Governor Sir Peter Ipatas claims that the Enga provincial administration has lost over K70 million since the closure of the Porgera gold mine two years ago.

Sir Peter stated that during the mine's closure, all parties suffered losses, but that everyone must wait for the final agreement for the mine's reopening to be inked.

He added that landowners and companies had been impacted, but that they will recover once the situation was resolved.

Sir Peter explained that the reopening was taking longer because they needed to execute a deal that would benefit both the country and the landowners and residents of Enga.

According to Sir Peter, the developer collected 95% of the advantages over the last 30 years, while only 5% remained in the country.

“We have changed this around and now we will be receiving 51 per cent and the developer is to get 49 per cent. From that 51 per cent Enga will be receiving 15 per cent of the benefits,” he said.

Sir Peter stated that such agreements would necessitate additional time and patience in order to adequately handle all mine-related issues.

“Business houses have a reason to complain because of a loss of business but we have to access the process properly before taking further steps in allowing the mine to operate,” he said.

“Currently, all of us are making a loss, including the provincial government.”

Sir Peter stated that the mine's prior 2% royalty payment to the provincial government was utilised to pay for school fees for the previous 15 years.

He noted that despite the provincial government losing K70 million because the mine remained closed, he urged landowners, Enga residents, and the rest of the country to be patient as they neared the end of the reopening process.

He praised the government for striking a deal that will benefit the country more.

“This Government has been working hard for our good,” he said.

Reference: Pacific Mining Watch (17 May 2022). “PNG's Enga Provincial Government lost K70 million due to Porgera Mine closure”.

The multi-billion-kina Porgera gold mine in Enga, according to Porgera Chamber of Commerce and Industry head Nickson Pakea, must reopen shortly to promote economic activity and solve criminality in the district.

“The law and order issues in the district is partially due to the shutdown of the mine and those with access to guns taking advantage to conduct illegal mining activities as well as stir up trouble.

“Our anticipation to receive the good news from the prime minister tomorrow (today) has been stalled due to the tribal conflict,” he said.

With the arrival of police and Papua New Guinea Defence Force soldiers to the region, he stated fighting had ceased. The closure of the Porgera mine, according to Pakea, contributed to the district's lawlessness.

“People with guns from other districts and provinces are taking advantage of the mine shut down and them trespassing the mine for illegal mining.

“Apart from this, they also lease it (guns) for tribal fights, causing more destruction properties and innocent lives. The Government must intervene and stop this once and for all, not just provide security.

“We want the Government to declare gun amnesty or gun surrender and collect all the guns.

“We want the mine to fire up soon.

“The longer it remains idle, the opportunities will increase for chaos. We also call on residents to support the security personnel to eradicate lawlessness once and for all by providing vital information.

“Fighting has stopped but schools are still closed in fear of retaliation.

“The principal of Porgera Secondary School has said that classes will resume on Monday,” he added.

Reference: Luma, Dale. The National (11 May 2022). “Porgera chamber of commerce wants mine to reopen”.

The reopening of the Panguna Mine has become inevitable following an agreement between the landowners and the Autonomous Bougainville Government to reopen the multibillion kina defunct mine.

Following the meeting of the ABG and the Panguna Mine Landowner Clan Chiefs held at Tunuru Catholic Mission, Kieta District on Wednesday 04 May 2O22 and the signing of the Post Summit Resolution between the ABG and the landowners both parties have agreed to reopen the mine.

The ABG and the Panguna landowners have also agreed that the government with the landowners will jointly establish a completely new local Bougainville entity to develop the mine, and not an existing entity that has had history with the Panguna Mine.

The completely new local Bougainville entity once established, will be jointly owned by the Panguna Mine Landowners and ABG on behalf of the people of Bougainville.

The five major clans; Mantaá, Basikang, Barapang, Bakoringku and Kurabang and their 22 sub clans have unanimously agreed to the undertaking in partnership with the Autonomous Bougainville Government.

Bougainville President Ishmael Toroama who signed on behalf of the Autonomous Bougainville Government has congratulated the landowners on their courage to finally put aside their differences and work with the government.

