3,600 jobs will be lost: Miner

The National Main Stories

THE operator of the Porgera gold mine, Barrick Niugini Ltd (BNL), says more than 3,600 people will lose their jobs because of the Government’s refusal to renew its special mining licence.
The joint venture is between Barrick Gold (47.5 per cent), Zijin Mining Group (47.5 per cent), Mineral Resources Enga owned by the Porgera special mining lease landowners and the Enga government (5 per cent).
The application for the renewal was lodged in 2017.
Prime Minister James Marape said on Friday that Cabinet recently decided to reject the application “in the best interest of the nation”.
In a statement yesterday, BNL said the impact on the economy would be “immediate and severe”, including the:

  • termination of the more than 3,600 people in direct employment with BNL, and loss of work for more than 1,000 contractor companies who employ locals;
  • loss of local business contracts to the value of around K400 million per annum;
  • loss of 1.5 megawatts in power supply to the Porgera Valley communities, currently supplied at no cost;
  • end of support for institutions in the Porgera Valley, including the Paiam Hospital and Porgera Development Authority;
  • end of support for the Highlands Highway maintenance;
  • end of support for police operations and end to the community emergency services provided at no cost;
  • Immediate loss of tax revenue streams, royalties and equity distribution payments, which totalled more than K500 million in 2019.

BNL said the process and policy of rejecting the extension of the special mining lease and nationalisation of the Porgera mine assets presented “enormous financial and reputational risks for local communities, businesses and the country during a time when the country was dealing with the economic impact of the coronavirus pandemic”.

24 comments

    • PNG is 45 years old now and her children are matured in every aspect of skills. The times of black man never jump is gone. I thick 45 years is maximum years of maturity for PNG and children are matured too. This time and below is the time of energetic skillful workforce to take over and exploit their own land of milk and honey. Why crying? Lets take over and rule our own land. The jobs will still be there, it is only for the transitional period.

  • Thank you NEC under the leadership Marape Steven Government for the bold decision.3600 jobs other services can be affected for now but for the good of this country’s future generation.Enough!! Pack up and leave.

  • “why so many lives are lost , so much environment is being damaged, not much due consideration has been given to our own people, a miner who wants to make massive profit over night and leave a disastrous environment at the mine site”, This developer need to leave Pogera

  • Just leave and let the PNG Government own the Porgera mining we had enough…. Landowners stand with our government and move them out..

  • It’s time now we Papua New Guineans take ownership of all mining in our beautiful country, this applies to other mining through out Papua New Guinea enough is enough..

  • only 5% for the government and land owners 48% each for the the greedy selfish mine company. enough is enough pack up and leave

  • I salute you Minister Kerenga Kua,at last you bring the light to the end of a tunnel where it was supposed to be for the last 20 years or so.Let PNG Government take back and own the giant mine..Prime Minister it is the begining of taking back PNG so proceed to every other sectors and do the same coz we the people of PNG are at the back of you and fully support your every moves.

  • Signs of “Taking back PNG.” Please look into other sectors such as logging, fisheries and agriculture as well. Image when our natural resources are rightfully and equally shared by local owners. What are windfall that will be?

  • Looks good but ‘nationalization’ of such industry may provide more cash cows for the ‘pollies’ to milk. you be the judge in 10 years time. Ok Tedi was, for some big time pollie not long ago.

  • JUST LEAVE. YOU’VE GOT ENOUGH. THOSE 3600 WILL NOT DIE OF HUNGER, WE HAVE
    VAST LAND AREA TO CULTIVATE. PERIOD!

  • Loses can be recovered when new company start fresh. Prevention is better than cure.

  • Move on. It’s not you who is going to be affected. Go away.

    You had a fair amount.
    For so long you have neglected resettlement exercise.

    Good bye now

  • Barrick took a huge risk in constructing the mine in Porgera, spending a fantastic amount of money. The PNG government is now wanting to take advantage of the situation, in effect seizing the mine from Porgera Joint Venture. While there are friendly takeovers and hostile takeovers, this constitutes an extremely hostile takeover. Is the PNG government prepared to cough up K3-5 billion or whatever is the fair market value of the mine? This is outright government seizure of a privately owned company which is one of the top ten gold mining companies in the world. Whenever the government gets involved in something that should be done via private enterprise, they mess it up. I hope and pray the PNG government does not make that mistake.

  • Well lets say this. History does repeat it self. No where in the world do Government Owned Enterprises work. Look at PNG, what is the status of our SOEs. Water, Power, Health, Education, Police, CIS, which one of there works properly and gives GOOD service ???. Time WILL tell the truth. History WILL Record the TRUTH. I see all of the Comments on this matter and I see Nationalism. But do I see Intelligent Discussion. Oh!. and ALL of The Landowners who Support the renewal of the SML are Wrong ???. All very good to sit in POM and be an expert. Ask The Landowners.

  • If deal is to be negotiated than it has to be 50% PNG govt and 50% developer. The time of being spectator in our country watching multinationals plundering our resources is over.

  • Full support Marape/Stoven government. Those against it have been the very ones enjoying the benefits whilst the land owners are suffering. Why should they be spectators on their own land. Fourty five years is a very long time. Inap mipla lek han strong pinis. Time now PNG kirap na wok. God bless PNG.

  • Marape/Steven Government walk the talk by taking back PNG and making it Black Riches Nation is real. Yes we can lost 3600 jobs but we can still survive with out job. Its PNG we are not living in African country we should die of hunger. Lets support this decision and stand behind our Government to take back PNG for our future generation. Well done PMJM when the time is right we hope you will do the same to other sectors as well.

  • Thanks for this decision. It is in the best interest of the country. For those who are against it, 45 years of milking is enough.

    PM Marape before you leave for 2022 National Election,it is my wish and desire that you review and repeal the colonial mining act so that rest of the country cannot be spectators on their very own land and country again.

  • It’s time we get Barrick out of the picture & thank them for developing Pogera mine & helping out with the local communities, but unfortunately they need to move on & we need to try & bring back our own country’s resources for the betterment of PNG, but the question is will our Government of today strive to make it a better resource & income earner for PNG, lets not forget our very own corruption habits in most of the government run sectors, this will be a trying time for PNG,

  • very sad when 47.5% is given to BNL and 47.5% to the Chinese partners and ONLY 5% is given to PNG…what a reap off, just pack up and go, then PNG can bargain for 50% by some else to partner with.

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