Bougainville President Hon. Ishmael Toroama has expressed great disappointment at several parties who have been misleading the people of Bougainville on the Autonomous Bougainville Government’s proposals to review the 2015 Bougainville Mining Act.

President Toroama made this statement during his maiden address to the Bougainville House of Representatives as the ABG Minister for Mineral and Energy Resources.

President Toroama explained that the selective review of the 2015 Bougainville Mining Act will, as required by law, go through a transparent process which will involve wider stakeholder consultations and will require approvals from the Bougainville Executive Council before any proposed amendments are tabled in Parliament.

“I put on record that current work on amendments stem from Panguna Mine Dialogue consultations and have nothing to do with or any links to Caballus proposals of prior years. Further, there are absolutely no plans or intentions to amend or remove Section 8 which vests mineral ownership with customary landowners. And there are also no proposals to replace landowner consent with Community Government consent”.

President Toroama further expressed that those responsible for fueling such malicious allegations were acting against the interests of Bougainville and were trying to create an environment of instability in the region.

President Toroama also warned that the government will be taking a tough stance against foreign elements who are meddling with the government’s affairs by creating distrust, disunity and instability on Bougainville.

He urged all to consult with relevant ABG authorities to get first-hand information on latest developments and to refrain from resorting to reactions based on misleading information from those with ulterior motives.

The Manetai Limestone Project is progressing to its next phase of development as road access clearance and grubbing work in the project area paves the way for limestone resource drilling.

In providing a project update to parliament, Hon. President Hon. Ishmael Toroama in his capacity as Minister for Mineral and Energy Resources reported that incremental activities and prolonged access to site is now possible following the signing of the Land Access and Compensation Agreement (LACA) between the traditional landowners and Lakeville Mines Ltd, the project license holder, in April this year.

President Toroama reported in Parliament that after signing of the LACA, activities pursued by Lakeville have included social mapping and a related landowner identification study.

These have been undertaken in close collaboration with relevant ABG departments and landowners belonging to six clans including the Awora, Makiara, Muruan, Dosiana, Bakorin, and Barapa clans.

Land disagreements amongst the clans make the Landowner Identification and Social Mapping important tools for mitigating disputes between clan members of the landowner groups.

“Lakeville has also completed their initial Pre-Feasibility Study (PFS) which included both desktop studies involving market analysis, geology, engineering and also initial on-site assessments of historic facilities. The PFS has provided valuable insights into the technical and financial viability of the project,” President Toroama said.

Following the completion of these preliminary assessments, Lakeville is now progressing into activities that will lead to the commissioning of a full Feasibility Study. A key aspect of this next phase is taking more samples to depth via drilling, which aims to confirm the extent and quality of the limestone resource. A completed Feasibility Study is crucial for project financing purposes.

According to the President, the steady progress and positive change in attitude from within the community with respect to the ongoing Manetai Limestone project activities is the direct result of awareness initiatives carried out mutually by Lakeville, the landowners, and the Department of Mineral and Energy Resources, with support from other ABG departments in their respective areas.

Recently a compensation determination exercise involving the landowners and company representatives was undertaken to help them understand the guidelines and rates for compensation for damages and cash crops.

“This milestone not only promotes positive relations with our Manetai Landowners but also reflects the Government’s and project stakeholder’s commitment to responsible resource development on Bougainville.”

The Manetai Limestone Project is a key project of the Toroama-Nisira Government towards advancing Bougainville’s economic growth, with potential to supply local and international markets and potential to eliminate the reliance on importing cement and quicklime; including for supply to mining projects across the country.

Prime Minister Hon. James Marape has hailed the signing of four agreements on Friday, October 13, 2023, as a “giant leap” towards the reopening of the Porgera gold mine in Enga. The agreements signed between the State and New Porgera Ltd include the Mining Development Contract, Special Mining Lease 13, Fiscal Stability Agreement, and Escrow Arrangement for Landowners.

