Economic levers open for consideration: Barrick

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BARRICK Niugini Ltd (BNL) says all economic levers including taxes have to be open for consideration to achieve fair sharing of economic benefits.
The Canadian miner said in a statement that this was one of the areas it would consider under a new partnership with PNG following a meeting between Prime Minister James Marape and Barrick Gold Corporation chief executive Mark Bristow in Port Moresby last week.
Marape said in a statement after the meeting: “We have agreed in principle that Papua New Guinea will take a major share of equity under the new arrangements and BNL will retain operatorship and there will be a fair sharing of the economic benefits.
“This is a very significant step forward and I look forward to hearing of the outcomes of further discussions on the economic principles to guide future mining operations.”
A team of Barrick senior executives is staying back in Port Moresby to work with the State Negotiation Team “in finalising full commercial details”.
BNL said it considered to be of critical importance in the partnership “the precise definition of the fair sharing of economic benefits to offset PNG taking a major share of equity under the new arrangements”.
“BNL’s position is that all economic levers, including taxes, must be open to consideration to achieve a fair and equitable split of economic benefits,” it said.
“BNL maintains that the BNL Special Mining Lease 1 (SML1) is the appropriate tenement because SML1 already possesses the 14 associated tenements required for the mine to operate, a mining development contract and all other permits, licences and agreements that are legally required to operate the mine.
“For instance, SML1 has an approved environmental permit, one of the most important documents for safe and responsible mining that is valid until 2038.
“By contrast, SML11, purportedly granted to Kumul Mineral Holdings Ltd (KMHL), possesses none of these associated tenements, permits, licences or agreements, which can take years to obtain, and, in addition, is having its legitimacy challenged in the PNG courts by both BNL and landowners.”

9 comments

  • How easily did KMHL met the requirements to get the SML when it take years to obtained SML 11. If what BNG is saying about the SML11 tenements is true , then they have a case. If the process is bulldozed and by-passed, with KMHL taking advantage as a government agency or SOE, then the government position in the international community is in disrepute

  • All due process of the Law was fully complied by the State ( MRA ) to terminate Special Mining Lease 1 on expiry. BNL as any multinational in the PNG resource sector is persistently employing bully tactics through the media and other forums to intimidate the Government of PNG. It is my view that the PM is now playing survival now, in the face of looming VONC, in this case he would be trading off! Who knows how much monies the ‘dirty job boys’ of BNL had dished out to politicians and key beaurcrats? It is a catch 22 situation for our courageous PM. His dream to take back PNG is not an easy road amidst power hungry and corrupt politicians who are nothing more than trash bins, amassing dirty filthy wealth and shitting their wastes into the same bins. Let’s stay positive that PNG will have a much better deal this time than ever before.

    • This is our land and make decisions that is in our best interest. We worked with only a few countries and not all countries so why should we worry too much about investor confidence? We have been overly influenced to think that way for far too long so why not bite the bullet

  • BNG are lucky they were not booted out along time ago. No normal PNGEANS can support them.

    You can not go to Canada and pollute their environment, mess their lifestyles and you think they accept you.

    We must put our foot down and stop foreigners messing up our country and people.

    PM has started well but didn’t complete the job. PM the people are with you except the stupid, greedy people, including the politicians, educated and so on who are traitors.

  • Has Barrick withdrawn any court action that it told us it was pursuing?
    If not forget this bullying mining company.
    He glibly says the company has an environmental permit for safe ^ responsible mining. That permit needs review as it designates the first 140 kilometers after the point of tailings discharge a “mixing zone.” There is no legal limit in the concentrations of heavy metals dumped into this stretch of river, and no regular monitoring of the social and environmental impact.
    Apparently a 2013 study noted the catastrophic environmental consequences of tailings discharge and noted that of the 2,500 industrial-sized mines in the world, only four mines — three of them in PNG — were found to rely on riverine tailings disposal. Porgera allows over 14000 tonnes of polluting tailings every day into the RED RIVER.
    Pilots overflying have backed this claim for the river being red.
    When will Canada reign in the filthy mining habits of this company

  • Has Barrick withdrawn any court action that it told us it was pursuing?
    If not forget this bullying mining company.
    He glibly says the company has an environmental permit for safe & responsible mining. That permit needs review as it designates the first 140 kilometers after the point of tailings discharge a “mixing zone.” There is no legal limit in the concentrations of heavy metals dumped into this stretch of river, and no regular monitoring of the social and environmental impact.
    Apparently a 2013 study noted the catastrophic environmental consequences of tailings discharge and noted that of the 2,500 industrial-sized mines in the world, only four mines — three of them in PNG — were found to rely on riverine tailings disposal. Porgera allows over 14000 tonnes of polluting tailings every day into the RED RIVER.
    Pilots overflying have backed this claim for the river being red.
    When will Canada reign in the filthy mining habits of this company

  • The advice to sue BNL was bad advice you can no spin that. Under the current agreement, we need skilled negotiators. I have presented my service as a neutral negotiator. However you look at it, both sides have skeletons to hide. Truth is there is room for give-and-take. PPSA signed in 1996 is one roadblock
    for GoPNG I am not affected by that. The Government can not be part of BNL to guy into BNL inequity I can. At a time when the Government has no money, it will have to pay for its 51 or 58% share. That is at least, $US500 million. The GoPNG does not have that. KMHL has a debt of US$120 million to b rapid by April 2021 though it offloaded it to PNG Treasury. The previous PM said KMHL has no money. He knows something most of us don’t. Just the status is great but our PMJM needs every start idea to render nationalizing of Porgera mine.

  • Did PRIME MINISTER’S Discuss with PORGERA Gold Mining issues.
    Oh KUMUL MINERAL HOLDING LIMITED DONE ALL requirements needed to done.

  • If BNL’s legal challenge in the courts is any indication of the facts, than we only hope that our smarty brains at KMHL and Law Departments as advisors to the PM, put in a diligent effort to ensuring such anomalies are covered, if any. Otherwise, we are in for a long legal battle unless BNL withdraws all legal challenges now before the PNG and international courts in order to map out the new deal!

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