Plans for new company

Business

A NEW company will be incorporated as soon as the shareholders’ agreement on the new Porgera mine is signed by the Mineral Resources Enga (MRE), an official says.
Kumul Mineral Holdings Ltd (KMHL) managing director Dr John Kuwimb said: “The moment they sign it, we will move to the next stage (which is) the incorporation of the new Porgera company.
“The company will have eight directors – four from Barrick Niugini Ltd and four from PNG.
“The next agreement is the Mining Development Contract, after which we can have the development forum.
“The operatorship agreement is a private commercial arrangement between Barrick as the operator of the mine, and the new Porgera project company as the owner of the mining lease.
“The mining lease-holder is like the owner of a land title.”
Kuwimb gave the example of an agreement between a landowner and a carpenter told to build a house on the land.
He said in that case, the carpenter does not own the land. He only builds the house on it.
“We call it operatorship, because Barrick will operate the mine,” he said. “The project company holds the special mining licence, and Barrick has the knowledge and skills to operate the mine.
“The landowners want the mine to re-open as soon as possible.
“They have been telling us (that) for a long time.
“What we are concerned about now is the care and maintenance cost that Barrick is paying at the moment to keep the mine in a maintainable form.”

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