Photo: PNG Prime Minister, James Marape.
Photograph Source: Facebook / PNG office of the Prime Minister
I would like to join the nation in congratulating Prime Minister Hon. James Marape and the State’s Negotiation Team (SNT) for reaching a favorable deal for PNG with Barrick Niugini Limited (BNL).
A year ago, the National Government under the leadership of Prime Minister Marape refused to extend BNL’s special mining lease and took a tough negotiating stance seeking to achieve a larger equity, greater landowner involvement and more opportunities for SMEs and local communities in project areas.
This has resulted in the Porgera mine’s closure and its economic consequences that has affected the Nation’s economy, mine workers and their families, landowners and businesses contracted to the mine.
Prime Minister Marape has delivered on his promise of “short term pain for a long-term gain.” The collective PNG Stakeholders (State, Enga Provincial Government and Landowners) now have a 51% equity in the mine and Barrick has the remaining 49%. The national equity goes from 5% ownership (Enga Provincial Government & Landowners) in the last 30 years to 51%. That’s a whopping 46% increase. The best deal for PNG in Porgera so far.
Other key benefits are that PNG Stakeholders will have the right to increase its stake in the mine to 100% by buying BNL’s equity after 10 years on commercial terms through an independent valuation process.
This is a historic development that will benefit our country for many years to come and it sets the precedent for all future projects especially in the Mining and Petroleum sectors.
Marape assured reforms to take back our resources and reconstruct the nation in his first State of the Nation speech as Prime Minister of Papua New Guinea and this new deal with BNL is the government delivering on its promises.
May God continue to guide and Bless this nation.
Authorised for Release By:
Hon. Pila Kole Niningi, MP
Minister for Inter-Government Relations