PanAust’s Papua New Guinea Country Manager, Joel Hamago, recently attended the opening of Paupe Village Clinic’s new maternity ward.
Located near the Frieda River base camp in Papua New Guinea, the maternity ward provides a safe and supportive environment for expectant mothers from the East and West Sepik Region. Its opening is a result of an ongoing collaboration between PanAust subsidiary Frieda River Limited and Papua New Guinea’s Ambunti Drekikier and Pacific Island Ministries.
To get the ward up and running, Frieda River Limited contributed in-kind support equivalent to $AUD 15,200. This contribution covered the cost of transporting construction materials by road, followed by an 18-hour boat trip up the Sepik River, and casual labour hire to construct the eight-bed maternity clinic.
At the opening event Joel announced that PanAust had entered into an agreement with Ambunti District Health to accommodate visiting doctors and offer remote Sepik communities the chance to connect with a health professional.
New Porgera Limited (NPL) welcomes the passing of the Mining (New Porgera) (Amendment) Act 2023 by the National Parliament on 29 November 2023 which paves the way for the mine to reopen this year.
Since the grant of SML13 on 13 October 2023, representatives of NPL have spent the last six weeks at Porgera and Tari holding face-to-face meetings with over 1,000 landowners and their legally designated agents, explaining the company’s proposal for compensation agreements prior to reopening the mine.
More than 1,200 landowner agents, representing more than 85% of the agents, have signed “Consent Compensation Agreements” with NPL to allow the mine to reopen as soon as possible with the parties agreeing to engage in substantive negotiations on new compensation rates after mining resumes. Importantly, to ensure that landowners are not disadvantaged by the deferral in negotiations, NPL has agreed to make a backdated “true-up” payment to landowners for any increase in compensation rates agreed or determined after the mine reopens.
The amendments to the Mining Act passed by Parliament yesterday do not affect those Consent Compensation Agreements that have already been signed by landowners, which will be fully honoured by NPL. NPL notes that the Amendment Act also preserves and protects the right of landowners to be properly and appropriately compensated.
The Amendment Act and the Consent Compensation Agreements that have been signed ensure that the wishes of the overwhelming majority of landowners to see the mine reopened before year-end and the benefits begin to flow again, will be realised.
Prime Minister Hon. James Marape said that the Government is expected to make a major announcement concerning the Wafi-Golpu Mine project in Morobe. This eagerly awaited announcement is set to take place during the forthcoming PNG Mining and Petroleum Conference scheduled for next month in Sydney, Australia.
The Prime Minister said this during a press conference held earlier today, where he officially extended a warm welcome to Newmont Corporation, the world’s foremost gold company, into Papua New Guinea. Newmont Corporation has assumed control over all Newcrest operations in Papua New Guinea, including the Wafi-Golpu project.
“We’re now at the stage where the principle of what constitutes the Mine Development Contract (MDC) and Special Mining Lease (SML) is waiting to be agreed upon,” Prime Minister Marape said.
“We want to have these two key documents ready at the same time, and we’re hoping that at the December Mining and Petroleum Conference, we will make an announcement to the market.”
Expressing his confidence in the process, Prime Minister Marape noted that stakeholders were able to successfully collaborate in creating an MDC and SML for the Porgera Mine in Enga, and he believes that similar progress can be made for the Wafi-Golpu project.
In recognition of the collaborative efforts, Prime Minister Marape expressed his gratitude to Wafi-Golpu partners Harmony, Newmont (formerly Newcrest), and Kumul Mineral Holdings for their commitment to working within a defined timeline.
Prime Minister Marape revealed that a 36-month timeline has been stipulated for the partners to reach a Final Investment Decision, underscoring the State’s vested interest in advancing this pivotal project.
“We want to make some good announcements at the mining conference in Sydney,” he said.
