Photo: Mayur Resources Managing Director, Mr Paul Mulder. Credit: Mayur Resources Facebook Page
Mayur Resources Limited and Santos Ventures Pty Ltd (Santos), a subsidiary of Santos Limited, have extended their exclusivity arrangements to jointly develop a portfolio of nature-based carbon offset projects in Papua New Guinea (Carbon Projects).
Mayur has agreed to provide Santos with an extended exclusivity period to 1 December 2023 (Exclusivity Period) during which Santos and Mayur are to negotiate in good faith and if agreed, enter into binding transaction documents to jointly develop the previously announced Carbon Projects.
The Carbon Projects focus on preserving 1.4 million hectares of pristine rainforest in Papua New Guinea through avoided deforestation. Phase 1 development is already being progressed which includes up to 800,000 hectares in the Western Province.
Santos has already provided Mayur with a US$3 million facility (in June 2022) to, amongst other things, fund ongoing detailed feasibility and landholder consent work on the Carbon Projects.
Mayur Managing Director, Mr Paul Mulder noted “This is a transformative transaction for the development of Mayur’s carbon portfolio. Mayur proposes to use the Santos loan to develop its carbon portfolio to help preserve 1.4 million hectares of pristine rainforest, which has arguably one of the most biodiverse ecosystems on earth”.
“Mayur is also encouraged that Santos has agreed that together we shall commit to secure premium carbon credit certification and ensure these projects achieve positive social elements to the communities associated with the project offset areas. It is essential that these projects result in the majority of the financial benefits and revenues being provided to the local landowners of PNG”.
