New Ireland sets up pearl farm
Post-Courier (PNG), Copyright 2000
December 1, 2000
A MULTI-million-kina pearl project has been set up in the New Ireland Province which could bring in millions in foreign exchange for the province and the country.
Established by Niugini Pearls Ltd, a nursery is now breeding 30,000 stock pearls and undertaking seeding experiments.
The project was to have been launched yesterday but has been delayed by one month because of bad weather in the province.
Niugini Pearls Ltd managing director Alun Beck said the project had been set up on Ungan island in the Tigak group near Kavieng.
He said both black and gold lip pearls occurred naturally in the region.
“This is the first project of its type in many ways,’’ Mr Beck said.“It is the first cultured pearl farm to be established in PNG, which has 100 per cent national ownership and shareholding.’’
He said the 3000 people of the Tigak Islands were shareholders in the project.
Mr Beck said investment in the farm was close to K100,000, which included equity paid for in cash, licence costs and approvals, legal and accounting fees, labor and farm equipment and the contribution of live shells by the local people.
“The project is very much environmentally friendly in that shells are managed and kept alive throughout their natural life span of 15 to 25 years, depending on the type.” Mr Beck said the farm would be starting with a production base 30,000 shells, which would expand to 100,000 in a few years.
The shareholders have also agreed to assist develop local pearl farming in other areas once the pearl farm gets established.
According to Mr Beck, the industry earned K500 million for Australia in export revenue last year, and more than six tonnes of black pearls in Tahiti earned K450 million for that island.
“The cultured pearl is an export industry utilising a renewable resource, which can be managed at the local level,’’ Mr Beck said. “The project is long term in that it will take about five years before there is a financial return but then the net income will be in the millions of kina annually. “A pearl farm is self-perpetuating and will be operated by generations of families once it is established.’’ He said the nursery buildings and underwater shell farms had been installed using all local facilities, resources and manpower.
The local shareholders have contributed shells, labor and the resource as their contribution for their shareholding.
“Establishing a cultured pearl farm takes a number of years before a commercial return is realised.“It is a project that can produce pearls indefinitely so the eventual long term benefits for the shareholders and their children are significant and ongoing.
“The project is environmentally friendly in that the excess juvenile shells will be used to restock the reefs that have been depleted over the past years due to harvesting for buttons.’’
The annual return in the first year of harvest will be in the millions of kina, Mr Beck said. He said landowners in the area would benefit directly from employment on the site, which would eventually require more than 100 staff.
They will also receive land lease payments, water rights payments, shell royalties, cash dividends and project fund assignment through a local landowner association, he said.
Mr Beck said the various island communities were previously divided politically and through competition.
However, the project has now combined their interests and Niugini Pearls Ltd has powerful representation for their interests.
NPL is considered a suitable structure for funding assistance.
NPL has also registered Niuailan Fishing Corporation to manage their bait fish resource, provide shipping services and establish joint venture tuna fishing.
The NPL aquaculture project has received full support from the New Ireland Provincial Government, the National Fisheries and the Department of Environment and Conservation.
Mr Beck said the project’s income is based on a stable export commodity and the profits will not be significantly affected by any kina fluctuations. “The exciting potential of this renewable resource, when managed properly, will establish the core of a self sustainable industry to the remote maritime regions of PNG. “Niugini Pearls Limited intends to be the PNG leader in the cultured pearl industry and assist other areas to benefit from the resource,” Mr Beck said.