Ex-mine workers in limbo

The National Weekender
EMPLOYMENT

By HENZY YAKHAM
ON Feb 23, 2024, gold worth K15 million was produced at Porgera gold mine in Enga after the world-class mine was closed in April 2020.
Prime Minister James Marape, New Porgera Limited General Manager Chad Coulin, Mining Minister Muguwa Dilu and Enga Governor Sir Peter Ipatas were among those who witnessed the resumption of gold production.
The mine was closed in April 2020 when the PNG Government decided not to renew the special mining lease (SML).
Operations at one of PNG’s lucrative gold mines resumed in December 2023 with foreign investors and local stakeholders describing it as a victory.
After a series of negotiations and mine reopening delays it was eventually restarted on Dec 22, 2023. It followed the completion of the final legal work in the Porgera Project Commencement Agreement, for the start of New Porgera and operations there.
The mine has been in care and maintenance since closure in April 2020.
PNG stakeholders, including the local landowners and Enga Provincial Government have 51 per cent and 49 per cent by Barrick Niugini Limited (BNL), a joint venture between Barrick and Zijin of China.
Of the 51 per cent, Kumul Petroleum Limited will hold 36 per cent for the State while the Enga Provincial Government and landowners to share the 15 per cent.
The re-commencement schedule of New Porgera include:

  • Official restart of operations on Dec 22, 2023;
  • Recommissioning to be completed in the following weeks;
  • Mining and processing operations to begin during the first quarter 2024;
  • First gold production during in first quarter of 2024 (Feb 23, 2024)
  • Full production throughout into the third quarter of 2024.; and,
  • Employee ramp-up to occur throughout 2024, reaching 3,200 employees by end of this year.
From left: Prime Minister James Marape, Mineral Resources Authority acting Managing Director Jerry Garry, Mining Minister Muguwa Dilu, New Porgera Limited General Manager Chad Coulin and Enga Governor Sir Peter Ipatas at the first gold pour on Feb 23. – National-filepics

BNL is the operator of the mine from which PNG shareholders stand to benefit up to 53 percent of the mine’s overall economic benefits.
At an assumed gold price of $US1,800 per ounce, this is expected to amount to more than $US7 billion over the mine’s projected 20-year life.
Barrick president and chief executive Mark Bristow has said the reopening of Porgera mine represented another victory for the company’s host-country partnership model which had been very successful in Tanzania and had also been adopted for its new Reko Diq copper and gold project in Pakistan.
“It’s been a long journey but, in the process, we have secured the buy-in of all the stakeholders and we look forward to steering the mine back to world-class production. It undoubtedly has the potential to join our Tier One1 gold mine portfolio, the largest of its kind in the industry,” Bristow said.
Marape has hailed the revival of Porgera gold mine which has a partnership structure that gives PNG stakeholders a majority interest in a key resource for the first time.
Whilst the New Porgera is a victory for investors, PNG Government and local stakeholders, hundreds of former Porgera Joint Venture (PJV) workers’ future hangs in limbo. This means the re-employment chances of former PJV staff is in a state of being disregarded or forgotten.
Simply, the prospects of job opportunities for ex-PJV personnel may well be a lost cause or neglected.
On Saturday Feb 3, 2024, this writer sent a list of questions to Barrick’s Kathy du Plessis (Investor and Media Relations division) via Email: [email protected] , but there was no acknowledgement or reply to the questions.
The questions were:

  • How many ex PJV workers have been re-hired since restart of Porgera mine last December?
  • Are applications for re-hire in New Porgera strictly through online application? If so how will cleaners, simple machine operators who are computer illiterate apply? Or how will BNL consider their applications for re-hire?
  • Will New Porgera re-employ ex PJV workers or not – meaning to employ new workers only?
  • Of the 3,000 plus ex workers, how many will be re-hire by the new operator?
  • What does BNL say to Prime Minister James Marape’s promise to displaced PJV workers that they will all be re-employed when mine reopens?
  • Will BNL consider the PM’s commitment for ex PJV workers to be re-employed or not?

