Marape assures employees of their jobs

Business

By SHIRLEY MAULUDU
THE Government has assured employees of Barrick Niugini Ltd (BNL) that they will not lose their jobs.
Prime Minister James Marape issued the statement yesterday following the Government’s decision not to renew Barrick’s special mining lease (SML), which is the operator of Porgera gold mine in Enga.
In a statement earlier this week, BNL said about 3,600 employees of the mine would be affected as a result of the decision.
“To all staff at Porgera that is laid off at this time, we are working to restore you all back to work at the earliest,” the prime minister said on Facebook.
“Hang in there.
“Your loss of income will be compensated and none of you will lose your job.
“You will be back working when the mine is opened,” he said.
Marape also a gave similar assurance to the mine’s contractors.
“To all contractors of Porgera, you will still be required,” he said.
“To all land owners of Porgera, this is your moment.
“You will sit on the table as greater free equity owners.
“To PNG, don’t panic and be mentally strong.
“Short term pain for long term gain. To Barrick, we appreciate that you have been part of us since 2006.
“I am sure you made your handsome profit so be kind to us, we (are) doing what is within our law.
“My apologies to those workers and contractors affected by this lease expiry period, but you will all be back soon, trust me.”
Meanwhile, in a letter to its employees dated April 27, 2020, BNL said all their entitlements would be honoured.
“As executive managing director for BNL, representing the shareholders Barrick and Zijing, I confirm that all of your entitlements, benefits and payments are guaranteed and will be honoured no matter what the final outcome of this situation,” executive managing director Tony Esplin said.
“Apart from this being a core principle for bother companies, it is also a PNG Employment Law requirement.”
Esplin also highlighted several areas the company raised with the Government in response Marape’s announcement last Friday.
Some of which include:

  • BNL does not have a formal advice that the SML extension application has been denied; and,
  • BNL believed it had a right according to PNG law for SML to be renewed.

2 comments

  • Announcement for Barricks exit was made without considering 3600 plus Barrick employees purely Papua New Guineans including major contractors. Now James Marape assuring employees that to start up the mine as quickly as possible. This is another sweet talk from PMJM just to calm the employees after he has stripped them off from their job and make their families suffer. Porgera is a world class mine and it will need capital to start up the mine as now the government is broke and heavily depend on borrowed money. I dont know how and where the government is going to get the money to start up the mine. We wont be surprised to hear his treasurer go around knocking on the doors of financial institutions around the world for another soft loan to start start up the mine. Prime Minister has blindly made the decision without considering the effects that will affect employees as a result of his stupid decision without having plan B for the employees and the contractors. From my thinking government was just trying to wake up Barrick to honour some of it commitments and not really mean bussiness to take over mine because right now our economy is still bleeding and government does not have capital to start up the mine. I wont be surprised to hear that Prime Minister will advise barrick to operate again and for sure that will happen. Prime Minister is making alot of noise that his noise will never be fulfilled. Therefore he has no choice but to allow Barrick to operate again. This is another sweet talk from PMJM. Retired public servants are still waiting and crying for their final entitlements and PMJM has never attended to their grievances and now very quickly assuring Barrick employees of government will start up mine shortly is another lie and wont happen that fast. In Prime Ministers dream may look easy but practically it is very complicated that will need manpower as well as billions of kina. PMJM try it out and you can see for yourself.

  • The Prime Minister states that he is quite sure Barrick has made a “handsome profit.” He says nothing about Zijin Mining Company, which is an equally as big owner as Barrick. If PNG expels Zijin from the country, Zijin will not have earned any profit. It seems likely the Prime Minister wants the PNG government to have a 20% or 30% ownership share in the mine. If such is the case, please Mr Prime Minister, talk to the leaders of Barrick and Zijin and express your desires. Let’s hope you are willing to pay fair market value for 20% ownership of the mine. If it costs the nation K1 billion or 2 billion go ahead and enter into discussion with the two companies. It is illegal for you to simply expel these two companies after they have done all the hard work of constructing the mine.

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