The Porgera gold mine will resume operations this year after the Papua New Guinea (PNG) government and Barrick Niugini Ltd. (BNL) agreed on a partnership for its ownership and operation. Porgera has been on care and maintenance since April 2020 when the government did not renew its mining lease.
Under the agreement signed by Gov. General Sir Bob Dadae and Barrick Gold President and Chief Executive Mark Bristow, Porgera will be a new joint venture owned 51% by PNG stakeholders and 49% by BNL. BNL will remain the operator of the mine.
PNG stakeholders and BNL will share the economic benefits of mine on a 53% and 47% basis and BNL will provide the capital to restart the mine. The government will retain the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years.
Prime Minister James Marape said the agreement, reached after months of negotiation, was a historic development.
Porgera is an open-pit and underground gold mine located in the Enga province of Papua New Guinea, about 600 kilometers northwest of Port Moresby. BNL is a joint venture company in which Barrick and Zijin Mining Group each own 50%.
