PNG Government, Barrick Niugini sign Agreement to reopen Porgera Mine

Papua New Guinea (PNG)  and Barrick Niugini Limited have signed the Porgera Project Commencement Agreement, in a crucial step towards the restart of mining operations at Porgera.

The agreement was signed at Government House  in Port Moresby  on Friday 15th October 2021 by the country's Governor-General Sir Bob Dadae, Barrick Gold President and CEO Mark Bristow, and PNG Minister of Mining Johnson Tuke.

PNG Government, Barrick Niugini sign Agreement to reopen Porgera Mine 

The agreement formalizes the terms of the commercial and financial arrangements in the Framework Agreement signed in April. 

Under the terms, PNG stakeholders and Barrick will share the economic benefits on a 53 – 47 % basis, and Barrick will finance the capital required to restart the mine.

An increase in equity will also be allocated to the customary owners of the land where Porgera is located, and the State will retain the right to acquire the remaining 49 % of the mine from Barrick at fair market value after 10 years. 

Prime Minister James Marape says other agreements – such as the Shareholders Agreement, Operatorship Agreement, and the Mine Development Contract remain to be finalized.

He says the Commencement Agreement provides a framework for their negotiation and will help accelerate progress on the remaining steps so that Porgera can be reopened.

Meanwhile, Dr Bristow has called on all parties to the negotiations to redouble their efforts and conclude the remaining agreements as soon as possible.

Next : Semoso Wants another Bank Established on Bougainville