MORE than 3,000 people are expected to be employed when the Porgera mine is reopened, following the signing of stakeholders’ agreements yesterday.
“Over the next couple of weeks, the company will hire 3,100 people, most of them Papua New Guineans, (who) will head back to Porgera valley, open the gate and start digging the ground,” State negotiation team chairman Dairi Vele said.
“We are hoping that during June, July, August, they can announce that the first gold has been processed.”
The cost of restarting the Porgera mine is around US$300 million (about K1.052 billion), according to Barrick Niugini Ltd (BNL) president and chief executive officer Mark Bristow.
Vele added that the signing of the agreement in Port Moresby “signified the reopening of the project”.
“The main one is the shareholders’ agreement, that is, the coming together to build the company.
“That’s not for the Government.
“That’s for Kumul Minerals Holdings Ltd (KMHL), the landowners and Barrick.
“The company is born today – it is the beginning of the mine.”
Vele said the company should be registered in the next 48 hours.
“The company will be owned by Kumul with 36 per cent, landowners 15 per cent, and Barrick 49 per cent,” he said.
But the country will get 53 per cent of the benefits and Barrick 47 per cent.
KMHL managing director Dr John Kuwimb said the 51 per cent Government stake in the new Porgera company was made up of 15 per cent for the landowners and the Enga government, and 36 per cent for Kumul Minerals.
He said Barrick and the State would have four directors each.
“We will work to run Porgera and this company that we are incorporating will appoint Barrick as the operator,” he said.
The National / Pacific Mining Watch
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