Prime Minister (PM) James Marape has set December as the deadline for the finalisation of all matters relating to the Wafi Golpu Mine so that the mine project can finally get off ground because time is running out. This means the finalisation of the Mine Development Contract (MDC) and issuing the Special Mining Lease (SML) for the Wafi-Golpu Mine. During a high-level meeting with the State Negotiating Team, Joint Venture Partners Newmont and Harmony, Deputy Prime Minister John Rosso, and Mining Minister Wake Goi, PM Marape emphasised the importance of immediate action on starting this important economic project in the Morobe province. “Time is ticking away. As a nation, we have collectively agreed that the Wafi-Golpu project must move forward—on terms that are in line with our laws and policies, especially those that ensure the State and Papua New Guinea secure 55 percent of the project’s economic benefits.” “I am pleased that the Framework Memorandum of Understanding (MoU), which was signed in 2023, honors this commitment,” said the PM. The Wafi Gopu project contains over 12 million ounces of gold and three million tonnes of copper. It is a significant undertaking expected to extend beyond 60 years. “However, we have agreed to a 40-year lease, contingent on the joint venture partners commencing the project within two years of the SML issuance," the Prime Minister further explained on the arrangement behind the mine’s life span. Reflecting on past delays, Prime Minister Marape lamented the significant time lost due to legal proceedings and reiterated that further delays were no longer an option. “I want to make it absolutely clear: we cannot afford to lose any more time. The Wafi-Golpu project must advance without further delay. This is a project of national importance, and moving forward on key milestones is critical to the country’s economic progress.” The Prime Minister set a firm deadline, stating that the MDC and SML for Wafi-Golpu must be finalised before the 2024 Papua New Guinea Investment Week, which is scheduled to take place in Sydney, Australia, from December 6-11. “The Framework MoU signed in 2023 is our roadmap, and it is time to act,” he added. Prime Minister Marape also highlighted the need to respect the patience of landowners and the Morobe Provincial Government, represented by Governor Luther Wenge, who have waited for years to see the project begin. “We cannot continue to hold them in suspense. Delaying any further will only invite frustration and discontent from landowners and local authorities,” Prime Minister Marape warned. Key provisions under the Framework MoU include: • The State and Papua New Guinea receiving 55 percent of the project’s economic returns. • State equity set at 30 percent, with 10 percent carried, and Morobe Province and the landowners receiving the carried equity. • A fiscal stability tax at 2 percent, in addition to a 30 percent full tax. • Royalty set at 3 percent with no deductions. • An additional US$394 million committed by Newmont and Harmony for social and community infrastructure, supplementing the Government’s K1.2 billion Infrastructure and Business Development (IBD) grant. • A local content forum to be convened between the developers, Morobe Provincial Government, and landowners, pushing for local content to exceed 80 percent during construction and ongoing operations. • An additional profits tax was secured, with a concession on dividend withholding tax. • Personal income tax will not be treated as the company’s contributions, unlike in the Lihir project. • The SML will be issued for an initial 30-month period, during which investors must complete Front End Engineering Design (FEED) and reach a Final Investment Decision (FID) to qualify for an extension. Upon reaching FID, Kumul Minerals Holdings Ltd (KMHL) will be required to make equity contributions through a cash call. Prime Minister Marape closed by reaffirming his government’s commitment to fast-tracking the Wafi-Golpu project, urging all stakeholders to move with urgency. “The time for action is now. We have the framework, we have the opportunity, and now we need to execute,” he said.