Barrick Gold President and Chief Executive Officer Mark Bristow arrived in Port Moresby this afternoon as a part of his regular quarterly visits to all Barrick operations globally. During his 3-day visit to PNG, Mr Bristow will meet with the Prime Minister, James Marape and will visit Porgera to meet with project area landowners and business, church and community representatives.

Before his visit to Porgera, Mr Bristow expressed his deep disappointment at the current conflict in Porgera Valley and elsewhere in Enga that has led to numerous deaths, assaults on Porgera residents, including women and children, the burning of houses and businesses, and the closure of critical government services such as the Paiam Hospital and Porgera Secondary school.

“What we are seeing take place in Porgera is inhumane and uncalled for. Barrick (Niugini) Limited (BNL) made a commitment to the community, especially the women and children, to keep Paiam Hospital’s essential services open even after the mine was placed on care and maintenance (C&M).To see the services now closed due to the tribal conflict and violence related to the elections is deeply saddening. The conflict is impacting C&M operations and we remain concerned for the safety of our Porgera employees. BNL urges the national and provincial governments to intervene and restore peace to the Porgera Valley,” Bristow stated.

Porgera Mine is currently into its third year of C&M and restart plans remain on hold, awaiting the completion of the conditions for the mine to reopen, the first of which requires the full execution of the Shareholders Agreement by Mineral Resource Enga Limited (MRE).

Bristow said BNL continues to maintain regular discussions with the State Negotiation Team and concerned parties, including MRE and the Porgera Landowners Association, with the hope that MRE will sign the Shareholders Agreement at the earliest possible date.

“The Porgera Project Commencement Agreement (PPCA) provides a 1% increase to the royalty rate to 3% and an additional 10% free carry equity to be shared between the Enga Province and the wider project-impacted landowners. This is on top of the 2.5% held by each of the Enga Province and the Special Mining Lease landowners through MRE. The PPCA demonstrates that BNL and the national government are committed to providing more tangible benefits for projectimpacted landowners and Enga. It is an unprecedented agreement for any project in PNG,” Bristow said.

Once MRE signs the Shareholders Agreement and other associated agreements, the first step towards restart preparations can commence with incorporation of the new project company, New Porgera Limited, and the submission of a new SML application to the Mineral Resources Authority.

“Further delaying the restart of the Porgera Mine denies benefits to every one of the stakeholders including the Porgera community and the National Department of Treasury. Care and Maintenance is currently costing K35 million a month which will have to be repaid” Mr Bristow said.

Bristow said that Barrick stands ready to finalize all remaining matters to allow the restart of the Porgera Mine for the benefit of all Porgerans, especially the project-impacted landowners, Enga Province, Papua New Guinea, and BNL shareholders.

Article courtesy of Porgera JV

The reopening of the Porgera Gold Mine will be a catalyst for continued growth post-COVID despite it currently being on hold due to a delayed stakeholder sign off on the Porgera Project Commencement Agreement and Shareholder Agreement.

BSP Group CEO Robin Fleming in providing his insight in the BSP Pacific Economic and Market Insight Q2, 2022 Report said resumption of production at the Porgera Gold Mine operations later in the year would represent a significant injection into the PNG economy.

He said as some of the key mining industries await the finalisation of negotiations, projections are looking positive with anticipation of some operations commencing as early as the first half of 2023. The outcome of the National General Elections and the policy priorities of the emerging government will determine the pace of these processes.

“We expect that the re-opening of the Porgera Mine will be a key priority for the government that emerges from the 2022 National General Elections. Porgera and other resource investments are important as the post COVID economic activity has been led by government spending in infrastructure, and private investment is important to make the recovery sustainable in the long term,” he said.

“PNG has benefited from high global prices for its major exports in 2022. Mining exports in particular have seen sustained price increases which positively impact PNG’s gross domestic product (GDP), and present much upside for economic activity and government revenue generation.”

