Parties complete mine review

A LATEST review of Woodlark mining project memorandum of agreement (MOA) was successfully completed in Alotau, Milne Bay, last week with new agreements and clauses.
The parties to the agreement are the State, Milne Bay government, Murua local level government, Dal Wanuwan Woodlark Mining Lease Inc (landowners) and the developer Geopacific Resources Limited who have agreed in principle to the various clauses of the MOA including:

•  Royalty payments;
•  Equity;
•  Special support grants;
•  Business development grant; and,
•  Tax credit scheme.
  The agreed positions on these clauses are as follows:
•  Royalty – the State upon receiving two per cent royalties based on free on board from the project, pledged to offload 25 per cent to the Milne Bay provincial government and 75 per cent to the Dal Wanuwan Woodlark Mining Lease landowners.
•  Equity – the State is to take up five per cent equity interest in the project on behalf of the Milne Bay provincial government, Murua local level government and landowners. The equity will be received and held in trust by a State nominee or an entity established by the national government, for the beneficiaries.
•  Special support grant –it was agreed that the State will make available in each financial year, special support grant to the Milne Bay provincial government, for the purpose of infrastructure development programmes. The grant will be shared on a 50-50 basis with the Murua local level government.
•  Tax credit scheme – the State through the Department of National Planning and Monitoring has undertaken to apply tax credit scheme to develop infrastructural projects in the province.
•  Business development plan – the State will provide a one-off business development grant to the umbrella company established by the Dal Wanuwan Woodlark Mining Lease (Landowners) Association.
  This is to assist the landowners establish their businesses in preparation for participation in spin off opportunities that may arise from the project.
  Meanwhile, Geopacific Resources Limited will counter fund this initiative with additional funding.
  The company has committed to provide employment and training for mining lease landowners, other Woodlark Islanders, the people of Milne Bay and other Papua New Guineans.
  All parties expressed satisfaction and stated that they would all be committed to the agreed positions.
  The MOA was last reviewed in 2015.