Barrick Niugini (BNL) and the government have agreed on an increase in the equity allocated to a broad group of landowners who are the customary owners of the land where Porgera is located.
Those PNG stakeholders and BNL will share the economic benefits generated over the life of mine on a 53/47% basis, and BNL will finance the restart of the mine, Barrick said in a statement.
The mine was shuttered almost 12 months ago after PNG refused to extend a special mining lease (SML), with Barrick Niugini challenging both the refusal and PNG's August decision to award an SML state-owned Kumul Minerals Holdings, reports Mining Journal.
Prime Minister James Marape today thanked Barrick's management for the progress.
"I thank [Barrick chief executive] Mark 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.
Speaking on behalf of BNL's joint venture partners Barrick and Zijin Mining, Bristow said the deal achieved the company's aims of reaching "fair agreement on the future of Porgera for the benefit of all its stakeholders, notably the local community, Enga province and the PNG government."
The Porgera Joint Venture is an open pit and underground gold mine located at an altitude of 2,200-2,600 metres in the Enga Province of Papua New Guinea, about 600 kilometres northwest of Port Moresby.