Mr. Fleming also said the recent positive announcements made on large resource projects present some upside in the medium term.

“Apart from the reopening of the Porgera gold mine, Wafi-Golpu, Papua LNG and P’nyang LNG are still being progressed. The delivery of these large projects represent a significant injection into the PNG economy and will ultimately impact growth and government revenue.

“Mining-adjacent sectors will also benefit from the uplift in activity with some spill over into retail, wholesale, and accommodation sectors,” the Group CEO added.

Local landowners from the Yandera Copper Project in Madang have stressed their concerns and objections to the upcoming renewal of its project exploration license EL 1335.

Most landowners are adamant to have the renewal refused by any incoming Minister for Mining, as they want an innovative developer to come into the project that can do actual work on the ground and have a better approach to community relations.

Located 95 kilometers southwest of the northern seaport of Madang and situated within the highly prospective New Guinea Copper-Gold Belt, the Yandera Project area was the subject of intensive, drill-based exploration programs during the late 1960s and 1970s up until the early 2000s by several companies.

The recent acquisition of Carpo Resources by Canadian junior Freeport Resources was finalized in August 2021, as Freeport’s report confirms. Since then, they have been the full owner of Carpo Resources and all shares in Era Resources (formerly Marengo Mining), the current holder of EL 1335, which currently has an application for renewal still pending for the past year.

A spokesman for the Yandera Landowners Association, Mr. Greg Gambu, raised concern earlier this year that EL 1335 Yandera expired in November 2021, and appealed to the Mineral Resources Authority (MRA) not to renew the license to any company except a genuine developer.

“Our pristine environment has suffered tremendous damage under the pretext of exploration while the exploration companies have made a lot of money on the stock exchange over the years,” Mr. Gambu said.

“With no road access we depend on our rich environment for our survival, and the exploration activities have disturbed our means of survival in a very big way.”

“We cannot let them (exploration companies) continue to keep us in suspense and become rich on the stock exchange market at the expense of our suffering by destroying the environment that we depend on for our daily needs.”

“It’s time now that they act on the results of their exploration activities – they should decide whether to Pack up and leave us alone or mine the deposit now,” Mr. Gambu added.

In response to these statements, MRA Managing Director Mr. Jerry Garry stated: “There is no mining activity in the exploration license (EL 1335) at Yandera Copper mine in Madang Province.”

Mr. Garry confirmed that the exploration license is still undergoing extension application, which is deemed ongoing until a determination is made by the Mining Minister, currently Johnson Ibo Tuke MP.

“The exploration license is for exploration only and does not extend to mining deposits. EL 1335 was first granted in 2003 and has remained active since,” he added.

“The EL has been reviewed for consideration by the Mining Advisory Council, if not it will be reviewed to renew their licenses,” Mr. Garry said.

As far as many locals are concerned, they still have a lack of trust in Freeport’s ability to develop Yandera. This was due to reports that showed Freeport’s continued share price decrease since 2021, so they seem uncertain on how Freeport would fund any mining activity at Yandera, even if they obtained a renewal of EL 1335.

Before this, officials of the firm have not made any contact with landowners at Yandera during the signing of the acquisition last August.

About this issue and the underlying concerns from landowners from Yandera, former Marengo Mining CEO Les Emery commented on the current situation.

Emery said: “From 2005 until my team and I were replaced in May 2014, Marengo Mining undertook a vast amount of exploration within the Yandera Project area and the one aspect that was of paramount importance was that we worked to ensure that the local communities were kept continuously informed of what was happening.”

“From the reports that I receive from many of my friends within the project area, Freeport has failed to make any sort of contact with the landowners, since announcing their involvement in the Yandera Project, almost one year ago.”

“My other concern is the capacity of Freeport to be able to fund the level of budgets required to take the Project to the next stage, given Freeport’s current stated cash reserves and market capitalization, should they be fortunate enough to gain a renewal of EL 1335, they would, in my opinion, struggle to even undertake minor exploration projects, let alone fund the completion of a bankable feasibility study,” Emery added.

