Joint Venture (WGJV) participants Newcrest and Harmony Gold (through their respective PNG subsidiaries).
This momentous occasion was attended by Governor-General Sir Bob Dadae, PM Marape, Deputy Prime Minister Hon. John Rosso and senior Ministers, as well as Morobe Governor Hon. Luther Wenge and members of his Provincial Executive Council.
Below is PM Marape's address to the media after the signing:
• MOROBE THANKS PM MARAPE FOR BETTER WAFI-GOLPU DEAL.
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Words & video by PM's Media Unit. Thursday April 06, 2023
Morobe Governor Hon. Luther Wenge has thanked Prime Minister Hon. James Marape for a better deal for Morobe and landowners in the giant Wafi-Golpu Mine.
He thanked the Prime Minister after the landmark signing of the Framework Memorandum of Understanding between the Independent State of Papua New Guinea and Wafi-Golpu Joint Venture (WGJV) participants Newcrest and Harmony Gold on Thursday, April 6, 2023.
PNG and Morobe will win by way of:
State and PNG gain 55 per cent of the project economics;
State equity is at 30 per cent with 10 per cent carried;
The ten (10) per cent carried equity will be for Morobe and landowners;
Two (2) per cent tax for fiscal stability is premium on top of the full 30 per cent tax to be paid;
Royalty at three (3) per cent with no deductions;
Additional US$394m for social community infrastructure that Newcrest and Harmony are putting on top of Government’s K1.2 billion Infrastructure and Business Development (IBD) grant;
A local content forum will be held with developers, Morobe Provincial Government and landowners, where Government will be pushing for local content above 80 per cent in construction period all the way to operations;
Additional profits tax was secured but dividends withholding tax was given away;
Personal income tax was not treated as company’s contributions, unlike Lihir; and
Special Mining Lease (SML) will be issued for only 30 months until investors do Front End Engineering Design (FEED) and Final Investment Decision (FID) to qualify them for extension. After FID, then cash call will be required from Kumul Minerals Holdings Ltd (KMHL)equity contributions.
Below is Governor Wenge's address to media after the signing:
• WAFI-GOLPU JOINT VENTURE PARTNERS THANK PM MARAPE FOR AGREEMENT.
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Words & video by PM's Media Unit. Thursday April 06, 2023
Wafi-Golpu Joint Venture partners Newcrest and Harmony Gold have thanked Prime Minister Hon. James Marape for his support in progressing the Wafi-Golpu Mine in Morobe.
They also thanked Morobe Governor Hon. Luther Wenge for his support of the world-class project, which will drive the Morobe economy and contribute substantially to Papua New Guinea, for the next 40-50 years.
Newcrest representative Suresh Vadnagra and Harmony Gold's Johannes Van Heerden thanked PM Marape and Governor Wenge after the landmark signing of the Framework Memorandum of Understanding between the Independent State of Papua New Guinea and Wafi-Golpu Joint Venture (WGJV) participants Newcrest and Harmony Gold at Government House n Port Moresby on Thursday, April 6, 2023.
Here is a video of their comments:
• PRIME MINISTER MARAPE'S HISTORIC ANNOUNCEMENT FOR WAFI-GOLPU MINE LANDOWNERS
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Words & video by PM's Media Unit. Thursday August 31, 2023
In a historic and game-changing development, Prime Minister Hon. James Marape has unveiled a groundbreaking commitment to ensure the fair and equitable distribution of benefits for the landowners of the Wafi-Golpu Mine in Morobe, Papua New Guinea. This announcement is aligned with the policies of the Pangu Pati-led Government, which is dedicated to ushering in unprecedented prosperity for all stakeholders involved in this significant project.
Speaking at the iconic Sir Ignatius Kilage Stadium in Lae on Thursday, August 31, 2023, Prime Minister Marape addressed a diverse gathering of stakeholders during the Wafi-Golpu Stakeholder Consultative Project Update. This pivotal meeting marks the inauguration of the Wafi-Golpu Development Forum, setting the stage for the upcoming issuance of a project developer's license before the end of this year.
Prime Minister Marape made a resounding declaration, announcing that a substantial 55 percent of project benefits will be allocated to Papua New Guinean beneficiaries. This includes a remarkable 10 percent equity stake for landowners and the Morobe Provincial Government, along with 3 percent in royalties.
Watch Prime Minister Marape's historic address here:
Don't miss out on this monumental development that promises a brighter future for the people of Papua New Guinea and the Wafi-Golpu project stakeholders.
Prime Minister's address in the video below: