Namah: Deal favours Barrick

OPPOSITION Leader Belden Namah says Prime Minister James Marape’s Porgera mine deal has ceded everything to Barrick and its Chinese partner Zijin Mining Group and left Papua New Guinea an empty promise on paper.Namah said since the signing of the framework agreement last month, Marape had given the nation only percentage figures and vague notions, no real facts.“At Porgera, we finally realised that there is nothing in this new deal for which PNG has closed an operating mine and forgone billions in revenue and benefits,” he said.“In the end, the same miner remains on terms that are far superior than previously where it can now keep almost all the revenue from the mine for the next 10 years.“The reasons Barrick was rejected were outstanding environmental landowner relocation, outstanding taxation and humanitarian issues.“The landowners, Mineral Resources Enga, Kumul Minerals, and the Enga government will not receive any dividends over the 10 years that Barrick has agreed to operate the mine except for taxes and royalties.“The agreement states that legacy issues are in the ‘old Porgera basket’. “What does that mean? “Why has Marape allowed this when it was legacy issues that he used to refuse renewal of the Special Mining Lease in the first place?“Will the old Porgera legacy issues be transferred to the new Porgera deal? This was critical and central to the entire shutdown which has cost the nation, provincial government, landowners, contractors and employees.“How will State and Barrick compensate for the legacy issues? “Who is paying for PNG’s 51 per cent equity? “Where is the money coming from? “If it is a loan, what is the source and what are the terms for this loan?“If Kumul’s 36 per cent to be paid for by Barrick and recouped over the next 10 years, there can be no dividends paid to Kumul and the State and then where does Kumul find money to buy 100 per cent of the mine when it is due in 10 years as per the Marape deal?“KMHL will not receive any cash flow until 2031. “Barrick will take home almost all dividends for the next 10 years in addition to hefty management fees and equal representation on the board.”