‘’The Panguna Mine was the economic guarantee for Papua New Guinea’s independence in 1975, in the same manner the Panguna will be the economic guarantor for Bougainville’s Independence,’’ declared President Toroama.

‘’In 1988 when the Bougainville Revolutionary Army High Command decided to shut down the Panguna Mine, the Late Francis Ona incentivized the mine as the key to Bougainville’s independence,’’ President Toroama revealed.

 ‘’Today as we stand on the threshold of creating a new future for Bougainville where we are finally on the path to independence I stand here to thank the landowners of Panguna in making a strong decision on the fate of the mine,’’ President Toroama said.

President Toroama assured the landowners that the Autonomous Bougainville Government will work in partnership with the landowners in creating the locally owned entity to redevelop the mine.

He said the government will not compromise the rights of the landowners but will work towards ensuring a benefit sharing agreement that benefits all of Bougainville.

Photo credit: Post Courier

Mineral Resources Authority and Department of Mineral Policy and Geohazard Management held a goodbye ceremony for Mining Minister Johnson Tuke.

While the Minister for Mining, Johnson Tuke, prepares for the National General Elections in the coming days, the departments reporting directly to him said farewell to their Minister, who has served the sector for two mandates.

In his introductory comments, DMPGM Executive Manager Geological Survey Division Nathan Mosusu praised Mr Tuke for his advice throughout the last two legislative sessions and wished him luck in the elections.

He claims that this has given people and resource owners a stronger voice, allowing them to gain more from resource development.

“We stand proud of your leadership and the achievements you have made,” he told Minister Tuke.

DMPGM Secretary Harry Kore stated that the department had accomplished several things, one of which is the development of several policies, two of which the Minister assures are successful.

One is the geothermal resources policy, and the other is the small scale alluvial mining policy, according to Mr Kore.

When the Minister first arrived, he was adamant that we pass these measures.

All alluvial mining and exports are restricted to Papua New Guinea according to the small scale mining regulation. He explained, "It's a reserved business."

Mineral Resources Authority board chairman Benny Kimisive said there were quite a few things that needed fixing, and with the Minister’s leadership, they have delivered.

Reference: Post-Courier (22 April 2022). “Mining Minister Farewelled”. 

Photo: Harmony representatives present at meeting in Port Moresby with Prime Minister, Honourable James Marape MP (L-R) Mr. J. Van Heerden, Ms. B. Lekubo, Prime Minister, Honourable James Marape MP, Mrs. M van der Walt and Mr. K. Wali.

Senior executives from Harmony’s offices in South Africa, toured company assets in PNG this week. They met with Prime Minister James Marape to emphasise the company’s continued commitment to invest and grow in PNG.

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.”

“Investment in a country’s people is also key. More than 96% of the Hidden Valley Mine’s 1,600-person permanent workforce are Papua New Guineans, including 29% of senior management and 76% of superintendents. This is continuing to increase through our Superintendent and Leadership development programs. We also recently announced our 2022 scholarship recipients, awarding full scholarships to four Morobeans’ to pursue university studies in mining related fields.”

“That 15% of our Hidden Valley Mine workforce is female, including over 24% of truck operators—many who have been recruited from our landowner communities—is also a source of pride.”

Harmony is also committed to responding to climate change and has announced its plans to achieve Net Zero carbon emissions by 2045. Ms Lekubo explained, “This commitment will influence our energy choices and Harmony’s approach to developments going forward. “There is no doubt about the importance of the Hidden Valley Mine, and—in the future—the Wafi-Golpu Project, to Harmony.

Ms. Lekubo said that The Hidden Valley Mine proved to be critical to the Harmony Group when all of Harmony’s South African mines were shut down due to Covid-19 restrictions. “Thank you to each of our stakeholders for ensuring that the mine remains responsible and viable through particularly challenging times. A special thanks also goes to the PNG Government for partnering with us in keeping Harmonites safe and healthy”.

With respect to the Wafi-Golpu Project, Harmony has been encouraged by the recent progress of discussions with the PNG Government.

