Answer on doorstep

Hopes PNG could fill Freeport export void

THE hole left by the disintegration of a 45-year export relationship between Cairns and the Freeport mine in Indonesia can be filled by enormous opportunities with one of our closest neighbours.

Papua New Guinea has many mining developments under way in its resource-rich territory, including the WafiGolpu copper and gold mine, about 65km southwest of Lae.

Cairns Regional Council has granted $9800 to Tradelinked, a volunteer subcommittee of the Cairns Chamber of Commerce, for a research paper supporting the case for direct flights between Cairns and Lae to target trade.

It is a huge opportunity with a joint venture between Australian company Newcrest Mining and South Africa’s Harmony Gold Mining already spending about $1.2 billion on the project and fast approaching final approvals.

Tradelinked spokesman Gary Aylward said the study was an effort to nail down a trade relationship with the mine before it opened to avoid being beaten to the punch by Singapore and the Philippines.

“We need businesses to get involved now,” he said.

The study will focus on demonstrating a market exists for direct flights to Lae, but also highlight missed trade due to under-exploited ocean export relationships.

“We really are missing in action when it comes to shipping links to PNG,” Mr Aylward said.

The mine will need everything from food and vehicles to machinery parts and training.

“The general aviation industry here is very embedded in PNG,” Mr Aylward said.

“A lot of the training gets done here for engineers and aviation skill sets, and a lot of their helicopters and aircraft come here for servicing.

“It’s already a very large part of our economy but a lot of people don’t know about it.”

Wafi-Golpu is just one opportunity.

Economist Bill Cummings, who is writing the report, said French oil company Total’s $13 billion Papua liquid natural gas export project in the Gulf province could also mean big things for Cairns.

“It is absolutely essential that we continue to develop that business with our nearby north,” he said.

There are challenges in the region with new PNG Prime Minister James Marape announcing he is “striving to economically free” the country through mining law reform to stop international companies taking undue advantage of its vast mineral and gas deposits.

“The country does have its challenges but the whole world is in PNG, and we can’t just sit back,” Mr Aylward said.