The Porgera gold mine, in Papua New Guinea, is ready to shine again. The mine, shut down in April 2020, will resume production this month and start pouring gold again in the first quarter of 2024, dual-listed Barrick Gold confirmed on Monday.
The Porgera mine “undoubtedly” has the potential to join the Canada-headquartered mining major’s tier-one gold mine portfolio, said president and CEO Mark Bristow in a statement.
Resuming operations follows the satisfaction of the conditions to the Porgera project commencement agreement, in which a new ownership structure was agreed.
The equity in New Porgera is shared 51% by Papua New Guinea stakeholders, including local landowners and the Enga provincial government, and 49% by Barrick Niugini Limited (BNL), a joint venture between Barrick and Zijin of China. BNL will operate the mine. The Papua New Guinea shareholders will receive 53% of Porgera’s overall economic benefits. At an assumed gold price of $1 800/oz, this is expected to amount to more than $7-billion over the mine’s projected 20-year life.
Speaking at the PNG Resources and Energy Investment Conference in Sydney, Australia, on Monday, Prime Minister James Marape hailed the revival of a major contributor to the country’s economy. The partnership structure gives Papua New Guinea stakeholders a majority interest in a key resource for the first time.