KMHL wants parties to agree

The National Main Stories

By SHIRLEY MAULUDU
THE Kumul Mineral Holdings Ltd (KMHL) wants to see the Porgera gold mine reopened soon but only after parties involved agree on how to go about it, an official says.
Chairman and acting managing director Peter Graham said the parties included the Government, KMHL, Barrick Niugini Limited (BNL) and the owners of the land where the mine was located.
He made the statement after Prime Minister James Marape said the Government expected KMHL to reopen the mine “immediately”.
The mine was closed in April after the Government did not renew the special mining lease held by BNL since 1989 and instead awarded a new one to KMHL.
BNL is challenging that decision in court.
Graham yesterday said KMHL wanted to see the Porgera mine reopened as soon as possible but “achieving this outcome requires agreement” between the parties.
“Kumul Minerals has been granted SML 11 which BNL is contesting in the PNG courts,” he said.
“The joint venture (BNL and others) owns the mine infrastructure and other mining assets which are currently under care and maintenance, and most of the workforce is expected to be available since they have been retrenched.”
He said while the BNL case was pending in court, Marape “has engaged with all parties in an effort to chart a way forward”.
During presentation of the licence to KMHL early this month, Marape indicated that Barrick would be the first company, the State through KMHL, would approach to partner, for the development of the mine.
Graham said KMHL had proposed to engage Barrick on interim arrangements to restart the Porgera mine, plus negotiating for a longer term, and BNL as an equity participant and operator.

14 comments

  • Good call by PG. KMHL to partner with BNL and allow BNL to operate. work together so that employees laid off and are suffering to make ends meet can go back to work. The dreams of the PM is good but can be achieved over time and not immediately.

  • BNL will not win the case so it would be wise to go along the path discussion and cooperation and continue on as the mine managers for the parties under the new arrangement. The sooner the mine opens up, the better for PNG!

  • A wise & sensible business approach taken by the PM & Mr. Graham to go down that path. Talking things through & reaching a compromise by all concerned parties I think, is the best way forward where some consensus can be reached through this means, instead of battling it out in Court. And of course, when you go to a round table discussions, you have to give up some of your rights to pave way for a better resolution. That is the price you pay at the end of the day.

  • Barrick has no choice but to partner with KMHL, PNG Government and the people of the land. The more Barrick is waiting its forecasted production target will not be achieved thus losing annual profit and the confidence of its shareholders.

    Barrick look on the bright side dont fight with PMJM and PNG let’s work together and support the PNG Government takeover, be a partner to the PNG Government there are other areas in PNG that have Gold that is ready to be mined you never know being a partner to the Government of PNG could have many benefits. Let Barrick be known around the world as ” the real miner of choice” and not an “exploiter” like the rest.

    This could be a blessing in disguise for you Barrick!

  • For sure, BNL will consider what being proposed by KMHL Chairman and acting managing director Peter Graham to engage Barrick on interim arrangements to restart the Porgera mine and negotiate for a longer term and BNL as an equity participant and operator. Second option also available for BNL and that is to sell the mine infrastructures (facilities) and other mining assets which are currently under care and maintenance to KMHL, but it is not business friendly. There is no other options available for BNL even if going to Courts appears promising. So the challenger for BNL: choice suggested by Graham is coming in a golden plate for BNL to take it or leave it and leave Porgera valley and PNG shores.

  • By the law of land, KMHL has all the right to restart the mining. However, to show the business community of the world and people of png of your integrity, you are not wrong in saying what you (KMHL ) have said.

  • We can not go ahead and reopen the mine while court is still pending.We need to clear the case before taking the next step.Believe me or not, if court is still pending and BNL does not cooperate with us, mine will still be closed until such time court case is cleared, then we can do what we can and lastly we want to hear from BNL .will BNL operate under KMHL or not.

  • Good KMHL. This is your land and you have the right, in others words you are the rightful owner so take back what’s belong to you.

  • This is someone who knows very well the right path to take, and not like some others spewing out hot Airs (nonsenses) on papers and social media.

  • How will KMHL resume operations when it does not have any mineral data of the Mine , both surface and underground. This is BNL’s data, data in which they spent capital and labor to acquire. When BNL packs up and leave they will take all this with them and we will go back to square one “ exploration” which will take years again before we see porgera mine resume operations again.

  • Barrick has the choice to sell its assets to KMHL but will exhaust all the levels of legal avenues first to own SML License. So literally it doesn’t really need Porgera. State needs Porgera because of the dire status quo of the state’s economy. What state is saying is asking Barrick to take on the operatorship but Barrick is fighting tooth for tooth to own SML License. Assume Barrick will stood its ground. One of the rivalry parties have to give in for the mine to resume operation. Otherwise, we’re doomed.

  • If there is a possibility to buy off the assets from BNL would be a good idea and have nothing to do with the mining giant. They have mercylessly taken out our resources without much benefit to PNG and its people and destroyed our environment and polluting our waters. They had been enjoying the 95% profit for years with only few landowers being fed while majority of the people felt the effects of the mining and benefited almost nothing. They (BNL) have to leave the country…their intention is profit and not humanity…

  • James Marape The Right Honerouble Prime Minister have reserved for the BNL CEO to discuss a win win to open the mine. BNL partnership with Stack Holders inside the KMHL banner is very good understanding by Current Government take back policy. After Forty Five (45) years independence. The state government has matured and are prepared to take the risk to exercise it’s new Nationalism policy.

    BNL must agree to Government decisions and must not listen to foreigners advise.
    Priority is given to save costs from court and bring back PNG economy quickly.
    The current situation does not warrant BNL Win but must pack up and leave PNG shores because agreement lease have long expired one year gone now. Now the assets let to state and land owners property.

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