“We look forward to concluding the permitting of the Wafi-Golpu project, enabling us to continue creating shared value for all our stakeholders in PNG”, Ms. Lekubo concluded.

Article courtesy of Harmony Gold

Photo credit: Papua New Guinea Mine Watch

According to the MRA chief, earnings from alluvial gold mining exports increased to K640 million in 2021 from K300 million.

Jerry Garry, the managing director of the Mineral Resources Authority, announced this in Port Moresby during the goodbye of Mining Minister Johnson Tuke.

Mr Garry claimed the industry's death rate has dropped from 10 to 6 each year to 0 in 2017 since Mining Minister Johnson Tuke assumed office.

“In 2019, the highest total mineral export revenue was K16.4bn from the mining sector from K11.2bn previously.”

“The mining sector is really compatible with LNG who came on stream in 2014 in terms of export revenue.”

“It is the biggest industry in the country,” he said.

According to MR Garry, the alluvial gold sector's export income was less than K300 million at the time, but it increased to K640 million last year.

“We assessed close to US13bn worth of projects.”

Minister Tuke has started getting Wafi up and running, and once Frieda River is operational, we will see a massive increase in our metal exports from now until 2050.

“Gold will be over 2billion ounces per annum, reaching around 5million ounces, and copper for the first time will reach 700,000 tonnes per annum, averaging around 500,000 tonnes per annum compared to around 100 t0 180 000 tonnes produced by Ok Tedi that is a significant increase in the years ahead,” he said.

Reference: Post-Courier (22 April 2022). “Export Revenue For Mining High”. 

The Mineral Resources Authority will make all of the mining industry's operating live data available online in the coming months.

According to Mineral Resources Authority executive director Jerry Garry, the mining amendment Act of 1992 mandates mining corporations to supply the state with information and data.

Mr Garry said: “This was at a time when we were not so advanced and so in 2020 we were trying to specifically address that by saying that we want digital live information.”

He said that all of the country's operators have no visibility, that they are manufacturing gold and exporting it without anyone understanding what they are doing.

“To address this, we embarked on tapping into the heart of the mineral processing system of every mine that is from the crusher right down to the tails and end product, and if they have advanced process systems, we want to tap into it so that we can replicate this information in MRA.”

“This means that on a second by second basis or minute by minute basis, whatever is produced in that processing plant is also in MRA just to manage the perception, and also we want to go down the path of reconciliation to reconcile the figures given by the company independently by the state so that we can all agree that we have been producing this much,” he said.

Mr Garry stated that they have spoken to all tenement holders in the nation and that they have all voluntarily invited MRA engineers to visit their mine sites and that the feasibility study has been completed satisfactorily.

He stated that they would begin actual work next year to collect all live data on all active mines, as well as data from the mineral processing plant.

“This is a breakthrough, and we have done it. We piloted this now with Ok Tedi,” he said.

All the other mining companies will be online in the next year.

Reference: Post-Courier (22 April 2022). “Industry To Have Mining Data Available Live”. 

The Tolukuma Gold Mine in Central Province has been granted an extension licence (ML104) for a period of ten years.

Iain MacPherson, managing director and chief executive officer of Lole Mining Limited, said the next step is to implement a reopening plan because the mine has been closed for some years, and they are contemplating a lot of components.

Mr MacPherson said that they are also considering restarting the mine, repairing the infrastructure, including an access road, and gradually returning the mine to its previous capacity over time.

Tolukuma, he said, is one of the country's immense mineralised treasures, with colossal scale potential.

“Tolukuma was built with a capacity of 60,000 ounces a year. We will get it back to that capacity over the next couple of years…but our vision is for a much larger operation framed similarly to the likes of the K92 mine.

There is potential for maybe 150,000 or 200,000 ounces,” he said.

Mr MacPherson stated that the initial restart will cost several million kina, including explorations, and that the budget will be based on that, including feasibility studies and development plans.

He stated that the first stage would be to recommission the mine, followed by a two-year ramp-up to a capacity of 60,000 ounces.

“There’s a lot of work that needs to be done.

