Newcrest and Harmony Gold sign Wafi-Golpu MOU framework

The MOU represents a substantial step forward in progressing towards the signing of 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 Gold Boards.

The MOU sets out key terms to be included in the Mining Development Contract, which is a prerequisite for the granting of 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 to be entered into 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.

Sherry Duhe, Newcrest Interim Chief Executive Officer, said:

“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 the developers.

“The commitment of Prime Minister Marape, his Government and the Morobe Provincial Governor to this MOU gives us the confidence that permitting will progress constructively and in a timely manner to the grant of an SML to the WGJV. We will then move swiftly to update the 2018 feasibility study and commence engineering towards development.”

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 provides a viable and stable foundation for the long-term development of the project by the WGJV.

Read the article online at: https://www.globalminingreview.com/exploration-development/12042023/newcrest-and-harmony-gold-sign-wafi-golpu-mou-framework/