Following an agreement on new ownership structure, Barrick Gold announced that its Porgera mine in Papua New Guinea will resume operations this month with first gold to be poured in Q1 2024.
“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders and we look forward to steering the mine back to world-class production,” said Barrick president and chief executive Mark Bristow. “It undoubtedly has the potential to join our Tier One gold mine portfolio, the largest of its kind in the industry.”
The equity in New Porgera is shared 51% by PNG stakeholders, including local landowners and the Enga provincial government, and 49% by Barrick Niugini Ltd (BNL), a joint venture between Barrick and Zijin of China.
The PNG shareholders will receive 53% of Porgera’s overall economic benefits. At an assumed gold price of US$1,800 per ounce, Barrick said that this is expected to amount to more than $7 billion over the mine’s projected 20-year life.
BNL will operate Porgera, which is an open pit and underground gold mine located at an altitude of 2,200-2,600 metres in the Enga Province.
Source: Barrick Gold