To date, Marape’s undertaking for all ex PJV workers to be re-employed is yet to materialise.
In May 2020, Marape assured the displaced mine workers to “hang in there” while the Government worked to restore them back to work.
“To all staff at Porgera those that are laid off at this time we are working to restore you all back to work at the earliest, hand in there,” Mr Marape said.
“Your loss of income will be compensated and none of you will lose your job and you will be back working when the mine is open.
“To all contractors of Porgera, you will still be required. To all landowners of Porgera, this is your moment! You will sit on the table as greater free equity owner. To PNG, don’t panic and be mentally small. Short term pain for long-term gain, as I always say.
“Lest we forget, PNG is here forever and our mountains of gold and sea of resources abound still, respect our lawful process and intention to gain more for our people and you in business with us. My apologies to those workers and contractors affected by this lease expiry period,” the PM said.
In March 2022, Marape promised that 3,500 ex PJV workers would be given “first consideration for job”.
He told The National that the Government had asked the mine management for all former employees to be given first consideration.
Marape was responding to a question about Porgera Mine Allied Workers Union (PMAWU) urging the Government to honour the commitment to compensate the 3,500 PNG citizens who were displaced by PJV.
The union said the Government promised compensation payments to ex-workers and submission was made, but the Government failed to respond to their request.
On April 28, 2022, the Porgera Allied Mine Workers Union (PAMWU) called on Marape to honour his commitment to compensate the displaced mine workers. On July 27 2022, the PAMWU executives and the PNG Trade Union Congress met with Marape to air their grievances of the workers.
There, Marape committed to pay K26 million plus as compensation to former PJV workers. However, no ex-PJV worker has received a single toea in compensation.
“We only got our redundancy pay. We’ve no idea of promised K26,” a former PJV worker said.
The following are expressed concerns of some affected former PJV workers.

Logistics officer
A former senior logistics officer who spoke on condition of anonymity said during his exit interview PJV human resources officer got his telephone and others to be re-called when mine re-opened. He said during the interview all employee contact details were noted in the exit interview form.
“I asked the female HR officer that conducted the interview why they needed our contact numbers and details. The response was that we would be easily recalled back to work once operations recommenced.
“However, this is not the case now. Currently all PJV jobs are being advertised online and we all will have to reapply strictly online.
“The question is, where does PM Marape’s promises fit in all these? And, how can a simple machine operator who lost his job, and is also computer illiterate apply online?
“Why not just recall the redundant employees. They have all our files in the company database.
“I’m sure there are other ex-employees out there who share similar sentiments but either don’t have the courage to speak out or don’t know how or who to approach to get this message of our plight out in the open to be heard,” he said.

Boiler maker
Kitalam Genkawan worked as tradesman as boiler maker (welder) with PJV for 10 months at the mobile equipment maintenance under the 789-truck workshop section.
“I’ve applied for re-hire at new Porgera, but didn’t get any reply so am at home in Lae, my point of hire without any employment.
“I have little hope and am waiting if I can be accepted for re-employment. I have also applied for jobs in Lae and while waiting
“Life may be easier for single persons, but for me I am married with two children to care for. Life is cities and major urban areas are very hard – it is for those who have some form of income to sustain themselves.
“It is becoming very hard these days to get jobs related to your training even if you’re an experience and skilled person because of the wantok system and who you know.
“Some ex PJV workers have died. Others have family problems with their wives deserting them to marry men who have jobs,” Kitalam Genkawan said.

Equipment fitter
Owswell Malava was employed as heavy equipment fitter tradesman in 2012. In 2016, he was promoted to be a truck shop supervisor.
From 2017-2020, Malava worked as foreman in the same section till the mine was closed.
“From March 2020 to May 2020, I was acting mine maintenance superintendent when all expatriate workers left the mise site due to covid19. I’m not employed by new Porgera even though I have re-applied five times for my former position with the company.
“Currently I’m not employed,” he said.
Leroy Philip is an ex PJV worker who worked as a heavy equipment fitter at the truck shop.
“I did apply (for re-hire at New Porgera) but no response and interview. Too many empty promises, making us suffer. We should be given priority.
“Now I work for a small company to buy rice and tinned fish. I was employed by PJV in 2018 till shut down,” said Philip.
These are some comments of former PJV workers, but there are many others who are in the same situation. The 3,000-plus nationals were apparently displaced by the Porgera mine shut-down, which was not of their making.
The PNG Government is duty-bound and more importantly has a moral obligation to its citizens. The least they expect is for their leaders to get the New Porgera management to offer them first opportunity for re-hire. The new Porgera mine operators should access the former PJV database and get the contact details of ex workers and make the re-hire offers.
Marape has promised them of re-hire upon resumption of mine operations.
It is a humble ask by this lot of citizens to be given the opportunity to decide if they wish to return to Porgera mine or not.
Only then can Papua New Guinea truly boast of a real victory in the New Porgera.

  • Henzy Yakham is a freelance writer. Forward story ideas to 72159301.