The mine is now fully permitted, and with regards to the tailings into the river, we will not be doing that as we are investigating ways to avoid that with the restart,” he said.

Mr MacPherson also stated that the entire investment for the mine restart would be in the range of US$220 to $250 million, which is a significant sum that will only be known once the mine is dewatered.

Reference: Yafo, Melisha. Post-Courier (22 April 2022). “Licence Granted For Tolukuma”.

Photo credit: Mayur Resources - An artist's impression of surface mining operations at Orokolo Bay

Mayur Resources Limited has placed an order with Australian-based specialist leading engineering firm, Vanadium Pty limited (Vanadium Group), for the mineral process plant units for its construction-ready Orokolo Bay Iron and Industrial Sands Project (Orokolo Bay) in Papua New Guinea.

Contract value is approximately A$16 million, consistent with cost estimates, and represents the largest major capital expenditure item for Orokolo Bay (being the fabrication, assembly and delivery of the processing units). Contract execution is conditional upon the successful completion of the proposed spin-out and IPO of Mayur Resources’ subsidiary Mayur Iron (owner of Orokolo Bay), as a new ASX-listed company called Ortus Resources Limited (Ortus).

On 4 April 2022, Mayur released a presentation detailing the compelling business case for Ortus and its flagship Orokolo Bay Project. Subsequent to this the spin out of Ortus was approved by Mayur shareholders on 13 April 2022.

The Orokolo Bay process plant comprises gravity and magnetic separation modules utilised to produce the various planned products, including magnetite and construction sands, with additional modules proposed in year two of operations to produce a zircon concentrate and dense media magnetite. The simple metallurgy at Orokolo Bay flows through to the design of the process circuit, which sees no requirement for chemical processing and unused mineral sand being returned back to the mined area as part of the immediate and ongoing rehabilitation program.

Vanadium Group is an Australian-based business dedicated to innovation and technology within a wide variety of industries. It specialises in developing markets across mineral processing, industrial and construction industries with innovative products, servicing and parts, and methodologies, all customised to their client’s needs. Vanadium Group will fabricate and assemble the process plant in Australia from where it will be shipped to Orokolo Bay in a modular form, for ease of construction and operations on site.

Mayur Resources Managing Director, Paul Mulder, commented “Placing this order is a critical step for the delivery of Orokolo Bay and we are delighted to be partnering with Vanadium Group. Importantly, we have been able to secure pricing that is consistent with the capital estimates used in the DFS, providing further confidence as we work with HBS on the ground in PNG in preparing the site for full construction and operations. With this contract in place with Vanadium Group, and HBS already secured as a strategic investor with responsibility for mine construction and operations, we now have all critical delivery elements in place for Orokolo Bay”.

Article courtesy of Mayur Resources

Two important documents as part of the important milestones to be ticked off by the State and its project partners were signed today at the Government House this morning. The Prime Minister delayed his scheduled visit to Oro Province this morning to observe this important signing. These are the Deed of Amendment to the Porgera Project Commencement Agreement (PPCA), and the Deed of Escrow to park 10% of the project equity.

The PPCA was deemed concluded when Mineral Resources Enga signed on 3 February 2022. The PPCA is the central and structural document designed to elaborate and deal more specifically with what was set out in the Framework Agreement. This agreement is the main foundational agreement that establishes how the joint venture will operate and the operating model that delivers the agreed benefits to all parties. It deals with legacy liability issues, taxation issues, license issues, the establishment of the incorporated joint ventures, benefit flows, landowner benefits, project financing, mine closure and reclamation, fiscal and regulatory stability issues, and other issues and legal terms supporting the recommencement of the mine.

“This is a major milestone. We needed to ensure that all the important responsibilities and commitments by all stakeholders are captured in very clear terms under this agreement. Matters that were overlooked are now captured in the amendment deed and will establish very clearly what is required going forward in our quest to reopen the Porgera Mine.”

The Prime Minister paid special commendations to Barrick and its CEO, Mark Bristow, for his patience in allowing the state and its stakeholders to ensure that any matters, which were overlooked in the original PPCA, are captured in the amendment deed.

