Photo: Porgera Mine Kumul Mineral Holdings Limited (KMHL), Barrick Niugini Limited (BNL), and the New Porgera Limited (NPL) signing two crucial documents on Friday marks a significant step towards reopening the Porgera mine. The Porgera mine, located in Enga Province of Papua New Guinea, was closed down in April 2020 after the government refused to extend Barrick’s lease for another 20 years. Since then, the parties have been negotiating the terms of reopening the mine. The documents signed by the parties include the DEED of transfer for the Exploration license (EL) 454 and the DEED of transfer for the Special Mining Lease (SML) 11 and ancillary tenements. The signing ceremony took place in Port Moresby and was attended by KMHL board of directors and BNL Country Manager and Adviser. Dr Ila Temu, the KMHL Chairman, explained that the SML 11 license that Kumul Mineral holds needed to be surrendered, hence the signing of the transfer to the New Porgera Limited. Dr Temu stated, "The parties have agreed that SML 11 has to be surrendered, and a new SML applied for." He further explained that the exploration license 454, which had the Porgera license issued on it, belongs to Barrick Niugini Limited, and they have decided to transfer it to New Porgera Limited as part of the consolidation. Once New Porgera Limited receives the exploration license, it will apply for a new SML after surrendering SML 11. The Mineral Resource Authority (MRA) is now processing the two transfers, and Dr Temu said they have given urgency for the application to be processed within the next two months, hoping that the new SML will be issued within this period. "The rest of the agreements like the Mining Development contract need to be signed off after the SML is issued and the environment transferred. This is because the environment permit was issued to all SML so it had to be transferred from the old SML to the new SML that will be issued. That should complete the process, and I think it is going to take us a balance of this first part of the year, including quarter 1, 2, and maybe quarter 3," he added. The reopening of the Porgera mine is significant for Papua New Guinea as it is the second-largest mine in the country, producing around 600,000 ounces of gold and 600,000 ounces of silver per annum. The mine's reopening will generate employment opportunities and contribute to the country's economic growth. It will also bring relief to the local community, which has been severely affected by the mine's closure. BNL Country Manager and Adviser, Tony Esplin, expressed his satisfaction with the progress made towards reopening the mine. He said, "We are very pleased to have reached this important milestone in the process of reopening the Porgera mine. We look forward to continuing our work with our partners to bring the mine back into operation."

Photo: Minister for Mining Hon Ano Pala (right) awarding the certificate of long service to Mr. Carter Oiee (left) while acting MD Mr. Jerry Garry looks on (back)The Mineral Resources Authority (MRA) on Friday April 14th, celebrated its 15 years of operations in Port Moresby.  The occasion was graced by the presence of the Prime Minister Honourable James Marape, and the Minister for Mining Honourable Sir Ano Pala. Main highlights of the occasion were the launching of the Mineral Production Data Center, and the MRA Corporate Plan 2022-2027 by Prime Minister Marape. Other important guests at the event were the MRA Board Chairman Benny Kimisive and the Secretary of the Department of Mineral Policy & Geohazards Management (DMPGM), Harry Kore. The PNG Mining Industry was also represented by the PNG Chamber of Mines & Petroleum executives. Staff based in the mining host provinces were flown into Port Moresby, to join the rest of the MRA staff members at the event. Staff who have served the organization for 15 years were awarded certificate of Long Service. Hon Marape congratulated the staff of the MRA saying that the MRA was an important organization in the government set up, as it regulates the very sector that had been driving the country’s economy since independence. He said without MRA, there would be no regulation, supervision and oversight of the mining industry. Minister Hon Sir Pala told the staff members that they were a special group of people, tasked with an important responsibility to ensure that all systems required to regulate the mining industry, work effectively. Mr Kimisive said the board had provided strategic guidance to the MRA management to achieve its milestones. These milestones include the completion of the annual financial audits, Public Investments Program (PIP) audits, the setup of the Mineral Production Data Center and the Corporate Plan 2022-2027. Acting Managing Director Jerry Garry acknowledged and thanked former Prime Ministers, Ministers of Mining, former Managing Directors of the MRA, and former and current staff, who served the State and the MRA since the establishment of the authority. He said the MRA was what it is today because they all contributed towards building the organization. The AMD said the organization had achieved a lot since its establishment 15 years ago. He highlighted milestones achieved over the years. These include the transition to online tenements management system, compilation of geology mineral occurrence structures which are available online, establishment of PNG drill-hole data base, improvement in mine safety records, increase in the total export revenue from minerals, increase in mineral exploration activities and expenditure. Staff representative Vele Gavu thanked past and present political leaders and management of the MRA, for having the foresight in the creation of the MRA, and ensuring that staff well-fare is well taken care of.

Photo credit: MRA Mineral Resources Authority (MRA) managing director, Jerry Garry, has emphasized the importance of exploration in ensuring the future of Papua New Guinea's mining industry. Speaking at the agency's 15th-anniversary celebration in Port Moresby, Garry highlighted the vital role that exploration plays in the development of mines. "If you do not have exploration, you do not have a mine," said Garry. "Before MRA's establishment, the total exploration Kina spent on grassroots and advanced projects in the country were well below K100 million per annum. After the establishment of the MRA, the exploration expenditure increased and peaked at around K370 million per annum, that in itself is a testimony in MRA's achievement." Current advanced exploration projects progressing into mine development stage include Wafi-Golpu, Frieda River, Woodlark gold mine project, Central cement lime project, Oro nickel and cobalt project, and Misima mines. Garry also highlighted the importance of alluvial mining in the sector, which has grown from earning less than K100 million to K640 million per annum under the MRA's supervision. "Looking at the small-scale mining training center (in Wau, Morobe), they have trained and certified more than 6,000 artisanal miners since its establishment in 2008," said Garry. "That is why we have a K640 million export revenue in this sector, it is the effort of the training center." While Papua New Guinea's mining industry has seen significant growth in recent years, Garry cautioned that all major mineral reserves in the country will be depleted by 2063. "By 2063, all the major reserves we have in the country will be depleted," said Garry. "That includes Wafi-Golpu and Frieda River projects." Garry stressed the need to invest in the next layer of deposits to sustain the mining business in the country, stating that the only way to achieve this is to explore deeper. "We need to invest in the next layer of deposits to sustain the mining business in the country," said Garry. "And the only way to do that is to go deep because those deposits or assets in the surface have already been tested." Despite this challenge, Garry was optimistic about the future of Papua New Guinea's mining industry. "We need to look at the future and the next big thing, and we need to invest in exploration," he said. "The future of the mining industry is very bright, and we can only make it happen if we all work together and invest in the right areas." Garry's remarks were met with support from industry stakeholders. Peter Graham, managing director of Wafi-Golpu Joint Venture, stressed the importance of exploration to the industry's future. "Exploration is the lifeblood of our industry," said Graham. "We are exploring at depths never before contemplated, and our joint venture has the potential to provide significant long-term benefits to the people of Papua New Guinea." Similarly, Richard Robbins, managing director of Highlands Pacific, emphasized the need for collaboration between the government and industry to ensure the sustainability of the mining sector. "It is essential to maintain a healthy and collaborative relationship between industry and government to maximize the benefits of mining to the people of Papua New Guinea," said Robbins. As Papua New Guinea's mining industry continues to grow, the focus on exploration and sustainable mining practices will be crucial to ensuring its long-term success.