The Yandera Copper Project and all concerned stakeholders will most likely still await an announcement, as the country is amidst the elections and the appointment and determination of a new Mining minister will see another inevitable delay in the progress to review and renew EL 1335.

Photo: Simberi’s rope conveyor (Ropecon), part of the mine’s clean energy campaign, delivers ore to the process plant three-kilometres downhill from the pit. [Photo by Chamber of Mines and Petroleum]

St Barbara is expecting its sulphide expansion project at the Simberi operation in New Ireland, Papua New Guinea to proceed either under its name or a different ownership.

Managing director and chief executive officer Craig Jetson said there had been interest from potential investors.

“The company has decided to commence a strategic review of St Barbara’s investment in the Simberi operation and defer the final investment decision in the Sulphide expansion project,” Jetson said.

“St Barbara faces capital investments at each of its three operations in the next two years. This strategic review will assess the best allocation of capital for risk and return compared with the company’s other projects.

“St Barbara has received unsolicited enquiries from potential investors in Simberi, and anticipates the Sulphide expansion project to proceed either under St Barbara or a different ownership.”

Jetson added that the approval for the Simberi sulphide project had been endorsed and signed by the Minister for Environment and Conservation and Climate Change.

The approval is now in the final stage of being issued.

“The front end engineering and design (FEED) study has continued while we await the permit, including finalising the mine design for the preferred pit development sequence and seeking to confirm a reliable capital cost estimate in a volatile pricing environment,” he said.

“The significant cost inflationary pressures currently being experienced in the global project construction market, together with some project scope changes are resulting in a significant increase in the capital cost estimate relative to that calculated in the feasibility study.”

Article courtesy of The National / Pacific Mining Watch

Photo credit: Mayur Resources

Mayur Resources Limited has executed a binding offtake agreement with titanium pellet producer Qingdao Shinebest for the sale of vanadium titanomagnetite (magnetite) product from the Orokolo Bay Iron and Industrial Sands Project.

The Agreement replaces and improves the previously announced offtake with Shinebest, including increasing the contracted volume and term (see MRL ASX release dated 13 March 2019).

The Agreement is conditional upon entering operations by 30 June 2023, and a subsequent trial shipment of 30,000 tonnes performing to the satisfaction of Shinebest (as specified in the Agreement).

The key terms of the Agreement include: 

• Annual contract minimum volumes of 300,000 tonnes (±10%) of Product for an initial 3-year period, with the ability to mutually extend the term by a further year (total 4 years); 
• Product pricing formula based on the prevailing Platts 62% Fe iron ore pricing index (IODEX) with the application of a discount factor to adjust for the iron and titanium quality of the Product; 
• Pricing subject to a floor price mechanism, whereby if IODEX is below US$60 per tonne then there is no obligation to supply Product under the Agreement; 
• Agreed Product quality and specifications, as well as bonus and penalty payments that are standard for an Agreement of this nature; 
• CIF delivery terms apply; and 
• Force Majeure and other internationally recognised standard commercial terms apply.

Mayur Managing Director, Mr Paul Mulder, commented, “We are pleased to have revised our Agreement with Shinebest for approximately 60% of planned production from our fully permitted and construction ready Orokolo Bay Iron and Industrial Sands Project. Combined with the term sheet we executed with a leading Japanese trading house in December last year, the significant majority of the expected magnetite production from Orokolo Bay is now under some form of offtake agreement. The execution of this agreement with Shinebest provides investors, financiers and other stakeholders, future revenue certainty in continuing to progress the projects construction plans, with funding partners in the private and public space.”

Article courtesy of Mayur Resources

Photo credit: Kingston Resources - Misima Gold Project Regional Overview

Kingston Resources Limited is pleased to announce that following the recent conclusion of the Misima Gold Project Definitive Feasibility Study the Kingston Board has commenced a strategic review of the Company’s interest in the Project. 

