Barrick CEO Mark Bristow
The 700 000 oz/y Porgera gold mine, in Papua New Guinea, is poised to restart before the end of the year, Barrick president and CEO Mark Bristow affirmed on Friday.
“It’s been a long road, but the end is now in sight,” he said in a statement, announcing the granting of a special mining lease to New Porgera Limited (NPL).
The special mining lease 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.
Bristow said 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.
“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.
Papua New Guinea stakeholders own 51% of NPL with Barrick Niugini, which will operate the mine, holding 49%.
Economic benefits will be shared 53% by the Papua New Guinea stakeholders and 47% by Barrick Niugini.