• PNG Business News

Porgera Mine Exceeds Production Targets



The Porgera Joint Venture (PJV) produced its strongest operational and financial results in more than a decade, delivering positive returns for the joint venture partners, which include our landowners and the Enga Provincial Government, as well as significant economic benefits to Papua New Guinea as a whole.


Those benefits include an advance payment this week of an additional K59 million in corporate income tax by Barrick Niugini Limited, for a total of over K215 million for 2019.


Barrick Niugini Limited general manager – Corporate and Legal, Anthony Smare recently commended PJV staff and employees for meeting and exceeding mine production and financial targets in 2019, after the mine exceeded budgeted gold production for the year by approximately 16,000 ounces.


“In terms of both operational and financial performance, 2019 has been one of Porgera’s best years for more than a decade, with a total of 597,000 ounces of gold produced at an all sustaining cost of US$1,002 per ounce and direct operating costs on target at US$338 million (approx K1.01 billion),” Mr Smare said.


“Through careful cost control and disciplined management of a highly complex mine, the Porgera Joint Venture was able to deliver an exceptional result for all stakeholders in 2019.


“As a consequence of our performance, the mine also made an enormous contribution to the PNG economy during 2019 through expenditure on goods and services, and the payment of taxes and royalties.


Mr Smare added that Barrick Niugini Limited, which holds 95 per cent of the Porgera Joint Venture, has paid over K215 million in direct corporate taxes in relation to the 2019 year and contributed a further K207 million in royalty payments and other taxes, including income tax on employee salaries and duties paid on imported goods and services.


“In the light of an exceptional performance by the mine and the sustained increase in the gold price during 2019, the company has estimated that an additional corporate income tax of just over K59 million is payable to the national government in relation to the 2019 year.


“We are pleased to be able to provide this advance payment to the Treasurer this week, ensuring the Government has access to ongoing funding for important public services.


“This makes BNL one of the largest taxpayers in PNG with the tax and royalty payments we generate being a critical component of the Government’s revenues,” Mr Smare said.


Mr Smare noted that the mine had also facilitated the re-opening of the Paiam Hospital during 2019 and had provided significant financial and operational support to the hospital administration, Enga provincial health authority and other stakeholders, to ensure that the hospital was providing effective health care services to the Porgera community.


“We look forward to re-engaging with the national government and the state negotiating team in the coming days and weeks to discuss the proposals put to the government in late 2019.


“We believe these define a fair distribution of benefits derived from the mine,” he added. Continue reading at https://postcourier.com.pg/porgera-mine-exceeds-production-targets/ | Post Courier

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