Barrick President and Chief Executive Mark Bristow, along with Zijin Executive Director and Senior Vice President George Fang, met today with Papua New Guinea’s new Prime Minister James Marape and reaffirmed the company’s commitment to working with the PNG government and local communities to ensure that the Porgera gold mine continues to deliver value to its stakeholders past the expiry of the current Special Mining Lease on August 16, 2019.
While in the country, Bristow also held meetings with Enga Governor Sir Peter Ipatas, Porgera landowners, and other stakeholders.
Since pouring its first gold in 1990, Porgera has paid more than Kina 3.6 billion ($1.1 billion) in taxes and Kina 1 billion ($297 million) plus Kina 600 million ($178 million) in equity cash payments and royalties respectively to the provincial government and customary landowners. This represents a significant contribution to the country’s economy, as well as a substantial amount to the landowners on whose properties the mine is located. An application to extend Porgera’s special mining lease for a further 20 years is currently in progress.
Bristow said Porgera was an important long-term asset for PNG as well as the mine’s owners, Barrick Gold Corporation and Zijin Mining Group.
“The proposed extension to its lease will allow the mine to remain productive for at least another 20 years. To sustain mine operations, however, it will require a significant capital injection, and it is difficult to justify that kind of investment without the security of an extended mine lease,” he said.
“Barrick believes in true partnership with our host countries, sharing both the responsibilities and the benefits that come with mining. We are engaging with the government to breathe new life into our long-standing partnership, so that Porgera continues to deliver value to all its stakeholders. In our meeting with the Porgera landowners, we invited our stakeholders to join us in continuing to improve the quality of life, security and welfare in the Porgera valley.”
Porgera is a joint venture between Barrick and the Zijin Mining Group, which each owns 47.5% with the remaining 5% interest being held by Mineral Resources Enga (owned equally by Porgera Special Mining Lease Landowners and the Enga Provincial Government). The mine is operated by Barrick (Niugini) Limited.
About the Porgera JV
The Porgera gold mine is in the Enga Province of
Papua New Guinea at an altitude of 2,200 – 2,700m. It is 130km west of
Mt. Hagen and 600km northwest of the capital Port Moresby. Porgera
employs over 3,300 Papua New Guineans of which 1,900 are from Porgera
and nearby Enga. Over the life of mine it has produced more than 20Moz
of gold and contributed approximately 10% of Papua New Guinea’s total
annual exports. Since inception, the mine has distributed K1 billion
($297.2 million) to landowners and the provincial government, has spent
K4.9 billion ($1.4 billion) on contracts with PNG businesses, of which
K1.2 billion ($356 million) on businesses in Porgera, and K480 million
($142 million) on schools, health facilities, water, electricity, roads,
and community programs.
About Barrick
On January 1, 2019, a new Barrick was born as a
result of the merger between Barrick Gold Corporation and Randgold
Resources Limited. Shares in the new company trade on NYSE (GOLD) and
TSX (ABX).
The merger has created a sector-leading gold company which owns five of the industry’s Top 10 Tier One gold assets Cortez and Goldstrike in Nevada, in the United States (100%); Kibali in the Democratic Republic of the Congo (45%); Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in the Dominican Republic (60%) and two with the potential to become the gold assets of the first level: Goldrush / Fourmile (100%) and Turquoise Ridge (75%), both in the United States. With mining operations and projects in 15 countries, including Argentina, Australia, Canada, Chile, the Ivory Coast, the Democratic Republic of the Congo, the Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia, Senegal, the United States and Zambia, Barrick has the lowest total cash cost position among its senior gold peers and a diversified asset portfolio positioned for growth in many of the world’s most prolific gold districts.