Photo: Aerial view of the Porgera gold mine. Credit: Zijin Mining In recent years Papua New Guinea has been ranked as one of the most natural resource-dependent economies in the world and has been seen as an example of the cruel ironies that often go simultaneously with big extractive industries which are supposed to lead to the development and lead people out of poverty but yet, on the contrary, the situation only seems to worsen. PNG is undoubtedly an incredibly beautiful country with pristine beaches along the coastal shoreline and stunning mountain landscapes, valleys, and rainforests up in the highlands, which are sparsely populated in most parts. Natural resources form the backbone of the country's economy, especially mining, timber (logging), and oil with the inclusion of the enormous LNG projects that are in the pipeline which are mostly headed by Exxon Mobil and Total Energies. Barrick's Inception Porgera is one of Papua New Guinea’s longest-running goldmines. Operating for over 30 years in the highlands province of Enga, this large mine was expected to produce around 250,000 ounces of gold in 2019. It employed more than 5,000 people and the 5% landowner and provincial equity stake had helped to fast-track the efforts to bring services and education to one of the country’s most remote provinces. The Porgera Joint Venture (PJV) was created in 1988 with the shareholding split between Placer Pacific (30%), Highlands Pacific (30%), Renison Goldfields Consolidated (30%) and the PNG government had a small 10% equity. [1] Barrick Gold, a Canadian company that is also the World's largest producer of Gold acquired its interest in the Porgera Joint Venture in 2006 and through its subsidiaries in the country, the company held a 95% stake in the operation with the remaining 5% being held in equal partnership with the Enga Provincial Government and the traditional Ipili landowners. Barrick had agreed to continue production until 2023 before the closure of the mine in 2020. [1] Since the Porgera Gold mine opened in the 1990s it has likely produced around 16 million ounces of gold and at today's price that would be worth more than K40 billion. The mine is the vocal point and lifeline of everything that happens in Porgera, 12% of PNG's export earnings had come from the Porgera Gold mine but despite all the wealth it had gained the recent outcry by the people of Porgera the mine reopened has stated otherwise. [2] Reports since the closure of the mine in the local media still show that the mining township and its surrounding areas still suffer from grinding poverty and a lack of basic government services. [2] Mine's Closure - Porgera and Politics Late in April 2020, in the middle of a global pandemic and brewing domestic economic crisis, the PNG government made the surprising announcement not to extend the mining lease on a goldmine that contributes roughly 10% of the country’s total exports. The mine had been closed following the government’s decision not to renew BNL’s special mining lease. A subsequent legal battle and an April 2021 agreement ceded majority ownership of the mine to ‘PNG stakeholders’ while securing BNL’s status as the mine’s operator. [3] Before the mine's closure, Porgera was a joint venture between Barrick Gold (47.5 per cent), Zijin Mining (47.5 per cent), the Enga government (2.5 per cent), and the Porgera landowners (2.5 per cent) while the Government had no stake or equity in the gold mine. It only earned from what came out of corporate tax.[1] The announcement not to renew the special mining lease for the Porgera mine was a shock, in particular to the mine’s operator, Barrick Gold, and their joint venture partner Zijin Mining.[3] The decision on the closure of Porgera was reported widely as being mainly an attempt from the PNG government to harvest more bene benefits from existing projects and issue a stern warning to projects still in negotiation that they mean business. When Prime Minister Marape was sworn into office in May 2019, he quickly set a narrative to “take back PNG”, arguing that the people of PNG were not getting their fair share of the benefits of the formal economy and major natural resource projects. During that period PNG’s slowly increasing and ongoing economic crisis was set to deepen in the fallout of Covid-19 and it was no surprise that the natural resources sector found itself in the crossfire, in this instance, the Porgera Gold mine was the one to take the fall. At that time Prime Minister Marape had hoped Barrick would keep the mine operating while negotiating its exit. But the company’s firm refusal of that option and its immediate shutdown of the mine had demonstrated its bargaining power. Since then, Barrick and all stakeholders have been in negotiations with the government to have the mine reopened.[4] While the government had seemed within its rights not to renew the lease, the unexpected announcement had led Barrick to hit out, by stating the move was the same as nationalization without prior notice and due process. [4] According to PNG Report, the Porgera closure had cost 4,000 jobs and about K110 million in losses for small and medium enterprises servicing the Barrick-owned mine in Enga Province. Porgera Chamber of Commerce and Industry president Nickson Pakea said those affected included around 700 SMEs and 176 contractors. Negotiation Process During the past three years, ongoing negotiations between Barrick Gold and the government to reopen the mine have not yet come to fruition but are eventually taking a favourable course. The issues surrounding one of PNG's longest-serving mines and a significant contributor to the country's GDP have been closely scrutinized by both domestic and foreign interests who have links and have been benefactors of the mine. Porgera has been on care and maintenance since April 2020 when the government declined to renew its special mining lease to which Barrick Niugini Limited (BNL) has spent more than a billion kina on care and maintenance since the mine was closed in 2019.[5] Early this year, Deputy Opposition Leader Douglas Tomuriesa had suggested that the government re-negotiate and seek a 25 per cent shareholding in the Porgera gold mine, not 51 per cent.[6] Tomuriesa pointed out that the Government also needed to be making money. “Just admit that you were wrong or the advice you were given was wrong and go back and fix this so that the mine can operate again, and the country can make money,” he said. “Realistically, how can we demand 51 per cent ownership, when we have contributed nothing? At this rate we are going, we are starting to chase investors out of the country. “Who will want to do business in the country or invest here when our demands are unrealistic?” Tomuriesa urged the Government to renegotiate a 25 per cent ownership, a 25 per cent share for economic benefits, to allow the mine to start operating. “They can come up with an agreement where the 25 per cent has to be within the year and leave the other 25 or 26 per cent open for negotiations, which can be something they can go back and forth with but allow the mine to start operating,” he said. [6] In light of this, Prime Minister Marape issued a statement stating that Barrick is committed to reopening the mine and the Government through Kumul Mining Holdings Ltd as a partner is also committed to reopening the mine. PM Marape is adamant that the re-opening of the mine should occur sometime this year. In relation, The Lease for Mining Purposes chairman Timothy Andambo said re-opening the multi-million Kina Porgera gold mine would ease the country’s foreign exchange shortage issue. He stated that Porgera was a national asset and can generate the foreign currency ($US Dollars) that this country desperately needs. Likely Recommencement After a lengthy negotiation process at the back end of last year (2022) towards the first quarter of this year (2023), The Porgera gold mine has been looking steadily to get on track to resume operations later this year after the government and Barrick Niugini Limited agreed on a partnership for its future ownership and operation. [7] The early recommencement of the mine, preferably within the first half of this year was critical for the country, as the lead time required for mobilizing resources and the significant start-up capital needed to get the mine back into its full operating capacity would be a challenge.