Photo credit: Newcrest
Prime Minister Hon. James Marape wants maximum benefits to be paid to landowners and their provincial governments from the resource projects around the country.
The Prime Minister said this today during a meeting with Morobe Governor Hon. Luther Wenge MP, the Mineral Resources Authority, representatives from Morobe Provincial Government, and the State Negotiating Team on Wafi-Golpu mining project.
PM Marape said landowners should receive maximum benefits according to the prescribed value of royalty payments, project equity and integrated development grants (IDG).
At the same time, PM Marape said he also wanted “early benefits for the country” as well.
He said other key components for the project which the SNT should finalise with the developers was for the appropriate financial structure to prevent burdening the country with repayments and with the best and least cost environmental measures for Wafi-Golpu.
“The first principle is maximum benefits for provincial governments and landowners,” PM Marape said.
“However the agreement is structured, should feature early benefits for the country.
“The financial structure of the project should also feature the least cost and lastly the best and least cost to the environment when the mine is in full operation.”
PM Marape also commended Governor Wenge for his “clarity” on the position of the Morobe Provincial Government relating to deep sea tailings dumping proposed for the mine following his assurance that there will be no legal objection to the matter.
“This is the first time I have seen such clarity from the Morobe provincial government in as far at the DSTP is concerned and other matters including royalty, equity for landowners and tax entitlements relating to the project,” PM Marape said.
Outlining the provincial government’s position on the project, Governor Wenge said he wanted the special mining lease (SML) to be signed by mid-December this year, a guarantee of K100 million in IDG grants over 10 years plus other considerations over equity from the government’s share on top of royalty payments.
Governor Wenge reiterated that issues over DSTP would only be taken up based on proven scientific evidence.
“I commend Governor Wenge on coming out clear for the first time on DSTP, his view on royalty, on tax in as far as their position is concerned,” PM Marape said.
He also assured stakeholders that as a safety net there would be an escrow account created for their benefit if problems were encountered in relation to environmental issues.
“All these issues would be brought up at a meeting with the company and investors at our upcoming meeting next week,” PM Marape said.
“My position on the issuance of the SML will depend on further negotiations with the investors and the State team.
"Next week we will meet the investors to finalize project negotiations now that we have blessings from Morobe Provincial government," he said.
