The NPPA confirms that all parties are committed to reopening the mine at the earliest opportunity, in line with the terms of the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement both concluded in 2022.
Porgera hosts an orebody with measured and indicated resources of 10 million ounces2 and inferred resources of 3.4 million ounces. After initial ramp up and optimisation of the Wangima pit, the mine is forecast to produce an average of 700,000 ounces per year, achieving a milestone towards its potential Tier One3 status.
The equity in New Porgera is shared 51 percent by Papua New Guinea (PNG) stakeholders, including local landowners and the Enga provincial government. Economic benefits will be shared 53 percent by the PNG stakeholders and 47 percent by Barrick Niugini Limited, which will operate the mine.
After the signing ceremony, Barrick president and chief executive, Mark Bristow said there was strong support from all stakeholders to get Porgera reopened as soon as possible.
“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders. For Barrick, the reopening of the mine would represent another victory for our host-country partnership model which has been so successful in Tanzania and has now also been adopted for the new Reko Diq copper gold project in Pakistan,” Bristow said.
“Localization is an essential part of our partnership philosophy so New Porgera will, whenever possible, source the goods and services it requires from businesses genuinely based and owned in Porgera, the Enga province and Papua New Guinea. Similarly, it will give preference to locals in recruiting employees for the reopening mine.”
With much negations between Barrick, the State led by the State Negotiation Team and concerned stakeholders this agreement was finally signed. With the NPL in place, a new Special Mining Lease (SML) will be applied for.
Bristow said New Porgera Ltd will work with the State and the Mineral Resources Authority (MRA) to ensure that the SML application process proceeds without delay and in accordance with the Mining Act and the Porgera Project Commencement Agreement.