The mine is expected to commence operations before the end of the year, with full production anticipated within six months, contingent upon the finalisation of compensation agreements for landowners.

Operated by New Porgera Ltd, a company with a 51 percent ownership by Papua New Guinea stakeholders and 49 percent by Barrick, the momentous signing event took place at Government House, witnessed by Governor-General Sir Bob Dadae, Prime Minister Marape, Barrick Gold Corporation President and CEO Mark Bristow, company representatives, Enga Governor Hon. Sir Peter Ipatas, Ministers and MPs, Porgera landowner representatives, members of the State Negotiating Team, and others.

Prime Minister Marape expressed his gratitude to Mr. Bristow and the Barrick team for their care and stewardship of the mine since its closure in April 2020. In his words, “I want to say today, October 13, 2023, is a day in which we have taken a giant leap from April 24, 2020. Today’s signing of four key instruments is a big step towards reopening Porgera.”

Prime Minister Marape emphasised the significance of the partnership, stating, “This is the first time that a Papua New Guinea company has merged in a joint venture with a global supermajor like Barrick. This incorporated joint venture is structured in a way where accountability of all parties is on the table. I want to assure everyone that this has been done transparently.”

Regarding crucial issues such as the resettlement of Porgera landowners, Prime Minister Marape expressed his gratitude, saying, “We thank everyone for their patience and support. We believe that what has been secured under SML 13 is in the best interests of everyone, and we look forward to the next 20 years. It is my view, and the Enga Governor’s view, that this arrangement will lift the living standards of Porgera Valley landowners, Enga Province landowners, and Papua New Guineans.”

Mr. Bristow, President and CEO of Barrick Gold Corporation, described the day as “special,” with the signing of SML 13 occurring on Friday the 13th. He stated, “It’s a milestone. We have an exciting voyage ahead of us. The important thing, as the Prime Minister said, is that it’s a real partnership. We’ve worked hard to get here, and it’s important now to finish the last step, and that is the compensation arrangements for all the landowners. We want to get that out of the way as quickly as possible. We believe that we can do that with the help of everyone.”

This historic agreement marks a significant step forward in the reopening of the Porgera gold mine, ushering in new opportunities and prosperity for the region.

The regulator of the Capital Market of Papua New Guinea, the Securities Commission of Papua New Guinea (SCPNG) recently granted exemptions for the merger between the Newmont Corporation and Newcrest Mining Limited to proceed after being satisfied that all the requirements of the regulator were met.

“We have now reached an understanding which is now covered by a Memorandum of Agreement (MOA) between the two parties which was signed today,” said the Minister for International Trade and Investment, Hon. Richard Maru.

Minister Maru, on behalf of the Marape-Rosso Government thanked Newmont Corporation for choosing to invest in Papua New Guinea and for their understanding in reaching the agreement with the regulator of the Capital Market of Papua New Guinea to allow for these critical exemptions that were issued today.

Newmont received an approval from the ICCC in August this year and was just awaiting the approval from the SCPNG which was granted recently (October 2nd, 2023).

“The exemptions granted today completes all the regulatory approvals required in PNG for the merger to proceed,” said Minister Maru.

“Newmont is a gold leader in the world and to have them come to invest in Papua New Guinea will boost investor confidence for other investors to follow suit,” added Minister Maru.

Mayur Resources Limited is pleased to provide an update on the construction of the Central Lime Project’s (CLP) wharf infrastructure.

Following construction commencing in June 2023, the inner rubble core of the wharf has now largely been completed. Mayur has continued to engage ‘lock step’ with the Regulator on the wharf infrastructure and will continue to do so leading up to the CLP’s broader planned Financial Close and then beyond into full-scale construction. This wharf infrastructure will facilitate early barging operations for the transport of goods and materials and provide the platform to extend the wharf to enable the CLP to take advantage of early cashflow opportunities in 2024, through the sale of high-grade limestone to potential domestic and international customers.

