Porgera gold exports set to boost reserves

AN expected gold export revenue of K1.8 billion from Porgera this year will boost Papua New Guinea’s foreign exchange reserves, the resource developer has announced.
New Porgera Limited (NPL) yesterday said Porgera was progressing well and on track.
It said the first gold production was expected as planned, in the first quarter as long as the Highlands Highway remained open.
Acknowledging the Government’s support, through the Mineral Resources Authority, and the commitment of the Porgera workforce, general manager Chad Coulin (pictured) said: “Following completion under the Porgera Project Commencement Agreement (PPCA) on Dec 22, the NPL team has stepped up and delivered outstandingly to get back into full production in the third quarter.
“The critical path to full production is re-standing or replacing relevant towers along the Hides transmission line.”
Coulin explained that about K2.7 billion would cover operations cost alone this year – K1.6 billion for direct operating costs (including K613 million that would be capitalised prior to restart) and K1.1 billion for capital.
He said law and order would continue to be a challenge and called on all stakeholders to support the restart operations by contributing to peace in the valley with no further vandalism of critical infrastructure.
Expenditure on PNG sourced goods and services would cost more than K600 million this year.
Furthermore, Coulin said more than 3,000 Papua New Guineans would be employed by year end with a payroll of K150 million. Royalties, which will be paid to landowners and the Enga government, and a 0.5 per cent production levy to Mineral Resources Authority will amount to K63.4 million.
Withholding taxes and custom duties payable to the Government this year were estimated at K28.2 million.
Coulin said NPL had started settling the K4.6 million in outstanding compensation fees for the period that Porgera was in “care and maintenance”. Shortly, it would commence negotiation of the long-term compensation agreements with landholder agents.
The sharing and division of project benefits such as equity and royalties among stakeholders will be agreed at a Government-managed development forum. This would be contained in a Porgera Project Community Development Agreement with NPL as a party.