The process of re-opening the Porgera gold mine in Papua New Guinea under the terms of the binding framework agreement between the government and operator Barrick Niugini Limited (BNL) has taken a major step forward.
The framework agreement provides that Porgera will be owned by a new joint venture held 51 per cent by Papua New Guinea (PNG) stakeholders and 49 per cent by BNL, with BNL continuing as the operator. The framework agreement also calls on the Porgera Landowners and the Enga Province to have a dialogue to determine how the 10 per cent ‘protected equity’ which forms part of PNG’s 51 per cent interest will be allocated.
Barrick President and Chief Executive Mark Bristow said the agreement made each of the parties — the landowners, the national government, the province and BNL — a committed stakeholder responsible for the long-term success of the mine.
“In aligning our interests, it recognises the importance of the landowners and the communities, and prioritises the benefits they will receive, not only from the mine but from a new Porgera Development Fund that will invest tens of millions of Kina in promising local projects.”
Mr Bristow said BNL is committed to giving preference to competitive local contractors and suppliers and to employing Porgerans first.
“With BNL as operator, Porgera will also redouble its efforts to be a responsible steward of the environment,” he said.
The road to re-opening is a long one, and between the state, local communities and BNL, the implementation details of the agreement still need to be finalised.
“However, if all parties work together uninterrupted in the spirit of partnership envisaged by the agreement, our hope is that the mine will be able to restart later this year,” Mr Bristow said.
“It is no small task. But we are committed to playing our part, so that the new Porgera can realise its extraordinary potential and deliver decades of value to the people of the Porgera Valley, Enga, Papua New Guinea and the shareholders of BNL.”