Prime Minister Hon. James Marape has officially welcomed Newmont Corporation, the world's leading gold company, into Papua New Guinea. He made the welcome, Monday, November 6, 2023, during a joint press conference with Mr. Peter Toth, Chief Development Officer of Newmont, marking the company's acquisition of all Newcrest operations in PNG.
Prime Minister Marape emphasised the significance of this corporate transaction, as Newmont assumes control of all Newcrest operations in Papua New Guinea, including the Lihir mine in New Ireland and the Wafi-Golpu project in Morobe.
"It adds value to Papua New Guinea's global branding as an investment destination," Prime Minister Marape said.
"What this country effectively has now is the world's No. 1 gold company."
He further highlighted the fact that both Newmont and Barrick, the world's second-largest gold company, are now operating in PNG, reinforcing the country's appeal as a favorable investment destination for mining.
"The fact that Newmont decided to come in and acquire Newcrest, with Lihir and Wafi-Golpu among the top of Newcrest's assets, is an affirmation of PNG as a mining investment destination," he added.
"We now have the benefit of having two of the top gold companies in the world in residence in our country."
Prime Minister Marape expressed his gratitude to Newmont's Chief Executive Officer, Mr. Tom Palmer, Mr. Toth, and the Newmont executive team for their faith in PNG as an investment destination. He highlighted his firm stance during negotiations, emphasising the importance of the company being headquartered in PNG, a commitment that Newmont has agreed to with plans to establish an office in the country.
Additionally, the Prime Minister announced an agreement for Newmont to conduct an initial public offering (IPO) on the Port Moresby Stock Exchange, allowing the PNG public to purchase shares of stock to the value of K100 million.
Prime Minister Marape reaffirmed the commitment to the Wafi-Golpu project, stressing the importance of adhering to the agreed timeline and ensuring that the project commences operations as soon as possible. He also called for increased local employment and content, with the preference for nationals to fill positions over expatriates. Furthermore, he encouraged the procurement of goods and services within PNG, wherever feasible, to stimulate the local economy.
Historic Mining-Industry Acquisition Sets the Standard for Gold and Copper Mining
Newmont Corporation has announced it has completed the acquisition of Newcrest Mining Limited to create the world’s leading gold company with robust copper production.
“Today marks a historic milestone in our company and the industry with the successful completion of this transformational acquisition of Newcrest by Newmont,” said Tom Palmer, Newmont’s President and Chief Executive Officer. “Our attention now turns to safely, efficiently, and responsibly integrating Newcrest’s assets and people into Newmont’s proven operating model, so we can accelerate the delivery of our value-focused strategy for all our stakeholders.”
Featuring more than half of the world’s Tier 1 assets*, Newmont’s unmatched portfolio of long-life operations, value-accretive projects, abundant exploration opportunities, and world-class talent will underpin year of profitable production in the world’s most favorable jurisdictions. This expanded portfolio will include operations with scale, margin, and mine life to generate robust and lasting returns for decades, while supporting best-in-class sustainability performance.
With the transaction now complete, Newmont’s acquisition of Newcrest is expected to:
About Newmont
Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects and talent is anchored in favorable mining jurisdictions in Africa, Australia, Latin America & Caribbean, North America, and Papua New Guinea. Newmont is the only gold producer listed in the S&P 500 Index and is widely recognized for its principled environmental, social, and governance practices. The Company is an industry leader in value creation, supported by robust safety standards, superior execution, and technical expertise. Newmont was founded in 1921 and has been publicly traded since 1925.
Mayur Resources Limited is pleased to announce the execution of an Investment Agreement with Vision Blue Resources, led by Sir Mick Davis, for a proposed investment of US$40 million for a 49% equity share (the Proposed Investment) in Mayur’s Central Lime Project (CLP).
The execution of this long form Investment Agreement formalises the Term Sheet announced in August 2023.
