The PNG Extractive Industries Transparency Initiative (PNGEITI) has praised the open stakeholder dialogue culminating in reaching consensus to re-open the Porgera Mine in Enga Province.
Parties in April this year sanctioned a “Framework Agreement for the New Porgera Project” which spells out the roadmap to reopen the mine.
Mark Bristow, CEO and President of Barrick Niugini Ltd Gold last week explained key elements of “Framework Agreement for the New Porgera Project” at a public forum at the Piam Oval in Porgera witnessed by PNG Prime Minister James Marape, landowners and other leaders.
In the new agreement, PNG stakeholders will together own a 51 % equity stake in the mine while Barrick Niugini Limited (BNL), a joint venture company in which Barrick and Zijin Mining Group each own 50% will hold 49 % which BNL will remain the mine operator. At the end of the first ten year period, the PNG stakeholders will have the option to purchase BNL’s 49 %.
PNGEITI Head of Secretariat Lucas Alkan commented that the open discussion throughout the negotiation process on the part of the mine operating lead, government and landowners has culminated in this agreement signing by all parties.
“We at the PNGEITI congratulate the Government and the project lead BNL and other stakeholders for reaching a consensus decision to reopen the mine.
“Porgera has been an economic powerhouse for many years and people in the country have been waiting for the outcome.
“We commend the Prime Minister Hon. James Marape, the President and CEO of BNL Mr. Mark Bristow for the leadership in ensuring that the negotiations were done in the transparent and open manner.
“PNG Extractive Industries Transparency Initiative highly encourages such openness in the negotiating process for resources benefits and importantly the responsibilities that each stakeholder must take to ensure smooth flow of proceeds.
“We look forward to working with the Government and the project operator in the areas of transparency and accountability to help derive best value for all stakeholders.
PNGEITI’s commitment to reporting on developments in the mining and petroleum space is becoming stronger with new reporting dimensions taking shape as we making progress in promoting transparency and accountability in the PNG mining and petroleum industry” Mr. Alkan said.