Mine’s closure draws bad outlook from investors

INSTITUTE of National Affairs (INA) executive director Paul Barker says the closure of the multi-billion-kina Porgera gold mine in Enga in 2020 inflicted significant negative perception on investors.
“If a major existing operation, providing major revenue and jobs, could be closed for an extended period, then who would take the risk of committing major capital or loans to risky new projects in Papua New Guinea?” he said.
“Landowners of the mine and the State have recently inked a deal which paved the way for the reopening of the mine.
“It (closure) severely undermined jobs and revenue, at a time when gold was scarce and prices were high.
“The closure also set back PNG’s economy and major new investment by some years, although positive engagement over Porgera and various other resource projects had encouraged a more favourable outlook again.
“However, it still leaves extensive uncertainty and a lot of work to address at a time when global markets are in some state of disruption, albeit generally much stronger than in the 2020.”
The mine closed in April 2020 when the Government refused to renew the special mining lease held by Barrick Niugini Ltd (BNL).
Earlier this month, Mineral Resources Enga (MRE) signed the Porgera project continuation agreement with the Government in Port Moresby.
MRE, which the Porgera Landowners and the Enga government own, carried five per cent shares of the old Porgera mine.
Prime Minister James Marape said, last year, that the State had a tentative time to reopen the mine in April and that work involved were in progress.