Photo: Dairi Vele
The State Negotiation Team chairman, Dairi Vele, has announced that the process of reopening the Porgera gold mine in Enga, which is valued at billions of dollars, is almost complete. In his words, "The new Porgera is substantially complete and is progressing." Vele added that all parties involved are now in the process of verifying that documents are in order and accurately reflect the understanding of the various agreements. He stated:
"One of the things about new Porgera is Barrick is putting up the money to restart the mine, and the sales of the project in new Porgera will pay off everyone’s cost. That’s different to how projects are normally done in PNG were the state has to borrow big money upfront to participate and wait for the loan to be repaid before we start to receive dividends."
Vele clarified that the tax issue between the Internal Revenue Commission (IRC) and the Porgera Joint Venture (PJV), which is a collaboration between Barrick Gold Corporation and the Porgera Landowner/provincial government company Minerals Resources Enga, is linked to the old Porgera mining operations and is not a direct result of negotiations for the new Porgera, which is 51% owned by the State, provincial Government, and all landowners. He said:
"The relevance of the tax issue where IRC is seeking a payment from PJV and therefore Barrick and MRE need to confirm that amount. So hopefully, that’s a couple of weeks out and if that issue is sorted out then we can move quickly to access the start-up funds and open the new Porgera Mine."
Vele also noted that the new Porgera Mining Limited has been established and is in the process of applying for licenses, transferring the old mining operations and assets from old Porgera into the new company. He explained:
"Both sides have to confirm that the documentation and reflect the understanding of the agreements. So hopefully, that’s a couple of weeks out and if that issue is sorted out then we can move quickly to access the start-up funds and open the new Porgera Mine."
