Porgera Mine Set to Restart as PNG and Barrick Niugini Limited Agree New Partnership
April 09 2021 - 4:09AM
The Porgera gold mine is on track to resume operations later this
year after the Papua New Guinea (PNG) government and Barrick
Niugini Limited (BNL) agreed on a partnership for its future
ownership and operation. Porgera has been on care and maintenance
since April 2020 when the government declined to renew its special
mining lease.
Under the terms of a binding framework agreement
signed here today by Governor General Sir Bob Dadae and Barrick
Gold Corporation President and Chief Executive Mark Bristow,
ownership of Porgera will be held in a new joint venture owned 51%
by PNG stakeholders and 49% by BNL. BNL remains the operator of the
mine.
The framework agreement also provides, among
other things, for
- PNG stakeholders and BNL to share
the economic benefits generated over the life of mine on a 53/47%
basis;
- BNL to finance the capital required
to restart the mine;
- an increase in the equity allocated
to a broad group of landowners who are the customary owners of the
land where Porgera is located; and
- the state to retain the right to
acquire the remaining 49% of the mine from BNL at fair market value
after 10 years.
The parties will now work towards the signing of
definitive agreements at which time full mine recommencement work
will begin.
Prime Minister James Marape said the framework
agreement, reached after months of negotiation, was a historic
development, which would benefit PNG for many years to come, and
sets the precedent for future projects.
“I thank Mr Bristow and his team for recognizing
our nation’s aspirations and their willingness to partner with us
in realizing this vision at Porgera,” he said.
Bristow said Barrick, on behalf of BNL’s joint
venture partners Barrick and Zijin Mining, was delivering on its
promise of reaching a fair agreement on the future of Porgera for
the benefit of all its stakeholders, notably the local community,
Enga province and the PNG government.
“We intend to partner with all key stakeholders
to make Porgera a world-class, long-life gold mine,” he said.
About Porgera
The Porgera Joint Venture is an open pit and
underground gold mine located at an altitude of 2,200-2,600 metres
in the Enga Province of Papua New Guinea, about 600 kilometres
north-west of Port Moresby. BNL is a joint venture company in which
Barrick and Zijin Mining Group each own 50%.
Enquiries:
Kathy du PlessisInvestor and Media Relations+44 20 7557 7738Email:
barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
InformationCertain information contained or incorporated
by reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “set to restart”, “on track”,
“will”, “work towards”, “would”, “intend”, “make”, “future” and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: the planned
resumption of operations at Porgera later this year and the terms
of a new partnership for Porgera’s future ownership and operation
under the framework agreement between Papua New Guinea and BNL; the
timeline for execution of definitive agreements and formation of a
new joint venture to implement the framework agreement and
recommence operations at Porgera; the anticipated sharing of
economic benefits generated by the Porgera mine, increased equity
ownership for Papua New Guinea and landowners and other expected
benefits for stakeholders and the local community under the
framework agreement; the potential to make Porgera a world-class,
long-life gold mine; the duration of the temporary suspension of
operations at Porgera; Barrick and BNL’s response to the government
of Papua New Guinea’s decision not to extend Porgera’s special
mining lease; and expectations regarding financial performance and
other outlook or guidance.Forward-looking statements are
necessarily based upon a number of estimates and assumptions
including material estimates and assumptions related to the factors
set forth below that, while considered reasonable by the Company as
at the date of this press release in light of management’s
experience and perception of current conditions and expected
developments, are inherently subject to significant business,
economic and competitive uncertainties and contingencies. Known and
unknown factors could cause actual results to differ materially
from those projected in the forward-looking statements and undue
reliance should not be placed on such statements and information.
Such factors include, but are not limited to: fluctuations in the
spot and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis
is required; disruption of supply routes which may cause delays in
construction and mining activities at Barrick’s more remote
properties; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; non-renewal of key licences by
governmental authorities, including non-renewal of Porgera’s
special mining lease; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices; expropriation
or nationalization of property and political or economic
developments in Papua New Guinea; timing of receipt of, or failure
to comply with, necessary permits and approvals; lack of certainty
with respect to foreign legal systems, corruption and other factors
that are inconsistent with the rule of law; risks associated with
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effects of the global Covid-19 pandemic; damage to the Company’s
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of events, including negative publicity with respect to the
Company’s handling of environmental matters or dealings with
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exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; business opportunities that may be
presented to, or pursued by, the Company; risks associated with
working with partners in jointly controlled assets; employee
relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource
shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
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forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
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some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
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