Tag Archives: Newcrest Mining

Wafi-Golpu Could Be First To Incorporate EITI Provisions

Matthew Vari | Post Courier | November 30, 2018

The Wafi-Golpu Mine is set to be the very first gold project to incorporate the Extractive Industries Transparency Initiative provisions included in the agreements for the Wafi-Golpu Joint Venture projects set for the Morobe province.
PNG EITI National Secretariat head Lukas Alkan said this early this month when commenting on the push by government and the PNG EITI secretariat to ensure the initiative is rooted in current and future project prospects to ensure effective transparency on revenues in the extractive sector.
“Some of these projects are new projects where the forums are being conducted like Wafi-Golpu and the Freida River.
“The transparency mechanism has been, we are trying to build into those agreements. We started off with Wafi-Golpu project.
“The MoA negotiation that is ongoing there is a provisions there for EITI for reporting purposes in terms of disclosing project agreements,” Mr Alkan said.
He said the secretariat was also looking at the reviews being conducted with Pogera and the other mines.
“We also look at ensuring that transparency mechanisms are built into those revised agreements.
“This is the first time that we are trying to tie in the EITI mechanism into a project that is yet to start.
He said, on the same token, project agreements that have already been signed, the secretariat continues to have difficulties getting disclosure.
“The need for work on certain legislations and the requirements that prevent bodies such as EITI from having access will need to be done in order to have access,” Mr Alkan said.
A learning curve the secretariat will ensure the country maintain transparency with the country’s new major projects earmarked within the next decade.
“This time around we have been proactive to ensure that when the new project is coming on-stream we are making sure that EITI mechanisms are built into those MoAs or agreements so that triggers the disclosure of the agreements when they are signed,” he said.

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Wafi-Golpu project expected in June 2019

Cedric Patjole | Loop PNG | November 11, 2018

Newcrest Limited expect the awarding of the Special Mining Lease for the Wafi-Golpu Project in June next year.

Speaking at the Company’s Investor Conference, Executive General Manager, Craig Jetson, said the project has a wonderful ore body and is project of national significance to PNG.

The Investor Conference was held ion Sydney, Australia, on October 26th .

Jetson said following the submission of the Environmental Impact Statement (EIS) in June this year, the company are working with the PNG Government to finalize the necessary agreements to be required to enable them to approve the Special Mining Lease (SML).

“One thing for sure is that Wafi-Golpu is project of national significance to PNG, so there is a lot of excitement in PNG about this project, and they see it as a big part of the economic development of the nation,” said Jetson.

“Right at the outset when we started working through the process of the permitting with the Government we established an agreed timeline that we’d work on towards getting those permits completed and that timeline see’s us having the permits before June next year.”

He said they were fortunate to work with such a wonderful ore body and its perfectly suited to the technology they have been developing over the last 10 years.

“The beauty of Wafi -Golpu is that we can take all those learning’s from Cadia and apply them to a brand new ore body and really take the next generation of our cave-in technology forward.

“So it’s a pretty exciting time for us, we are in the process of obtaining our permits from the Papua New Guinea government, once we get those permits the project is ready to go. So the project has been extensively studied over a long period of time, and it is project ready.”

The Wafi -Golpu Project is a joint venture between subsidiaries of Newcrest Mining Limited and Harmony Gold Mining Company Limited.

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Saonu Raises Concerns On Wafi-Golpu Mining Lease

Post Courier | November 9, 2018

Morobe Governor Ginson Saonu has raised concerns on the pending signing of a special mining lease between the developer of the Wafi-Golpu mine in Morobe Province and the government during the APEC summit next week.

He cited sources from social media who had released a report saying there was already a memorandum of agreement in place, established by the Mining Act.

The issue was interrupted by a court case and the signing of the special mining lease is expected to take place in 2019.

Mr Saonu directed his concerns to the Prime Minister Peter O’Neill during question time in Parliament.

“Would you please confirm or deny, whether the government has agreed to sign a heads of agreement at the APEC Summit? Why was the Morobe provincial government and stakeholders not consulted?’’ Mr Saonu asked.

‘‘If the proposed signing of the heads of agreement is true, will you inform all the stakeholders landowners, state entities and the people of Morobe on what the agreement is all about?’’

He went on to ask the prime minister if it was still necessary to continue and complete the due process and what would be the legal consequences of abandoning the process.

In response Mr O’Neill said: “Mr Speaker our government has appointed a state negotiating team. Technical people from the Mining Department, Treasury, State Solicitors office and other government agencies are dealing directly with Wafi Golpu developers, particularly Newcrest and Harmony.

“They continue to discuss the way forward in continuing to develop this mine The negotiations are still in its early stages and there have been no briefings to cabinet or to the prime minister.

“I don’t see any mine development agreement being signed around APEC and certainly any agreement that needs to be signed will be in full consultation with Morobe provincial government and the people of Wau Bulolo particularly the landowners.”

Mr O’Neill said any understanding reached with the developer was about the program going forward.

‘‘There would not be any legally binding agreement but for the benefits of investors and potential financiers of the project, the government and its developers wants to give a clear position about its intentions to develop the mine,” he said.

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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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