The review will assess all options to maximise shareholder value of Kingston’s 100% interest in the Misima Gold Project. It will be conducted in parallel with ongoing Mining License and Environmental and Social Impact Assessment work programs which are expected to be concluded in the September quarter.

Kingston has appointed ICA Partners to support the strategic review process. ICA is specialist mining advisor with wide-ranging transactional experience gained over many years in many commodities and jurisdictions. It maintains widespread relationships across global corporate and capital markets.

Kingston Resources Managing Director, Andrew Corbett, said: “The Board, in consultation with ICA Partners, look forward to investigating opportunities to advance the Company’s interest in Misima by identifying, evaluating and entering into potential strategic transactions relating to the long-term value opportunity at Misima. We look forward to working on this exciting review, and we are confident that there are strategic opportunities to advance the Misima Gold Project, but more importantly to achieve significant value creation for our shareholders.”

Article courtesy of Kingston Resources

Photo credit: Hidden Valley Mine

Senior executives from Harmony’s offices in South Africa visited PNG last month to tour company assets and meet with Prime Minister James Marape to emphasise the company’s continued commitment to invest and grow in the country.

Harmony’s Financial Director, Boipelo Lekubo, and Senior Group Executive: Enterprise Risk and Investor Relations, Marian van der Walt, spoke of Harmony’s investment in PNG since 2004 and the company’s pursuit of multiple opportunities in the Morobe Province, of which the Wafi-Golpu Project is one.

“Harmony, through its subsidiary companies, owns the Hidden Valley Mine and 50% of the Wafi-Golpu Project, as well as extensive exploration interests in and around the Morobe Province,” Ms. Lekubo said.

“Significant capital works associated with the Hidden Valley Mine life extension are presently underway, and Harmony continues to assess further investment opportunities in PNG”, Ms. Lekubo added.

As of 31 December 2021, the Hidden Valley Mine had paid an aggregate PGK 179.4 million in royalties. However, as many industries are experiencing, “Our stakeholders increasingly wish to understand what Harmony is doing environmentally, socially and in terms of governance,” Ms. Lekubo said.

“‘Responsible Stewardship’ is a key pillar underpinning Harmony’s operating philosophy, which is mining with purpose. The principles of sustainable development are embedded in our business.

For example, we recognise, both in South Africa and PNG, that preferential procurement is a national imperative, and we are proud to be supporting PNG businesses, including landowner businesses. During the previous financial year, Harmony’s total procurement spend in PNG was PGK 517 million, including PGK 152 million spend with landowner companies.”

Article courtesy of Hidden Valley Mine

Photo credit: Newcrest Mining

According to Dr. John Kuwimb, managing director of Kumul Minerals Holdings Ltd (KMHL), the government plans to exercise its option to acquire up to the full 30% equity in the K18.5 billion Wafi-Golpu project in Morobe.

Kuwimb stated that KMHL was looking forward to taking part in upcoming projects, particularly those involving the mining of rare earth minerals, gold, and copper, where prices are rising and are likely to continue doing so due to increased demand for these minerals due to the climate change agenda, ongoing geopolitical conflicts, and realignments.

“If we secure 30 per cent in Wafi, then it is likely that some percentage will go to the Morobe government and the Special Mining Lease (SML) area landowners and so we will be left with the balance to keep for the rest of Papua New Guinea,” he said.

“Under government policy, the National Government has the option to take up to 30 per cent equity in large mining projects, and so, in the Wafi project, the Government wants to exercise that option to take the full 30 per cent.”

“The future plan is to concentrate especially on gold and copper projects and buy into existing exploration licenses.

“Our future is bright.

“We want to follow a future that is sustainable and prosperous by dominating the mining industry in this country.” The developers of the mining project are Newcrest and Harmony under the Wafi-Golpu Joint Venture.

