In what may be described as the PNG mining sector’s most important development of 2023, the Porgera gold mine officially reopened on December 22, 2023, following the completion of the Porgera Project Commencement Agreement.
Barrick Gold, the mine’s operator, an
Photo courtesy: Islands Business
nounced the commencement of the recommissioning process, anticipating completion over the next few weeks and paving the way for mining and processing to resume in the first quarter of 2024. Barrick’s President and CEO, Mark Bristow, expressed satisfaction with the mine’s new ownership structure, aligning with the company’s host country partnership business model. Bristow underscored the potential of the Porgera gold mine to join Barrick’s Tier One gold mine portfolio, the industry’s largest.
The Porgera gold mine is owned and operated by Barrick Gold (95 per cent) and Mineral Resources Enga, with Barrick holding a 49 per cent stake in New Porgera Limited (NPL), the entity overseeing mine operations. Under the Mining (New Porgera) (Amendment) Act 2023, the rights of local landowners to fair compensation have been safeguarded. PNG shareholders are poised to receive 53 percent of Porgera’s overall economic benefits, estimated to surpass $7 billion USD over the mine’s 20-year life, as reported by Barrick.
With the mine’s reopening, Porgera anticipates a significant increase in employment, aiming to surpass 3,200 employees by the end of 2024. This move is expected to not only revitalize economic activity in the region but also solidify Porgera’s position as a major contributor to Papua New Guinea’s mineral export revenues. As the mine undergoes recommissioning, stakeholders look forward to witnessing Porgera’s resurgence, making strides towards world-class production under the stewardship of Barrick Gold.
The Porgera gold mine, situated in PNG’s Enga Province, operated for decades, extracting valuable resources and playing a substantial role in the country’s economy. However, the mine’s operations were marred by environmental controversies, socio-economic challenges, and disputes over land rights with local communities.
In April 2020, the PNG government declined to renew the mining lease held by the joint venture operator, Barrick Niugini Limited, a partnership between Barrick Gold Corporation and China’s Zijin Mining Group. The closure of the Porgera mine resulted in significant ramifications for the region’s economy, affecting employment and revenues.
Read our previous story on the Porgera Mine opening here.
