The Papua New Guinea State Negotiation Team (SNT) and the developers of the Wafi-Golpu Mine are nearing completion of the Mine Development Contract (MDC), a critical step before issuing the Special Mining Lease (SML), according to Prime Minister James Marape.
The Wafi-Golpu Project, located in Morobe Province, is a joint venture between Newcrest Mining Limited and Harmony Gold Mining Company, each holding a 50% share.
Marape also stated that Infrastructure Development Grants (IDGs) for the project will be distributed after the landowners’ development forum. The proposed ownership structure will see the State with 30%, Harmony Gold 35%, and Newmont 35%. Of the State’s 30% share, 10% will be allocated to the Morobe Provincial Government and local landowners.
Marape described the 10% allocation for the Morobe Provincial Government and landowners as a significant milestone and a new standard for resource projects in Papua New Guinea.
He further highlighted that the Framework Memorandum of Understanding signed in April 2023 ensures that the State will receive 55% of the economic benefits from the Wafi-Golpu project. With an anticipated revenue of US$28 billion over the mine's lifespan, this agreement is expected to yield substantial returns through taxes, royalties, and equity distribution.
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