Tag Archives: Harmony Gold

Wafi-Golpu Project To Lift Economic Growth, Says O’Neill

ECONOMIC GROWTH DOES NOT MEAN BETTER LIVES FOR ORDINARY PEOPLE

Benny Geteng | Post Courier | October 16, 2018

The Wafi-Golpu project in Morobe province and Papua LNG in Gulf province will help PNG experience a 3 per cent economic growth when productions begin, said Prime Minister Peter O’Neill.

Mr O’Neill said the two projects, when they start producing will boost the economy of the country at a sustainable rate.

“PNG will experience a medium growth of 3 percent. 3 percent is a sustainable growth for a country.

“The Wafi – Golpu mine will be the basis to deliver infrastructure to the province,” he said.

Mr O’Neill said with the Papua LNG Project there is good progress to deliver the project and the negotiation team is at fiscal terms of project signing and closing to pass concessions.

He said the economy is looking bright at a good economic projection of 2- 3 per cent growth.

He also said there will be no fly in fly out for employees of Wafi -Golpu.

Mr O’Neill made this statement last week during the swearing in of the Lae City Authority interim board following a recent strong stance by Morobean parliamentarians who have made it clear they do not want the practice of fly in fly out in the Wafi – Goplu project.

Mr O’Neill said the country will not repeat the same mistakes of the billion dollar LNG Project deal in Hela Province to the new projects and the leaders have now learnt from their mistakes.

“We built an international airport in Hela and that airport is only used once every month,” he said.

He said these are some instances of missed opportunities that the Government will try to avoid in the upcoming mining projects of the country.

The Prime Minister said the new Wafi – Golpu mine is a bankable project for the country to embrace.

The construction phase of the Wafi – Golpu is valued at K5 billion and is set to be one of the biggest revenue earners for Morobe province when gold production starts.

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Wafi-Golpu plan to dump mine waste in sea queried

The National aka The Loggers Times | September 13, 2018

Salamaua LLG president Philemon Tomala has expressed concern about the plan to dump Wafi-Golpu mine tailings into Huon Gulf.

He said that both Wafi-Golpu Joint Venture and Morobe government should spell out the effects of the tailings on the gulf, where people fish for their livelihood. It is also one of few places in the world where the endangered giant leatherback turtle nests.

“The mining company and Morobe government say it is safe to get this waste into the sea,” Tomala said.

“From experiences we have seen, like Panguna mine and others, the people out there still have questions in their minds as to how safe the waste is, going onto the sea.

“This is because our people’s livelihood is in the sea.

“They go fishing to sustain their day-to-day living, but with this thing coming, we have a lot of questions Whether it is safe for marine life or not.”

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Group wants Wafi-Golpu mining town at home

The National aka The Loggers Times | September 12, 2018

The people of the Mumeng local- level government in Bulolo district, Morobe, do not want Wafi-Golpu’s mining town to be in the Huon Gulf district. They want it at home.

The group called Pikinini Mumeng made their stand known during a forum held on Saturday at Gurakor.

Spokespersons Max Giamati and Toksy Mon told The National the people of Mumeng were fighting for the rights of their children and they did not want their children to miss out on any benefit from the Wafi mine.

Giamati said the forum was for the developers, the Morobe government and the State to explain the benefits the Mumeng community would gain from the mine, the mining township, and the formation of Mumeng Landowners’ Association.

“Just because the pipeline will run through Huon Gulf they want to build the township there, but we are against the idea,” he said.

“We are not saying no to the pipeline but because of the future of our children we want the township and service to be in Bulolo District.

“A good example is the Hidden Valley Mine where the services and township should be in Bulolo District but has been moved down to Lae. We do not want to see this process repeated with Wafi-Golpu.”

The Pikinini Mumeng group said that further exploration on their land would not be carried out unless there was discussions with the people of Mumeng on what benefits Wafi-Golpu would provide.

The group will have another meeting on Saturday at Kumalu Dust Market and the Mumeng LLG president and Bulolo MP Sam Basil are being invited to attend.

