Parties agree to transfer Hides gas power station to NPL

THE New Porgera Limited (NPL) has clarified that under the Porgera Project Commencement Agreement (PPCA) the parties of the previous Porgera Joint Venture agreed to transfer the Hides gas power station to NPL.
The PPCA gives ownership of the Hela-based power station to NPL which is majority (51 per cent) owned by PNG shareholders.
“NPL also owns the high-power transmission line that runs on a mining easement from Hides to the Porgera mine,” the company said in a statement.
“Barrick Niugini Limited (BNL) has been appointed by NPL to operate the mine, including the power station and associated infrastructure.”
At the request of the State, BNL subsequently agreed to support the State’s proposal that the Hides power station (which sits on a state land lease) be transitioned to be owned entirely by PNG stakeholders within 12 months, following the first full month of production from the mine.
“BNL’s support is subject to several conditions, namely that BNL should continue to operate the power station and associated infrastructure and, importantly, that Porgera mine would have first priority for electricity generated by the power station,” it said.
“After the transfer of the power station, NPL will remain the owner of the transmission line.”
NPL stressed that the transfer of full ownership was dependent on PNG stakeholders agreeing to ownership arrangements among themselves.
“It is critically important that the new ownership arrangements for the Hides power station ensure that the power plant landowners and transmission line owners in both Hela and Enga provinces are all incentivised to guarantee the uninterrupted supply of power to the mine,” it said.
BNL, as operator, is working to return Porgera mine back to full production as soon as possible.
This is expected in the third quarter of this year, and is dependent on the continued uninterrupted supply of electricity from the Hides power station.