China’s strategic land acquisition right on our border

But its time may come….and it may come sooner than seems likely today.

Last year Andrew "Twiggy" Forrest visited PNG for discussions with the Prime Minister and senior ministers. The discussions included the Purari hydro scheme, as a green energy project AND a smelter that would process iron ore from Australia and elsewhere.

While Andrew Forrest was non-committal about investing in a smelter, I know the possibility was discussed which is hardly surprising given his position as a major iron ore producer, and green energy advocate. He has more recently expressed a strong interest in looking at "green energy" projects in Papua New Guinea.

The Kikori-Ihu special economic zone would be ideally suited to a major industry, like a smelter, if it could also access affordable and unlimited power. Purari certain offers that.

What we don't know is whether or not Andrew Forrest has used his extensive China connections to promote a joint venture, or encourage China to invest in the special economic zone on its own. I incline to the view China's initial K80 commitment is unrelated to Mr Forrest, but a strategic opportunity China has skilfully capitalised on.

What we do know is that whatever happens, now China has given the PNG Government and the Kokori project a modest initial grant, it has "a seat at the table" that it could utilise to build infrastructure such as a port….and maybe a smelter, with or without the involvement of Andrew Forrest.

The really troubling aspect of the latest development in China's unending pursuit of greater influence in Papua New Guinea is that the Australian Government has been sidelined from a project that while it is over-ambitious, and won't proceed in its grandiose format, it unquestionably presents national strategic interest concerns given its proximity to our mainland, and our sea lanes.

And in the meantime Canberra apparently plans to "lend" PNG another $300 million plus in the apparent belief it "enhances" our relationship with our closest neighbour, and diminishes that of the Peoples' Republic of China.

It does neither!