Talks in line with principles: Firm

BARRICK Gold Corporation says discussion between the company and the Government is in line with principles announced last October, providing for a joint venture between Barrick Niugini Ltd (BNL) and the State to operate Porgera going forward.
The company said in a media release on Monday that this was on the basis of increased PNG ownership and a fair sharing of economic benefits.
The company was reacting to a recent statement by Prime Minister James Marape announcing that the Government was poised to sign an agreement with Barrick Gold for reopening of the mine, 12 months after its closure over rejection of renewing the mining lease by the State.
“Barrick Gold Corporation notes the statement released by Prime Minister James Marape announcing an imminent agreement to reopen Porgera mine,” Barrick said in its statement.
“Barrick and the Government have continued to hold constructive discussions on a framework agreement for the recommissioning of Porgera, which has been on care and maintenance since April 2020. The agreement under discussion is in line with the principles announced in October, providing for a joint venture between Barrick Niugini Ltd and the Government to operate Porgera going forward on the basis of increased PNG ownership and a fair sharing of economic benefits.
“BNL would continue as the operator of the mine.
“We remain hopeful that we will reach agreement with the PNG Government on a long-term partnership that will see the reopening of Porgera in the near future.”
Marape said State-owned Kumul Minerals Holdings, which was granted the special mining lease (SML) over Porgera, could have started operating the mine but was unable to do so because of the court cases Barrick had filed which was delaying the reopening and had, therefore, caused the Government to enter into these negotiations.
“We realised that these court cases could have dragged on for years, so we have reached out for a possible commercial negotiation with Barrick,” he said.
“We are almost at the point of signing an agreement with Barrick.
“Let me assure my landowners: there is more for you.
“Let me assure Enga: there is more for you.
“Let me assure PNG: we are restarting Porgera to a better deal for all of us, with better project economics for the county.
“Barrick has agreed with us on an exit option in the new Porgera agreement 10 years from now.”
The Porgera joint venture is an open pit and underground gold mine located in the Enga.
BNL is a joint venture company in which Barrick and Zijin Mining group – each owns 50 per cent.