Photo credit: Morobe Governor Luther Wenge Facebook page
Morobe Governor Luther Wenge has expressed frustration at the slow pace of negotiations regarding the Wafi-Golpu project, a gold-copper mining project worth billions of Kina. According to Wenge, "the provincial government’s position is clear: mining must go ahead. We can sort everything else later." He believes that preparations for the project should begin immediately and the special mining lease should be granted.
However, Wenge has stated that negotiations are being delayed by the state negotiating team, who are attempting to secure the best possible deal for all stakeholders in the project. State negotiating team chairman Dairi Vele confirmed that they were trying to get the best deal for everyone involved in the K18.5 billion project.
According to Wenge, the provincial government is willing to comply with the law, including paying the required 2% royalty fee. However, he also mentioned, "by law, royalties are 2 per cent but the government wants an additional 3 per cent which the developer is not agreeing to. We are ok with it as long as it’s by the law." Governor Wenge has stated that the provincial government is ready to move forward with the project but that the state negotiating team is delaying progress. He said, "It's the state negotiating team who is negotiating with the developer on our behalf that is delaying this."
Governor Wenge has also expressed his desire for transparency in the negotiations. He previously stated that 10% of the state's 30% equity in the project would be free-carry to the Morobe government and the landowners of Babuaf, Yanta, and Hengabu. However, he recently said that the details were still not clear. He called on the government to change the law if they wished to increase royalties beyond the legally required 2%. In his words, "If the Government wants more, then change the law so it’s in their favour."
In conclusion, the Wafi-Golpu project is a major economic opportunity for Morobe province, and Governor Wenge is keen for negotiations to be concluded promptly. The government and the developer must come to an agreement that benefits all stakeholders, including the Morobe government and the landowners of Babuaf, Yanta, and Hengabu.
