Govt doing everything to reopen Porgera mine: Marape

The National National

PRIME Minister James Marape has assured the country that the Government is doing everything within its mandate to reopen the Porgera gold mine.
He was responding to a statement from his predecessor Peter O’Neill on Wednesday accusing him of dragging his feet on resolving the closure of the mine with the operator Barrick Niugini Ltd.
Marape said he was not going to follow the footsteps of O’Neill “who does not respect legitimate government processes and concedes to foreign interests, like his giveaway of 10 per cent in State equity for the Wafi-Golpu project” by a memorandum of agreement.
“I choose to differ. Every opportunity to gain for country, our provinces and landowners, we must gain,” Marape said.
Marape said the Government remained clear and resolute on what to do on Porgera.
“It’s not nationalisation or expropriation as some may think or promote.
“Companies and mining lease holders in Porgera had unbroken and profitable years since 1989 when the lease was issued,” Marape said
“The lease expired on August 16, 2019 and the Government is duty bound to honour our Constitution’s desire to harvest resources at better terms for our country, including our landowners.”
He said Barrick’s decision to take the matter to court had delayed the re-opening of the mine.
“Government has indicated to Barrick Ltd that they will be given first consideration for partnership, but under new terms,” he said.
“But first, the resource will be defined as belonging to the people – landowners, the provincial government and the country.
“If they (Barrick) withdraw the court cases, we can talk commercial with them. We are not idiots running this government. We can read numbers and laws.
“The time when industries had lopsided wins is over. It’s now a You win – PNG win equity-based principle.”

7 comments

  • Its about time PNG should take a big chunk of the pie than what was previously, one sided decision by O’neil government, where decisions are made somewhere for one owns’ interest and the developer and left the PNG people with bones. O’neil should duck and take cover instead of commenting. He has basically sold PNG to the dogs. Enough of back door deals and building individual empires.
    Current govt under Marape/Steven is taking the right steps to do the right and fair deal for all parties and especially the LOs of PNG. Such resources operations like Porgera has immense impact on PNG and current govt is doing the right thing to renegotiate the agreements to make sure equity is shared fairly. And the opportune time is now when the lease has expired to renegotiate. It’s for the betterment of future generations & the people of PNG is with you – Marape/Steven govt.

  • Of course Peter, you are right. Let me express myself by saying that on 10 June 2020, the Parliament of PNG passed the Mining Amendment Bill 2020 and the Oil and Gas Amendment Bill 2020. The Bills amend the Mining Act 1992 and the Oil and Gas Act 1998 respectively. The amendments will become operative upon certification by the Speaker of Parliament. The Mining Amendments introduce a ‘live data’ reporting obligation and give State entities priority in tenement applications over ‘reserved land’. The O&G Amendments give the Minister greater flexibility in determining whether to grant or refuse petroleum development licences (PDLs) and affect the sanctity of petroleum agreements and gas agreements.
    There is good and bad of Peter O’Neil and so as James Marape and other former PMs. Lets think positively and move together this country forward. Let us not sit there lazily observing PMs trying all their God given knowledges to lead the nation, instead stand up and make a different and transform the nation. We individuals can do it.

  • I personally think it was a good idea, however, did the government take in account the disadvantages.

    1. Loss of employment – both PJV & Sub-contractors
    2. Loss of revenue as in tax for the country
    3. Damage due to unused machinery
    4. Need experienced employees to reopen the mine, yet most have applied to other companys.

    Where is the fall back plan.

  • PMJM is on the right track to take back PNG. This is someone is who is thinking outside the box for the betterment of our tomorrow. The short term pain is pale in comparison to the long term gain. Our resilience will see us through this unprecedented time. Doing something different to get a different result. If you think otherwise, that is insanity.

  • MRA and Government Common sense must prevail, the wisest thing the Government should do was to let BNL continue operate and change the laws. Instead it was opposite. We want to own our resources but we have to do it professionally by changing laws and not taking actions to disrupt operation which has affected 2700 employees and the economy of this country. As stated by press release Barrick is taking next step by going to international court and this will take years. The geological data belongs to BNL and if BNL leaves it will take another 4 to 5 years of explorations by Government or whoever taking over. Benefit sharing agreement – 49/51 is fair enough which government should agree to put stop to this madness and go back to Parliament to change laws that will suit our interest.

  • We the genuine Porgera SML Landowners are behind the Marape/Steven Government’s effort to #TakeBackPNG. It should start with the Porgera Mine Project. The Porgera SML Landowners and general Porgerans having been suffering for the last 30 years under Barrick because of inequal distribution of project equity. Of the 5% equity, the SML Landowners were getting 2.5% while the other 2.5% to Enga Provincial Government which in real terms was just not enough to meet all the development aspirations of our people, province and country. And therefore we are fully supportive of the Marape/Steven government’s effort to claim 51% for landowners, provincial government and the state while the developer gets 49%.This share arrangement is totally favored by majority of the SML landowners and the government is fully right in pursuing this.

    Barrick had literally failed to pay compensation for environment damages and also failed to pay the Hides powerline landowners. And to the 2700 Barrick ex-employees you are totally not landowners and therefore if you a spectator of somebody’s else project wait patiencely to get re-employed when the mine reopen rather than complaining.

    We the majority of the SML landowners fully support you James Marape for the stance you have taken against Barrick and hope this issue is resolved quickly so we can all benefit from the Take Back PNG directives.

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