In a media statement released this evening, Prime Minister James Marape, announced that the Government is ready to sign an agreement with Barrick Gold for the reopening of the Porgera Gold Mine in Enga, after its closure 12 months ago.
The mine had closed after the State refused to renew the mining lease held by Barrick Niugini Limited (BNL).
PM Marape said after negotiating with BNL, there was a breakthrough, with Papua New Guinea having a “far superior deal” than in the first 31 years of operation, from 1989 to 2020.
“I’m announcing to our country that within the principles of my Government, which includes getting more from our natural resources, we are in a better position now to sign an agreement with Barrick for what will be a new Porgera,” the Prime Minister said.
He added, “I can assure our country that this is a far-superior and better deal, meaning our landowners and Enga Provincial Government will get more, and the balance of equity through Kumul Minerals will mean we hold majority in equity.
“Other benefits includes securing an increased and upfront tax with no concession as is the case with other resource projects, an increase in royalties as well as a better handle on environment and resettlement issues at Porgera and a Barrick exit option.
“Kumul Minerals Holdings, since being granted the Special Mining Lease (SML) over Porgera, could have started but many court cases Barrick had filed caused delays to reopen Porgera, hence we entered into these negotiations.
"We are almost at the point of signing an agreement with Barrick.
"If the last round of negotiation is good, then I intend to meet Enga Provincial Government and all SML and LMP plus impact area landowners at the earliest to discuss on the benefit sharing,” the Prime Minister promised.
"To those who questioned Government and Kumul Minerals Holdings on why this turn in Porgera, I inform all that we have every capacity to operate Porgera like we are doing in Ok Tedi right now.
"But with Barrack’s court cases, we had to go down this path.
"Barrick has agreed with us on an exit option in the new Porgera agreement 10 years from now."