Production at Porgera mine in Papua New Guinea to resume
Production works is set to resume at the Porgera mine in Papua New Guinea (PNG). Barrick Gold Corporation made the announcement and said the resumption follows reaching a new ownership structure and satisfying the conditions of the Porgera Project Commencement Agreement.
The new ownership structure, with 51% owned by PNG stakeholders and 49% by Barrick Niugini Limited (BNL), is a significant shift that gives local stakeholders a majority interest in the mine. This change aligns with Barrick’s host-country partnership model, which the company has found successful in other regions such as Tanzania. The partnership model involves securing the support and collaboration of all stakeholders, including local communities and governments.
Benefits
Operations of the mine has been scheduled to resume later this month and is expected to start pouring gold again in 1Q24. The reopening of the Porgera mine is seen as a victory and a major contributor to Papua New Guinea’s economy. The distribution of economic benefits, with PNG stakeholders receiving 53% of the overall benefits, reflects an effort to ensure that the local communities and the government benefit from the resource extraction.
Prime Minister James Marape’s positive response at the PNG Resources & Energy Investment Conference indicates the importance of the revival of the Porgera mine to the country’s economic growth. It’s also highlighted that the partnership structure gives PNG stakeholders a majority interest in a key resource, marking a notable development in the management and ownership of mining projects in the region.
