PNG PM Marape wants to reopen Porgera Mine through Kumul Mineral Holdings Limited

 THE Papua New Guinea Government expects the Kumul Minerals Holdings Limited (KMHL) to reopen the Porgera mine immediately, exercising its rights in a contract signed 31 years ago.

Prime Minister James Marape was responding to a Supreme Court decision on Friday which rejected an application by Barrick Niugini Limited (BNL) to stay a National Court decision relating to the issuing of a special mining licence.

The National Executive Council granted a special mining lease (SML) over the land on which the mine is located to KMHL on Aug 25.

“I urge Barrick to humble itself, observe the rule of law and fulfil its obligations under Clause 19 of the mining development contract (MDC) it signed on May 12, 1989,” Marape said in a statement

“The State reserves its right under Clause 19 (c) of the MDC to acquire the (Porgera mine) assets at a fair market value.

“The State also reserves it’s further right under Clause 19.2 of the MDC to give the appropriate consent upon expiry of a one-year period from the date the SML expired (Aug 16, 2019) enabling all assets of the Porgera gold project to become the property of the State without any cost to the State or any liability for the State to pay compensation.”

Barrick Niugini Ltd challenged in the National Court the decision not to renew its 30-year SML which expired in August last year.

Deputy Chief Justice Ambeng Kandakasi recently dismissed the BNL challenge in the National Court. BNL then filed a stay application in the Supreme Court.

Justice Collin Makail, presiding as a single Supreme Court judge refused to grant a stay order because he said the relationship between the parties had become obnoxious and broken down.

The National/Pacific Mining Watch

Next : Barrick Niugini willing to engage in 'Good Faith' with PNG Govt over Porgera Mine

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