Strategic partnerships has enabled the Porgera Joint Venture operation to overcome its challenges and deliver benefits over the last three decades.
This was highlighted by the Barrick Niugini Limited Executive Director, Dr Ila Temu, at the recent 15th PNG Mining and Petroleum Investment Conference held in Sydney, Australia, earlier this month.
The biennial conference was hosted by the PNG Chamber of Mines and Petroleum.
Dr Temu highlighted critical challenges that the Porgera operation has had to deal with in recent times and emphasized the important factor that has enabled the operation to see through these challenges.
He spoke of the flooding issues in the open pit from high rainfall, the west wall failure leading to the Yarik sinkholes in 2016 and the significant consequences to operations.
Additionally, the Lukulama landslip in March 2016 which severed the only transport link for supplies and employees to reach the mine site.
Others highlighted included issues on the Highlands Highway, illegal mining, the Hides Transmission Line (HTL) and the February earthquake which caused significant damage to the Porgera JV’s power generation plant in Hides resulting in a loss of power supply to the Porgera site and the Porgera valley community.
“Partnership with our shareholders, various levels of government, operating communities, employees is an important part of our operation in trying to address some of the challenges we have,” Dr Temu told the conference.
Despite the many significant challenges Dr Temu said Porgera has also delivered significant benefits.
Over US$1 billion had been paid in taxes and royalties, facilitated over US$155 million in infrastructure through community development programs and tax credit scheme (TCS) and over US$304 million paid to Porgeran businesses.
On corporate social responsibility, Dr Temu highlighted the achievements of the Porgera District Women’s Association (PDWA) as a case study, from taking over the mine’s cleaning contract to contracting their own machinery to the Porgera underground mine operation.
Other community development programs and projects have resulted in the investment of more than US$20 million to date.
Dr Temu also spoke on resettlement, a partnership exercise with the Government to address another of the mines’ challenges.
“We hope in 2019 to finalise a resettlement action plan and start implementation soon after.”
Dr Temu also told the conference of the SML Extension Project with the current lease set to expire on 17th August 2019.
BNL had submitted an SML extension application to the Mineral Resource Authority (MRA) on 29th June 2017. He said BNL is seeking to extend the SML duration for a further 20 years- the maximum period available under current PNG mining law.
“In partnership with the State including Enga Provincial Government and the Porgera landowners, we want to have the lease extended so that project benefits can continue to flow,” he stated.
“So the Porgera story is one of challenges and partnerships. We have demonstrated our ability to deliver despite these challenges and we intend to do just that for the next 20 years,” Dr Temu concluded.
BNL was one of eight principal sponsors for the 2018 PNG Mining & Petroleum conference.
(Dr Temu, centre, with Iso Eladona, Mine Manager – Newcrest, on the right, and Ron Gawi, General Manager PNG, Highlands Pacific during the session on mining projects updates)