“I want to thank Mark Bristow for his patience to allow the State and its stakeholders to ensure that every important detail is captured in the amendment deed. This was important to us, and I would like to acknowledge Mr. Bristow’s support in that respect.”

The amended PPCA now paves the way for the parties to move very quickly to implement further series of documents which include, the signing of the shareholders’ agreement and the incorporation of the joint venture company, the operatorship agreement between the joint venture company, and Barrick as the operator, the fiscal stability agreement, a mining development contract, and the memorandum of agreement regarding benefit-sharing between the relevant provincial government and local level government.

“This is why we are excited about this milestone because it allows us firstly to cover all issues, and secondly it triggers a whole series of final documents which will position us well in terms of our goal to reopen the mine.”

Also, today the Deed of Escrow for the New Porgera Limited 10% Shareholding was signed. In accordance with the PPCA, the shares in the new project company will be as follows: Barrick Gold and Zijin, 49%, Kumul Minerals Holdings Limited, 36%, Mineral Resources Enga, 5%, and Porgera Landowners 10%. The parties to the PPCA have agreed that until such time a determination is reached by the landowners as to how the 10% is apportioned, at an appropriate forum, the 10% would be held in escrow.

“This situation was specifically contemplated by the PPCA which sets out the provisions for the establishment of escrow arrangements so that the 10% shareholding may be issued by the project company pending the determination of the ultimate shareholder(s).”

This arrangement is important because we want a proper forum to be held to have the landowners themselves determine how the shares will be held to best represent their interests.

“The development forum, which is the properly constituted process, will be held shortly to provide an opportunity for this matter to be determined by the landowners and their interests. This forum is where everyone who is impacted directly and indirectly by the mine will have their say, and for the government, this is absolutely important.”

The intention of the escrow, therefore, is to allow the project company to be incorporated in the short term to allow the lodgement of its application for a special mining lease to be made. It allows important regulatory tasks to proceed unhindered while plans are put into place for the development forum to take place.

“I am also pleased to announce that the stakeholders have all agreed for the Mineral Resources Development Corporation, (MRDC) to be the escrow agent. MRDC is an experienced company dealing with landowner matters in the oil, gas, and mining space. We are confident that they will be able to perform their tasks diligently in accordance with the Deed of Escrow.”

These important signings now pave the way for the final pieces of the puzzle to be put in place for the mine to be reopened.

“I have been briefed on the critical pathway to the reopening of the mine, and it remains my utmost priority to ensure that matters which are within the control of the government are concluded as soon as possible to allow the process to move and accelerate. The operator has already assembled their team to design the shortest possible pathway and I want to do what I can to assist in this regard.”

Following the signing, the Prime Minister headed straight to the airport and travelled to Popondetta for a very important visit with the Oro Provincial Government.

To fulfill its commitment to diversity and inclusion, St Barbara, operator of Simberi gold mine in New Ireland, has announced a generous parental leave package for its employees.

Women staff can now take four months fully paid maternity leave to recover from pregnancy and childbirth while bonding with their babies while the men are entitled to 15 days paid paternity leave. Employees only must complete their six month-probation to be entitled to the parental leave.

It is believed, the four-month fully paid maternity leave incentive is the first of its kind in Papua New Guinea and both men and women employees are applauding St Barbara for introducing the ground-breaking policy.

Some employees who have successfully completed their probation are already benefiting from the scheme while others like accounts clerk Sainian Wurlima looks forward to making the most of the opportunity when her turn comes.

Sainian, who has been working at the Simberi operation since 2009, is five months away from having her third baby and is overwhelmed by the good news.

“I am very grateful for this incentive. On behalf of my family, I say a big thank you to St Barbara for giving recognition to us, women employees, and understanding the challenges we go through in juggling our motherly role and career,” said a very happy Sainian who flies to the mine to work from Kokopo in East New Britain.

“It is a great incentive for mothers and babies, especially those with complications. I believe it is a first in PNG and I say how lucky my women colleagues are for being employed by St Barbara,” said accountant and local Tabar islander Paskalis Maradangoi.

