Barrick Gold, PNG Reached Agreement to Restart Porgera Gold Mine

SEATTLE (Scrap Monster): Canadian miner Barrick Gold and the Papua New Guinea (PNG) administration reached an agreement to restart operations at Porgera gold mine later this year, thus ending the long stand-off between the two parties. The mine has been put on care and maintenance since April last year, after the country’s government refusing to renew its special mining license.

As per the terms of the agreement signed between Governor General Sir Bob Dadae and Barrick Gold Corporation President and Chief Executive Mark Bristow, PNG stakeholders will own 51% in the new joint venture, whereas the remaining 49% will be owned by Barrick Niugini Limited (BNL). Also, BNL will continue to remain as the operator of the mine, said the agreement.

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Under the new deal, the economic benefits generated over the life of mine will be shared by PNG stakeholders and BNL on a 53/47% basis. BNL will finance the capital required for the mine restart. The equity allocated to landowners will see an increase. The framework agreement also provides the state the right to acquire the remaining 49% stake in the mine from BNL at fair market value after a period of 10 years.