Photo credit: Wafi-Golpu JV
Wafi-Golpu Joint Venture (WGJV) participants, Newcrest and Harmony Gold (through their respective PNG subsidiaries) have today signed a Framework Memorandum of Understanding (MOU) with the Independent State of Papua New Guinea at a signing ceremony which was attended by the Governor General, the Prime Minister and key members of his cabinet, as well as the Governor of the Morobe Province.
The MOU represents a substantial step forward in progressing and signing a Mining Development Contract for Wafi-Golpu and confirms the parties’ intent to proceed with the project, subject to finalising the permitting process and approvals of both the Newcrest and Harmony Boards.
The MOU sets out key terms to be included in the Mining Development Contract, which is a prerequisite for a Special Mining Lease (SML), including:
- State equity participation, royalty rate, tax package and term and scope of the SML.
- Key terms for other related agreements with the State, including provision for stability to underpin the significant long-term investment required to develop and operate the project.
- Commitments for the WGJV to invest in infrastructure and social development projects that will deliver long-term benefits to local communities.
- The framework for the parties to progress the permitting of the Wafi-Golpu Project as quickly as practicable in accordance with applicable regulatory processes.
Peter Steenkamp, Chief Executive Officer of Harmony Gold Mining Company Limited, said, “This MOU is an important step in progressing the permitting of the Tier 1 Wafi-Golpu project, one of the world’s premier, undeveloped copper-gold deposits. I wish to thank Prime Minister Marape and his Government for the constructive manner in which they have worked with the WGJV partners and for the commitment demonstrated in advancing this important and long-awaited project.”
“This MOU is a pivotal milestone towards the development of one of the world’s premier, undeveloped, copper-gold deposits. Importantly, the project will result in fair and equitable benefits for landowners, communities, local level governments, the Morobe Provincial Government and the Independent State of Papua New Guinea, while also delivering strong returns for investors.” said the Interim Chief Executive Officer of Newcrest Mining Limited, Sherry Duhe.
The MOU recognises that development of the Wafi-Golpu Project will be of major significance to the people of Papua New Guinea and encourages its development to contribute both socially and economically to the community. In addition, it also provides a viable and stable foundation for the long-term development of the Project by the WGJV.
