SECURITY COMMISSION TO INVESTIGATE NEWMONT CORPORATION BREACH OF AGREEMENT

MINISTER for International Trade and Investment, Hon. Richard Maru, has expressed grave concerns over Newmont Corporation’s decision to shift its country office to Australia, an action that represents a direct violation of the commitments outlined in the Memorandum of Agreement (MOA) with Papua New Guinea (PNG). Amongst others, one of the understandings reached on October 9, 2023, was for Newmont’s head office to be based in the country for mutual benefits, to foster economic growth, and to uphold national interests.

The agreement obligated Newmont Corporation to prioritize its operational presence in PNG when acquiring Newcrest Interest, which is now being undermined by the closure of its PNG office. The Newmont Corporation has made its Country Manager in PNG redundant and relocated its head office to Australia.

This decision is a fundamental breach of trust and has significant negative implications for PNG’s economy and have violated the intended purpose of the MOA and section 277(6) of the Capital Markets Act 2015 and the National Goals & Directive Principals 3, 5 and of the Constitution.

The MOA emphasized Newmont’s commitment to advancing PNG’s national interests through job creation, tax contributions, and the promotion of local economic opportunities.

By relocating operations, Newmont directly negates these objectives, which were central to the partnership.

Furthermore, the agreement included a critical pillar of wealth sharing, intended to ensure that the benefits derived from mining activities would directly uplift PNG’s 11 million citizens. The decision to redirect activities outside PNG erodes this opportunity, jeopardizing the broader economic and social benefits envisioned.

Additionally, the MOA was signed under the oversight of the Securities Commission of PNG, which granted regulatory approvals tied to specific conditions, including compliance with commitments to operate within the country. The move to Australia risks breaching these regulatory conditions, further compounding the situation.

Minister Maru stated, “It is deeply regrettable that Newmont Corporation, having agreed in good faith, is now disregarding its commitments to Papua New Guinea. Such actions have far-reaching consequences, including significant losses, reduced tax revenue, and the erosion of economic opportunities that were critical to the agreement.

“As a sovereign nation, we cannot and will not allow this breach to go unchallenged. I now direct the Securities Commission of PNG to take decisive action to ensure Newmont Corporation fulfills its obligations. Corporate responsibility is not optional— it is a cornerstone of mutual respect, partnership, and sustainable development and our government will not take it lightly”.

“PNG has always honoured its contracts with its investors since independence despite changes of Governments.

It is a slap in the face of PNG when we are in the negotiations which will lead to the granting of Special Mining Lease (SML) to Newmont for the Wafi-Golpu Project.

Such bad faith at this time is regrettable.

The Prime Minister Marape in Sydney at PNG Investment Week has repeatedly emphasized that any partnership or understanding with investors must seek win-win benefits to all parties including the State, provincial governments, and the landowners.

Newmont is not allowed to break its commitment by relocating its office to Australia.”

The Securities Commission is immediately directed to work in collaboration with legal experts and other regulatory bodies to investigate and ensure Newmont is in compliance with the MOA.

These measures are vital to safeguarding PNG’s national interests and ensuring that agreements entered in good faith are upheld to the benefit of the country and its people.