Newcrest, Harmony Gold inks MoU for JV project
Newcrest Mining and Harmony Gold have jointly sealed a framework memorandum of understanding (MOU) with Papua New Guinea (PNG) to advance the development of the Wafi-Golpu copper-gold project in the country.
Newcrest and Harmony Gold, through their unincorporated Wafi-Golpu Joint Venture (WGJV), hold 50% stake each in the Wafi-Golpu Project. The MoU marks a step ahead for the joint venture towards the signing of a mining development contract for the Wafi-Golpu copper-gold porphyry project.
The MOU outlines the aspects to be included in the mining development contract related to the Wafi-Golpu project. The terms include Papua New Guinea’s equity stake in the project, tax package, royalty rate, and the special mining lease’s term and scope.
Commitments
It also covers terms for other related agreements to be signed with the government as well as commitments for the WGJV to invest in the infrastructure and social development projects. The contract is required for the issuance of a special mining lease, Newcrest said.
The project development, however, is subject approvals from both boards of Harmony Gold and Newcrest Mining and the finalisation of the permitting process. Located near the port city of Lae, in the Morobe province, Wafi-Golpu is expected to take about five years from the grant of the mining lease to the time it generates its first ore. The project already has an environment permit for deep-sea tailings placement as management method for mining waste, granted in 2020.
“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,” said Newcrest Mining interim CEO Sherry Duhe.
