Wafi-Golpu Joint Venture MOU does not determine any issues of benefit sharing

The MOU signed between the Wafi-Golpu Joint Venture participants in the presence of Prime Minister Peter O’Neill is an important milestone in the project’s journey, but it does not alter or detract from the Development Forum or memorandum of agreement (MOA) process.

In a statement released the Joint Venture General Manager outlined the specifics to the process, in light of recent criticisms made public by the current Governor for Morobe Ginson Saonu.

“The MOU does not determine any issues of benefit sharing between the national and provincial governments or landowners: it only deals with matters between the PNG State and the Developers” said Grant Batterham, WGJV General Manager, Social Performance & External Affairs.

“All matters relating to Morobe Province and the landowners are being dealt with via separate negotiation and consultation process, including the Development Forum and MOA process.”

The main opportunity for provincial and landowner and aspirations to be discussed is through the Development Forum process facilitated by the Mineral Resources Authority.
Unfortunately, this process was suspended by the government following a court injunction that was issued in August 2018, which arose from an unrelated internal dispute within one of the SML Landowner communities, according to project developer.

“This injunction has been lifted just this week, and the WGJV looks forward to seeing the development forum resume as soon as possible. The benefits-sharing agreements reached through the development forum process will be documented in the MOA.
“The MOU does not replace any of the usual agreements that will need to be negotiated before any Special Mining Lease is granted.

“These are the Mining Development Contract (which outlines the fiscal and regulatory arrangements for the project); the MOA (which is an outcome of the development forum and deals with the distribution of benefits from the project); State Equity Acquisition Agreement (which is the purchase agreement for the equity to be acquired under the State’s option); and Fiscal Stability Agreement (which is an agreement providing long term fiscal stability for the project).

“Negotiations on all these agreements, together with progressing the development forum, will continue over coming months, involving all relevant parties,” Mr Batterham stated.
There is also an extensive Environmental Impact Assessment process underway (including public consultations), under the Environment Act, which is currently being assessed by the PNG Government.

The MOU is, however, a strong signal to investors of the PNG Government’s support for the Project, which will enable the WGJV to move forward with a program of works, including a bridge over the Markham River.

This will bring immediate infrastructure and other benefits to the Province.

Source: Post Courier newspaper