New Porgera Limited

NPL in a media statement said the benefit-sharing terms agreed between the State, Barrick Niugini Limited (BNL), Kumul Mineral Holdings Limited (KMHL) and Mineral Resources Enga (MRE) to restart the mine, ensure a transparent and fair distribution of the overall economic benefits that will be generated by Porgera over its 20-year mine life.  

Deputy Leader of Social Democratic Party and member for Nipa Kutubu, Dr. Billy Joseph said the opening of the Porgera mine is expected to have a significant impact on the PNG economy.

“As the Marape Rosso government has emphasized, there might be short-term pain, but there will be long-term gain.

“The opening of the Porgera mine is expected to create employment opportunities, generate revenues for the government, and boost economic growth.

NPL is asking landowners to continue to honor the old Porgera compensation agreements in the interim.

“NPL has asked landowners to agree to continue honoring the old Porgera compensation agreements to allow the mine to reopen this year, ahead of a review of the compensation arrangements planned post reopening of the mine.

“Any increase in compensation amounts determined as a result of that review will be backdated to ensure that landowners are not prejudiced by the deferral of negotiations,” NPL stated in a statement.

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. 

Prime Minister James Marape said it was a “milestone achievement” towards reopening of the Porgera mine, which has been closed since 2019.

Porgera Mine is currently into its third year of Care & Maintenance and restart plans is forthcoming, with the full execution of the Shareholders Agreement by Mineral Resource deal sealed.