In 2022, Papua New Guinea (PNG) was the world’s 18th-largest producer of gold and accounted for 1% of global production.
Why is this important?
Soon, more of its gold mines will be in production, and with them, direct and indirect jobs will be created. FDI (foreign direct investment) and tax revenues will be implemented by the government, bringing opportunities and advantages to be taken. The gold mining companies will invest in infrastructure and utilities too.
Porgera gold mine is restarting
Porgera’s gold mine is an open-pit and underground mine that contributed to almost 10% of PNG’s exports.
Its operations have been suspended since 2020. In the latest agreement, 51% of the equity in New Porgera is owned by PNG local landowners and the Enga provincial government, and 49% is owned by Barrick Niugini Limited (Barrick Gold Corporation), which will operate the mine.
The plan is to have operations up and running before the end of 2023.
Barrick is preparing the following for the mine’s restart:
- filing of the special mining lease from PNG’s Ministry of Mining
- Security Forum and Development Forum
- recommissioning of the mobile fleet and fixed plant
- updates to the mining and metallurgy plans
- finalization of the personnel recruitment plan, with preference given to local employment
The gold mine is said to have 10 million ounces of measured and indicated resources and 3.4 million ounces of inferred resources. Production is forecast to be an average of 700,000 ounces per year and achieve potential Tier One status.
Economic benefits will be split 53% by PNG stakeholders and 47% by Barrick.
Wafi-Golpu gold mine as well
Wafi Mining Limited (Harmony Gold Mining Company Limited) and Newcrest PNG 2 Limited (Newcrest Mining Limited/Newmont Corporation) own 50% each of the Wafi-Golpu Joint Venture.
The special lease to mine Wafi-Golpu is expected to be signed by November 2023.
Relevant links
- https://www.mining-technology.com/data-insights/gold-in-papua-new-guinea/
- https://www.barrick.com/English/news/news-details/2023/barrick-readies-porgera-for-restart/default.aspx
- https://www.nasdaq.com/articles/barrick-plans-to-restart-papua-new-guinea-gold-mine-this-year
- https://www.businesslive.co.za/fm/money-and-investing/2023-08-10-pay-dirt-for-harmonys-wafi-golpu-asset-in-papua-new-guinea/
- https://www.wafigolpujv.com/
- https://www.thenational.com.pg/wafi-golpu-on-track-for-november/
- https://www.newmont.com/investors/news-release/news-details/2023/Newmont-Enters-into-Definitive-Agreement-to-Acquire-Newcrest/default.aspx
- https://www.gold.org/esg/golds-contribution-to-society
