Developer says extension of lease beneficial
Barrick Niugini Ltd (BNL) says the Government’s extension of its Porgera mine lease will guarantee additional economic benefit for the country.
It was responding to a statement by Prime Minister James Marape regarding the extension of the mine lease.
Barrick said it held positive discussions with the legitimate landowners on the future of the Porgera mine. The Porgera Landowners Association and the company agreed that the application to extend the special mining lease should be granted by the Government as soon as practicable.
“We firmly believe that the best possible outcome for the landowners and the nation is the continued operation of the mine by BNL under the revised and improved benefit-sharing arrangements as proposed by Barrick Niugini Ltd (to) the Government over the past eight months.”
The special mining lease extension application was filed in July 2017.
It said the economic benefits proposed by BNL would result in a benefit-sharing outcome “that provides a fair and equal sharing between the developer and PNG of the economic benefits that arise from mining at Porgera”. It said the terms were “more favourable than the 50/50 arrangement that Prime Minister James Marape had called for”.
“By extending the Porgera special mining lease, the Government will be guaranteeing significant additional economic benefits for PNG, and will have heeded the voices of the legitimate Porgera landowners,” the company said.