Woodlark Mining Project MoA Review
Parties to the Woodlark Mining Project Memorandum of Agreement (MoA) successfully completed the review of the revised MoA last Saturday in Alotau, Milne bay Province.
The MoA was last reviewed in 2015.
The parties are the State, Milnebay Provincial Government, Murua Local Level Government, Dal Wanuwan Woodlark Mining Lease Inc (landowners) and the developer Geopacific Resources Limited.
In terms of the State commitments, the parties agreed in-principle to the various clauses of the MOA including royalty payments, equity, Special Support Grants, Business Development Grant and Tax Credit Scheme. The agreed positions on these clauses are as follows
The State upon receiving 2% royalties based on Free on Board from the project, pledged to offload 25% to the Milnebay Provincial Government and 75% to the Dal Wanuwan Woodlark Mining Lease landowners.
The State is to take up 5% equity interest in the project on behalf of the Milne bay Provincial Government, Murua Local Level Government and landowners. The equity will be received and held in trust by a State nominee or an entity established by the National Government, for the beneficiaries.
Special Support Grant (SSG)
It was agreed that the State will make available in each financial year, SSG to the Milnebay Provincial Government, for the purpose of infrastructure development progams in the province. The SSG will be shared on a fifty-fifty basis with the Murua Local Level Government.
Tax Credit Scheme (TCS)
The State through the Department of National Planning & Monitoring has undertaken to apply TCS to develop infrastructural projects in the province.
Business Development Plan
The State will provide a one-off business development grant to the umbrella company established by the Dal Wanuwan Woodlark Mining Lease (Landowners) Association. This is to assist the …