The Porgera gold mine is poised to resume operations on Friday, December 22, 2023 – just in time for the festive season – following the formalisation of the Porgera Project Commencement Agreement on the evening of Wednesday, December 20, 2023.
Prime Minister Hon. James Marape, a witness to the agreement’s signing involving New Porgera Ltd, landowners, and the Enga Provincial Government, expressed his satisfaction, stating that this marks the final milestone before the mine reopens.
According to Prime Minister Marape, Barrick, the operator of the new Special Mining Lease (SML) 13, has provided assurances that December 22, 2023, is the scheduled reopening date for the Porgera mine.
“Mining Minister Hon. Sir Ano Pala and a representative from the Enga Provincial Government will be present in Porgera to witness the commissioning,” Prime Minister Marape said.
“We are fully prepared for December 22. As I speak, employment is being ramped up to 2,000 and will increase to about 3,000 in the first six months of operation.”
Prime Minister Marape highlighted that the agreement delineates the equity structure of New Porgera, with clear benefits outlined for landowners and the Enga Provincial Government. They will receive benefits upon the commencement of gold production, including a 3 per cent royalty.
The State will start receiving 30 per cent tax upon first gold production, 2 per cent Fiscal Stability Tax, and will also benefit from spin-off benefits like personal income tax of mine workers.
“The agreement is signed between New Porgera Ltd, landowners, and the Enga Provincial Government,” Prime Minister Marape said after the signing at Government House.
“In summary, it’s 7.5 per cent for the Special Mining Lease (SML) landowners, 2.5 per cent for the Lease for Mining Purposes (LMP) areas, and 5 per cent for the Enga Provincial Government in the Porgera Project Commencement Agreement.”
Expressing gratitude, Prime Minister Marape extended thanks to landowners, the Enga Provincial Government led by Governor Hon. Sir Peter Ipatas, and communities along the project’s footprint.
“I want to assure you that in early January, Mining Minister Sir Ano Pala will initiate consultations, addressing all other matters related to position papers for affected areas,” he said.
“Our aim is to complete the compensation process at the Development Forum, providing landowners with clarity on the benefit structures.”