At last, Porgera Gold Mine to reopen

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At last, Porgera Gold Mine to reopen

PORT MORESBY: The reopening of the multi-billion-kina Porgera Gold Mine in Enga will now move ahead following the signing of the long-awaited shareholders agreement and security deed by the Mineral Resources Enga yesterday (Aug 18, 2022).

According to the mine developer, Barrick Niugini Limited (BNL), the agreement was the only delay holding up the reopening of mine operations since April.

The mine has been closed since April 2020 following the Government’s decision not to renew BNL’s special mining lease.

The news break was published by The National:

Shareholders’ agreement signed, Porgera set to reopen

August 19, 2022The NationalBusiness

THE Porgera gold mine in Enga will now be reopened following the signing of the shareholders’ agreement and security deed by Mineral Resources Enga (MRE) in Port Moresby yesterday.
According to developer Barrick Niugini Ltd(BNL), the agreement had been the only delay holding up the restart of mine operations since April.
The miner and Kumul Minerals Holdings Ltd (KMHL) signed the shareholders’ agreement in April but MRE finally signed yesterday.
Chief executive officer Mark Bristow had said once the shareholders’ agreement and other associated agreements were signed, BNL would commence with incorporation of the new project company – New Porgera Ltd.
Bristow had added that they would also submit an application to the Mineral Resources Authority (MRA) for a new Special Mining Lease (SML).
Prime Minister James Marape said the long overdue opening of the mine was finally in sight since its closure in 2019.
Enga governor and MRE director Sir Peter Ipatas flanked by fellow director Nixon Mangape and Porgera-Paiela MP Maso Karipe with others, said the resettlement of the special mining lease (SML) and the lease for mining purposes (LMP) landowners needed to be addressed by the Government.
“It has taken us a long time to actually come to signing the document because if you see the PPCA (project commencement agreement), there was an allocation of the free carry but not specified. We insisted that it be written down on paper so that everyone in the Porgera valley and the country know what the split is in terms of equity that has been agreed to.
“The next key issue is resettlement, we can’t have our people continue to live in the SML area, because they are living in the SML area, the illegal miners are also being accommodated.
“Now that there is provision in the agreement for resettlement, we have signed off, but we want to also take it up to the State to ensure that resettlement does take place quickly, for 30 years there has been no relocation, very little resettlement, this time we want to see real resettlement,” he said.
He said when they went to the development forum all those issues would be brought up but an initial letter from MRE would be going to the prime minister to address those issues.

MRE wants 40pc stake

August 19, 2022The NationalBusiness

By PETER ESILA
MINERAL Resources Enga (MRE) wants a 40 per cent share in the Porgera gold mine, an official says.
MRE director Nixon Mangape said in Port Moresby yesterday in relation to the development forum for the new Porgera mine after they signed the shareholders agreement.
“During the development forum, we will ask the prime minister to increase (our stake) from 15 per cent to 40 per cent.”
Barrick Niugini Ltd owns 49 per cent share of the Porgera while Kumul Minerals Holdings Ltd(36 per cent) and MRE (15 per cent).
He said MRE would ask Prime Minister James Marape to increase their share in the project by 25 per cent to 40 per cent which would lessen the State’s share to 11 per cent.
“On behalf of 10,000-plus SML (special mining lease) landowners, and the people of Porgera and Enga, I thank Prime Minister James Marape on taking back Porgera.
“We have been spectators on our own land for 30 years,” he said. Mangape said of the 15 per cent, five per cent was for the Enga provincial government, 7.5 per cent for SML landowners and 2.5 per cent for LMP (lease for mining purpose) landowners.
He also appealed to landowners to stop fighting in the valley and prepare for the reopening of the new Porgera mine.

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