[7] Under the terms of a binding framework agreement signed by Governor General Sir Bob Dadae and Barrick Gold Corporation President and Chief Executive Mark Bristow, ownership of Porgera will be held in a new joint venture owned 51% by PNG stakeholders and 49% by BNL in which BNL will remain the operator of the mine.[8] The framework agreement also provides, among other things, for PNG stakeholders and BNL to share the economic benefits generated over the life of mine on a 53/47% basis, BNL to finance the capital required to restart the mine, An increase in the equity allocated to a broad group of landowners who are the customary owners of the land where Porgera is located, And the state retains the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years. The parties will now work towards the signing of definitive agreements at which time full mine recommencement work will begin. Prime Minister James Marape said the framework agreement, reached after months of negotiation, was a historic development, which would benefit PNG for many years to come, and set the precedent for future projects. “I thank Mr Bristow and his team for recognizing our nation’s aspirations and their willingness to partner with us in realizing this vision at Porgera,” he said. President and CEO of Barrick Gold Mark Bristow said, on behalf of BNL’s joint venture partners Barrick and Zijin Mining, was delivering on its promise of reaching a fair agreement on the future of Porgera for the benefit of all its stakeholders, notably the local community, Enga province and the PNG government. “We intend to partner with all key stakeholders to make Porgera a world-class, long-life gold mine,” he said. [8] Final Outstanding Issue - Taxation About the news of reopening, it was revealed that there was a clause inserted in the New Porgera framework agreement in which the resolution of Barrick’s old tax liabilities was a condition for reopening the mine. Since then, the taxation matter surrounding Barrick's past operations at Porgera Mine was put under the spotlight. Internal Revenue Commission (IRC) Commissioner-General Sam Koim when responding to a statement by PM James Marape said the “old Porgera” tax issues relating to Barrick (Niugini) Limited should not be used as an excuse to delay the reopening of the Porgera mine.[9] These remarks were made by Mr Koim following Prime Minister James Marape’s statement which blamed the delay in the reopening of the mine on a “tax issue”. “We are almost there. There is just a tax issue standing in the way of Porgera being reopened,” Marape said. Furthermore, Barrick's chief executive officer Mark Bristow gave an ultimatum to the State parties to resolve all outstanding issues by March 31. Regarding Bristow's ultimatum, Koim stated that Bristow did not mention what “outstanding issues” were holding up the reopening of the mine. Barrick has insisted that the IRC accepts its position, even if it goes against the grain of the law but Koim stated “It seems Barrick is seeking a political solution to its legacy tax problems, some of which are very technical matters even for non-experts like me to understand.” Koim thanked PM Marape and the Government for being “forthright in informing Barrick that the IRC independently administers tax matters, and the Government is not in the business of breaking its laws”. “Barrick should not use the pressure of reopening the mine to force the Government to address its tax problems. The mine should reopen immediately while Barrick addresses its ‘old Porgera’ tax liability following the due process of law. in response, Barrick (Niugini) Limited (BNL) said it was “deeply disappointed that the Commissioner-General of the Internal Revenue Commission has chosen to speak publicly about a confidential tax matter. “The Income Tax Act requires that officers of the Internal Revenue Commission, including the Commissioner-General, treat as confidential the information and tax affairs of all taxpayers. “BNL has always administered its financial affairs by the laws of PNG and believes the matter should be dealt with by the law and obligations of fairness and confidentiality.” [9] Whilst the future of Porgera Gold Mine is awaited the outcome of its taxation issue, Marape's justification in simple is to gain better shares for the landowners and the Enga Provincial Government. Mine Reopening underway In the first quarter of 2023, during the month of March, Barrick Gold Corporation, the government of Papua New Guinea, and New Porgera Limited signed an agreement on Friday 31st March to resume operations at the Porgera gold mine. The New Porgera Progress Agreement (NPPA), which was signed, confirmed that all parties are committed to reopening the mine at the earliest opportunity, in line with the terms of the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement, both of which were concluded in 2022. The New Porgera project team will now proceed with the filings for a special mining lease and progress the other conditions set out in the Commencement Agreement for the reopening of the mine. New Porgera's equity at 51% is shared by Papua New Guinea (PNG) stakeholders, including local landowners and the Enga provincial government. Economic benefits will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini Limited, which will operate the mine. [10]   References: 1. http://www.porgerajv.com/Company/Our-Story 2. https://www.pngbusinessnews.com/articles/2023/1/women-groups-in-porgera-call-for-immediate-restoration-of-government-services-in-district-mine-closure-is-not-making-peoples-lives-better 3. http://www.porgerajv.com/Company/Media/Press-Release/Porgera Mine Temporarily Suspends Operations/Saturday, April 25, 2020 4. http://www.porgerajv.com/Company/Media/Press-Release/Update on Porgera Negotiations/Saturday, October 17, 2020 5. https://www.pngbusinessnews.com/articles/2023/1/barrick-niugini-limited-clarifies-its-stance-on-porgera-s-current-progress 6. https://www.thenational.com.pg/renegotiate-porgera-shares-to-25-per-cent-says-tomuriesa/February 13th, 2023 7. Luma.D  https://postcourier.com.pg/porgera-reopening-process-almost-complete-says-vele/February 15th, 2023 8. https://www.barrick.com/English/news/news-details/2021/Porgera-Mine-Set-to-Restart-as-PNG-and-Barrick-Niugini-Limited-Agree-New-Partnership/default.aspx 9. https://www.thenational.com.pg/porgera-mine-tax-debate/ January 27,2023 10. http://www.porgerajv.com/Company/Media/Press-Release/Barrick Steers PORGERA GOLD MINE Back towards world-class production -March 31, 2023

Photo credit: Wafi Golpu JV The State Negotiation Team (SNT) chairman, Dairi Vele, has expressed optimism about the future of Papua New Guinea, stating that the country is currently in a "golden era" of resource projects. Speaking after the signing of the Wafi-Golpu Framework Memorandum of Understanding (MoU), Vele noted that the country has the potential to benefit from significant revenues from a range of projects. "It’s a golden era of resource projects. I did my first deal in 2008 for the PNG LNG and at that time we were looking at US$30 billion (K105 billion) in revenue over a short period of time," said Vele. "We now have Papua LNG which is just under another US$30 billion in revenue over a period of time. We have P’nyang which overall will get almost US$7 to US$9 billion (K24-K31 billion) and there’s another US$14 billion (K48 billion) in the project." Vele went on to highlight the potential revenues from the Porgera and Wafi-Golpu projects, stating that Porgera is set to generate US$10 billion (K34 billion) over a 20-year period, while Wafi-Golpu is expected to generate US$23 billion (K80 billion) over a similar period. He also noted that the Golpu deposit, which is part of the Wafi-Golpu project, is still being explored and may yield even greater returns. Despite the positive outlook, Vele acknowledged that Papua New Guinea must be mindful of the finite nature of its resources. "The only problem with it is that at some stage the resources will run out," he said. However, he emphasized that the country has a unique opportunity to develop and transform its economy in the coming decades. "So Papua New Guinea, we have no excuse now. We should be developed like Singapore in the next 30 years, I really believe this," Vele said.

