The Porgera gold mine is on track to reopen later this year, bullion major Barrick confirmed on Friday, announcing that a new binding framework had been agreed with Papua New Guinea (PNG).

Under the terms of the agreement, signed in Port Moresby by Governor General Sir Bob Dadae and Barrick president and CEO Mark Bristow, Porgera will be held in a new joint venture, owned 51% by PNG stakeholders and 49% by Barrick Niugini Limited (BNL).

BNL, an equal JV between Barrick and China’s Zijin Mining, is the operator of Porgera and will foot the bill to finance the restart of the mine. Full mine recommencement work will get under way once definitive agreements have been signed.

Porgera was placed on care and maintenance a year ago, when the government declined to renew its special mining lease.

Bristow said in a statement that Barrick was delivering on its promise of reaching a fair agreement on the future of Porgera for the benefit of all its stakeholders, notably the local community, Enga province and the PNG government.

“We intend to partner with all key stakeholders to make Porgera a world-class, long-life gold mine,” he said.

The framework agreement provides for, among other things, that PNG stakeholders and BNL will share the economic benefits generated over the life-of-mine on a 53:47 basis and for an increase in the equity allocated to a broad group of landowners, who are the customary owners of the land where Porgera is located.

The State will retain the right to acquire the remaining 49% of the mine from BNL at fair market value after ten years.

Prime Minister James Marape described the framework agreement, reached after months of negotiation, as a historic development, which would benefit PNG for many years to come, and sets the precedent for future projects.

“I thank Mr Bristow and his team for recognising our nation’s aspirations and their willingness to partner with us in realizing this vision at Porgera,” he said.