Govt paying 36pc equity

By DALE LUMA
THE Government will only pay 36 per cent of its 51 per cent equity in the Porgera gold mine, says Prime Minister James Marape. Responding to questions from The National yesterday, Marape said 15 per cent of the 51 per cent equity was free – as part of new terms reached with Barrick Niugini Ltd, the operator of the mine. Marape said the mine would fund the 36 per cent when it resumed operation, scheduled for seven months from when the framework agreement was signed. Marape is expected to visit Porgera today. There are four more subsidiary agreements that needed to be ticked off before the mine restarts. “When you look at the equity of 100 per cent, Barrick share is 49 per cent, our share is 51 per cent (of which) 15 per cent is equity that we will not pay for. We are only paying for 36 per cent,” he said. “The deal is structured in a way that the mine will pay for itself – the 36 per cent. “When we harvest, we pay our 36 per cent throughout the course of the mine. “It’s a deal that in my view is much better than all the other deals put together. When we started negotiations, they said the project will finance your share and they asked us to pay 6 per cent interest. “But we negotiated hard and we are now paying zero per cent interest. And as the mine produces, our 36 per cent will be (paid) off in that process.“Not a toea will be spent by the Government to restart the mine.”He promised to “sleep with the people, stay with the people and inform the people what we have secured as far as the framework agreement is concerned”.