In a troubling escalation of tribal conflict, violence near Barrick Gold Corporation‘s (TSX: ABX) (NYSE: GOLD) Porgera gold mine in Papua New Guinea has resulted in the tragic loss of life and the temporary suspension of mining operations.
Reports released on Wednesday indicate that the conflict has led to at least 20 deaths, with some estimates suggesting the toll could be as high as 50. This surge in violence prompted Barrick Gold to suspend most operations at the mine until at least Thursday, Sept 19, to ensure the safety of its employees amidst the government’s efforts to restore law and order.
Papua New Guinea has also granted police emergency powers. This allows the use of lethal force to contain the violence between local landowners and illegal settlers squatting near the mine.
The Porgera mine, located in the Enga Province about 600 kilometers northwest of the capital, Port Moresby, is not only one of the largest gold mines in Papua New Guinea but also a significant contributor to the nation’s economy, previously accounting for around 10 per cent of its export earnings. However, tribal violence has plagued the region, exacerbated by disputes over land ownership and the economic benefits from mining activities.
National Police Commissioner David Manning declared an emergency on Saturday after the violence escalated.
“The deteriorating situation has been caused by illegal miners and illegal settlers who are victimising traditional landowners and using violence to terrorize local communities,” Manning said in a statement.
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Conflict has caused temporary mine shutdown
A land dispute between the Sakar and Piande clans led to a series of shootouts. The violence was so intense that it briefly forced the mine to cease operations, with reports of over 300 shots fired in a single day. This conflict has resulted in loss of life as well as the displacement of people, destruction of property, and a significant impact on local infrastructure including schools and hospitals.
“Over the past 24 hours, a significant escalation in tribal fighting has impacted many of our local employees. Homes have been destroyed, family and friends injured or killed, and people have been unable to sleep while living in fear,” New Porgera General Manager James McTiernan said in a statement on Sunday.
Barrick Gold holds a 49 per cent stake in the mine through a joint venture, New Porgera Ltd. It has been navigating this challenging environment with caution. The company restarted operations at Porgera late last year after three year suspension following a dispute over economic benefits with the government.
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Region reels from May 24 landslide
A disaster management team led by the national government and the UN Development Program met in Port Moresby on Tuesday to coordinate a humanitarian response. Tribal warfare has been a growing security problem across Papua New Guinea. It remains widespread in Enga, where recovery has been slow since the May 24 landslide.
The United Nations estimated that 670 villagers had died in the slide. Meanwhile, the Papua New Guinea government reported that the landslide had buried over 2,000 people. However, refugees from neighbouring areas are believed to be among the casualties, complicating efforts to calculate an accurate death toll.
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