Papua New Guinea Prime Minister and Treasurer James Marape has expressed his satisfaction with the latest update from New Porgera Ltd (NPL) regarding the reopening of the Porgera mine. He welcomed the news that the restart process is progressing well and remains on track, with the anticipation of the first gold production by the first quarter of 2024.
Acknowledging the collaborative efforts of all involved parties, Prime Minister Marape assured the nation of the mine’s full operational status and the significance of this milestone for both the mine’s resurgence and the government’s commitment to ensuring equitable benefits from natural resources.
He commended Barrick Niugini Ltd for its leadership in reinstating the mine’s operations, highlighting the fruitful negotiations between Barrick Gold Corporation and the National Government, guided by the principle of ‘Taking Back More from Our Natural Resources.’
Reflecting on the previous Special Mining Lease (SML) 1 arrangement, retired in 2020, where Papua New Guinea had a limited stake, Prime Minister Marape outlined the improved terms of the new agreement. Under this arrangement, landowners and the Enga Provincial Government will hold 15 per cent equity, 3 per cent royalties, with no tax holidays for the mine.
He stressed the enhanced distribution of project benefits, with Papua New Guinea set to receive 53 per cent and investor partners 47 per cent. Prime Minister Marape also noted the favourable market conditions, suggesting a promising timeframe for the State’s share to be repaid, considering the valuation of NPL.
Regarding financial contributions and recovery, he explained that the State, through Kumul Minerals Holdings Ltd, contributed no cash for equity and would repay through earnings from its share.
Prime Minister Marape reassured landowners of the government’s commitment to inclusive dialogue, announcing the planned Landowners Consultative Forum in Wabag. He reiterated the government’s dedication to addressing stakeholder concerns and ensuring fair benefit distribution, promising negotiations on the distribution of total benefits for all stakeholders in late February or early March.