Photo: Dairi Vele According to Dairi Vele, the Chairman of the State Negotiation Team (SNT), the structure of the Wafi Golpu gold and copper mine in Morobe Province will be different as the Special Mining Lease will be given early. This means that the developers will be given 30 months to make a final investment decision (FID). Mr. Vele stated, “We will give them 30 months to get the project (going), which is final investment decision. If they don’t do that within 30 months, then the state will take back the licence.” This is a departure from the previous arrangement where the state gave a license but had little recourse if the project did not materialize. Mr. Vele also explained that the new deal is different from the previous one where Papua New Guinea was only going to get 20% equity instead of the legally mandated 30%. However, the new deal negotiated by the SNT includes the additional 10% equity being given free to the provincial government. To fund the additional 10%, Kumul will pay for the landowners and the provincial government. Mr. Vele added, “Because we have to borrow the money to pay for it and pay our share in the project, Kumul are going to pay for the landowners and the provincial government.” In summarizing the significance of the new deal, Mr. Vele said, “If you are given a license and you don’t develop a project, then the state will take it off, so that’s what is different now. Now we have to do all those agreements which allow you to get your lease.” This is a unique arrangement as it is not known to have been done before in a mining project.

Photo: Panguna Mine. Credit: Stefan Armbruster Bougainville President Ishmael Toroama has warned against people seeking to destabilise the Panguna Legacy Impact Assessment that is ongoing within areas affected by the now defunct Panguna Mine. President Toroama issued the statement following the move by several parties who are trying to raise a class action suit against Rio Tinto for their role in developing the Panguna Mine and the effects it has had on the environment and the communities around the mine. The Panguna Legacy Impact Assessment is being funded by Rio Tinto through Tetra Tech Coffey who are conducting the assessment. It is also the first time Rio Tinto has made any commitment to Bougainville since the cessation of mining operations in Panguna, Central Bougainville. President Toroama said that the assessment took a lot of hard work and time to get Rio Tinto to at least take responsibility for its actions in developing the Panguna Mine and the effects of it that continues to the present. “These people are opportunists who saw no reason for a class action suit until the impact assessment was being conducted and the revelation of probable data being collected by Tetra Tech Coffey,” President Toroama said. “Our Late Revolutionary leader, Francis Ona sought a K10 Billion class action suit against Rio Tinto because his intention was for the company to take responsibility for its actions and for the extent of damage caused by the mine including the civil war that caused the loss of thousands of lives,” President Toroama said. “Since the untimely passing of Francis Ona no one has sought to revive the class action suit nor conduct a proper study on the extent of damage done by the mine,” Toroama said. “I will not let people with vested interests tarnish Francis Ona’s legacy and undermine the legitimate government of the people of Bougainville,” President Toroama said. “These are so called players who only appear on the scene only when it is convenient for them but never present during the heavy lifting,” President Toroama added. “I urge our leaders, the landowners, our people and all stakeholders to refrain from disrupting the assessment and to let it be completed,” President Toroama said. “Let me be clear, my government is not protecting any other interest but the Panguna landowners and the people of Bougainville who suffered as a result of the mine,” President Toroama said.  President Toroama said that the work into getting Rio Tinto onto the scene must not be in vain. There has to be results that can guide the government and the company to resolving the problems from the mine.

