By Delly Bagu – EM TV, Port Moresby
Barrick Gold Corporation has announced it is undergoing a process to sell off its subsidiary, Barrick Niugini Limited.
Barrick Niugini Limited holds 95 per cent interest in the Porgera joint venture operating in Enga province. The company said the proceeds of any sale would be used to reduce debt.
In a statement released this afternoon, Barrick Gold Corporation confirmed it is pursuing the sale of Barrick Niugini Limited, including Porgera.
Barrick Niugini Limited Executive General Manager Greg Walker said the industry was facing challenging times. He said gold mining companies worldwide were experiencing low gold prices and are feeling the punch of company debts.
Mr Walker said in response to these challenges, the company has implemented a strategy to get rid of the mines and properties that are not best-suited to the new strategic direction of Barrick Gold Corporation.
Therefore, the company said the proceeds from the sale of Barrick Niugini Limited, including Porgera, will be used to reduce debt, as the company refocuses on its core assets in the Americas.