PM: Project licence expected

By GYNNIE KERO
THE development licence for the multi-billion kina Wafi-Golpu joint venture project in Morobe is expected to be signed early next year, according to Prime Minister Peter O’Neill.
He will open the 15th PNG Mining and Petroleum investment conference in Sydney today.
He told The National yesterday on his way to Sydney that basic terms on the Wafi Golpu project were expected to come up for discussion.
“We should have a basic agreement, basic terms, for the Wafi-Golpu project before we sign the development licence early next year,” he said.
The Wafi-Golpu project is a 50:50 joint venture between Australia’s Newcrest and South Africa’s Harmony Gold. The project site is located in the Huon Gulf district, about 65km south-west of Lae.
The project has been touted as the largest, deepest and most complex underground mine in PNG, with a mine life of 28 years.
Subject to board approvals by the joint venture participants, construction will begin after the granting of a special mining licence and the receipt of all required Government approvals.
The first ore production is expected about five years after that.
The initial capital investment is expected to be about K9.1 billion (US$2.8 billion). The total capital expenditure is expected to be around K17.4 billion (US$5.4 billion) over the life of the mine.
The project is expected to create economic benefits to the country, including around 2,500 jobs during construction, about 850 ongoing operation jobs and further indirect jobs created in Morobe.
The project will also contribute to the development of local economies through the payment of royalties and taxes, and through a social development investment programme during the life of the mine.