Capital required to restart Porgera will ease forex issues: BSP

THE capital required to restart the Porgera mine in Enga will help fix the country’s foreign exchange issues, Bank South Pacific Financial Group Ltd (BSP) says.
Chief executive officer Robin Fleming said this following the commencement agreement recently signed by Barrick Niugini Ltd (BNL) and the Government in Port Moresby last Friday.
He said the reopening of Porgera mine would provide the much-needed stimulus to the economy of Porgera, Wabag, Mt Hagen and Lae.
Businesses there are experiencing more challenges due to the restrictions on trading and movements in certain provinces in the highlands.
“The transport sector, fuel, retail and wholesale businesses will all benefit, as will the more than 2,500 people who were formerly employed at the mine.
“Foreign exchange will also improve as capital is committed to work associated with re-commissioning the mine,” he said.
“It is important though that the agreement moves rapidly from signing to implementation and execution with confidence improving once activity associated with preparations for re-commissioning on the ground commences.”
The commencement agreement formalises the terms of the framework agreement signed in April.
One of the terms is that BNL will finance the capital required to restart the mine.
Meanwhile, the Porgera Chamber of Commerce and Industry welcomed the commencement agreement to restore business confidence in Porgera, Enga and the country.
Prime Minister James Marape said last Friday that the commencement agreement would be followed by the operatorship agreement, fiscal stability agreement and the shareholder agreement.