Key Points:
Mayur’s Managing Director, Paul Mulder, commented:
"We are thrilled to partner with Vision Blue on the Central Lime Project. Vision Blue recognises the pivotal role the Central Lime Project can play in meeting the escalating demand for Lime across various environmental and renewable energy sectors. Their Proposed Investment is a testament to the value and potential of this project both from a commercial perspective and for the immense benefits it will bring to local landowners and the PNG domestic economy.” “The enhancement of living standards and benefits for local landowners remain at the forefront of our mission. We look forward to continuing our relationship with the team at Vision Blue and are confident in the mutual success this partnership will bring."
"We are thrilled to partner with Vision Blue on the Central Lime Project. Vision Blue recognises the pivotal role the Central Lime Project can play in meeting the escalating demand for Lime across various environmental and renewable energy sectors. Their Proposed Investment is a testament to the value and potential of this project both from a commercial perspective and for the immense benefits it will bring to local landowners and the PNG domestic economy.”
“The enhancement of living standards and benefits for local landowners remain at the forefront of our mission. We look forward to continuing our relationship with the team at Vision Blue and are confident in the mutual success this partnership will bring."
The ‘base case’ of the CLP in Phase 1 is expected to generate annual revenues and EBITDA of over US$50 million and US$25 million respectively over an initial project life of 30 years.** Additionally, the CLP will create hundreds of jobs while having capacity to replace all of PNGs current imports of lime valued at approximately K$100 million (A$42.8 million) per year, and service the broader Asia Pacific region. Over time, the CLP will form the core of PNG’s first downstream processing resource manufacturing hub.
A leadership delegation from the owners of the Frieda River Copper-Gold Project met with senior executives from PNG’s Mineral Resources Authority (MRA) and the Conservation Environment Protection Authority (CEPA) to discuss the permitting of the project and the best practice environmental standards the project is committed to delivering.
Operated by PanAust Limited, the Frieda River Project is a world-class copper-gold development that will also generate a major infrastructure program including roads, port and airport developments, and clean electricity generation and transmission, in the East and West Sepik Provinces.
The discussions were aimed at clarifying the path forward for the Project’s permitting process and creating alignment about the environmental and sustainability standards.
Phil McCormack, PanAust’s General Manager of Studies, said the discussions were positive and built on the strong foundations of the relationship between PanAust and the Government of PNG.
“We greatly value the time and commitment of PNG to making Frieda River a successful project that will deliver significant financial and social benefits for PNG, local communities, and our investors,” Mr McCormack said.
PanAust CEO, Daniel Zheng noted that “The PNG Government is managing multiple major project developments, including Frieda River, and we are thankful for the Government’s careful assessment of our project as part of the approval process. We remain firmly committed to advancing the project in accordance with that process, while protecting the environment and maximising the benefits for our host communities and PNG more broadly.”
PNGX Group, operator of Papua New Guinea’s national stock exchange - PNGX Markets, welcomes Newmont Corporation (PNGX Code: NEM) to the market.
Newmont will be the first company to be listed in PNG using depository interests, known as PETS Depository Interests (“PDI”).
Newmont has interests in the Lihir gold operation and the Wafi-Golpu gold and copper joint venture, both of which are significant to the future of the country.
There are over 2,000 Papua New Guinean shareholders of Newcrest who will receive Newmont PDIs and be able to trade them on the PNGX market. Without the PNGX PDI initiative those shareholders would have been required to trade on ASX or New York Stock Exchange (NYSE).
PNGCSD Nominees Limited will act as the nominee holder of the underlying Newmont shares on behalf of the PDI holders.
“This new development represents a significant step forward in our commitment to providing investors with more diverse and accessible opportunities that ultimately contribute to the growth and development of the PNG capital market. We are excited to welcome Newmont and to introduce the trading of PDIs on the PNG markets and look forward to further growth opportunities and developments in future” said PNGX General Manager, Ms Elizabeth Wamsa.
Newmont commenced trading on the PNGX market on Friday 27 October 2023
Mayur Resources Limited is pleased to provide an update on progress at the Central Lime Project (CLP) and an update on its equity and debt funding package for the CLP.