Reference: The National (23 June 2022). Govt keen on taking 30pc equity”. 

Photo credit: Kumul Mineral Holdings

According to a representative, a new company will be established as soon as Mineral Resources Enga (MRE) signs the shareholders' agreement for the new Porgera mine.

Kumul Mineral Holdings Ltd (KMHL) managing director Dr. John Kuwimb said: “The moment they sign it, we will move to the next stage (which is) the incorporation of the new Porgera company.

“The company will have eight directors – four from Barrick Niugini Ltd and four from PNG.

“The next agreement is the Mining Development Contract, after which we can have the development forum.

“The operatorship agreement is a private commercial arrangement between Barrick as the operator of the mine, and the new Porgera project company as the owner of the mining lease.

“The mining lease-holder is like the owner of a land title.”

Kuwimb gave the example of an agreement between a landowner and a carpenter told to build a house on the land.

The carpenter does not own the land in that situation, he claimed. Only the house is constructed there.

“We call it operatorship because Barrick will operate the mine,” he said. “The project company holds the special mining licence, and Barrick has the knowledge and skills to operate the mine.

“The landowners want the mine to re-open as soon as possible.

“They have been telling us (that) for a long time.

“What we are concerned about now is the care and maintenance cost that Barrick is paying at the moment to keep the mine in a maintainable form.”

Reference: The National (23 June 2022). “Plans for new company”.

Local contractors of Porgera Joint Venture (PJV) and others benefitting from the Porgera mine lost around K110 million since the mine closed two years ago, an official says.

According to Nickson Pakea, head of the Porgera Chamber of Commerce and Industry, there were about 700 small-to-medium-sized businesses (SMEs) and 176 contractors affected.

“Most of the contractors went through difficult situations (when) banks recouped (vehicles) on lease or loan,” he said.

Pakea requested "relief funding to salvage the business losses" from the government. The K100 million Business Development Grant announced by the government should be given as emergency support to SMEs affected by the mining closure, he added.

“We want the State to set aside this funding for SMEs.

“We also appeal to the Mineral Resource Enga to sign the (outstanding) shareholding agreement (to allow the reopening of the mine) as soon as possible.”

Contractors, mine workers, and residents of the Porgera Paiela, according to Pakea, required help.

Reference: The National (14 June 2022). “K110mil lost after closure”.

The PNG Extractive Industries Transparency Initiative has praised the Mineral Resources Authority's and mine operators' efforts in developing a digital platform that would give real-time mineral data from all of the country's main mines.

According to Lucas Alkan, the National Secretary of the PNG Extractive Industries Transparency Initiative (PNGEITI).

Live data, according to Mr. Alkan, will contain numbers reflecting production value, export value, and related information, which will be live-streamed from a data source of the respective mine operators.

After engineers finish their work, he said, Ok Tedi Mine would be the first to stream live data to the MRA website for public access, and other mines will follow soon after.

“The cooperation between the mine regulator and the extractive companies to make live data available for public viewing is an excellent undertaking to garner investor-public trust and confidence in the way the mining industry is regulated and progressing. PNGEITI highly commends these efforts,” Mr. Alkan said.

Mr. Alkan stated that PNGEITI applauds the leadership of the Mineral Resources Authority (MRA) under managing director Jerry Garry since this initiative will complement and enhance EITI reporting in the country.

Reference: Poat-Courier (21 June 2022). “Live Mining Data, An Excellent Tool For Transparency”.

The Wafi-Golpu project's State Negotiating Team is thought to be in the final stages of discussions with shareholding companies.

However, due to the National General Election, most of the work on the ground has been put on pause.

Any development forum procedure that arises following the successful completion of the mining development contract discussions, according to Mineral Resources Authority managing director Jerry Garry, will be effective after the elections.

“Right now the State Negotiating Team and the shareholding companies including Newcrest and Harmony Gold are very much in the final leg of negotiations.