Prioritising the construction of the wharf infrastructure not only enables the opportunity for cash flow to be achieved next year but also sets a platform to optimise the Quicklime kilns’ construction logistics supply chain, shortening parts of the development schedule. Importantly, the creation of the opportunity for early cashflow is intended to occur in parallel with the construction of the quicklime kilns.

The construction update was discussed at the CLP site with Vision Blue (VB) Partners who were in Papua New Guinea (PNG) last week to progress the previously announced US$40 million investment for a 49% stake in the CLP. The VB commercial and technical Partners inspected the construction works completed to date, as well as the on-site areas selected for the delivery of key work packages upon Financial Close. The opportunity was also taken to meet with a range of PNG Ministers and Members of Parliament as well as the Heads of various regulatory bodies.

Mayur’s Managing Director, Paul Mulder, stated:

"We take great satisfaction in the support we have received from the Landowners, the PNG Government and VB on the CLP’s early construction activities. There is a strong focus to create early cashflow opportunities this coming calendar year through initial limestone sales whilst developing the broader CLP.”

“Our accelerated work on the initial stages of the wharf infrastructure, both enables early cash flow opportunities and underpins future supply chain and logistics optimisations.”

“Mayur is also extremely focussed on completion of the overall funding transaction including finalisation of a debt package to achieve Financial Close and shall provide the market with further updates.”

K92 Mining Inc. is pleased to announce that it has entered into a loan agreement with Trafigura Pte Ltd, a market leader in the global commodities industry, pursuant to which Trafigura will provide a US$100 million senior secured loan to K92.

In addition, the Papua New Guinea subsidiary of the Company, K92 Mining Limited, and Trafigura have amended and restated the offtake agreement dated July 1, 2019 for the purchase by Trafigura of 100% of K92’s copper/gold concentrates produced at the Kainantu Gold Mine in Papua New Guinea (“ the Amended Offtake Agreement ”). The Loan and the Amended Offtake Agreement will only come into effect upon satisfaction of express conditions precedent, including but not limited to (i) the execution and registration of the Security and (ii) regulatory approvals. These conditions precedent have not as yet been satisfied. K92 expects first drawdown to occur in early to mid-Q4 2023.

The Loan is at the corporate-level and may be used for general corporate purposes, working capital purposes, and capital expenditures. No hedging is required for the Loan. The Loan further strengthens K92’s strong financial position, with US$95.6 million and no debt as at June 30, 2023.

Key Terms

US$100 Million Senior Secured Loan

• 4-year term from the date which the first advance of funds are made.
• Competitive interest rates.
• One-year interest only repayment grace period.
• No hedging conditions.
• The Loan will be secured by, among other things, a charge over the assets of K92 Mining Limited and a pledge of the shares of both K92 Mining Limited and K92 Holdings International Limited (the “ Security ”).
• Drawdown of the first US$25 million under the Loan (the “ Initial Advance ”) is subject to conditions precedent, including but not limited to (i) the execution and registration of the Security and (ii) regulatory approvals, which have not as yet been satisfied.
• Drawdown of the balance of the Loan is subject to subsequent conditions in relation to the registration of certain items which form part of the Security (the “ Conditions Subsequent ”).
• Prior to satisfaction of the Conditions Subsequent, should an event of default occur under the Loan, Trafigura has, among other rights, the right to accelerate repayment of the Loan, and convert all or any portion of the Initial Advance into common shares of K92 (the “ Conversion Right ”).
• Once the Conditions Subsequent are satisfied, the Conversion Right will expire and be of no further force or effect.

Amended Offtake Agreement

• The term of the Offtake Agreement will extend and continue for an additional 7 consecutive calendar years, beginning January 1, 2026, or until a minimum quantity of 600,000 dry metric tons of concentrate have been delivered to Trafigura.
• Competitive industry terms in relation to all metrics at London Metals Exchange spot prices.
• Attractive payment arrangements which provide for upfront payment on delivery of concentrates to port of dispatch and provision of certain shipping documents.
• Amended and improved metals payabilities for deliveries of concentrates, which includes amending penalties, treatment and refining charges, and transport charges, all of which are better than the assumptions outlined in the Kainantu Integrated Development Plan (“IDP”) Definitive Feasibility and Preliminary Economic Assessment cases (see September 12, 2022 press release – K92 Mining Inc Announces Robust Kainantu Gold Mine Integrated Development Plan).

