Porgera to operate, awaits ruling on lease

THE National Court has ruled to allow the Porgera gold mine in Enga to continue operating while the application to extend its special mining lease is being considered.
Barrick Gold Corporation president and chief executive officer Mark Bristow said the provisions of Papua New Guinea’s Mining Act 1992 was applied.
He said the 1992 Mining Act gave them the right to operate while the government considered the application for a 20-year extension by its operator, Barrick Niugini Ltd (BNL), a joint venture between Barrick and China’s Zijin Mining Group.
“It’s particularly an applicable thing because this government has had a very short time to catch up with the application which was delayed,” Bristowsaid.
“So it doesn’t give us much comfort but it is a responsible thing that the 1992 (Mining) Act provides and it effectively gives us the responsibility to continue to mine.”
He said the ruling also confirmed that Porgera operated under the Mining Act 1992 and was entitled to seek an extension. The mine’s current mining lease expires on Aug 16. Bristow said Barrick Gold Corporation and Zijin Mining Company through BNL had applied for a renewal of the special mining lease in 2017.
“It hasn’t been dealt with by the government and in fact we have made all progress since the current prime minister’s elected than we made in the last two years,” he said.
“So we celebrate that process.”
Bristow and Zijin executive director and senior vice-president George Fang welcomed the court’s ruling as it allowed for the continuation of their operations at Porgera post Aug 16, which would enable the mine to continue delivering substantial benefits to communities and landowners in the Porgera valley, as well as to the national and provincial governments, while the special mining lease extension was finalised.
Bristow’s meeting with Prime Minister James Marape on Friday had confirmed the need for a partnership approach to the future of the Porgera mine.