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African Rainbow Minerals considers Wafi-Golpu buy

Since selling the jointly held Lubambe operation in Zambia, ARM is still scouting for copper opportunities

Alan Seccombe | Business Day | 10 September 2018

African Rainbow Minerals (ARM) is assessing the undeveloped Wafi-Golpu copper and gold deposit half-owned by Harmony Gold, but the diversified miner’s executives declined to be drawn on any further details on its copper strategy.

Since selling the jointly held Lubambe operation in Zambia, ARM is still scouting for copper opportunities, with much speculation in the market that the company could join Harmony, in which it holds a 14% stake, in the multibillion-rand investment in Papua New Guinea in the large Wafi-Golpu project.

Capital move: Patrice Motsepe’s Batho Bonke stuck with Sanlam after its agreement matured and he is now expanding his footprint with African Rainbow Capital. Arnold Pronto

However, analysts remain cautious about any investment ARM could make in growth through mergers & acquisitions, particularly now that the company has swung to a net cash position of R995m in the year ended June from net debt of R1.3bn a year earlier.

Johann Pretorius, an analyst with Renaissance Capital, asked ARM executive chair Patrice Motsepe and CEO Mike Schmidt at an annual results presentation on Friday for assurance that the company would not make a bad investment decision now that it is generating strong cash flow.

“The bigger concern is that ARM might decide to invest this money in what could be a value-destructive project or acquisition,” Pretorius said, pointing out investors said they want clarity on a dividend policy.

Motsepe said greenfield developments, or building brand new mines, are not on the cards for ARM.

He said: “We are looking at some very exciting growth opportunities. Our balance sheet is in a very good position … greenfield, brownfield is not for us. Whether a transaction is value accretive or destructive, the shareholders will decide. They will punish you if you do a transaction that destroys value.”

Schmidt said that ARM is actively looking at potential copper investments and the Wafi-Golpu deposit shared by Harmony and its Australian partner Newcrest Mining, is one that is being assessed.

“Wafi has a strong credit in terms of copper and gold and it’s one that we do assess. We are a shareholder in Harmony and they speak to us on where they stand and intend doing on a continual basis,” he said.

Harmony needs about R21.5bn for its half of the $2.825bn tag to develop Wafi-Golpu and its CEO, Peter Steenkamp, has spoken of investigating various funding options.

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PNG Mining Minister cautious about Hidden Valley Mine Threat

Gabriel Lahoc | NBC News | 26 August 2018

Papua New Guinea Mining Minister Johnson Tuke says he is not aware of issues arising from the Hidden Valley mine and will only respond upon receiving official complaints.

The Minister made this response to Rex Mauri, Chairman of Nakuwi Landowners Association, the traditional landowners of Hidden Valley mine operated by South African company, Harmony Gold Mining Company.

Mauri threatened to shut down the mine as a last resort approach, saying it is unfair that the government failed to review the Hidden Valley mine Memorandum of Agreement, five years after it was due, while now rushing into negotiating a new agreement for the new neighboring Wafi-Golpu project.

Mauri said, he will lead the locals in forcefully shutting down the Hidden Valley mine, after failing to get the national government to review the outdated HiddenValley Mine MoA.

Mauri claimed the state agencies responsible for agreement review is the Mineral Resources Authority, Department of Mining, Department of Environment and Conservation, Office of State Solicitor, Department of Mineral Policy and Geohazzards Management, are responsible in dragging the review process.

As a result, this has given room to the developer in abuse some operational matters, especially overlooking its obligation in prioritizing the landowners in employment, contracts and other spin-off activities.

“This government is not playing the right thing, no,” Mauri, who initially got into the mining industry 36 years ago as a young local, guiding gold explorations teams into the jungles of what is now the Hidden Valley mine, said.

The minister, who is also Kainantu MP, said there are procedures in place for landowners grievances.

He added that he has not yet received any formal complaints from Mauri, who is also president of all mine landowners associations around the country, and will only respond to accordingly.

“I only talk about what is before my table and nothing of such nature has reached my table,” he said.