John Lewins, K92 Chief Executive Officer and Director, stated, “We are extremely pleased to be expanding our partnership with Trafigura, with a US$100 million Loan and amended off-take agreement. Trafigura has been our offtake partner since the start of operations at the Kainantu Gold Mine, and these agreements reinforce our strong relationship with Trafigura.

In combination with K92’s already strong cash position of $96m at the end of Q2 2023, the US$100 million Loan effectively fully finances the growth capital outlined in the IDP for both the Stage 3 DFS and Stage 4 PEA cases, which transform Kainantu into a Tier 1 producer with run-rate production of 300 koz AuEq and 470 koz AuEq per annum, respectively. Importantly, the Loan enables K92 to more confidently invest and potentially increase exploration activities while completing the major production expansions. The offtake agreement also secures long-term competitive terms and provides security and confidence in our income from the sale of our concentrate product.”

The National Government is committed to ensuring that the Porgera Mining Project commences operations before the end of this year.

Mining Minister Hon Sir Ano Pala, said the government was in fact almost ready to grant the Special Mining Lease (SML) on 16 September, signaling the re-start of the mine. However, he said in the weeks leading up to that date, the Mining Advisory Council (MAC) identified a few technical issues that the applicant New Porgera Limited (NPL), needed to address in their application. He said the issues were flagged with NPL, adding that the MAC had received a response from NPL.

The MAC will deliberate on the response from NPL immediately.

“We want the project to re-open as soon as possible. This is because of the expected boost to the country’s economy. However, as a responsible government, we must make sure that all regulatory requirements are met, and all laws of the land are complied with,” said the Minister. He said the government was not too far off, on its planned date to re-starting the mine.”

He said he would be making a submission to cabinet at the end of this month to have the SML granted.

Meanwhile Acting Managing Director of the Mineral Resources Authority (MRA) Jerry Garry, said the MRA and its line agencies, had been conducting two separate but related processes in parallel. They are the regulatory aspect of the project, and the Community Development Agreement (CDA) initial consultations. He said on the regulatory front, which is basically the assessment of the SML application by NPL, the MAC met two weeks ago to deliberate on the application. This was when they found the issues with the application.

Mr Garry said on the CDA front, landowners and stakeholders had submitted their position papers to the State. A State team is currently going through the position papers to incorporate them into a matrix in preparation for the actual negotiations. The negotiations will begin in about two weeks from now.

The AMD explained that the two processes were separate and were running parallel to each other. This means that the SML could be granted ahead of the completion of CDA process, meaning the mine could start operating once the SML is granted. He said the CDA process would continue as the mine operates.

The Board of Ok Tedi Mining Limited (OTML) has approved in principle a further mine life extension from 2033 to 2050.

This marks a significant milestone for OTML, its shareholders and for Papua New Guinea in general and is a sign of 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 discussed during the OTML Board meeting held in Tabubil on 13th September 2023.

This extension 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. Several factors have enabled the extension including a strengthened long-term copper price outlook, additional mine waste management solutions such as Engineered Waste Rock Dumps and a Tailings Storage Facility to minimize impact on the environment, renewal of aged processing plant assets and implementation of other strategic projects that are currently in various stages of completion.

Managing Director & Chief Executive Officer, Kedi Ilimbit, said "The approval by the Board on the eve of PNG’s 48th Independence anniversary is a welcomed 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."

Jeffrey Innes, Chairman of the OTML Board, 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.

Governor for Hela Province, Hon Philip Undialu on Friday Sept 08, 2023, presented his province’s position paper pertaining to the Porgera Mine Community Development Agreement (CDA), to the Mining Minister Hon Sir Ano Pala.

