PNG Prime Minister James Marape and Barrick Gold CEO Mark Bristow in Port Moresby, October 15, 2020.
Photo: PNG PM media room
The company, which is set to start operations at the Porgera mine in Papua New Guinea’s Enga province, is hoping to start operations before the end of this year.
It is the result of two years of negotiations between Canadian giant Barrick Gold and the PNG government as New Porgera Ltd. sought significant cuts.
Barrick Gold and its investment partner Zijin Mining hold 49 percent of the new company, while the PNG government, provincial government and landowners hold 51 percent.
Barrick Gold chief Mark Bristow has no worries that his company is now a minority shareholder.
He said the economics of the operation work out at different percentages.
“The Prime Minister of PNG, James Marape, we had advisers and we had advisers and every time we negotiated, we worked in this division of the economy, and in the end 47 percent of the economy goes to the investors – Barrick Gold Corporation and Zigin and 53 percent. For him, it’s a fair deal. It’s a fair deal anywhere in the world. is it.
Brustow will have equal representation on the board.
Ethnic conflict affects manpower.
He pointed out that the prospecting license to work on before the issuance of a new special mining lease is still in place, and that they are currently finalizing the development agreement with the government’s Mineral Resources Authority (MRA).
“As soon as we get this authority from the MRA, we will go into a full restart – that’s mining and processing. In the meantime, we’ve been doing a lot of remedial work to make the restart happen as quickly as possible.”
A major concern for Bristow is the recent unrest in the Porgara district, which poses a threat to the mine and its workers.
Last week, several people were killed in tribal clashes.
Bristow said the company already employs 1,000 people, many of whom are local, which will soon increase to 3,000.
But he said many workers could not go to work because of the fighting in the streets.
“It’s not right. It’s not right that gangs are preventing people from getting good wages and the mining industry pays better than anywhere else, especially Papua New Guinea. And we choose local people. We develop them, we invest. We want local businessmen by developing our local workers,” he said.
Aerial view of the Porgera gold mine.
Photo: Zigin Mine
Other opportunities in PNG
Barrick Gold is open to starting other mining operations in PNG.
Bristow said they had been given the opportunity to visit the Panguna mine in Bougainville, but the company had faced many challenges, particularly reopening a mine that had been closed for more than 30 years.
Bougainville, in particular, is one of the most difficult things to do in mining, he said, while pursuing his desire for independence.
But the company’s geologists say they see opportunities in other parts of PNG.
“For me it’s important that we get Porgera up before we do that.
“And we’re doing the same thing as we’re doing at Porgera for the future, to understand the opportunities and geology of the main PNG island, as well as these satellites,” he said.
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