Mayur’s Managing Director, Paul Mulder, stated:
"The recent achievements at the Central Lime Project, including the wharf successfully receiving its first shipments, signify more than just construction milestones. They represent our stakeholders’ involvement and support towards establishing PNG’s first downstream processing resource manufacturing hub.” “With early cashflow avenues targeted for early 2024, our work will benefit all involved and will also bring greater benefits sooner to the local Landowners." “We continue to be actively engaged towards securing the total debt financing to complement Vision Blue’s’ US$40 million equity investment into our CLP, and look forward to providing further updates within the coming weeks on this front.”
Construction Works
Following construction commencing in June 2023, the inner rubble core of the wharf is now complete. The successful completion of this wharf infrastructure ahead of schedule has allowed for the delivery of larger mobile equipment and fuel storage via barge. This equipment will be used for final armouring of the wharf and to build out the sheet pile faces and finger structure (to circa 10m draft) that will enable double sided barge exports from H1 2024.
Offshore geotechnical works are occurring in the coming months which will enable final placement of the offshore mooring pile structure that will allow up to Handymax size vessels to be able to berth and facilitate domestic and international shipments.
The demonstrated ability of the wharf to transport goods and materials is essential to optimising the logistics supply chain as the CLP enters full-scale construction. It also provides the platform to extend the wharf to enable the CLP to take advantage of potential early cashflow opportunities in 2024, through the sale of high-grade limestone to customers, both domestic and internationally.
Additionally, Mayur is now conducting its final on-shore geotechnical drilling campaign to confirm final placement of the Quicklime Kilns to further de-risk and engineer the design of the lime kiln foundations.
Equity and Debt Financing Update
Following from the proposed US$40 million equity investment from Vision Blue into Mayur’s CLP announced in August 2023, the Company has continued to work closely with Vision Blue and a number of industry leading counterparties towards securing between US$70-90 million in debt funding for the 2 CLP – with funding at the higher end of that range enabling early expansion of the CLP.
With Mayur’s financing activities progressing well, the Company expects to be able to update the market on these positive advancements in the near future.
Mayur expects first revenues from the CLP in H1 2024, with annual Phase 1 EBITDA in excess of US$25 million (A$37.8 million) and more than US$770 million (A$1,164 million) of revenue over the project life of 30 years.
Shareholders of the Ok Tedi Mining Limited (OTML) have a reason to smile today as the Company paid an interim dividend of K100M on Thursday October 26th while also citing a positive outlook for a final dividend payment for December 2023.
OTML Board Chairman Jeffrey Innes said, “We are proud to say that OTML is committed to deliver maximum returns to our PNG shareholders, mine impacted communicates and the people of Papua New Guinea.
He said the Company has gone through numerous changes in the latter months of 2022 and more so this year with leadership changes, a business restructure, prudent cost management measures after conducting reviews and realigning plans to meet its targets.
“As a result, we have seen a turnaround in production levels and operational costs and that gives the Board optimism about the Company’s future and confidence in its continued operational success,” Mr Innes said.
Mr Innes thanked the employees, contract partners, and mine impacted communities for their resilience and support throughout the transition period.
He said OTML has always been a resilient company and the Board is confident of meeting its final dividend pay-out in December 2023.
“Our focus currently is to ensure existing systems and processes that are in place are improved to strengthen our operations and derive maximum value of the resources we have during and beyond the current Life of Mine plan of 2033,” he said.
In September this year, the Board also approved in principle a further mine life extension from 2033 to 2050.
This is a significant milestone for OTML, its shareholders and for Papua New Guinea in general and further enhances the confidence the Board has in the company’s ability to deliver over the next two decades.
The approval is based on the latest Strategic Business Plan submitted by the Executive Leadership Team and brings to life OTML’s Vision to operate with excellence, maximising the value of the mineral resource in an environmentally friendly way, to deliver sustainable economic and social benefits to the mine communities and the people of PNG.
