12/08/2026
PRESS RELEASE
Minister for Mining Hon. Solen Loifa, MP responds to Hon Sam Basil Jr on his concerns relating Hidden Valley Project CDA.
Minister for Mining Hon Solen Loifa has responded to concerns raised by the Member for Bulolo Hon Sam Basil Junior, relating to the signing of the revised Community Development Agreement (CDA) for the Hidden Valley Mining Project.
The Minister said he had carefully considered each of the matters raised against the applicable legal, policy and administrative framework, as well as the decisions and agreements already reached through the CDA negotiation process.
“I am satisfied that the matters raised are either adequately addressed under the revised CDA, are matters properly reserved for the Wafi-Golpu negotiations, or maybe pursued separately through the appropriate Government and administrative processes. For clarity and completeness, I respond to each of the matters raised as follows.”
1. Bulolo DDA to be signatory to the Hidden Valley and Wafi Golpu MOA:
The amendment to Section 98 of the Organic Law on Provincial and Local-level
Governments (OLPLLG) do not apply to the current Community Development Agreements (CDA) or revised CDA. The amendment to Section 98 of the OLPLLG will apply to new mines.
The general rule is that the amendments to any particular law/policy is supposed to have a prospective effect, and not to operate retrospectively. In addition, the amendment to Section 98 of the OLPLLG relates to a Development Forum. Pursuant to Section 3 of the Mining Act 1992, Development Forum is applicable to a Special Mining Lease. The Hidden Valley Mine Project operates on a Mining Lease (ML), which does not require a Development Forum.
2. The Mumeng, Watut LLG and Bulolo Wau Urban LLG position is to increase the Royalty from 2 percent to 5 percent:
The royalty distribution was captured in the CDA as per the PEC Decision No 2 of 3rd February 2025, during the late Governor Hon. Luther Wenge’s term in office.
The revised CDA negotiations was concluded on 13 June 2025, capturing positions
provided by the parties to the CDA. Distributions of royalty captured under the revised CDA includes the following:
(a) Wau Rural LLG – 1%
b) Watut Rural LLG – 1%
(C) Wau Urban LLG – 1%
d) Bulolo Urban – 1%
3. Five (5) Percent state paid equity in both Hidden Valley and Wafi Golpu Mine to Bulolo District for the opportunity foregone and the lack of development and impact in the affected areas and absence of Future Generations Fund (FGTF):
The State has not exercised its option to take up equity in Hidden Valley Project.
For Wafi project, this is yet to be negotiated.
4. An Environment Levy of 1 percent of the gold extracted for sale should be remitted to the Future Generation Fund:
Future generation trust funds are established for landowner benefits, particularly a portion of landowner royalties. Under the revised CDA clause, FGTF will be established after the CDA is executed and signed.
5. The Wau Waria District and its 3 LLGs and the three landowner groups to be given royalty from Wafi Golpu.
This distribution can be discussed and negotiated in the Wafi Golpu CDA:
6. Morobe Provincial Government to establish Benefits Sharing Authority for Morobe to hold its equity and royalty and dividends:
This matter can be pursued separately between Morobe Provincial Government and Bulolo DDA outside the CDA arrangements.
7. Establishment of Anga Wau Special Authority that will cater for infrastructure and socio-economic projects which will cover the Bulolo, Wau-Waria and Menyanya Districts. For too long, the Menyamya district has been a passer-by and even the Bulolo Highway that is included in the Hidden Valley MOA has deteriorated over the life of the mine. The people of Watut have no access to electricity, high school or TVET or good road. Even the people of Menyamya can benefit from this spin off:
This matter can be pursued separately between the Morobe Provincial Government and the Bulolo DDA outside of the revised CDA. Menyamya District is considered in the revised CDA with a royalty distribution of 5% and Lae - Bulolo - Wau - Menyamya road through the Tax Credit Scheme program as per the NEC Decision No.172/2026.
8. Morobe Provincial Government to factor the non-impact Districts like Kabwum, Finschhafen, Markham, Tewai Siassi whilst Bulolo wants to include Wau-Waria and Menyamya:
This matter can be discussed at the Wafi Project Development Forum and through a consolidated PEC Decision.
9. The K200 million:
The K200 million relates to Wafi project IDG funds that can be discussed and negotiated at the Wafi Golpu forum.
10. The Morobe Provincial Government (MPG) PEC Decision.
The MPG resolved the current MPG benefit distribution structure in the revised CDA for Hidden Valley through a PEC Decision during the term of the late Governor Hon. Luther Wenge, MP:
The State has no influence over the PEC Decision and is not able to unilaterally change or amend the PEC Decision.
Having considered and addressed each of the matters raised in letter by Hon Basil Junior, I am satisfied that there are no outstanding issues that warrant any further delay to the ex*****on of the revised Hidden Valley Mine Project CDA.
The matters relevant to the Hidden Valley CDA have been adequately addressed through the negotiation process and the applicable decisions already made. Those matters relating specifically to Wafi-Golpu, or requiring separate consideration by the Morobe Provincial Government, Bulolo DDA or other relevant authorities, can be appropriately pursued through the respective processes and should not impede the conclusion of the Hidden Valley CDA.
“Accordingly, I am satisfied that the revised Hidden valley CDA should now proceed to signing as scheduled,” said Minister Loifa.
Hon. Solen Loifa, MP - Minister for Mining