Mine reopening is beneficial

AFTER several false starts and raising false hope, the long-awaited reopening of the Porgera gold mine in Papua New Guinea’s Enga happened quietly last Friday.
Prior to the soft reopening 17 high voltage pylons carrying power from the gas power plant in Hides to the mine were felled by disgruntled landowners over non-compensation.
Then followed with water cuts into the mine site and host of problem waiting in the legacy bag including human right abuses, environmental damages.
Let alone the legacy tax issues in billions of Kina forgiven and forgone. The best sweet heart deal by any Government.
In a nutshell shutting down an operating mine for five years to negotiate a deal that works entirely – lock, stock and barrel for the operator- Barrick, beats elementary logic.
Marape said it “has been a long road we have travelled to the reopening of Porgera mine, but it has been worth the effort.”
Perhaps it would have been more proper for Marape to say, a long winding road resending down into the abyss of poor choices.
For the simple fact that with the New Porgera Arrangement, Barrick has full control over the mine cash flows for the next 10 plus years while PNG Government and landowners can wait and expect windfalls (subject to cash flow availability/ prioritisation).
Barrick will keep all the benefit from now till 2034.
The present value of cash flows from the Porgera mine over its life is only known to the State Negotiating Team members.
Very risky approach in taking a 10-year estimate.
On the outset let us just commend the Marape-led Government for finally giving thousands of Papua New Guineans the opportunity to work in what is soon to become a world class gold mine and also the spinoff opportunities contained therein in the service and supply of the mine.
Recruitment are now accelerated to employ the full workforce that will be required when the mine starts ramping up operations expected in the new year.

David Lepi