Managing Director & Chief Executive Officer, Kedi Ilimbit, said “The approval by the Board is a welcome gift to the communities in which we operate and who provide us the social license to continue, as well as to the people of PNG.”
Mr Ilimbit further stated, “The revised mine life will see the Company generate in excess of PGK30 Billion in dividends, royalties, compensation payments, and taxes for the benefit of OTML’s shareholders, communities and Papua New Guinea as a whole over the next 27 years.”
Mr Innes, shared his optimism about the company’s future, stating “The latest Strategic Business Plan gives the Board confidence in OTML’s continued operational success.
Mr Innes added, “OTML has tripled its value in the last six years and the outlook is a positive one. The mine life extension reaffirms OTML’s commitment to sustainable growth, economic prosperity, and community well-being supported by environmental sustainability, community development and operational excellence.
The Ok Tedi Mine is 100% PNG owned with the State of PNG through the Kumul Minerals Ok Tedi Ltd owning 67% while three Western Province entities hold the remaining 33%.
Since mining operations commenced in 1984, the mine has generated PGK13 Billion in dividends to PNG shareholders, PGK10.2 Billion in taxes/duties, PGK1.5 Billion in compensation payments, and PGK1.3 Billion in royalties. The mine has also paid PGK972 Million in Community Mine Continuation Agreement (CMCA) payments since 2001 and spent PGK515 Million in Tax Credit Scheme projects since 1997.
Bougainville Copper Limited can confirm that good progress has been made with the Autonomous Bougainville Government (ABG) with respect to ending Judicial Review proceedings relating to the Company’s EL01 exploration licence in the Panguna project area.
In January 2018, the ABG refused an extension EL01 with BCL maintaining that the application process had been undermined by third parties with vested interests in BCL’s mineral rights. This placed both the ABG and BCL in an unenviable position.
As a result, the Company, acting in the best interests of all its shareholders, was granted leave for a Judicial Review of the decision in the PNG National Court. The proceedings have continued to this day.
Separate to these proceedings, BCL and the ABG have been engaged in constructive dialogue with the mutual aim of amicably resolving the issue. We are now pleased to confirm, that through this dialogue, BCL and the ABG have agreed on terms for a Deed of Settlement to end the Judicial Review proceedings with parties fulfilling their if respective undertakings.
Meanwhile, ABG President Ishmael Toroama has affirmed that the ABG has undertaken to reconsider BCL’s EL01 application with a view to extending the exploration licence for a period of five years.
On delivery of respective undertakings, including the extension of ELO1, BCL has agreed to withdraw the Judicial Review proceedings. The PNG National Court is expected to consider an application to stay the Judicial Review on 13 November 2023.
The ABG and people of Bougainville currently hold a 36.4 per cent share in BCL and this is expected to increase to 72.8 per cent once shares currently held by the PNG National Government are transferred as part of a separate commitment.
Mineral Resources Authority’s (MRA) Acting Managing Director (AMD) Jerry Garry, has assured the owners of the Pan Aust Limited, that the PNG Government was committed to progressing the Frieda River Project Special Mining Lease (SML) application, in accordance with the legal process.
Pan Aust is the company that has been operating the Frieda River Copper-Gold project since 2014. The project is currently in a pre-development stage pending assessment of its application for an Environmental Permit (EP) and a Special Mining Lease (SML).
Mr Garry told the owners, Guangdong Rising Holding Group (GRHG), a Chinese infrastructure investment company owned by the Guangdong Government, that the Frieda River Project was an important project to the PNG Government.
The GRHG delegation met with Mr Garry on Wednesday Oct 25 at the MRA office. Mr Garry said his team was currently focused on re-opening the Porgera Mine and progressing the Wafi Golpu project. However, he said the State was determined to commence initial work on the Frieda project SML application in the first quarter of 2024. He said that by the second quarter, his team would be fully committed to progressing the application.
The AMD said the main issue for the application would be around the integrated Tailings Storage Facility (TSF) and hydroelectric dam, which has been the subject of independent expert reviews. The dam will be discussed in detail with independent world renowned dam experts from PNG and abroad.
