By MIRIAM MALAWA
THE State, along with its Wafi-Golpu Joint Venture (WGJV) partners, Newcrest and Harmony Gold (through their respective PNG subsidiaries), signed a Framework Memorandum of Understanding (MoU) last Thursday in Port Moresby.
This MoU marks a significant step forward in progressing towards the signing of a Mining Development Contract for Wafi-Golpu and confirms the parties’ intent to proceed with the project, subject to finalizing the permitting process and obtaining necessary approvals from both the Newcrest and Harmony Gold Boards.
The Mining Development Contract, which is a prerequisite for the granting of a Special Mining Lease (SML), will include key terms such as State equity participation, royalty rate, tax package, and the term and scope of the SML, as well as key terms for other related agreements to be entered into with the State.
The WGJV has also made commitments to invest in infrastructure and social development projects that will deliver long-term benefits to local communities.
Stability provisions will also be included to underpin the significant long-term investment required to develop and operate the project.
Prime Minister James Marape expressed optimism that this project will anchor the country’s economy for the next 40 years and beyond.
He commended the parties for their efforts in negotiating this MoU, which recognizes the project’s potential to contribute both socially and economically to the community.
Newcrest Chief Technical and Project Officer, Suresh Vadnagra, also expressed appreciation for the signing of the MoU, stating that it represents a major milestone towards the development of Wafi-Golpu Joint Venture.
He recognized the project’s potential and promised to deliver substantial economic benefits.
Vadnagra commended the leadership of the Prime Minister, his government, and the Morobe Provincial Governor for their efforts towards the signing of the MoU.
PM Marape said the signing of the MoU for WGJV is a better version than the one signed in 2018 by the former government.
“Today, we stand US$2 billion dollars (K7bil) more than the 2018 signing that took place in Sydney,” PM Marape said.
