Newcrest high in PNG’s foreign earnings list

Business

MORE than K1 billion in foreign currency was contributed by Newcrest into the national accounts, according to managing director Peter Aitsi.
Aitsi told The National that the company and the extractive industry were affected by the foreign exchange shortage and the delay it caused suppliers.
“In 2017, Newcrest contributed US$392 million (K1.086 billion) to the national account through the acquisition of more than K1.2 billion of currency, providing an inflow of forex and making us one of the largest contributors of foreign exchange to PNG,” Aitsi said.
“Like all international companies in PNG, reliable access to foreign exchange is important to Newcrest’s operations, particularly for our suppliers.
“Wherever possible, Newcrest buys its goods and services from local suppliers. In financial year ending 30 June 2017, Lihir mine spent K965 million on goods and services from local suppliers.
“Sometimes, however, we have no choice but to source goods and services from overseas. When Newcrest’s operations need goods or services that cannot be bought in Papua New Guinea, our suppliers need access to foreign currency in order to buy these goods.
“Without reliable access to that foreign currency, our suppliers either can’t purchase goods overseas or are delayed in doing so, and this can have a negative impact to both our operations and our local suppliers.”
Puma Energy general manager Hulala Tokome said the company purchased goods in local currency such as crude oil from Oil Search Limited.
Tokome said that the arrangement would ease the company’s requirement for foreign exchange in the future.
“We have been working with Bank of Papua New Guinea and Oil Search to ensure we adhere to all regulatory requirements to ensure all transactions in paying Kutubu crude in kina, for the future go through smoothly,” Tokome said.

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