“I look forward to meeting the good people of Porgera and speaking to affected landowner communities, Enga Provincial Government and the developer Barrick soon,” PMJM.
Prime Minister James Marape: Porgera landowners will not be left behind this time – Porgera Gold Mine News
By the Department of Prime Minister and NEC | Approved for Release: Sunday June 6th 2021.
Prime Minister Hon. James Marape, MP, has assured Porgera Mine landowners in Enga that they will not be left behind in extraction and development of their resources.
He gave this assurance when formally handing over the Framework Agreement for reopening of the mine to landowners and the Enga Provincial Government on Friday (June 4th 2021).
PM Marape and his delegation also toured the Porgera Mine site after the Framework Agreement presentation.
“My visit to the Porgera Mine in the Lagaip-Porgera District today is to talk to the affected landowners, the mine management and other mine-affected communities,” PM Marape told thousands of people in Porgera.
“One of the main reasons why I wanted to travel to Porgera was to formally hand over the Framework Agreement to the landowners.
“Since taking Office on May 30th, 2019, I have advocated for greater share of the benefits from our resources to affected landowners – and that stands.
“That is why we have amended existing resource laws, including the Mining Act 2020 and the Oil and Gas Act 2020, to ensure landowners get a fair share under our ‘Take Back PNG’ slogan.
“The State has sought Barrick’s concurrence to release the Framework Agreement, therefore, here I am today to present the framework agreement to the landowners and Enga Provincial Government.”
PM Marape said his Government had no intention of leaving out affected landowners, who he said would be included in every step of the way towards reopening the mine.
He said that was why they should have a copy of the Framework Agreement before any awareness was carried out.
“Landowners and affected communities in Porgera will be well-versed on the impacts of the mine, and the benefits they get as a province.
“We will give them a copy (of the agreement) and spell out what is in it for them at our appropriate forums and meetings.
“That is the essence of my visit to Porgera.
“I know my good people of Porgera understand the Government’s position and will allow the lawful process to take its course towards reopening of the mine with their share of benefits intact.
PM Marape further announced that after this visit, his Government would set a date for a proper development forum for discussion on benefits.
“I look forward to meeting the good people of Porgera and speaking to affected landowner communities, Enga Provincial Government and the developer Barrick soon,” he said.
PM Marape also announced the allocation of K1 million for small businesses in Porgera and K2 million for Porgera General Hospital.
The PM and his delegation also visited and toured the Porgera Mine site after the framework agreement presentation in Porgera Town.
It Costs US$300 million (K1.052 billion) To Restart Papua New Guinea’s Porgera Gold Mine
THE cost of restarting Papua New Guinea’s Porgera mine is around US$300 million (K1.052 billion), Barrick Niugini Ltd (BNL) president and chief executive officer Mark Bristow has revealed.
Bristow said care and maintenance of the mine alone had cost BNL US$120 million (K421 million) and an additional US$180 million (K625mil) was needed to restart mining operations at Porgera. He said the sooner the
mine reopened, the lower the cost. “I just came back from a meeting to restart the mine. “It takes a lot of work to get this mine up and running,” he said. “The world’s mining (industry) is in a boom.
“So we have to compete with a hot industry at the moment.” He also said the company had started a plan to re-employ workers.
“One of the things we were not prepared to do was to put people at risk when the mine was closed,” he said. “So we retrenched everyone who wasn’t required for care and maintenance and paid them their full dues.
“When we start the new Porgera it will be a new vehicle. Those who had been working for us will receive their dues, and then everyone starts (afresh).
“As soon as we finalise the documents and create the new company, we will start with fresh employment. “We want to employ Porgera people first and other Papua New Guineans second.”
Barrick currently employed 800, some of whom were contracted employees. “We need to employ another 800 at the end of this year, then another 1,000.
“I’m back in July, the team is working on the prestart. “In 10 days’ time, we will have all drafts ready for negotiation.” The mine was closed last April due to differences between the Government and BNL.
The National / Pacific Mining Watch
PM Marape, when handing over the agreement to resume mining operations at Porgera to landowners and the Enga Provincial Government, made several announcements on its overarching benefits – Porgera Gold Mine News
The Prime Minister of Papua New Guinea when handing over Porgera Framework Agreement, outlined that the development forum is proposed to take place this month in Enga where Special Mining Lease (SML), Leases for Mining Purposes (LMP) and all affected areas will get together to split the benefits.
PM Marape hands over Porgera Framework Agreement to landowners and Enga Provincial Government
Department of Prime Minister & NEC | Friday June 4th 2021.
Prime Minister Hon. James Marape today (Friday June 4th 2021) visited Porgera accompanied by State Ministers and Government delegates to announce the new Porgera Framework Agreement.
The agreement was successfully negotiated with Barrick Niugini Ltd (BNL) in April this year.
PM Marape, when handing over the agreement to resume mining operations at Porgera to landowners and the Enga Provincial Government, made several announcements on its overarching benefits.
1. 51 per cent equity by PNG shareholders for 10 years with the option of buying out Barrick’s 49 per cent at fair value;
2. The State is contributing only 36 per cent to restart the mine with 15 per cent free carry equity, with Barrick paying for 64 per cent cost of restart;
3. The State will contribute no cash to upfront to restart as the 36 per cent equity cash call will be raised by Barrick with zero per cent or no interest charge (so this means Kumul Mineral Holdings (KMHL) or the State will not borrow like previous governments did for PNG LNG Project (IPIC) or Oil Search shares (UBS deal);
4. The State has gained additional 1 per cent extra on top of the 2 per cent for royalties allowed by law,
5. The State has secured full 30 per cent corporate tax (unlike Lihir and other mines like Ramu) plus securing of an additional 2 per cent fiscal stability tax;
6. Better local content for more local contractors and employees;
7. One-off US$15 million start-up seed capital for landowners, and every year going forward a US$3m fund for future generations; and
8. Old Porgera legacies remain in the ‘old Porgera basket’. Going forward Government, KMHL and BNL give assurance of resettlement and care to society and environment.
PM Marape further outlined that the development forum is proposed to take place this month in Enga where Special Mining Lease (SML), Leases for Mining Purposes (LMP) and all affected areas will get together to split the benefits.
Prime Minister thanked to Enga Governor Hon. Sir Peter Ipatas and announced 10 per cent of equity for landowners in Porgera Valley.
Prime Minister Marape will overnight in Porgera tonight and attend church tomorrow (Saturday).
This has become his custom over the last 24 months, unlike past prime ministers.
PM Marape will fly out after Sabbath service in Porgera with the local people.