The Acting Managing Director for the Conservation Environment Protection Authority (CEPA) Jude Tukuliya was also present at the meeting. Both MRA and CEPA AMDs gave updates on the respective processes involved in the permitting of the SML and EP. They also gave a run down on where both processes were with respect to timelines.
The visiting delegation included representatives from the State-owned Assets Supervision and Administration Commission (SASAC), which is a department within the Chinese government that supervises and manages state-owned assets.
The SASAC Deputy Director Mr Xiaoyun Wang said the purpose of SASAC’s visit to the MRA was to show their support and confidence in the Frieda River Project, and also to familiarize themselves with the EP and the SML permitting processes for the project.
He said their visit followed PNG Prime Minister Honourable James Marape’s visit to Guangdong Province, where Hon Marape met with the Governor for Guangdong, Mr Wang Weizhong. The meeting between the two leaders was an extension of PM Marape’s participation in the Belt & Road Initiative, hosted by the President of the Republic of China, Xi Jinping, this month.
In his closing remarks, AMD Garry commended the Marape-Rosso Government for initiating business and investment opportunities for the country especially in the resource sector. He said the PNG mining industry needs financial backing and the investment opportunities being provided the government was welcoming news for the sector.
The signing of the Mining Development Contract (MDC) and the Grant of Special Mining Lease (SML) 13, for the New Porgera Project, complied with due processes and laws, said Mineral Resources Authority’s Acting Managing Director Jerry Garry.
Mr Garry said the ongoing consultations and negotiations pertaining to Community Development Agreements (CDA) formerly called Memorandum of Agreements (MoA), also conform to the established processes.
Mr Garry was responding to recent public statements by individuals who claimed unlawful practices in the signing of the MDC and CDA for the project.
He said with regards to Compensation Agreements (CA), the National Government would ensure these mandatory agreements, between New Porgera Limited (NPL) and landowners, are signed before NPL can commence mining operation.
Section 155 of the Mining Act requires a compensation agreement to be in place between the holder of the tenement and the landholders, before the tenement holder can enter and occupy the land, for the purpose of mining.
The AMD has assured the Porgera Mine landowners that as a responsible government, the MRA would ensure NPL is compliant with the laws.
“We are committed to our landowners, and we are in constant dialogue with NPL and landowners, to ensure compensation agreements are progressed and signed,” said Mr. Garry.
He added that New Porgera was not a green field project but a brown field project. This means BNL has been on the ground and had already been permitted entry under the care and maintenance Agreement, pursuant to an order of the National Court for the upkeep of the mine until it reopens.
The AMD explained that CA does not affect the grant of SML13 and its Mining Development Contract, thus, the SML 13 grant and execution of MDC were lawful.
He said, unlike CA, the CDA was not a mandatory requirement to the re-opening the mine, hence, it could be concluded after the grant of the SML and also after the re-opening of the mine. Any benefits agreed to will be paid retrospectively to the date of the grant or other mutually agreed commencement date.
Mineral Resources Enga (MRE) on Friday October 13 2023, presented its position paper relating to the New Porgera Mine Community Development Agreement (CDA).
MRE Chairman Kurubu Ipara, accompanied by directors Nixon Mangape and Mark Yakka, presented the position paper to Mining Minister Hon Sir Ano Pala at the Mining Haus. The presentation was witnessed by the Acting Managing Director of the Mineral Resources Authority (MRA) Jerry Garry, officials from the Mineral Resources Development Company (MRDC) Limited, MRA and the Minister’s office representatives.
Chairman Ipara said the purpose of their position paper was to formally state the MRE’s position on various key issues relating to the New Porgera Mine project CDA.
He said given that the MRE did not participate in the Porgera Project Commencement Agreement (PPCA), the Development Forum and the CDA processes were ideal opportunities to present the company’s position.
