Newcrest has achieved a key milestone in the development of its Wafi-Golpu gold mine in Papua New Guinea after inking a memorandum of understanding (MoU) with the PNG Government.
The MoU, which also involves Newcrest’s Wafi-Golpu joint venture (WGJV) partner Harmony Gold, is the next step towards the signing of a mining development contract, subject to permitting and board approvals.
The MoU includes four terms that would underpin the mining development contract and lead to the granting of a special mining lease (SML).
The terms concern the PNG Government’s equity participation, and the royalty and tax provisions associated with the project. The MoU is also centred on the project’s long-term investment framework, along with commitments from Newcrest and Harmony Gold to invest in infrastructure and social development projects that benefit local communities.
“This MoU is a pivotal milestone towards the development of one of the world’s premier undeveloped copper-gold deposits,” Newcrest interim chief executive officer Sherry Duhe said.
“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 Wafi-Golpu project includes the Golpu copper-gold porphyry deposit, which is considered one of the highest-grade porphyry copper systems in south-east Asia, as well as the Nambonga copper-gold deposit and Wafi high sulphidation epithermal gold deposit.
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