PNG PM Marape Calls for Urgent Completion of Porgera Mine Community Agreement
Papua New Guinea’s Prime Minister, James Marape, has emphasized the need to swiftly finalize the Community Development Agreement (CDA) for the Porgera gold mine, urging all stakeholders to expedite the process without delay. The CDA represents the final hurdle in restarting operations at the mine, which holds immense potential to deliver economic benefits to local landowners and boost national revenue. With global gold prices soaring to over US$3,400 per ounce—up significantly from US$1,536 during the initial agreement negotiations—Marape stressed that Papua New Guinea must act quickly to ensure its people reap the rewards.
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| PNG PM Marape Calls for Urgent Completion of Porgera Mine Community Agreement |
The Mining Minister, Rainbo Paita, will spearhead efforts to conclude the CDA in coordination with the Enga provincial government, the Mineral Resources Authority (MRA), and affected landowner groups. Once finalized, the agreement promises a substantial increase in benefits for stakeholders, including a tripling of direct returns compared to previous arrangements.
Under the revised framework, landowners and the Enga province will receive a 15 percent equity stake—up from 5 percent—and a royalty rate of 3 percent, an increase from the previous 2 percent, with no deductions applied. Additionally, taxes will be paid upfront, ensuring immediate financial inflows. Marape described the deal as “the most beneficial benefit-sharing agreement we’ve ever secured as a nation.”
To support sustainable development in the region, Papua New Guinea’s government plans to implement several initiatives alongside the CDA. These include the National Identification (NID) registration of all landowners, a zero-tolerance policy toward illegal mining activities, and the rollout of a resettlement plan for displaced communities. Law enforcement infrastructure will also be strengthened, with the construction of a holding facility in Porgera and the development of the Mukumanda Jail. Investments in road networks and law-and-justice services are expected to further enhance regional growth.
Prime Minister Marape commended local landowner factions for their role in resolving longstanding disputes, acknowledging their cooperation as instrumental in advancing the project. He also praised Barrick Gold and its CEO, Mark Bristow, for adhering to the terms of the agreement, which grants Papua New Guinea beneficiaries a 51 percent equity share in the mine’s operations, including the 15 percent allocated to landowners. “Barrick has supported our equity model, and the mine is now producing,” Marape said. “We must finish the final leg.”
Turning to another major initiative, Marape highlighted that the government is awaiting feedback from Harmony Gold and Newmont Corporation on Papua New Guinea’s final position regarding the Wafi-Golpu project. The response is expected to shape the future of this high-profile venture, which could further bolster the nation’s mining sector.
With rising global demand for gold and improved frameworks for resource sharing, Marape expressed optimism about the opportunities ahead for Papua New Guinea. However, he reiterated the importance of timely action from all stakeholders to ensure the nation fully capitalizes on these developments.
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