Key issues presented in the paper which MRE has taken specific positions on are:
Minister Pala said when receiving the position paper, that it had been his intention to have all stakeholders including MRE, to present their position papers. He said he was happy that the process had been concluded successfully as the MRE’s presentation was expected to be the last paper.
Hon Pala said he was impressed with the manner in which the aspirations of the MRE had been captured in the paper, adding that the state team would incorporate their position into the matrix that had been formulated in preparation for the CDA process.
MRE is an incorporated joint venture between the Enga Provincial Government (EPG) and the Porgera Special Mining Lease area landowners. MRE currently holds 5 percent equity in the Porgera Project of which the EPG and the landowners have a 50/50 share equity arrangement.
A three-year technical cooperation between the PNG Extractive Industries Transparency (PNGEITI) and JICA will boost data transparency in the PNG Mining and petroleum sectors.
This will be made possible with the signing of “Record of Discussion” between PNGEITI Stakeholders and JICA experts undertaken in August this year.
The Record of Discussion which forms the basis for the execution of the technical cooperation was signed in Port Moresby today by Mr. John Uware who is acting Chairman of the PNGEITI Multi- Stakeholder Group with Mr. Matsuoka Hideaki from the JICA side.
This signing marks phase two of the JICA/PNGEITI technical cooperation aimed at Improving Resource Related Revenue Management through enhanced EITI Reporting. This second phase will commence in March, 2024.
The PNGEITI Head of National Secretariat Lucas Alkan thanked the Government of Japan through JICA for its continued support in the Government of PNG’s effort to implement the EITI Global Standard to improve extractive sector governance. He acknowledged JICA for coming on board for the second time to help improve extractive transparency which is the core mandate of the EITI – in the PNG Mining and petroleum space.
“PNGEITI is happy that we’ve signed on the record of discussions that was conducted within the month of August by JICA experts”, Mr Alkan said.
“The second project will be undertaken by JICA experts to continue building and improving capacity at the Department of Petroleum and Energy from work that was undertaken in Phase 1 of the project and at the same time, focus on building capacity at the Auditor General’s Office to improve financial data quality, reliability and timely availability of resource related data and information for public use,” Mr. Alkan explained.
The Head of PNGEITI Secretariat said that the three-year program would basically pick up from where JICA had left off at the Department of Petroleum and Energy when Phase 1 of the project ended a year ago and determine ways to improve the quality of the financial data for EITI reporting and to ensure that more resources-related information is made publicly available for transparency purpose as required by the EITI Global Standard. The project is also intended to assist strengthen capacity at the Auditor General’s Office to ensure that the financial data that are used in the EITI annual reports are audited and are reliable to improve the quality of these reports.
Mr Alkan said the JICA technical cooperation program in that it will specifically focus on building and strengthening capacities at two key government organisations; the Department of Petroleum and Energy and the office of the Auditor General. Addressing weaknesses in data reliability and quality in these two agencies would be important to the work of the PNGEITI Secretariat in its endeavour to addressing the data and information gaps as highlighted through the EITI reporting process.
Present during the occasion included key representatives from beneficiary government entities, namely the Department of Petroleum and the PNG Office of the Auditor General.
Governor General Sir Bob Dabae recently granted a special mining lease to New Porgera Limited (NPL), clearing the way for Barrick Gold Corporation to restart production at the gold mine, which has been on care and maintenance for three years.
This follows the signing of a mining development contract and the conclusion of a fiscal stability agreement for New Porgera between the government and NPL. NPL will meet the mine property’s landowners in the coming week to settle compensation agreements.
Barrick president and chief executive Mark Bristow said subject to agreement on compensation, the mine was positioned to restart before the end of this year. Recruitment was being accelerated to employ the full workforce that will be required when the mine starts ramping up operations as soon as the compensation agreements are in place.
“It’s been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence but the spirit of partnership in which they were conducted eventually led to an outcome acceptable to all. Barrick’s commitment to partnership with its host countries is also reflected in NPL’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders,” he said.
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