PNG stakeholders will control 51 percent, while Barrick will have 49 percent equity in the New Porgera Limited. Photo: Scott Waide
The owners of the Porgera goldmine in Papua New Guinea's Enga Province hope to resume production "at the earliest opportunity".
Porgera Gold Mining, which contributed to almost 10 percent of PNG's exports, has been shut for nearly three years after the government refused to roll over the lease during the height of the Covid-19 pandemic in 2020.
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At the time, Prime Minister James Marape's government said that it was "in the best interest of the state" to close down the mine - a decision contested by Barrick Niugini Ltd.
But last year, new shareholding was agreed between Canadian multi-national, Barrick, and PNG stakeholders, who include local landowners and the provincial and national governments.
The local stakeholders will control 51 percent, while Barrick will have 49 percent equity in the New Porgera Ltd.
The economic benefits would be shared 53 percent by the PNG partners and 47 percent by Barrick Niugini Ltd, which will operate the mine.
The chairperson role will alternate, with a representative from the PNG side to take the position in the first year.
Now the company has to obtain a special mining lease before the mine can be restart.
Barrick president and chief executive Mark Bristow said there was strong support from all stakeholders to get Porgera reopened as soon as possible.
"It's been a long journey but in the process we have secured the buy-in of all the stakeholders," he said at the signing ceremony.
Bristow said the reopening of Porgera mine "would represent another victory for our host-country partnership model."
He said the partnership model has been successful in Tanzania and has also been adopted for the new Reko Diq Copper-Gold project in Pakistan.
"Localization is an essential part of our partnership philosophy so New Porgera will, whenever possible, source the goods and services it requires from businesses genuinely based and owned in Porgera, the Enga province and Papua New Guinea," he said.
"Similarly, it will give preference to locals in recruiting employees for the reopening mine."