Barrick Gold restarts operations at Porgera mine in Papua New Guinea
The mine stopped operating in April 2020 after losing its mining license
Natalia Buendia Calvillo
On Sunday, Barrick Gold Corporation’s (NYSE: GOLD) (TSX: ABX) announced that its Porgera mine will resume operations later this month and expects to be pouring gold in the first quarter of 2024.
Porgera, located in Papua New Guinea, closed in April 2020 after losing its mining license which prompted a lawsuit from Barrick at an international tribunal. After receiving a higher stake in the joint venture, Papua New Guinea’s government agreed the mine should continue operating.
The mine produced more than 20 million ounces of gold and contributed approximately 10 per cent of Papua New Guinea’s total annual exports.
Bristow said the reopening represents another victory for the company’s successful host-country partnership model in Tanzania. This model also was adopted for its new Reko Diq copper and gold project in Pakistan.
“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders and we look forward to steering the mine back to world-class production,” he said. “It undoubtedly has the potential to join our Tier One gold mine portfolio, the largest of its kind in the industry.”
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Papua New Guinea stakeholders own the project own 51 per cent of the project. Those stakeholders include entities such as local landowners and the Enga provincial government. Barrick Niugini Limited, a joint venture between Barrick and the Chinese miner Zijin Mining Group Co. Ltd. (SHA: 601899), owns the other 49 per cent.
Papua New Guinea shareholders will receive 53 per cent of the mine’s overall earnings. This is expected to be around USD$7 billion at a gold price of USD$1,800 per ounce over 20 years. The partnership gives local stakeholders a majority interest for the first time.
Prime minister James Marape applauded the mine’s revival at the Papua New Guinea Resources and Energy Investment conference. The conference Dec. 10-13 in Sydney, Australia.
The 500-meter-deep Porgera open pit mine excavates around 30 million tonnes of gold-bearing ore per year.
natalia@mugglehead.com
