New Porgera mine deal will cost billions in next few years, Namah claims

OPPOSITION Leader Belden Namah claims the Government’s new deal for the Porgera mine will cost the country billions of kina over the next 10 years.
“Prime Minister James Marape’s new Porgera deal will come unstuck soon or cost Papua New Guinea billions of kina over the next 10 years,” he said in a statement.
“Parts of the Framework Agreement concluded in April show that PNG is about to be duped into paying for extra equity in the new deal and for reopening of the mine with its own tax money owed by Barrick Niugini.
“Now that the deal is beginning to unravel, it reveals how shoddy and dangerous the whole deal really is.
“I am told the State is owed K1.2 billion in tax by Barrick.
“The restart of Porgera, including the cost of the State, Mineral Resources Enga and landowners’ increased equity participation, has been put at roughly that amount.
“It would appear Barrick has arranged it in the Framework Agreement so that PNG funds the extra equity and the restart of the mine with the tax owed to it.
“We have been made a laughing stock of the international community.” Marape had told landowners at Paiam, Enga, last month that the state would not contribute any cash upfront to restart the Porgera mine.
“The State will contribute no cash upfront to restart as the 36 per cent equity cash call will be raised by Barrick with zero per cent or no interest charge (so this means Kumul Mineral Holdings (KMHL) or the State will not borrow,” Marape said. Barrick Niugini Ltd (BNL) president and chief executive officer Mark Bristow earlier said the cost of restarting the Porgera mine was around US$300 million (K1.052 billion).
He had said care and maintenance of the mine alone had cost BNL US$120 million (K421 million) and an additional US$180 million was needed to restart mining operations at Porgera.