Prime Minister Hon. James Marape says the State and Papua New Guinea will be the biggest winners in the giant Wafi-Golpu Mine in Morobe with a 55 per cent take in the economic benefits of the project. PM Marape said this after the landmark signing of the Framework Memorandum of Understanding between the Independent State of Papua New Guinea and Wafi-Golpu Joint Venture (WGJV) participants Newcrest and Harmony Gold (through their respective PNG subsidiaries). This momentous occasion was attended by Governor-General Sir Bob Dadae, PM Marape, Deputy Prime Minister Hon. John Rosso and senior Ministers, as well as Morobe Governor Hon. Luther Wenge and members of his Provincial Executive Council. PM Marape said PNG would win by way of: State and PNG gain 55 per cent of the project economics;  State equity is at 30 per cent with 10 per cent carried; The ten (10) per cent carried equity will be for Morobe and landowners; Two (2) per cent tax for fiscal stability is premium on top of the full 30 per cent tax to be paid; Royalty at three (3) per cent with no deductions; Additional US$394m for social community infrastructure that Newcrest and Harmony are putting on top of Government’s K1.2 billion Infrastructure and Business Development (IBD) grant; A local content forum will be held with developers, Morobe Provincial Government and landowners, where Government will be pushing for local content above 80 per cent in construction period all the way to operations; Additional profits tax was secured but dividends withholding tax was given away; Personal income tax was not treated as company’s contributions, unlike Lihir; and Special Mining Lease (SML) will be issued for only 30 months until investors do Front End Engineering Design (FEED) and Final Investment Decision (FID) to qualify them for extension. After FID, then cash call will be required from Kumul Minerals Holdings Ltd (KMHL)equity contributions. “Today is a joyous occasion for the people of Papua New Guinea and especially Morobe, as we prepare to celebrate Easter,” PM Marape said. “A framework has been established whereby Newcrest and Harmony, and the State – on behalf of the Morobe Provincial Government and landowners – will progress Wafi-Golpu Mine development so that it can start at the very earliest. “This is a major resource, with substantial gold and copper, which will anchor our country for the next 40 years and beyond. “It took us a while to reach this stage, however good things take time. Sometimes, you have to wait for a while to get the best results, such as today’s agreement.” PM Marape thanked Vice-Minister for State Negotiations, Hon. Jimmy Maladina, who worked tirelessly with State Negotiations Team (SNT) Chairman Dairi Vele and his team – under Mining Minister Hon. Sir Ano Pala – to make today possible. “What we have signed today is far better that what my predecessor Peter O’Neill signed in 2018,” he said. “In Kina terms, this deal is K6 billion better then O’Neill’s 2018 agreement – that I tore apart – in which we had lost 10 per cent equity to the companies. This agreement is also K3 billion better than our own government’s position in April 2022. “I also appreciate the tireless efforts of Deputy Prime Minister Hon. John Rosso, and the strong Morobe leadership led by Governor Hon. Luther Wenge and Bulolo MP Hon. Sam Basil Jr. “In our efforts to get back more for our people, we have pushed the bar higher in a green field project, and I want to thank all in Cabinet and Government for your understanding. “We negotiated fair and hard, and I give it to people like Dairi Vele – who under instructions – fired all cylinders for us to get better results.” PM Marape thanked joint venture partner investors Newcrest and Harmony for their positive responses to State positions. “We look forward to all parties working together to complete all statutory requirements to complete Mine Development Contract and SML,” he said. “I want to also assure all our landowners and the LLGs, Districts and Morobe Provincial Government that we will complete the full requirements of law in respect to your consultations and meetings.”

K92 Mining Inc. announces production results for the first quarter (“ Q1 ”) of 2023 at its Kainantu Gold Mine in Papua New Guinea, of 21,488 oz AuEq or 17,593 oz gold, 1,651,297 lbs copper and 29,859 oz silver. Sales during the first quarter were 17,602 oz gold, 1,538,590 lbs copper and 29,164 oz silver. During the first quarter, the process plant delivered a strong quarterly ore processing rate of 117,903 tonnes or 1,310 tpd, our third highest quarter on record despite experiencing 8 days of combined unplanned maintenance. The unplanned plant maintenance occurred in February due to a mill trunnion bearing failure (2 days downtime) and a limited electrical fire in a cable tray, which damaged a number of cables feeding the wet section of the process plant (6 days downtime) (see February 27, 2023 press release). After completion of the unplanned maintenance in February, the process plant performed very strongly, setting a new monthly ore processed record of 1,490 tpd in March which is 9% greater than the Stage 2A Expansion design throughput of 1,370 tpd. Additionally, multiple new daily throughput records were achieved during the quarter including 1,726 tonnes processed on February 26, 1,773 tonnes processed on February 28, 1,802 tonnes processed on March 3 and 1,815 tonnes processed on March 11. Importantly these records were achieved prior to the final major upgrade to the Stage 2A Expansion process plant, the flotation expansion to double rougher capacity, which is planned for commissioning in Q2 and is expected to provide a boost to metallurgical recoveries and flexibility to potentially increase throughput further. Mine performance during the first quarter recorded 117,865 tonnes of ore mined, an 18% increase from Q1 2022, and delivered a total material mined (ore plus waste) of 277,534 tonnes mined, representing an increase of 33% from Q1 2022. During the quarter, operations focused on Kora’s K1 and K2 veins, and Judd’s J1 Vein for a total of 8 levels mined. Mining on Kora was conducted on the 1130, 1150, 1170, 1205, 1265 and 1285 levels, and Judd on the 1285 and 1305 levels. The operation delivered head grades of 5.21 g/t gold, 0.70% copper and 10.14 g/t silver (6.35 g/t AuEq) in Q1. Metallurgical recoveries averaged 89.1% for gold and 91.3% for copper during the quarter, with recoveries expected to improve upon the commissioning of the flotation expansion planned in Q2 2023. Head grade was notably impacted, during the second half of the quarter, when underground mining encountered an area with more challenging ground conditions than expected, associated with where the K1 and K2 veins almost converge, which impacted our production stoping rates and access to higher grade ore. Generally, in this situation, mill feed would be supplemented by mining from additional mining fronts as we mine through the impacted area more slowly. However, due to development rates being below budget for several quarters during the COVID-19 pandemic, many of the alternative mining areas were not yet developed, therefore supplementing from our low-grade stockpile was required (see March 30, 2023 press release, and see Figure 1). Operationally, as previously disclosed, we expect Q2 production to be moderately below budget, with the second half of 2023 being our strongest in terms of production and 2023 production being within the bottom half of the guidance range (see March 30, 2023 press release). The anticipated strength of the second half of 2023 is driven by an expected significant increase to our operational flexibility and stope sequencing. In terms of operational flexibility, it is important to highlight the following positive trends: Significant increase in development achieved over the last two quarters: Q1 2023 and Q4 2022 both set new quarterly records for development, of 2,278 m and 2,221 m, respectively. Development for both quarters was also significantly greater than prior quarters, with Q1 2023 development increasing 48% compared to Q1 2022. Strong development rates is a positive leading indicator for operational flexibility, and we note that there are two new sublevels currently being established. Multiple equipment recently arrived on site: Recent arrivals include a new loader in Q4 2022, and in Q1 2023 a new jumbo, loader, two integrated tool carriers, Normet explosive charging machine, cement agitator truck and very recently a new long hole drill rig. The arrival of the long hole rig is particularly important as it now doubles our long hole drill fleet, which is expected to drive a notable increase in our drilled stocks (stopes drilled and available for immediate blasting, including more stopes available as “backups” to supplement mill feed if required). The majority of this equipment was originally scheduled to arrive in 2022 and in certain cases was considerably delayed due to the global supply chain. The arrivals of equipment are to both replace existing equipment and expand the fleet. During the remainder of the first half of 2023, two underground trucks and one jumbo are also scheduled for delivery. Entirely new mining front to be established in H2 2023: During the second half of the year, we will be accessing the ore body at depth from the twin incline, opening up an entirely new mining front that is serviced by our large and highly productive twin incline infrastructure. As of March 31, 2023, incline #2 (6m x 6.5m) advanced to 2,172 metres and #3 (5m x 5.5m) advanced to 2,230 metres, with development advance during Q1 2023 22% ahead of budget. John Lewins, K92 Chief Executive Officer and Director, stated, “While the first quarter was more challenging than expected, there were many positives that we can build on for the operation going forward. Firstly, the performance of the process plant was very strong, setting a new monthly ore processed record in March of 1,490 tpd, 9% greater than the Stage 2A Expansion Rate. Multiple new daily records were also set during the quarter, with the latest record now standing at 1,815 ore tonnes processed on March 11 th . Importantly, this strong performance has been achieved prior to the commissioning of the flotation expansion for the Stage 2A Expansion that is planned for Q2 and is expected to provide a boost to metallurgical recoveries and flexibility to potentially increase throughput further. On the underground mine, we see operational flexibility significantly improving over the coming weeks and months, driven by our recent record development advance rates, multiple key pieces of equipment now on site, and, a new mining front at depth in H2 serviced by our twin incline that is significantly oversized for not just the Stage 2A Expansion (500,000 tpa) throughput rate but also Stage 4 (1.7 mtpa). And lastly, we are very excited about our exploration plans for 2023. In Q1, exploration continued to expand the drilled deposit extents at our Kora-Kora South and Judd-Judd South vein system (see February 21, 2023 press release), and porphyry drilling also recently commenced on A1, our top copper-gold porphyry target.”

