LOLE MINING TO TAKE OWNERSHIP OF TOLUKUMA

New Porgera Limited Vital For Mine Reopening

The New Porgera Limited now stands as the guiding platform to ensure proper governance and transparency of the operations of the mine, once reopened, will be unlike before.

New Porgera Limited chairlady Nellie James said the incorporation of New Porgera Limited will be for Porgera Mine as the previous unincorporated venture running of operations and sale of gold was only privy to the individual shareholders.

Ms. James said the incorporated project company structure allows for a board that is made up of directors representing the shareholders and the full board will be privy to the operation of the mine and to ensure there is proper governance and transparency of the operations.

She said actual mining operations will be undertaken by Barrick (Niugini) Ltd, as the operator of the mine, and report to NPL, and shareholders await their dividend payment when profit is declared.

Other mines in PNG also have an incorporated corporate structure that includes Ok Tedi and Lihir, and it is not a new concept.

“Given the circumstances, this arrangement is better, as all of the parties are seated around the table, rules are set out in the operatorship agreement and transparency and accountability is ensured among the parties in respect to the operations of the mine,” Ms. James said.

“Also, we now see an equity structure that is a first for PNG as New Porgera has secured 15 percent protected equity for project area landowners and the province.

They get to see their benefits from the moment the mine starts selling gold, while the State, through Kumul Mineral Holdings Limited, awaits the full repayment of the cost incurred during care and maintenance up to the mine reopening.

“There are other immediate benefits of Porgera Mine reopening that will be seen by other PNG stakeholders earlier than KMHL.”

Mark Bristow, Barrick Gold’S Chief Executive, has been in PNG for the inaugural board meeting of New Porgera Limited, the new entity created under the New Porgera Shareholders Agreement to reopen and run the Porgera gold mine.

Bristow said the new company will be applying for a Special Mining Lease in the coming weeks “once certain conditions are fulfilled.”

According to a release, Bristow and Barrick executives are also expected to meet with Prime Minister James Marape and the State Negotiation Team. (Barrick)

Barrick Chief Executive Mark Bristow, in PNG for quarterly operational reviews, said that the incorporation of New Porgera Limited (NPL) on 22nd September, following the execution of the New Porgera Shareholders Agreement by Barrick (Niugini) Limited, Kumul Mineral Holdings Limited, and Mineral Resources Enga, marked an important step towards the long delayed restart of the Porgera mine. Once certain conditions are fulfilled, the company intends to apply for a new Special Mining Lease (SML) in the coming weeks.

Bristow said that New Porgera will work with the State and the Mineral Resources Authority (MRA) to ensure that the SML application process proceeds without delay and in accordance with the Mining Act and the Porgera Project Commencement Agreement (PPCA).

“The application and early approval of a new SML is the goal that all Porgera stakeholders should be striving for. The mine has sat idly for far too long – almost two and a half years – depriving landowners and the communities of Porgera of employment and other essential benefits that the mine delivered successfully for 30 years,” said Bristow.

Together with Barrick’s executives, Bristow arrived last night in PNG and travelled to Porgera to kick-off the security forum alongside the Mining Minister Sir Ano Pala, Porgera MP Maso Karipe, SML and LMP landowners, community, women groups, and business leaders.

Also in attendance was Enga Provincial Police Commander and representatives of the Enga Provincial Government, Porgera District and PNG Defense Force.

“We had a constructive kick-off meeting in Porgera and everyone agreed that law and order is crucial to the restart of Porgera mine and the long term future of Porgera District. The Parties will continue to meet and collaborate on law and order initiatives and their implementation.

All landowners and community leaders acknowledged the urgent need for leadership at the ground level to complement the work being done by security forces. There was a call from the landowners for a signing of a Peace Agreement and the need for a Government endorsed Police Operation to address the current lawlessness in Porgera,” said Bristow.

“As a sign of Barrick’s commitment to restart, we are building a dedicated team, comprised of a majority of Papua New Guineans, to get the mine up and running so that the people of Porgera can finally see the ‘white smoke’ they have been waiting for. To date, Barrick and Zijin have funded USD 391 Million (approximately 1.37 billion kina) solely for Care and Maintenance.”