The ownership of the Porgera mine will now be held in a joint venture in a new joint venture with 51 percent owned by PNG stakeholders and 49 percent by Barrick Niugini Limited with Barrick remaining as the operator of the mine.
This is under the new terms of a binding framework agreement signed yesterday, between the State and Barrick Niugini Limited.
The framework agreement also includes;
- PNG stakeholders and Barrick Niugini Limited to share the economic benefits generated over the lifetime of the mine on a 53 percent to 47 percent respectively;
- Barrick Niugini Limited to finance the capital required to restart the mine;
- An increase in the equity allocated to a broad group pf landowners who are the customary owners of the land the mine sits on;
- State to retain the right to acquire the remaining 49 percent of the mine from Barrick at fair market value after 10 years.
The State and Barrick will now begin to work towards signing definitive agreements.
Prime Minister James Marape said the framework agreement was reached following months of negotiations and PNG is set to benefit for many years as this agreement sets the precedent for future projects.
He thanked the President and Chief Executive Officer of Barrick Gold Corporation Mark Bristow and his team for recognizing PNG’s aspirations and their corporation in partnering with the Government.
Bristow retorted that Barrick was just delivering on its promise to reach a fair agreement on the future of Porgera that would benefit all stakeholders especially the local community, Enga province, and the PNG Government.