Progressive discussions towards agreeing on an agreement for the Woodlark Advance Exploration Project have so far been satisfactory.
Stakeholders in this project expressed their views this week during a meeting in Alotau, saying that they were happy with the discussions so far.
The stakeholders are the State, DAL Wanuwan landowners Association, Milne Bay Provincial Government and the developer Kula Gold.
Collectively they said since the development forum in December 2013, they have had only one meeting, in February.
They said as a result of the meeting in February, they came up with a comments matrix capturing comments, especially proposals from stakeholders regarding the various benefits packages such as royalties, equity and Special Support Grant.
For instance proposals being discussed include the percentage break up and distribution of royalties from the landowners’ perspective.
The meeting this week is the second where the stakeholders are discussing finer details of the same issues with guidance from the State team in terms of policies and laws and the government processes.
State team leader and the Mineral Resources Authority’s (MRA) exploration co-ordinator for Woodlark Project Moses Mambu expressed confidence and said he expected to conduct two more meetings during which everything should be finalised in preparation for the MoA signing towards the end of the year.
Chief executive officer of Kula Gold Ltd Stuart Pether said the level of input by all stakeholders in the meetings was encouraging and indicative of good progress so far.
Landowners’ Association chairman David Asi said discussions had progressed smoothly since the development forum in December 2013 and he was certain that with cooperation and understanding from all stakeholders, the parties could agree on an MoA at the end of the year.
These preliminary discussions relating to an MoA are being conducted in light of the application for a Mining Licence (ML) for which Kula Gold Ltd has applied. It is expected that the ML will be granted to the company soon by the Mining Minister Byron Chan.
The Woodlark project boasts two million ounces of gold reserves and a life span of 10 years. Depending on further exploration and positive results, the life span of the mine could be extended.