“The details of the negotiations are confidential at this stage and we will have to wait until SNT and the development concludes this phase of work,” he said.

In the meanwhile, the Frieda River mine is expected to open in the fourth quarter of this year.

Mr Garry stated that nothing has progressed in the assessment process for Frieda River and that they plan to begin construction after Porgera and Wafi-Golpu are completed.

“Weare involved in what we called the state negotiation or the state-related negotiations. It does not only require the MRA officers but requires a full complement of state-related departments and agencies,” Mr Garry said.

“In this case, we would require the participation of the State Solicitors office, National Planning, Department of Finance, and key officials from the Department of Treasury, Internal Revenue Commission, Bank of PNG, Department of Labour and Employment, and the Department of Commerce.

“It requires all the state departments to be involved when it comes to assessing a mining project, particularly a major project such as the Freda River and Wafi-Golpu.”

Reference: Wohi, Lorraine. Post-Courier (15 June 2022). “Wofi-Golpu Project On Final Leg Of Negotiation”.

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”.

Photo: The new Camps and Catering Office and carpark

Ok Tedi Mining Limited (OTML) is committed to providing a safe and conducive working environment for its employees and business partners. 

Managing Director and CEO Musje Werror made these remarks during the opening of the new Camp Administration office and a cafeteria in Tabubil on the 25th of May.

The new office will improve camp and messing services that OTML provides for its workforce and visitors while the cafeteria provides light snacks and beverages for workers who prefer a light meal outside the mess opening hours. The new facilities are located near the main messing facility. 

The total cost of the project was US$1.2 million and included an upgrade of the mess parking area.

Mr Werror commended the company’s Infrastructure Support Services (ISS) Department including Starwest Ltd for successfully completing the project.

“Our camp facilities are old and are in need for replacement or refurbishment and we have commenced a renewal program which will include the replacement of a number of our old dongas commencing this year,” Mr Werror said.

The Camp Administration office was officially opened by OTML Board Director and Chairman of the Kumul Minerals Ok Tedi Ltd Bonny Ninai and witnessed by other members of the Board, OTML management and camp residents, and business partners.

Article courtesy of Ok Tedi Mining

Photo credit: PNG Chamber of Mines and Petroleum

The Mineral Resources Authority (MRA) has commended St Barbara for the application of modern technology in the safe operation of its Deep-Sea Tailings Placement pipeline and in its fleet of heavy equipment at its Simberi mine.

MRA Managing Director Jerry Garry, who visited Simberi mine for the very first-time last week, was particularly impressed with the use of geotagging in the monitoring of the DSTP line and the In-Vehicle Monitoring System (IVMS) which records operator activity in the equipment.

Mr Garry said the improvements were indicative of the mine moving beyond compliance requirements to values-based commitments as it transitions from oxide mining to sulphides.

The installation of the geotagging system on Simberi’s DSTP pipeline means exact coordinates can be transmitted while the IVMS – which includes a camera unit, vibrating seat cushion and warning lights – is monitoring operator/driver activities and identifying unsafe behavior.

Mr Garry, who was accompanied by his Executive Manager Development Coordination Andrew Gunua, took a tour of Simberi’s pit - where he was fascinated by the use of the three-kilometre rope conveyor in ore delivery to the process plant - before visiting a range of community projects built under St Barbara ‘Stronger Communities’ commitment.

Messrs Garry and Gunua also toured the Simberi cocoa nursery - the source of the current Tabar dark chocolate that is being trialled and enjoyed in New Ireland - and were impressed with Simberi’s mariculture initiatives which include coral and mangrove propagation and growing of giant clams.

The duo also visited the Simberi Primary School, community markets, and Maragon Clinic - facilities that derived from partnerships between St Barbara, Simberi Mining Area Landowner Association, and the New Ireland Provincial Government.

They commended Simberi management for striving to embed a high performing safety and social responsibility culture in the operation.

Article courtesy of PNG Chamber of Mines and Petroleum