Operations have undergone a three-year hiatus following the government’s refusal to extend Barrick’s special mining lease.
Alfie Shaw
October 16, 2023
Pieces of gold. Credit: Anukul/shutterstock.com.
Canadian mining company Barrick Gold has been permitted by the Government of Papua New Guinea to restart operations at the Porgera gold mine, which has been out of action for three years.
In April 2020, the Papua New Guinea Government took control of the mine after refusing to extend Barrick’s special mining lease at the facility. Prime Minister James Marape cited environmental concerns with the project that were behind the government’s decision.
On Friday, Barrick announced that New Porgera Ltd was granted a special mining lease by Bob Dadae, the Governor-General of Papua New Guinea. The operation is set to produce 700,000oz per year of gold. Before production was halted, the mine produced 600,000oz of gold in 2019.
Mark Bristow, Barrick’s chief executive and president, said: “It has been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence, but the spirit of partnership they conducted eventually led to an outcome acceptable to all. Barrick’s commitment to partnership with its host countries is also reflected in New Porgera Ltd’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders.”
Barrick owns a 49% stake in the venture and is the mine’s operator, while Papua New Guinea stakeholders own the remaining 51%.
Following the announcement on Friday morning, Barrick’s stock price increased by 4% on the Toronto Stock Exchange by midday.
According to research by GlobalData, Mining Technology’s parent company, Papua New Guinea was the 18th-largest gold producer in the world in 2022. The compound annual growth rate of the sector is expected to rise by 11% between 2022 and 2026.
Canadian mining company Barrick Gold has been permitted by the Government of Papua New Guinea to restart operations at the Porgera gold mine, which has been out of action for three years.
In April 2020, the Papua New Guinea Government took control of the mine after refusing to extend Barrick’s special mining lease at the facility. Prime Minister James Marape cited environmental concerns with the project that were behind the government’s decision.
On Friday, Barrick announced that New Porgera Ltd was granted a special mining lease by Bob Dadae, the Governor-General of Papua New Guinea. The operation is set to produce 700,000oz per year of gold. Before production was halted, the mine produced 600,000oz of gold in 2019.
Mark Bristow, Barrick’s chief executive and president, said: “It has been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence, but the spirit of partnership they conducted eventually led to an outcome acceptable to all. Barrick’s commitment to partnership with its host countries is also reflected in New Porgera Ltd’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders.”
Barrick owns a 49% stake in the venture and is the mine’s operator, while Papua New Guinea stakeholders own the remaining 51%.
Following the announcement on Friday morning, Barrick’s stock price increased by 4% on the Toronto Stock Exchange by midday.
According to research by GlobalData, Mining Technology’s parent company, Papua New Guinea was the 18th-largest gold producer in the world in 2022. The compound annual growth rate of the sector is expected to rise by 11% between 2022 and 2026.
Special Mining Lease Signals Porgera Restart
Barrick Gold Corporation
Fri, October 13, 2023
Barrick Gold Corporation
PORT MORESBY, Papua New Guinea, Oct. 13, 2023 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) – Governor General Sir Bob Dabae today granted a special mining lease to New Porgera Limited (NPL), clearing the way for Barrick Gold Corporation to restart production at the gold mine, which has been on care and maintenance for three years.1
This follows the signing of a mining development contract and the conclusion of a fiscal stability agreement for New Porgera between the government and NPL. NPL will meet the mine property’s landowners in the coming week to settle compensation agreements.
Barrick president and chief executive Mark Bristow said subject to agreement on compensation, the mine was positioned to restart before the end of this year. Recruitment was being accelerated to employ the full workforce that will be required when the mine starts ramping up operations as soon as the compensation agreements are in place.
“It’s been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence but the spirit of partnership in which they were conducted eventually led to an outcome acceptable to all. Barrick’s commitment to partnership with its host countries is also reflected in NPL’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders,” he said.
Enquiries:
Website: www.barrick.com
Endnote
Porgera was placed on temporary care and maintenance on April 25, 2020 and remains excluded from our 2023 guidance. We expect to update our guidance to include Porgera following both the execution of definitive agreements to implement the Commencement Agreement and the finalization of a timeline for the resumption of full mine operations.
Barrick Gold Corporation
Fri, October 13, 2023
Barrick Gold Corporation
PORT MORESBY, Papua New Guinea, Oct. 13, 2023 (GLOBE NEWSWIRE) -- Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) – Governor General Sir Bob Dabae today granted a special mining lease to New Porgera Limited (NPL), clearing the way for Barrick Gold Corporation to restart production at the gold mine, which has been on care and maintenance for three years.1
This follows the signing of a mining development contract and the conclusion of a fiscal stability agreement for New Porgera between the government and NPL. NPL will meet the mine property’s landowners in the coming week to settle compensation agreements.
Barrick president and chief executive Mark Bristow said subject to agreement on compensation, the mine was positioned to restart before the end of this year. Recruitment was being accelerated to employ the full workforce that will be required when the mine starts ramping up operations as soon as the compensation agreements are in place.
“It’s been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence but the spirit of partnership in which they were conducted eventually led to an outcome acceptable to all. Barrick’s commitment to partnership with its host countries is also reflected in NPL’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders,” he said.
Enquiries:
Website: www.barrick.com
Endnote
Porgera was placed on temporary care and maintenance on April 25, 2020 and remains excluded from our 2023 guidance. We expect to update our guidance to include Porgera following both the execution of definitive agreements to implement the Commencement Agreement and the finalization of a timeline for the resumption of full mine operations.
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