Marape reaffirms Wafi Golpu MDC to be finalized soon

Prime Minister James Marape has reassured the country that the Wafi Golpu Mine Development Contract [MDC] will be soon finalized.

Mr Marape revealed this in parliament today when responding to Member for Bulolo Sam Basil Jnr over the status of the MDC, currently in the final stages of negotiation between the state and the investors.

“We're almost there as far as the mine development contract is concerned. Mine development contract precedes issuance of SML. Mine development contract really is the contract between the State for benefits that is to be passed on to Papua New Guinea beneficiaries and our investors,” Marape said.

“We have had many exchanges back and forth. The structure of the agreement since we took office is always premised on the major principle that PNG beneficiaries take 55% and above and our investors take below 55%.

“Investors too want to make a return on investment and so they too are defensive in their positions. State too is defensive in our positions.

Marape said the three major issues are premised around the life of the project which is expected to be a 40-year mine license that will be issued by the government.

The prime minister said delay in concluding the MDC was to ensure the country including Morobe province and its landowners obtain the best benefits possible.

“We cannot bring an MDC that doesn't give us that 55% and above we want and the MDC drives SML. I've given my direction to our state negotiating team to conclude this at the earliest,” Marape said.

“It is better a little bit of delay than signing into a project that will not give maximum return to our country, including our landowners.

“I want to ask the leadership at Morobe, the leadership at the district, and the leadership at the landowners, as Parliament rises, if not at the early part of April, sometimes in April, hopefully, the last three issues are sorted out between state negotiating team and the two investing partners.

“And we should come to a community benefit sharing agreement occasioned with landowners and the provincial government.”

The prime minister was responding to a question by the member for Bulolo Sam Basil Jnr who asked on when the Wafi Golpu mine project would become operational.