“But again, we are guided, the mining industry is a guided industry, we’ve got sets of laws and acts,” Minister Tuke said.

“I will only respond as and when a letter of complaint come forth to my office but at this point in time I am fairly ignorant,” he said.

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Mine LOs Upset Over Change In Meeting Venue

Jerry Sefe | Post Courier | August 17, 2018

The landowners of Yanta and Hengambu in the Wafi-Golpu mining have agreed to work with the district and province to do what is right for the benefit of the mine.

The landowners, who did not attend the consultative meeting in Kokopo, described the forum as political maneuvering that was not in their interest.

Landowner representative Being Sombe alleged that there were suspicious deals made during the meeting.

Mr Sombe said since the closure of the meeting, they were not briefed or informed by their landowner association leaders on the discussions at the meeting.

“We are waiting for them to tell us why the meeting was taken to Kokopo and what was discussed and passed for the benefit of the impacted communities,” said Mr Sombe.

The landowners also questioned Bulolo MP Sam Basil and Morobe governor Ginson Saonu on why the consultative meeting was moved.

The leaders told landowners they were not happy with the move in meeting venue.

The leaders after discussions on the Kokopo forum assured the landowners to work with the provincial government to protect their interests.

Mr Basil said the authorities in mining areas will be engaged as stakeholders to represent the landowners’ issues and spearhead positive drive for landowners benefits in the mine.

They also admitted they were not properly consulted on the meeting to be held in Kokopo but were surprised to be invited.

“We must not repeat what has happened at Hidden Valley, whatever meetings for Wafi-Golpu mining in future must be held in Lae,” the leaders said.

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Morobe Leaders Unite On Wafi-Golpu Project

Benny Geteng | Post Courier | August 15, 2018

Several Morobean MPs including Governor Ginson Saonu have taken a united stand in calling for more Morobean presence in the Wafi-Golpu Mine Project.

This is first time ever for Morobe leaders to come together to show their concerns on the technical advisory and spinoff benefits from negotiations, construction phase, and the development of the Wafi-Golpu Project located between Bulolo district and Huon Gulf district.

The MPs – Morobe Governor Ginson Saonu, Bulolo MP Sam Basil, Huon-Gulf MP Ross Seymour, Tewae-Siassi MP Dr Kobby Bomareo, Nawaeb MP Kennedy Wenge and Lae MP John Rosso.

The emerging Morobe position aims to address lessons from the Bougainville Copper Limited and the crisis it ignited, the Ok Tedi Mining environmental issues that fueled the exit of BHP Billiton, landowner issues affecting the PNG LNG Project and the Hidden Valley Mining Project including other mines that will all be captured in a memorandum of agreement.

They have called for disclosure of pertinent information and engagement instead of limiting Morobe Provincial Government and the landowners to positions on Extractive Industries Transparency Initiative, special support grants and cooperation and assistance to the State and the developer.

“As leaders and stakeholders, we need to have in-depth information and knowledge to formulate our positions on matters of equity, royalties, business development grants, employment and training, compensation payments and infrastructure developments.

“We also need to know the source and independent checks that formed the basis of the figures used in the financial model and benefits by Department of Treasury. Inclusion of future ore discovery prospects, its implications on mine life and related financial benefits,” the leaders said.

Governor Saonu has expressed further concern that the recent second Wafi-Golpu Mining Development Forum in Kokopo has sparked criticism from Morobeans and said that from now on all meetings will be held in either Lae or Morobe.

“If we hold meetings outside of Lae and or Morobe we will fuel unnecessary suspicions among Morobeans that we have things to hide.

“Mining Minister Johnson Tuke has already taken note of this matter and has told Mineral Resources Authority and the Department of Mineral Policy and Geohazards Management in Kokopo to take note and not hold Wafi Golpu Mining Project related meetings outside of Lae and Morobe,” he said.

The MPs have taken the strong stance that the MOA to be signed must be right, and that as stakeholders and host province they demand access to the draft mining development contract before it will be signed by the Head of State and developers.

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