The Papua LNG and Wafi- Golpu Gold and Copper projects are not abandoned, instead they are progressing toward their next critical development stages.
That is the assurance from Prime Minister James Marape to the people of Papua New Guinea (PNG) of these two largest resource projects.
“It is no secret that my government is working very hard to ensure Papua LNG and Wafi-Golpu move into their next phases — agreements to be signed, licenses to be issued and FIDs to be announced,” Prime Minister Marape said.
Prime Minister Marape confirmed he held discussions with Mr. Patrick Pouyanné, Chairman and Chief Executive Officer of TotalEnergies, who provided firm assurance that the Papua LNG project remains active.
“The project is not abandoned,” Prime Minister Marape said. “I was pleased to receive Mr. Pouyanné’s full assurance that Papua LNG is continuing to move forward.”
He explained that following the first round of Engineering, Procurement and Construction (EPC) tenders, estimated project costs had increased to approximately US$18 billion, reflecting global inflation, supply-chain pressures and higher financing costs.
However, he said TotalEnergies has since undertaken a comprehensive cost-reduction exercise.
“They have worked extremely hard and managed to reduce close to US$4 billion in projected cost increases,” he said.
The Prime Minister said the project remains economically viable at an estimated construction cost of around US$14 billion, ensuring acceptable investor returns while preserving national value.
On the Wafi-Golpu Gold and Copper Project, Prime Minister Marape said he met with Mr. Patrice Motsepe, Chairman of Harmony Gold Mining Company.
He confirmed that the independent peer review process addressing outstanding technical matters is nearing completion.
On the Wafi-Golpu Gold and Copper Project, Prime Minister Marape said he met with Mr. Patrice Motsepe, Chairman of Harmony Gold Mining Company.
He confirmed that the independent peer review process addressing outstanding technical matters is nearing completion.
“The peer review team is expected to return its findings before the end of this month,” he said.
The Prime Minister reaffirmed the State’s commitment to participate meaningfully in the project.
“The State intends to participate at 30 per cent equity in Wafi-Golpu,” he said. “The State must not be questioned about its ability to finance its equity. The State does not go broke — it refinances over time.”
He said the Government stands ready to bring Harmony Gold and Newmont Corporation together to conclude remaining issues and progress the project toward development approval.
