Prime Minister Hon. James Marape announced that the State Negotiating Team (SNT) is engaged in full discussions with Wafi-Golpu mine developers Newmont and Harmony, aiming to finalise the Mine Development Contract (MDC). This step is critical in preparing for the issuance of the Special Mining Lease (SML) as soon as possible.
Prime Minister Marape also addressed the status of Infrastructure Development Grants (IDGs) for Wafi-Golpu, stating that these funds have not been released yet, pending the outcome of the Development Forum. He emphasised that the IDGs are designated for infrastructure projects and are not “free money” for landowners.
“I want to announce to the people of Morobe, Papua New Guinea and all stakeholders that the SNT, on behalf of Kumul Mineral Holdings Ltd (KMHL), is in discussions with both Newmont and Harmony this week,” said Prime Minister Marape.
“Negotiations are progressing well, according to a brief I got from the SNT today. We hope to have a clearer understanding of the joint venture going forward with the State to have 30 percent, Harmony 35 percent, and Newmont 35 percent. Of the State’s 30 percent, 10 percent will go to the Morobe Provincial Government and landowners. The 10 percent for the Morobe Provincial Government and landowners is a milestone achievement and a very important precedent for resource projects in our country.
“The Framework Memorandum of Understanding we signed in April 2023 ensures that the State will be the biggest winner in Wafi-Golpu, with a 55 percent share of the economic benefits of the project. Wafi-Golpu is expected to generate US$28 billion over the life of the mine, from which we are projected to receive 55 percent through taxes, royalties, and equity distribution.
“Finer details will be announced when we go into consultations with landowners.”
Prime Minister Marape mentioned that the Mineral Resources Authority (MRA) will focus on the Community Development Agreement (CDA) with Wafi-Golpu landowners and the Morobe Provincial Government once the CDA with Porgera landowners and the affected provinces of Enga and the three others are completed.
“In the meantime, we want to complete the Porgera CDA, with the Porgera mine now nearing 100 percent production capacity.
“Discussions with Porgera landowners are now nearing completion as we give them a chance to air their views on equity and royalty distribution.
“Once that is completed, MRA staff will move on to Wafi-Golpu, where we will start discussions with landowners there.”
