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Barrick to challenge grant of Porgera lease to State firm

28th August 2020

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Canadian miner Barrick said on Friday it would challenge the Papua New Guinea government’s purported grant of a special mining lease (SML) at Porgera to a State-owned company.

The Marape government purportedly granted Kumul Minerals SML 11 at Porgera for a period of 20 years. SML 11 covers 2 135 ha of land at Porgera.

But Barrick Niugini Limited (BNL), a joint venture between Barrick and Zijin Mining, said that it regarded the granting of the SML as unlawful and noted that government had not conducted consultations with landowners prior to granting the licence.

“We are unaware of any representative of Kumul Minerals who has visited Porgera to meet with landowners and other community stakeholders to discuss the SML. In purportedly granting an SML in this non-transparent and rushed manner, the Marape government sets a precedent of the State disenfranchising landowners and making decisions with fundamental consequences for their futures and those of their children without doing them the justice of listening to their views,” said BNL.

The government earlier this year refused BNL an extension to its Porgera SML, resulting in the JV company initiating proceedings before the World Bank’s International Centre for Settlement of Investment Disputes.

Edited by Creamer Media Reporter

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