Parties resolving ‘few hurdles’

By DALE LUMA
THE Porgera mine will restart operation after the Barrick Niugini Ltd (BNL) and the Kumul Mineral Holdings Ltd (KMHL) have finalised important agreements, according to the Mineral Resources Authority.
Managing director Jerry Garry said they included the commencement agreement, shareholders agreement and the mining development contract.
He said only then could the BNL be recognised as the core tenement holder in the (Special Mining Lease) SML 11 which would be registered with the authority and approved by the mining minister.
“At this stage, they don’t have any right at all,” Garry told The National.
He said the State and BNL were trying to resolve “a few hurdles”.
“Under the framework agreement, they have four or five other agreements they have to execute which are still pending,” he said.
“As far as the MRA is concerned, we are waiting on the shareholders agreement between Kumul and Barrick.”
The MRA was also trying to get from the KMHL and the landowners the consent to defer the compensation agreement – a mandatory requirement before they begin operations.
“That is a critical document that must be tendered to MRA so it’s officially recorded,” he said.
There are also the commencement agreement and the transfer of the environmental permit from the “old Barrick to the new joint venture company”.
“Once that is done, the mining advisory committee will be happy to give the green light for the mine to commence.”
A development forum will also be held once these agreements are concluded.
“SML 11 is sound. We have followed all the protocols under the laws to grant SML 11 to KMHL,” Garry said.
“It is valid and is the official licence which is on record.”