Porgera to restart Dec 22

THE New Porgera Mine is expected to restart operations on Dec 22, three days before Christmas.
New Porgera Limited (NPL) announced that all legal and contractual conditions necessary for the reopening of the gold mine had been met, and the mine was set to resume at the earliest possible date.
The Porgera mine was shut down in 2019 amidst the global Coronavirus (Covid-19) pandemic and after the Government initially declined to renew its licence until a new deal with improved benefits could be reached.
After negotiations which took place over the last four years, mine operator Barrick Niugini Limited agreed to a 53 per cent to 47 per cent split to the State and Barrick shareholders respectively.
With the ramp up of operations, first gold is expected to be processed in the first quarter of 2024.
New Porgera Limited will be managed by Barrick (Niugini) Limited and is expected to employ more than 2,300 people by June 2024 and over 3,000 by the end of the year.
Prime Minister James Marape, noted during his keynote address at the 17th Papua New Guinea Resources and Energy conference in Sydney, Australia, yesterday that the long road to Porgera’s reopening had reached the finish line.
“The result is an unprecedented partnership between PNG and two leading global mining companies, Barrick Gold Corporation (Barrick) and Zijin Mining, which for the first time gives majority ownership in a major resource project to Papua New Guinean shareholders,” he said.
“New Porgera will deliver unprecedented benefits to the people of PNG,” he said.
“Over the 20-year life of mine, PNG shareholders – comprised of Porgera landowners, Enga and the State – will receive 53 per cent of Porgera’s overall economic benefits. “The investors will share the remaining 47 per cent,” Marape said.
Furthermore, PNG shareholders can expect to receive nearly US$7.3 billion (about K27.6 billion) over 20 years and US$2.8 billion (about K10.6 billion) in the first 10 years, that is at an assumed gold price of US$1,800 (about K6,720.38) per ounce.
Meanwhile, Enga Governor Sir Peter Ipatas said that the landowners and the whole province were looking forward to the reopening of the mine.
He added that the state negation team (SNT) needed to immediately organise signing of the amended Porgera Project Commencement Agreement (PPCA) before Dec 22.
SNT chairman Dairi Vele recently said that the State and the shareholders of the New Porgera were holding back the signing due to the passing of Porgera-Paiela MP Maso Karipe.
Also yesterday, Prime Minister Marape assured the 1,500-odd audience at the Sydney conference that the special mining lease (SML) and mine development contract (MDC) for Porgera had been granted.
He said the Government, through its state negotiating team, was working closely with other partners and project stakeholders on resolving outstanding matters such as the landowners’ compensation agreement.
In his address, Marape also provided an update on the progress of five major resource projects in the country, including Papua LNG, Porgera mine, Pasca LNG, P’nyang LNG, and the Wafi-Golpu mine.

• PAPUA LNG: Developer Total would provide an update at the conference, with the final investment decision (FID) expected next year.
• PASCA: Progress is dependent on developer Twinza, Mineral Resources Development Company (MRDC), and the state negotiating team reaching a consensus.
• P’NYANG: Construction work would start immediately after Papua LNG starts production, with synchronisation planned between the two projects.
• WAFI-GOLPU: Nearing completion, pending resolution of a landowner court case, expected to be resolved this month.

He also hinted at ExxonMobil’s announcement of a major gas find, which would provide a significant boost to the country’s economy.