Basil clarifies deal between govt and developers

The National Main Stories

By PISAI GUMAR
Bulolo MP Sam Basil says the Wafi-Golpu memorandum-of-understanding signed on Dec 11 is a roadmap to strengthen the intentions of developers, Newcrest and Harmony Gold, to continue working towards commencement of the actual project.
Basil, a signatory to the MOU, explained to the Morobe Tutumang (provincial assembly) yesterday that no legally binding document for Wafi-Golpu was signed.
He was responding to two petitions against the MoU presented by Huon Gulf MP Ross Seymour and Wampar president Michael Poane on Tuesday.
Basil said the MoU instilled confidence in developer Wafi-Golpu Joint Venture (WGJV) to continue its processes towards the mining development forum (MDF) and memorandum-of-agreement (MOA).
He said the MOU allowed for:

  • Creating a framework for the mining permit following existing laws;
  • creating key terms for MDF and other legally binding documents before negotiations;
  • creating stability for investments in developing and operating mine;
  • strengthening and reaffirming the intention of the parties to complete the permitting process and achieve granting of a special mining lease by June 30, 2019. The power of the process rested upon the wisdom of landowners, LLGs, provincial government and affected districts; and,
  • Ensuring confidence in Harmony Gold and Newcrest to begin investing in facilities and infrastructure for actual mining operations.

“The MoU was never a legally-binding document that locked crucial stakes like equity, royalty, mining township, human resources and spin-off benefits among others,” Basil said.
He said there would be a debate and amicable understanding reached by all parties concerned before a legally binding MoA was signed. Basil said negotiation was part of the permitting process with MDF catered for under the Mining Act, mining regulations and Mineral Resource Authority.
He said after completion of permitting process, the MoA and mining development contract (MDC) would be ready for signing to enable the granting of SML for mining operations to begin.