Porgera mine set to open

By NATHAN WOTI
THE final process towards the reopening of Porgera Mine was signed off between the Government and New Porgera Mine Limited on Friday.
The parties signed the Special Mining Lease 13, the Mine Development contract, the fiscal Stability Agreement, and the Special Escrow Facility Agreement.
Prime Minister James Marape has hailed the signing as a “giant leap” towards the reopening of the Porgera gold mine in Enga.
Operated by New Porgera Ltd, a company with a 51 percent ownership by Papua New Guinea stakeholders and 49 percent by Barrick, the signing event took place at Government House, witnessed by Governor-General Sir Bob Dadae, Prime Minister Marape, Barrick Gold Corporation President and chief Mark Bristow, company representatives, Enga Governor Sir Peter Ipatas, Ministers and MPs, Porgera landowner representatives, members of the State Negotiating Team, and others.
PM Marape said: “The mine is expected to commence operations before the end of the year, with full production anticipated within six months, contingent upon the finalisation of compensation agreements for landowners.”
The New Porgera Mine conditions agreed by both the state and the mine developer Barrick New Guinea Ltd were:

• STATE and its stakeholder to acquire 51 per cent; which include landowners (10 per cent);
• ENGA Government (5 per cent)
• BARRICK New Guinea Limited and stakeholder 49 per cent

Marape said this was one of the best deals the State has pulled off and congratulated the State Negotiation Team led by Chairman Dairi Vele.
“This is a moment the country had been waiting for the last three years since negotiations began back in April 24, 2020,” he said.
Regarding crucial issues such as the resettlement of Porgera landowners, Prime Minister Marape expressed his gratitude, saying, “We thank everyone for their patience and support.
“We believe that what has been secured under SML 13 is in the best interests of everyone, and we look forward to the next 20 years.
“It is my view, and the Enga Governor’s view, that this arrangement will lift the living standards of Porgera Valley landowners, Enga Province landowners, and Papua New Guineans.”
Bristow, president and CEO of Barrick Gold Corporation, described the day as “special,” with the signing of SML 13 occurring on Friday the 13th.
“It’s a milestone.
“We have an exciting voyage ahead of us.
The important thing, as the Prime Minister said, is that it’s a real partnership.
“We’ve worked hard to get here, and it’s important now to finish the last step, and that is the compensation arrangements for all the landowners.
“We want to get that out of the way as quickly as possible.
“We believe that we can do that with the help of everyone.”
Marape said: “Today signing of four key instruments in the SML 13, the wide deployment contract, fiscal stability agreement as well as special escrow facility signed contract or agreement signed today to keep the 10 per cent landowner benefits.
“All important documents that all parties at the table were able to agree upon and we can, as the head of state, witness this very important signing also.
“This is now a big step towards reopening a Porgera and I want to firstly and foremost appreciate (Barrick New Guinea Ltd Chief Executive Officer) Mark Bristow and his team, from since the SML One was not renewed in April 2020, the mine and the asset we have up there have been in care and maintenance up till today.
Care and maintenance is no easy task. Expenditures in millions of kina have been spent,” Marape said.
Meanwhile, Barrick CEO Mark Bristow said the first order of business before the people of Porgera could see the “white smoke” was the new compensation agreement with the project landowners.
“We want to get that out of the way as quickly as possible, and we believe we can do that with the help of everyone,” he said.