The presentation was done at the Airways Hotel in Port Moresby, witnessed by Vice Minister Assisting the Prime Minister on State Negotiations Hon Jimmy Maladina, Vice Minister for Mining Hon James Donald, Chairman of the State Negotiating Team (SNT) Dairi Vele, Secretary for the Department of Mineral Policy & Geohazards Management (DMPGM), Harry Kore, and the Mineral Resources Authority’s (MRA) Executive Manager for Development Coordination Division, Andrew Gunua.

Governor Undialu was accompanied by key landowners of Gas-To-Electricity (GTE) facility and well-heads, which has been supplying 70 mega-watts of power to the Porgera mine for the last 30 years. He said the Hela Province hosts almost 70 km of power lines that supply power to Porgera mine.

Hon Undialu said his government had raised 16 issues and proposals in the position paper on behalf of his stakeholders. However, he said some of the issues were commercial in nature and would be discussed in appropriate forums, while some will be discussed during the CDA process.

The leader said the 16 issues and proposals had been condensed into two proposals for the government to consider. He said option one was the ‘Porgera & Gas-To-Electricity (GTE) Project Integration.

“We are now proposing for a project integration or unitization,” said Governor Undialu.

He said for instance in the PNGLNG project, all supporting facilities of the project, in Hela, Southern Highlands, Western, Gulf and Central Provinces, are all integrated, where we all work together in benefits sharing arrangements.

He said if this proposal was accepted, his government and stakeholders expect to negotiate with the state on benefits such as equity, royalties, Business Development Grant (BDG), Infrastructure Development Grant (IDG) and other social benefits.

Governor Undialu said the second proposal was to treat the GTE facility as ‘stand-alone project, and have its Memorandum of Agreement (MOA) reviewed, and ownership be transferred to the provincial government and landowners, on a 50/50 basis subject to old Mining Development Contract (MDC) Clause 6.4.

He said clause 6.4 of the old MDC says that on the 10th anniversary of the mine’s operations, the power plant would be transferred over to the State.

Hon Undialu said the mine started operations in 1992, which means that the GTE facility should have been transferred to state in 2002 which did not happen.

He said if the GTE was transferred to them, the provincial government and landowners would ensure that social security is provided.

Minister Pala on receiving the position paper from Hon Undialu, said this papers would be considered together with papers presented by all other stakeholders integrated into a formula for negotiations soon.

The government has announced that it would propose an umbrella agreement to the landowners, impacted communities and stakeholders of the Porgera mine.

The announcement was made in Alotau on September 7, 2023, by Vice Minister (VM) Assisting the Prime Minister, Hon Jimmy Maladina, in his closing remarks.

He was speaking to landowners, impacted communities and stakeholders of the Porgera Mine, during the Porgera Community Development Agreement (CDA) consultation closing ceremony.

“We are trying to follow the footprint of PNGLNG, where there was an umbrella agreement, splitting the percentage break ups of the equity , royalties, Infrastructure Development Grants (IDG), and Business Development Grants (BDG). The different license areas and affected landowners will have to sit down and distribute the goods,” said Hon Maladina.

He said the government had received position papers from all landowners, impacted communities and stakeholders.

The VM said papers were received from Special Mining Lease (SML) landowners, Lease for Mining (LMP), Mining Easement (ME), Hides-Porgera Power Line (HPPL), Riverine impacted communities in the Western and West Sepik Provinces, youths and women’s groups. He said some raised legacy issues from the past 30 years, some raised equity and royalty issues and projects. Hon Maladina said the government recognizes and appreciates these issues and had taken note of them.

“We want to make sure that these sorts of issues are managed better and benefits are fairly and equitably distributed this time,” VM Maladina said.

He assured the landowners and stakeholders that the government would consider all papers, and no paper would be left behind as they were all important.

He said the government would need two weeks to align the positions with relevant laws applicable, and also incorporate them (positions) onto a formular, that would form the basis of negotiations going forward.

