The official statement was released by the Minister following "positive discussions" with Papua New Guinea at the Australia-PNG Ministerial Forum, currently taking place in Canberra.

PNG's Prime Minister, Mr Peter O'Neill, addressed the National Press Club yesterday addressing issues affecting both Australia and PNG, such as Manus Island detention centre. The PNG National Government is currently waiting on a hearing date in claims being made against it by over 600 asylum seekers at the centre.

As the checkpoint between PNG's highlands and the island regions, where the majority of the population live, Lae is also the nation's largest port and commercial capital. The establishment of a Consulate-General there makes sound commercial sense from an Australian perspective, as it is a fundamental part of their $19 billion investment in the Pacific country.

In addition to providing consular and support services to the thousands of Australians living and working in the area, it is anticipated that the Consulate-General will enable the delivery of Australia's $554.5 million aid investment in PNG.

The Minister's announcement said "the establishment of the Lae Consulate-General reflects the strong ties between our two countries", and that following the talks at the Forum, the two countries "agreed on a concrete plan to strengthen our bilateral relationship."