Payroll officer Margaret Kupo described the parental leave as a unique advantage for mothers and dads and reminded her colleagues to give back to the company in return.

“Our company has given us women a unique blessing. I call on fellow women staffers to enjoy it, but not abuse it,” said Margaret.

“Once you return to work after four months of resting and bonding with your babies, do your part by remaining committed to your work and giving it your best.”

St Barbara, an ASX 200 company, is the only Australian mining company to be recognised as an Employer of Choice for Gender Equality by Australia’s Workplace Gender Equality Agency (WGEA).

The company has received this citation for seven consecutive years running and is an initial signatory to the WGEA Pay Equity Pledge.

Managing Director and Chief Executive Officer Craig Jetson says the latest citation confirms the Company’s commitment to addressing pay equity and ensuring gender equality in recruitment, promotions, and reward and recognition.

“I feel privileged to have joined a company that is leading the mining industry when it comes to gender equality. As the only mining company to receive the citation again this year, I strongly encourage more resource companies to participate in the WGEA Employer of Choice program to discover the benefits diversity brings to innovation, engagement and performance.”

The National Government has granted a Special Purpose Lease to Newcrest’s wholly owned subsidiary Lihir Gold Limited (LGL), which now allows the company to develop the Londolovit Township on Lihir Island further.

Minister for Department of Lands and Physical Planning, Mr John Rosso, handed over the Special Purpose Lease (SPL) for Portion 1021 in Lihir, Namatanai, to LGL in Port Moresby last week.

“On behalf of the Department, I thank Newcrest Lihir and key Lihir stakeholders for seeking our assistance with the consolidation and grant of the SPL for Portion 1021,” said Mr Rosso.

“Newcrest Lihir is the first mining project in the country to have considered planning and developing a town with post-mine closure in mind; I commend Newcrest for taking this approach,” added Mr Rosso.

The consolidation and granting of the SPL are the first phase of a project that would ultimately create a sustainable future for the people of Lihir post-mine closure.

Newcrest Lihir embarked on this project following consultations with key stakeholders on Lihir. The process involved the conversion of two Agricultural Leases for Portions 422 and 717, held by LGL, to the consolidated SPL.

The first subdivision of the SPL will see the development and grant of approximately 100 state leases to the Kapit families affected by mining activities. The second subdivision will further develop Londolovit township to boost economic growth.

“I am delighted that Newcrest is committed to utilising the state lease to achieve these outcomes. DLPP committed to delivering the consolidated title to you (Newcrest), and we are proud to have delivered on our commitment. We will continue to support you at every stage of the project,” Mr Rosso said.

Additionally, Mr Rosso encouraged his technical teams within DLPP to develop a long-term partnership that would benefit all stakeholders in the project. He also urged Lihirian people to support the project.

“Lihirian communities, take ownership of this project and support it because this township (Londolovit) is important for the generations of Lihirians yet to come,” he said.

In partnership with the Nimamar Local Level Government (NLLG), DLPP and other key stakeholders, Newcrest Lihir is preparing to continue with other project phases, which include town planning and surveying.

Newcrest Lihir General Manager, Mr Johan Labuschagne, received the SPL on behalf of the company and thanked the DLPP Minister, his team, and key stakeholders for collaborating on this project.

“We are delighted as a company and the first mining project to achieve this outcome as it sets the trend for future projects. Owning this Special Purpose Lease is a unique situation in PNG. We are fully committed to creating a sustainable and positive legacy through this lease,” said Mr Labuschagne.

“We look forward to working together with all stakeholders to ensure Londolovit Township becomes a prosperous town, supporting our mining operation now and post-life of mine,” he added.

Furthermore, NLLG Deputy President, Mr Sebastian Siadodoh, commended Newcrest Lihir for embarking on the project, describing it as the ‘right move’.

“This project aligns with the development aspiration of the people we serve – traditional landowners, affected mining resettlement landowners, and over 25 000 people who live, invest and work in Lihir. Our Kapit people will also now have security of tenure, bringing them together to settle as a community on state land,” he said.