Prime Minister (PM) James Marape has commended New Porgera Ltd (NPL) for remaining on track with production at Porgera Gold Mine and meeting its initial targets, despite the operational challenges presented by the recent Mulitaka landslide in Enga province.
He made this statement while welcoming the announcement that Porgera Gold Mine has met or exceeded its targets since resuming mining in December last year, with gold production for the first half of the year above guidance and all-in sustaining costs trending lower.
Marape also highlighted his privilege of meeting Barrick President and Chief Executive Officer (CEO), Mr. Mark Bristow, who was in the country to review NPL’s second-quarter results, alongside Enga Governor Sir Peter Ipatas and Provincial Administrator Sandis Tsaka.
“I commend New Porgera Ltd, and especially operator Barrick, for the work it has done since mine resumption last December,” Prime Minister Marape said.
“I am happy that the mine is near almost 100 percent production now after overcoming so many obstacles.”
“New Porgera Ltd is a good model for Papua New Guinea’s partnership with overseas investors on large projects like Porgera.”
“We look forward to ramping up security at the mine and improving road access, in partnership with New Porgera Ltd.”
Mr. Bristow said keeping Porgera open in the wake of the landslide allowed for a swift response by the mine to the collective recovery effort while sustaining the mine’s contribution to the provincial and national economies.
“Reacting rapidly to the disaster, our teams put into operation an air bridge and a temporary pipe across the slip to be able to supply fuel and essential goods not only to the mine but to local businesses serving the tens of thousands of residents of the Porgera valley.”
“The cooperation of the Mulitaka community is essential to keeping these lifelines open until the permanent bypass road can be completed,” Bristow said, expressing his deepest sympathies to the families and friends of victims of the landslide and reaffirming NPL’s commitment to impacted communities.
He said Porgera employees have been on the ground in Mulitaka daily and are embedded at the Enga Provincial Government’s disaster relief center in Wabag to assist with all aspects of the rehabilitation effort. These include the delivery of essential goods and fuel while contributing geotechnical expertise to assist with ground stabilization and the design of the new bypass road.
Barrick and JV-partner Zijin also jointly contributed US$1 million towards relief efforts, approximately half of which has already been deployed.
Meantime, Mr. Bristo made it clear that NPL stands ready to pay benefits directly to landowner households, without going through middlemen, once the CDA is executed, adding that the mine would make additional infrastructure contributions to the project footprint area through effective use of the tax credit scheme in collaboration with local and provincial authorities.
NPL currently employs 2, 500 people, of whom 57% are from Porgera and Enga, 40% from the rest of Papua New Guinea (PNG) and 3% expatriates.
The first gold, following the resumption of operations at the mine, was poured in January, electricity from the Hides power plant in Hela Province was restored in April and a throughput performance test agreed to with PNG was achieved in June, four months ahead of schedule.
Bristow also singled out the lack of law and order as the greatest threat to the continued operation and profitability of the mine, requiring the active support of all stakeholders to ensure that Porgera could continue to deliver benefits in line with its potential as a Tier One1 asset.