Photo credit: Wafi-Golpu JV Wafi-Golpu Joint Venture (WGJV) participants, Newcrest and Harmony Gold (through their respective PNG subsidiaries) have today signed a Framework Memorandum of Understanding (MOU) with the Independent State of Papua New Guinea at a signing ceremony which was attended by the Governor General, the Prime Minister and key members of his cabinet, as well as the Governor of the Morobe Province. The MOU represents a substantial step forward in progressing and signing a Mining Development Contract for Wafi-Golpu and confirms the parties’ intent to proceed with the project, subject to finalising the permitting process and approvals of both the Newcrest and Harmony Boards. The MOU sets out key terms to be included in the Mining Development Contract, which is a prerequisite for a Special Mining Lease (SML), including: State equity participation, royalty rate, tax package and term and scope of the SML.  Key terms for other related agreements with the State, including provision for stability to underpin the significant long-term investment required to develop and operate the project.  Commitments for the WGJV to invest in infrastructure and social development projects that will deliver long-term benefits to local communities.  The framework for the parties to progress the permitting of the Wafi-Golpu Project as quickly as practicable in accordance with applicable regulatory processes. Peter Steenkamp, Chief Executive Officer of Harmony Gold Mining Company Limited, said, “This MOU is an important step in progressing the permitting of the Tier 1 Wafi-Golpu project, one of the world’s premier, undeveloped copper-gold deposits. I wish to thank Prime Minister Marape and his Government for the constructive manner in which they have worked with the WGJV partners and for the commitment demonstrated in advancing this important and long-awaited project.” “This MOU is a pivotal milestone towards the development of one of the world’s premier, undeveloped, copper-gold deposits. Importantly, the project will result in fair and equitable benefits for landowners, communities, local level governments, the Morobe Provincial Government and the Independent State of Papua New Guinea, while also delivering strong returns for investors.” said the Interim Chief Executive Officer of Newcrest Mining Limited, Sherry Duhe. The MOU recognises that development of the Wafi-Golpu Project will be of major significance to the people of Papua New Guinea and encourages its development to contribute both socially and economically to the community. In addition, it also provides a viable and stable foundation for the long-term development of the Project by the WGJV.

Photo: President of the PNG Chamber of Mines and Petroleum Mr Anthony Smaré Last year, the 16th Papua New Guinea Mining and Petroleum Investment Conference and Exhibition was held from 5th to 7th of December 2022 at Sydney Hilton Hotel. The event was hosted by the Papua New Guinea Chamber of Mines and Petroleum with the theme "PNG Resources: Securing the next wave of responsible investment”.   There were over 1,000 delegates from industries related to global hydrocarbon, minerals, and energy industries. Other participants are government officials, landowners, and those from the international investment sectors. [1] The conference seeks to highlight investment and development opportunities that PNG can offer. Honorable James Marape (MP) - PNG Prime Minister, provided the keynote address on Day 1. Other notable speakers include Mr Anthony Smaré - President of the PNG Chamber of Mines and Petroleum, Pat Conroy - Australian International Development Minister, Honorable Ano Pala (MP) - Minister for Mining (PNG Government), and Honorable Kerenga Kua (MP) - Minister for Petroleum (PNG Government).  In Mr Anthony Smaré’s opening address, he mentioned that foreign investments play a significant role in the development of PNG and have a catalysing impact on the PNG’s economic development. He stated that the country has five major projects coming up including the Papua LNG Project, Wafi-Golpu, Pasca, and the reopening of Porgera and P’nyang.  Prime Minister Hon. James Marape delivering the Keynote Address at the 16th PNG Mining and Petroleum Investment Conference and Exhibition. In his speech, Prime Minister James Marape encouraged investors on PNG’s potential, and inspired partnerships in development on the ground. He said, “We are a mineral and petroleum nation. We know how to give incentives, embrace and protect investors, and allow investors to make a fair and profitable return on their investments.” “The next wave or first waves of responsible investments, or I would rather say ‘responsive investments’, are our big five projects that my government has worked on the last three years where deep in my planning office we label them as “PPPPW”. Prime Minister Marape also mentioned that PNG is expecting positive future projections for growth and stands to reach a 200-billion-kina economy, but it must include local involvement. “You take my gas, and you take my people with you, we will support everything you do, it wasn’t a literal statement to taking my people with you, but for the betterment of their life,” he said. In relation to this, Mr Smare noted that PNG’s resource growth is over K30 million and is expected to grow exponentially. “As I discussed with PM Marape yesterday, his government is now at a unique juncture in our nation’s history. It is the first time that our country is on the cusp of delivering not one, but four major resource projects of over $30 billion. Papua LNG with its $12 billion capital cost, Pnyang at $10 billion, the reopening of Porgera, and Wafi Golpu Copper-Gold project at $6 billion or potentially higher. Add the Pasca gas project at $2 billion and one can understand why negotiating all these deals at the same time has placed the government negotiation machinery under significant strain.” Moreover, he pointed out Australia’s continued support as a development partner to PNG but highlighted that future investments projects could also include other global economies like China. “China is a very important partner of our country. It plays a significant role in our economy currently.  It has interests in a number of our mining projects – a quarter of Porgera through Zijin Mining, and the majority interest in the Ramu Nickel-Cobalt mine through MMC. China is a buyer of much of our current minerals output.  China is also a significant buyer of our LNG production from the PNG LNG, and it will likely be a major buyer of gas from our new LNG developments – Papua LNG, Pnyang, and Pasca.” Hon. Pat Conroy, MP, Australian Minister for International Development and the Pacific Honorable Pat Conroy, Australian Minister for International Development and the Pacific, said that Australia does need to step up participation in the development of PNG. "All of our investments in Papua New Guinea are squarely aimed at helping Papua New Guinea achieve its economic and development priorities. We’ve provided budget support loans of around $1.2 billion in 2020 and 2021, to help Papua New Guinea repair its budget out of the pandemic. And we are supporting the Papua New Guinean Government’s efforts to make Papua New Guinea a more attractive place for business activity and investment.” The Minister noted that they are aware of how much the mining and petroleum sectors contribute to Papua New Guinea’s economy. “We are both countries with abundant natural resources. We are both countries with significant mining sectors which have been fundamental to our economic development – supporting growth, exports, and jobs.” “Many of the Australian mining and petroleum companies represented at this conference have made significant investments in economic and social development, spanning decades of engagement with communities from Western Province to the New Guinea Islands.” In relation to