He said the venue for negotiations would be in the Enga Province with the specific venue to be announced soon.

Governor for Western Province Hon Taboi Awi Yoto, this week presented his provincial government’s position paper, on the Porgera Mine Community Development Agreement (CDA) negotiation, to the Minister for Mining Hon Sir Ano Pala.

The presentation was made in Alotau Milnebay province, where the State Team, landowners and impacted communities just concluded CDA consultations.

In presenting the position paper to Minister Pala, Governor Yoto said in his introductory remarks, that his government’s position paper, presented terms on how much benefit they were seeking from the Porgera Project. He said this was for the use of their river systems as a means to disposing tailings waste from the Porgera Mine.

“We the new stakeholders from Western Province comprising the Fly River Provincial Government, spearheaded by the Governor and the three open Members of North Fly District, Middle Fly District and South Fly District, riverine communities in the Western Province, and Strickland River, Lake Murray and Lower Fly River, have united to integrate our negotiation terms in the form of requests,” said Governor Yoto.

He said his government hopes that the State Negotiating Team (SNT) would consider their negotiation terms as they look forward to ensuring that the New Porgera Mine re-opens.

In response, Minister Pala said that the National Government would consider their position paper together with that of other stakeholders, and ensure that all stakeholders receive fair, just and equitable shares of benefits from the project.

The government hopes to issue the Special Mining Lease (SML) for the Wafi Golpu project by October, 2023.

Mining Minister Hon Sir Ano Pala, revealed this on Thursday in Lae, during the Wafi Golpu stakeholders consultative meeting.

Sir Ano said there were only three processes left that needed to be completed before the SML could be granted. They are the staging of the Development Forum, completion of the Mining Development Contract (MDC) and the cabinet’s approval for the SML to be granted.

The Minister appealed to the landowners and impacted communities of the project, to work with the government to ensure necessary processes such as the Development Forum is successfully staged. He urged them to negotiate well for their benefits, and assured them of the government’s support throughout the processes.

Hon Pala said the Marape-Rosso Government had achieved its objective, which is to ensure greater benefits are received by PNG Stakeholders.

He said it was the government’s desire to see tangible transformation in the livelihoods of its landowners.

“I urge all stakeholders to cooperate with the Mining Ministry and the MRA, to negotiate the anticipated benefits in the true spirit of respect, honesty and fairness, to achieve a win-win outcome for everyone,” said Minister Pala.

Papua New Guinea will gain over 55 percent economic value in benefits, from the Wafi Golpu project, said Prime Minister (PM) Hon James Marape yesterday in Lae.

The PM said this in his address to landowners and stakeholders of the Wafi Golpu project, who gathered at the Sir Ignatius Kilage Indoor stadium, for the project’s stakeholders consultative meeting.

He said the value would come in the form of equity, tax, royalties, development levies and spin off businesses .

“This simply means that for every K1.00 worth of resource, harvested in the mine, PNG will get K0.55t, and company will get K0.45t.”

Hon Marape said the value would increase further when local content, Business Development Grant (BDG) and Infrastructure Development Grant (IDG) are paid out.

He said the government had committed K1b towards IDG for Morobe Province, K150m of which had already been paid to the provincial government. The balance of K850m is still with the National Government and would be paid over the next 9 years.

The PM told the people that Morobe Province would have 13 percent stake in the project, which would comprise of the 10 percent equity, and 3 percent royalties from the project.

He said environmental sensitivity had also been built into the negotiated outcome package, where the company would be putting aside about K1b for Social Obligations. Social obligations cover things such as potential environmental incidences.

He said this was the first time in the history of mining investment in PNG, that a developer would be spending that much money to cater for potential environmental incidences.

The PM thanked the project joint ventures Newcrest and Harmony for their foresight.

Mining Minister Honourable Sir Ano Pala, officially opened the Porgera Mining Project Development Forum, recently at the Enga Teachers’ College in Wabag town.

