Wafi-Golpu Talks in Final Stage as Newmont Eyes $4.5B Build, 40-Year PNG Future

BY GORETHY KENNETH and PHILEMON KASSMAN in Denver, Colorado

PAPUA New Guinea is on the cusp of its next world-class mine, with Newmont confirming it is in the “final stages” of locking down the Wafi-Golpu Mine Development Contract with the Marape Government — a deal that will trigger a Special Mining Lease and a $4.5 billion construction pathway for one of the planet’s largest gold-copper deposits.

Peter Toth, Newmont’s Chief Sustainability and Development Officer, revealed the breakthrough in an exclusive interview with the _Post-Courier_ from company headquarters in Colorado, mapping out a 40-year vision that puts PNG at the centre of the global “critical minerals” race.

“We’re actively in negotiation with the PNG Government. As you know, the PNG Government has 30% equity,” Toth said. “We are at the final stages of agreeing on the Mine Development Contract, which captures all of the policy, fiscal and regulatory aspects of that mine.”

Once the contract is signed, the State will issue a Special Mining Lease. That kicks off a five-year program to update the feasibility study, after which “we will begin construction,” Toth confirmed.

The $4.5 Billion Equation

Toth was blunt about what 30% equity means for PNG: shared reward, shared responsibility. Wafi-Golpu will cost “somewhere around $4.5 billion” to develop, meaning the State’s 30% stake carries a capital contribution of about $1.35 billion.

“Earning equity in a mine by a state certainly allows the state to participate in the profitability of the mine. But it also requires contribution to capital,” he said. “Wafi is a mine potentially 20, 30, 40 year life. So, owning equity is a different participation model for a government, versus a traditional taxes and royalties type of fiscal contribution.”

Traditionally, Toth noted, mining’s contribution in countries like the US, Canada and Australia came “predominantly through paying taxes and royalties.” That remains the base case globally. “In the case of PNG and Wafi, the government elected to take equity in the mine. And that’s also a very workable model. But it’s a very different model.”

Copper’s Supercycle and PNG’s Position

Unlike Newmont’s Lihir gold mine, Wafi-Golpu’s massive copper resource places it directly in the middle of intensifying geopolitical competition for “resource security.”

“Copper is, in my view, certainly the commodity of the next supercycle,” Toth said. “Wafi sits in that context a little bit more than Lihir.”

The executive stressed that a 40-year mine will ride multiple economic and political cycles, requiring stability. “You have to look through the lifecycle of a mine, and the many economic and political cycles that it will go through.”

*Lihir Still ‘Magic’ for PNG Economy*

While Wafi-Golpu advances, Newmont reaffirmed its long-term commitment to Lihir, which recently delivered a record K852 million corporate tax payment to the IRC — nearly 10 times last year’s first instalment.

“We’ve got a good relationship at the moment, both at the national level, the provincial level, and also at the local level,” Toth said. “We remain very optimistic that Lihir can continue to be a very successful mine and a major contributor to the PNG economy for decades to come.”

Since 1997, Lihir has paid more than K6.49 billion in taxes, royalties and government payments. Newmont approved a $500 million expansion this year to extend Lihir’s pit, securing production “well into the 2040s.”

With Lihir’s Special Mining Lease up for renewal in 2035, Toth said early engagement has begun with landowners, New Ireland Province, and the National Government. “The biggest challenge we face in Papua New Guinea is not particularly different from other jurisdictions — just to make sure that we’ve got a conducive environment for continued investment.”

For PNG, the message from Colorado is clear: Wafi-Golpu is close, the money is massive, and the partnership model is set. What comes next is construction, jobs, and a 40-year stake in the world’s next copper supercycle.