Over 2000 nationals will have their employment with Porgera Gold Mine terminated prior to the end of July.
This is from a statement released by majority owner and operator Barrick Niugini Limited.
It will cost BNL 180 million Kina for the retrenchment exercise.
The company has informed its workforce that most of them will be retrenched over the coming weeks; following the government’s decision on the 24th of April not to extend BNL’s special mining lease.
BNL has been forced to place Porgera on care and maintenance since mining was no longer allowed under PNG law.
The company has however continued to employ the workforce on a temporary basis in the hope that the dispute would be resolved soon. The government’s decision is the subject of an ongoing judicial review in the PNG National Court.
President for Barrick Gold Corporation, Mark Bristow says the PNG government has repeatedly refused to enter into discussions about the issue and the fact that the mine is not operating, therefore it has not produced any revenue; creating a financially untenable situation.
Most of the 116 expatriate employees have already been retrenched.