The rich Wafi-Golpu gold and copper prospect in Bulolo, Morobe Province, Papua New Guinea, is valued an estimated K16.7 billion (US$5 billion) over a 25-year lifespan.According to local MP Sam Basil, Wafi-Golpu Joint Venture (WGJV) will pour an initial capital investment of K8.8 billion (US$2.8 billion) over a 25 year life of the mine and the other half of the amount will be expended.
And the MP, who is also the Minister for Communication, Information Technology and Energy, told a two-day development forum last week in Lae that attracting financial backing for the project is not easy.
But he said the combined experiences and technical resources of the JV partners Harmony Gold Mining Company Limited and Newcrest Mining Limited will attract the capital investment.
“But what I want to say is that all indications show that the WGJV team collectively knows what they are doing. This is based on experience in South Africa in the case of Harmony and Australia and Indonesia in the case of Newcrest. Their reputation is important in attracting investors to this Wafi-Golpu project.”
In anticipation, Mr Basil added; “As minister for State, I welcome the royalties and taxes to government that the Wafi-Golpu mine project will generate, the estimated 2500 jobs during construction, not mentioning employment of local contractors and suppliers, and enabling infrastructure including roads and bridges.
“The K16.7 billion capital investment the WGJV brings are funds which the National Government, Morobe provincial government, the relevant DDAs and the relevant local-level governments desperately need in this tough economic times.”
Mr Basil said he is excited about the potential of the Wafi-Golpu project unlocking agribusiness in the district and province.
He said there will be greater access to agriculture-related markets with a number of proposed new roads that will open up the region from Highlands Highway to Bulolo Highway.
Aa well new infrastructure to be developed for the Wafi-Golpu mine will make it commercially viable for up to 100,000 hectares of land in the Watut River valley to be used for agricultural purposes.
“I am aware that the WGJV community development program has a strong focus on unlocking Morobe’s agribusiness potential through continuing support of an ongoing cocoa development program. They are also investigating other potential and appropriate agricultural initiatives.”
“The potential for positive impact on the national economy, Morobe Province and each of the core districts of Bulolo, Huon Gulf and Lae District and the city of Lae are already in focus,” he said.
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