Aerial view of the Porgera gold mine. Photo: Zijin Mining
Papua New Guinea Prime Minister James Marape has welcomed the reopening of the Porgera Mine in Enga, saying its an example of the government's new approach to negotiations with mining companies.
The mine, run by New Porgera Ltd, and majority owned by the national and provincial governments and landowners, is set to officially re-start on Friday 22 December.
The mine was closed for nearly four years as the government and multi nationals Barrick Gold and Zijin Mining battled over lease conditions.
Marape said it "has been a long road we have travelled to the reopening of Porgera Mine, but it has been worth the effort".
Under the renegotiated arrangements, New Porgera has 51 percent ownership by PNG stakeholders which Marape said will deliver unprecedented benefits for Papua New Guineans.
The prime minister said New Porgera Ltd looks set to be a significant contributor to the economy, through a corporate tax of 32 percent and royalties rising from two to three percent.
Marape announced the following steps back to full production:
- Official restart of operations on 22 December, 2023
- Re-commissioning to be completed in the coming weeks
- Mining and processing operations to restart in the First Quarter 2024
- First Gold production expected in the First Quarter 2024
- Full production throughout into the Third Quarter of 2024
- Employee ramp-up to occur throughout 2024, reaching 3,200 employees by year's end
He said Porgera's return to full production depended on the Hides Power Station and transmission lines being brought back into operation following recent acts of vandalism, and there being no further damage to the mine and essential infrastructure that supports the project, such as the Highlands Highway.
"Separately, the Community Development Agreement negotiations will be conducted starting in the first quarter of 2024, led by the Mineral Resources Authority on behalf of the State.
"We expect to conclude this at the earliest but not more than two years so our landowners of all project areas, including powerlines and source and riverine areas, can benefit
He thanked President Mark Bristow and Barrick Gold Corporation for ensuring that PNG got more in the New Porgera SML 13 for the next 20 years.
"New Porgera is a fine example for mining companies demonstrating that they can still make money in the new benefit-sharing arrangement we have carved out with Barrick," he said.
