Newcrest, Harmony Gold Ink Deal With PNG for Wafi-Golpu Project

By Rhiannon Hoyle

Newcrest Mining Ltd. and Harmony Gold Mining Co. on Thursday penned an agreement with Papua New Guinea that sets out key terms for the Wafi-Golpu copper and gold project in the country's Morobe province, Newcrest said.

The Australia-based gold miner said it and South Africa's Harmony Gold signed a framework memorandum of understanding, or MoU, with Papua New Guinea setting out the terms contained in the mining-development contract, including the government's equity stake in the project. Terms also include royalty and tax rates, and commitments by the miners to invest in infrastructure and social-development projects, said Newcrest, without providing further details.

Newcrest Interim Chief Executive Sherry Duhe said the agreement is a key milestone for the development of the deposit.

"The commitment of Prime Minister [James] Marape, his government and the Morobe provincial governor to this MoU gives us the confidence that permitting will progress constructively and in a timely manner to the grant of an SML," or special mining lease, said Ms. Duhe.

"We will then move swiftly to update the 2018 feasibility study and commence engineering towards development," she said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

April 06, 2023 02:30 ET (06:30 GMT)

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