OCTOBER 10, 2022
Prime Minister Hon. James Marape has welcomed Barrick Gold President and CEO Mark Bristow and Newcrest Mining Ltd Managing-Director and CEO Sandeep Biswas who are here to work with the Government on progressing Porgera and Wafi-Golpu mining projects.
PM Marape said the Barrick team led by Bristow, and the Government team led by Mining Minister Hon. Ano Pala and Porgera MP Hon. Maso Karipe, travelled to Porgera today (Monday, October 10, 2022) for a security forum as well as check on the restart progress made to date.
He also announced that he would attend to the delayed Wafi-Golpu himself to bring it to conclusion as a matter of urgency.
“My Government has shown support for both Porgera and Wafi-Golpu by approving over K900 million each as Infrastructure and Business Development funds for both project area land owners and provincial governments,” PM Marape said.
“We will go to our landowners and provincial governments as soon as headline agreements and other legal requirements are progressed.”
PORGERA
“Barrick, as the operator of the joint-venture company, has already recruited over 1500 Papua New Guineans and we are now moving into the final stages of ticking off all regulatory requirements with Mineral Resources Authority and Mining Department,” PM Marape said.
“The New Porgera is historic for PNG because this operation will be the first time PNG companies – representing Landowners and Government – will hold a combined 51 per cent equity while investors will hold the 49 per cent balance.
“I thank Mr Bristow and Barrick Gold – which appreciated our Government’s policy to hold 51 per cent share in the New Porgera.
“It is unprecedented in our country for a super major gold company, currently the second-biggest in the world, to allow itself through negotiations with Government to own less than PNG parties and at the same time operate the mine.”
PM Marape said Papua New Guineans and investors must note that 15 per cent of the equity would not be paid by PNG.
“This means that we pay only 36 per cent of the 51 per cent,” he explained.
“Both Barrick and the National Government have agreed that the 15 per cent is to be passed to Enga people and the landowners, who have held the mine in the first 30 years of operation.
“The State will contribute 36 per cent but Barrick will raise the capital with no interest charged.
“I commend Barrick for this ground-breaking partnership with PNG in benefit sharing of a major resource project.
“I assure all investors that negotiations with all of them will respect our operating legal and regulatory environment, and also the rate of return on their investments, just like we did with Barrick for the new Porgera.
WAFI-GOLPU
PM Marape assured the people of Morobe and PNG that he would attend to Wafi-Golpu himself to ensure it started as soon as possible.
“Wafi-Golpu is a new green field project and cannot be compared to Porgera, however, I will use the same bargaining principles,” he said.
“Through negotiations, if I can win extra for PNG, I will do so.
“The sector State Negotiation Team (SNT) has exhausted its negotiations with the developers and it is now the national SNT that will bring Wafi-Golpu to conclusion assisted by Morobe Provincial Government.
“Both investors in Wafi-Golpu – Newcrest and Harmony Gold Mining Company Ltd – aren’t new to PNG.
“They operate Lihir in New Ireland, the fourth-biggest mine in the world and Hidden Valley in Morobe, so it shouldn’t be long before we agree on the numbers for benefit sharing.”
