Barrick progresses toward resumption of operations at Porgera gold mine

Press release

April 5, 2023

The government of Papua New Guinea, Barrick Niugini Limited and New Porgera Ltd. signed an agreement on March 30 to progress with the resumption of operations at the Porgera gold mine, which have been suspended since 2020.

Porgera hosts an orebody with measured and indicated resources of 10 million oz and inferred resources of 3.4 million oz. After initial ramp up and optimization of the Wangima pit, the mine is forecast to produce an average of 700,000 oz per year, achieving a milestone toward its potential Tier One status, Barrick Gold said in a statement.

The New Porgera Progress Agreement (NPPA), confirms that all parties are committed to reopening the mine at the earliest opportunity, in line with the terms of the Porgera Project Commencement Agreement and the New Porgera Limited Shareholders Agreement both concluded in 2022. The New Porgera project team will now move ahead with the filings for a special mining lease and progressing the other conditions set out in the Commencement Agreement for the reopening of the mine.

The equity in New Porgera is shared 51 percent by Papua New Guinea (PNG) stakeholders, including local landowners and the Enga provincial government. Economic benefits will be shared 53 percent by the PNG stakeholders and 47 percent by Barrick Niugini Limited, which will operate the mine.

After the signing ceremony, Barrick president and chief executive Mark Bristow said there was strong support from all stakeholders to get Porgera reopened as soon as possible.

“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders. For Barrick, the reopening of the mine would represent another victory for our host-country partnership model which has been so successful in Tanzania and has now also been adopted for the new Reko Diq copper-gold project in Pakistan,” Bristow said.

“Localization is an essential part of our partnership philosophy so New Porgera will, whenever possible, source the goods and services it requires from businesses genuinely based and owned in Porgera, the Enga province and Papua New Guinea. Similarly, it will give preference to locals in recruiting employees for the reopening mine.”

Photo credit: Barrick Gold president and cheif executive Mark Bristow center following the signing of an agreement with Papua New Guinea.


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