MRE Yet to Sign Off on Porgera Agreement

by PNG Business News - June 20, 2022

Photo: Porgera Mine 

Given the delayed pace in obtaining stakeholders to sign off on the Porgera Project Commencement Agreement and progress shareholders agreement, the reopening of the Porgera mine is currently on hold.

Jerry Garry, managing director of the Mineral Resource Authority, said the State Negotiating Team (SNT) is continuing in talks with Mineral Resources Enga and traditional landowners to sign the two crucial agreements.

He stated that after the two agreements are completed, they will submit the transfer of an interest in the special mining lease SML11 to MRA, and the different interests in this agreement will be reflected on the special mining lease SML11..

He stated that they are currently working to resolve some minor difficulties.

“Kumul Minerals Holding Limited apply for the license and the license was granted on the basics of what was submitted by Kumul. But now that they have engaged MRA and other parties to become shareholders, there will be new directors on board,” Mr Garry said.

“If they feel that they need to amend some of the documents or the work they want to develop the mine forward, they will then apply for variation which under the Mining Act is allowable and those variation will be processed by MRA and to give them the clearance to go ahead and reopen the mine.”

Mr Garry stated that this is the final step and that after it is done, a formal development forum would be held.

He explained that the advantages that have previously been agreed upon in numerous agreements may now be translated to the provincial government, landowners, and other recipients below the level of the National Government.

The development forum will take place as soon as MRA has completed the documents and the transfer of interest.

On the 20th and 21st of this month, the Development Forum will take place.

 

Reference: Wohi, Lorraine. Post-Courier (15 June 2022). “MRE Yet To Sign Porgera Commencement Agreement”.



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