Australia and its historic relationship with PNG, Mr Smaré acknowledged that Australia remains a vital development partner to PNG, but pointed out that the country no longer holds the position as dominant investor in PNG. “Much of the Wau-Bulolo gold rush of the 1920s was funded by Australian capital, and Australian funded explorers and mining companies discovered and/or developed much of our most important projects – for example, Conzinc Rio Tinto found and developed Panguna, Australia’s BHP was the majority partner who developed Ok Tedi in the early 1980s, Australia’s Niugini Gold discovered Misima and Lihir, and Rio Tinto was the majority partner in the development of Lihir in the early 1990s.” He mentioned that Australia remains one PNG’s most important investors, but for the past 15 years, the resources and energy sector has seen major investments from other countries like US, Canada, France, and China through multiple large-to-mega investments. In closing, Mr Smaré’s addressed a question to the Australian audience. “So, what role will Australia play in PNG’s development going forward?” --- The Papua New Guinea Chamber of Mines and Petroleum also announced that it is considering a name change to PNG Chamber of Resource and Energy (PNG Core) to better reflect the change in the commodities produced by the sector in PNG. This announcement was made by Mr Smaré during the conference. “The Governing Council of the Chamber has resolved to change its name to the PNG Chamber of Resources and Energy (PNG CORE) to encompass a better representation of the industry that it represents, and the exports that its members will be exporting to the world.” --- On the second day of the conference, the speakers discussed project updates from some of PNGs biggest resource companies. ExxonMobil PNG’s Senior Vice President of Production, Scott Sandlin, gave updates on the progression of the multi-billion Kina PNG LNG project. The project aims to achieve long-term economic development. For the next 11 years, nationally owned Ok Tedi Mining Limited is expected to generate over K19 billion in benefits for Papua New Guinea. OTMLs General Commercial Manager Cameron Clark said: “The outlook for Ok Tedi is a positive one. The Company has tripled its value in the last 6 years and extended mine life by 7 years. This has been made possible by a combination of technical improvements, cost improvement, accelerated mining rates and internal investment in key strategic projects” Moreover, Simberi St Barbara has been given the permit for sulphides expansion which adds at least another 10 years of mine life from 2024 - 25 when oxides are depleted. The sulphide expansion is under a strategic review by operator St Barbara Limited. Simberi is pursuing cocoa and fisheries (with partners) as its best opportunities for sustainable development. Hon. Kerenga Kua - Minister for Petroleum Petroleum Minister Kerenga Kua stated that PNG’s petroleum sector is “in a robust state” with 94 active licenses. He believes that having 58 prospecting licenses and 10 PDLs as well is a good starting point for PNG towards a prosperous future. During his speech, Mining Minister Hon. Sir Ano Pala mentioned that the Mineral Resources Authority (MRA) is processing and monitoring over K45 million worth of new capital investments in mining projects, and about K10 billion worth of investments in sustaining capital expenditure on existing mines. [2] Minister Hon Ano Pala speaking at the conference. He noted, “I’m very pleased to announce that some very important mining projects had already been permitted whilst others are currently going through the permitting process. These projects are worth a total of K13 billion of potential new capital investment. Projects going through the permitting process are the K5.3 billion Wafi Golpu Copper project, comprising K 2.5 billion sustaining capital expenditure, and the K7.2 billion Freda River copper and gold project." [2] The projects that have been permitted are the Woodlark Gold Project and K3.331 billion Central Lime Cement Project. Additionally, Ramu Nickel Cobalt mine will be undertaking a K1.5 billion expansion program. Hon. Ano Pala also mentioned that the government had granted the approvals for the conversion from oxide to sulphide ore processing for the Simberi project. The government also granted the extension of the Mining Lease for the Hidden Valley Project. The application for extension of the Special Mining Lease for Ok Tedi Mine and K92 Mining Lease have recently been processed. He said, “We are confident of permitting Wafi and Freda River projects upon completion of negotiations in the coming weeks. Wafi is going well. The gaps in the negotiations are narrowing now, and we are confident that in the coming weeks, we will make the announcement. These mega projects will off course take 5-7 of years of construction and we hope to see this mining projects operationalized well before 2030.” ----- Photo credits: PNG Chamber of Mines and Petroluem - https://pngchamberminpet.com.pg/media-centre/news-releases Mineral Resources Authority - https://mra.gov.pg/2022/12/07/16th-png-png-chamber-of-mines-petroleum/   Reference: [1] PNG Chamber of Mines and Petroluem - Media Release -  https://www.pngchamberminpet.com.pg/index.php/media-centre/news-release-view/2022-16th-png-mining-and-petroleum-investment-conference-and-exhibition-programme [2] Mineral Resources Authority (7 Dec. 2022). "16th Papua New Guinea Mining and Petroleum Investment Conference and Exhibition". Media Release. Retrieved from - https://mra.gov.pg/2022/12/07/16th-png-png-chamber-of-mines-petroleum/

Photo: Barrick Executives, PNG National Executive Council and the Governor General Sir Bob Dadae (center) at the Goverment House following the NPPA signing. Barrick Gold Corporation – The government of Papua New Guinea, Barrick Niugini Limited and New Porgera Limited today signed an agreement to progress with the resumption of operations at the Porgera gold mine, which have been suspended since 2020. Porgera hosts an orebody with measured and indicated resources of 10 million ounces and inferred resources of 3.4 million ounces. After initial ramp up and optimisation of the Wangima pit, the mine is forecast to produce an average of 700,000 ounces per year, achieving a milestone towards its potential Tier One status. The New Porgera Progress Agreement (NPPA), signed today, confirms that all parties are committed to reopening the mine at the earliest opportunity, in line with the terms of the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement both concluded in 2022. The New Porgera project team will now move ahead with the filings for a special mining lease and progressing the other conditions set out in the Commencement Agreement for the reopening of the mine. The equity in New Porgera is shared 51% by Papua New Guinea (PNG) stakeholders, including local landowners and the Enga provincial government. Economic benefits will be shared 53% by the PNG stakeholders and 47% by Barrick Niugini Limited, which will operate the mine. After the signing ceremony, Barrick president and chief executive Mark Bristow said there was strong support from all stakeholders to get Porgera reopened as soon as possible. “It’s been a long journey but in the process we have secured the buy-in of all the stakeholders. For Barrick, the reopening of the mine would represent another victory for our host-country partnership model which has been so successful in Tanzania and has now also been adopted for the new Reko Diq coppergold project in Pakistan,” Bristow said. “Localization is an essential part of our partnership philosophy so New Porgera will, whenever possible, source the goods and services it requires from businesses genuinely based and owned in Porgera, the Enga province and Papua New Guinea. Similarly, it will give preference to locals in recruiting employees for the reopening mine.”

