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(Wallace Refiners) – Barrick Gold’s joint venture and the Papua New Guinea government agreed on a partnership for its future ownership and operation of the Porgera gold mine.
Barrick announced the development in a news release today. The Barrick Niugini Limited (BNL) joint venture is about 50% owned by Barrick Gold and 50% by Zijin Mining Group.
Porgera has been on care and maintenance since April 2020 when the government declined to renew its special mining lease.
Barrick said that the terms of the agreement are a new joint venture owned 51% by Papua New Guinea government stakeholders and 49% by BNL, which remains the operator of the mine. Life of mine benefits will be shared on a 53% and 47% basis. The Barrick Niugini Limited joint venture will be responsible for capitalizing the restart of the mine. Local stakeholders will get increased equity, and the state will retain the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years.
The agreement was reached after months of negotiation, according to a news release.
The mine has proven and probable gold reserves of 2.4 million ounces. In 2020 Barrick said the attributable production forecast for the year at the mine was 284,000 ounces.
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