Mine nearing reopening

By PETER ESILA
NEW Porgera Limited (NPL) has applied for a special mining lease (SML) and supporting tenements for the Porgera Gold Mine in Enga, a step closer towards reopening, says director Dr Ila Temu.
Temu, who is also the Kumul Minerals Holdings Limited chairman, delivered the application papers to the Mineral Resources Authority (MRA) in Port Moresby yesterday along with the receipt of the application fee of K650,000.
He said subject to regulatory process, the application would allow the Mining Minister to start the development forum.
Prime Minister James Marape said in Parliament yesterday that about 2,000 workers were ready for work while Mining Minister Sir Ano Pala tasked the MRA to speed up with process for reopening within the next three months.
Temu said the lodgment of SML application was an important milestone for the reopening of the mine.
He said the three months reopening date “is the optimistic side, we are looking at probably more at the end of the year as well.”
“This lodgment follows the approval and registration of the transfer of exploration licence 454 and SML 11 to NPL and the subsequent surrender of SML 11 and all ancillary tenements by NPL.
“The application will now be subject to normal regulatory assessment process which will include the Mining Minister convening a development forum in accordance with the requirements of the Mining Act to canvas the views of stakeholders.
“NPL will work cooperatively with the MRA and other State agencies to enable them to complete the regulatory assessment process as soon as possible.”
Barrick Gold president and chief executive officer Dr Mark Bristow said the lodgment of the SML application was a big step forward on BNL’s journey with the State to reopen the mine as true partners.
“The parties are now focused on satisfying the remaining conditions under the New Porgera Commencement Agreement. In parallel, and in our role as operator of New Porgera, BNL is undertaking certain preparatory work on the processing plant with the support of the MRA and is building a committed team, the majority of whom will be Papua New Guineans. We are moving even closer to enabling the people of Porgera Valley to finally see the ‘white smoke’ they have been waiting for,” Bristow said.
NPL is a company owned jointly by Kumul Mineral Holdings Limited (which holds the equity on behalf of the State), BNL and Mineral Resources Enga Ltd, with a further 10 per cent of the equity reserved for PNG stakeholders.
Over the life of mine, PNG shareholders will receive 53 per cent of Porgera’s overall economic benefits. BNL will receive the remaining 47 per cent. The proportion of equity and economic benefits that belong to the landowners is a first in PNG’s agreements with international investors.