Photo credit: Deep Sea Mining Finance Ltd The Government of Papua New Guinea plans to re-open discussions with Deep Sea Mining Finance Ltd (DSMF) regarding the potential for mining minerals in the Bismarck Sea off the west coast of Namatanai, New Ireland. DSMF had previously acquired Nautilus Minerals, which had shown interest in deep sea mining in the mid-2000s through the Solwara 1 project. DSMF is a privately owned group with the aim of becoming the world's first company to mine the sea floor of massive sulphide deposits, starting with its high-grade copper-gold Solwara 1 project. Mining Minister Sir Ano Pala said, "We expect discussions again with the company." Governor Sir Julius Chan also met with a team from DSMF in the province this week. The team was led by its CEO Chris Jordinson, including technical service manager Glen Jones, offshore exploration project manager Anthony Manocchio, and Nautilus Minerals country manager Paul Lahari. Jordinson indicated that the company had met with Mining Minister Sir Ano Pala and the Mineral Resources Authority the previous week in Port Moresby. The dialogue between the company and the New Ireland government is crucial as they are responsible for the local impacted communities of the proposed Solwara 1 project off West Coast New Ireland. The NIPG has suggested that DSMF conduct proper awareness with the locals on the proposed project, including engaging an independent scientist to evaluate possible environmental impacts and give confidence to the local people that the project will not affect their livelihood. In the words of the Governor, "The DSMF team was here to touch base and explain what they intend to do and how they will go about it. We suggested to them that they conduct proper awareness with the locals, engage an independent scientist to evaluate possible environmental impacts and give confidence to the local people that the project will not in any way affect their livelihood."

Photo credit: The Pick Lole Mining Limited, the new developer of the Tolukuma Gold Mine in Central Province, has recently developed an initial public offering (IPO) to be listed on the Australian Stock Exchange. Mineral Resource Authority managing director, Jerry Garry, told the Post Courier, "The company will be raising their capital from the stock market upon registration with the Australian Securities (ASX)." Mr. Garry went on to explain that Lole Mining was granted an extension mining license (ML104) for 10 years in January of last year, following a liquidation order from the National Court in February 2018. Since then, the liquidator has been attempting to sell the assets of the mine, including the mining lease (ML104 and 105 surroundings), and while there were several interested parties, none of the agreements were successful. "In April 2018, all those assets, including the ML 104 and 105 exploration licences, were transferred to the Pini Accounts and Advisors as the liquidators. As part of the agreement under the asset sale agreement, Lole Mine paid half a million (K500,000) and later K1.5 million in January 2022," he said. After assessing all the proposals, Mr. Garry said, "The technical assessment team and the council believe that Lole Mining was the most sensible, logical, and cost-effective proposal to reopen the Tolukuma Gold Mine, having them fulfill the first two transfers to the liquidators to offset the creditors or the debts." "The final payment was K20 million and that K20 million was paid by Lole Mining to the liquidator in October last year to allow for all the assets to be transferred to the company," Mr. Garry added. The development of an IPO by Lole Mining marks a significant step in the company's growth strategy and will provide an opportunity for investors to participate in the development of the Tolukuma Gold Mine. Mr. Garry said, "With the successful completion of the IPO, Lole Mining will be well-positioned to drive the growth of the mining industry in Papua New Guinea."

Photo: William Duma in Parliament The Wafi-Golpu Gold Mine project in Bulolo district of Morobe Province is expected to become a key economic driver for the Ramu 2 Hydro project, which will span the Eastern Highlands and Morobe provinces. During a recent parliamentary session, State Enterprise Minister William Duma gave this assurance in response to questions from Kainantu MP William Hagahuno: "They (Kumul Consolidated Holdings Limited) on behalf of the PNG Power and Ramu 2 Hydro project developer) will then be negotiating with the Wafi-Golpu Mine so that they sign an off-grid agreement so that they underpin the economics of this project," he said. "PNG Power is owned by this country and it is important that both sides of this house (Parliament) support this project." Duma emphasised the importance of both sides of parliament supporting the project, as PNG Power is owned by the country. He noted that: "It is a project where the Eastern Highlands provincial government and the landowners have allowed PNG Power to supply power from Yonki Hydro, but were not able to get any benefit from the government over the years. "This time around, the government has recognised the contribution made by the people of Eastern Highlands and has made a decision to allow free equity to be given to the people and the provincial government for shareholding up to 20% for that project and another 20% to the people of Morobe who host the Wafi-Golpu gold mine." Duma assured that the state guarantee would be signed soon, following which the project developer and KCHL will approach the Eastern Highlands and Morobe provincial governments and the landowners to sign the benefit sharing agreements. The project will follow a build, transfer, and own agreement, which will allow the developer to spend £520 million to recover investments and then transfer ownership to PNG Power, which will own 60%. The remaining balance will be owned by the Eastern Highlands and Morobe provincial governments and the landowners. He said: "It is a build, transfer and own agreement that will enable the developer to spend about £520 million to recover investment and then transfer ownership to PNG Power which will own only 60% and the Eastern Highlands and Morobe provincial governments and the landowners will own the balance." This project is set to be the first jointly-owned project between the government and people under the build, transfer program.