He was accompanied by the Prime Minister Honourable James Marape, Enga Governor Honourable Sir Peter Ipatas, Vice Minister for Mining Honourable James Donald, Hela Governor Honourable Philip Undialu, Member for Bogia Honourable Robert Naguri, Member for Aitape/Lumi Honourable Anderson Mise, Member for Esa’ala Honourable Jimmy Maladina and Member for Chuave Honourable James Nomane.

Heads of Departments and special guests included the Mineral Resources Authority’s Acting Managing Director Jerry Garry, the Secretary for the Department of Mineral Policy & Geohazards Management (DMPGM), Harry Kore, Chairman of the State Negotiation Team (SNT), Dairi Vele and the Managing Director of Kumul Mineral Holdings Limited (KMHL), Sarimu Kanu.

Barrick PNG Limited was represented by Country Manager Karo Lelai and other executives.

About 300 landowners from the Special Mining Lease (SML), Lease for Mining Purpose (LMP), Mining Leases (ML), Mining Easements (ME) and riverine communities attended the event. The Porgera Churches, Youths and Women in Business were present under observer status.

“Indeed, today marks a proud historical moment, where Marape-Rosso Government can showcase its achievements under new Porgera mine,” said Minister Pala. He said this achievements include greater, fairer and more equitable benefits sharing arrangements, for landowners and the country, without upsetting the delicate balance of profitability for the mining companies.

“I am very proud to open the Consultation process of the Development Forum today and formally invite the Stakeholders to the Forum,” said Hon Pala.

The Minister appealed to all stakeholders to embrace mutual respect, empathy, transparency, clarity, honesty and wisdom in collaborative discussions.

He said the Marape-Rosso Government’s objective was to secure greater benefits for PNG stakeholders which had been achieved. He said the government had achieved these objectives through the negotiations.

The Minister said it was the government’s desire to see tangible transformation in the livelihood of landowners, in areas such as relocation and resettlement exercise under the New Porgera Agreement.

The Minister urged all stakeholders to cooperate and work within the true spirit of respect, honesty and fairness in negotiating Memorandum of Agreements (MoA).

Yesterday’s forum will be followed by a series of MoA benefits negotiations between the parties and stakeholders. The parties are New Porgera Limited (NPL), the Porgera Landowners Association (PLOA), the Enga Provincial Government, and the riverine/impacted communities, who live along the Strickland and Fly Rivers, and Telefomin District.

The government has set aside K700m for infrastructure development and re-settlement programs for the Progeria Mine Special Mining Lease (SML) landowners.

This money will be drawn down over a seven-year period.

Prime Minister Honourable James Marape announced this recently during the project’s Development Forum at the Enga Teachers’ College in Wabag, Enga Province.

The PM said the money would be used for projects such as schools, police stations and establish educational institutions within the SML area.

In addition, the government has given K100m to Mineral Resources Enga (MRE), which will be used to pay for the 5 percent outstanding SML 1 asset. The government has also secured a 3 percent royalty rate for the landowners without deductions for operational costs, capital works and sunk-costs amongst other deductions.

The PM told landowners that the government had negotiated a better deal for them and the country, where the project has a 51:49 shareholding arrangement for the next 10 years.

After 10 years, PNG government has an opportunity to buy out barrick’s interests and fully own the project.

The PNG shareholders have 51 percent share while Barrick and its partners have 49 percent.

PNG shareholders are the government through Kumul Mineral Holdings Limited (KMHL) (36 percent), SML landowners (10 percent) and MRE (5 percent).

Hon Marape assured landowners and impacted communities, that his government would ensure benefits negotiations and distributions are done transparently.

He said the development forum was a platform where all benefits would be negotiated transparently and openly, between the parties. He said landowners have an opportunity to decide how they would like to distribute benefits and what infrastructure development projects they want

PM Marape thanked Barrick for its sincerity in negotiating with the government and its people. He said for the first time in Barrick’s history, the company had become a minority shareholder in a project.