The Porgera gold mine is poised to resume operations today (December 22nd, 2023) – just in time for the festive season.
This follows the formalization of the Porgera Project Commencement Agreement on the evening of Wednesday, December 20th, 2023.
Prime Minister James Marape, a witness to the agreement's signing involving New Porgera Ltd, landowners, and the Enga Provincial Government, expressed his satisfaction, stating that this marks the final milestone before the mine reopens.
PM Marape said Barrick, the new Special Mining Lease (SML) 13 operator, has assured that December 22, 2023, is the scheduled reopening date for the Porgera mine.
“Mining Minister Sir Ano Pala, and a representative from the Enga Provincial Government will be present in Porgera to witness the commissioning,” Prime Minister Marape said.
“We are fully prepared for December 22nd. As I speak, employment is being ramped up to 2,000 and will increase to about 3,000 in the first six months of operation.”
PM Marape highlighted that the agreement delineates the equity structure of New Porgera, with clear benefits outlined for landowners and the Enga Provincial Government. They will receive benefits upon the commencement of gold production, including a 3 percent royalty.
The State will receive a 30 percent tax upon first gold production and a 2 percent Fiscal Stability Tax. It will also benefit from spin-off benefits like the personal income tax of mine workers.
“The agreement is signed between New Porgera Ltd, landowners, and the Enga Provincial Government,” Prime Minister Marape said after the signing at Government House.
“In summary, it’s 7.5 percent for the Special Mining Lease (SML) landowners, 2.5 percent for the Lease for Mining Purposes (LMP) areas, and 5 percent for the Enga Provincial Government in the Porgera Project Commencement Agreement.”
The PM extended his gratitude to landowners, the Enga Provincial Government led by Governor Sir Peter Ipatas, and communities along the project's footprint.
“I want to assure you that in early January, Mining Minister Sir Ano Pala will initiate consultations, addressing all other matters related to position papers for affected areas,” he stated.
“Our aim is to complete the compensation process at the Development Forum, providing landowners with clarity on the benefit structures.