PNG's Enga Governor Ipatas wants 15 percent equity included in the Porgera Mine Shareholders agreement

 Papua New Guinea's ENGA Governor-elect Sir Peter Ipatas says the 15 per cent free carry equity has to be included before the Mineral Resources Enga (MRE) can sign the Shareholders Agreement for the Porgera gold mine.

Commenting on the delay by the MRE to sign the agreement yesterday, Sir Peter said they wanted to see the 15 per cent reflected in the agreement first.

The shareholder’s agreement once signed would enable Porgera gold mine operator, Barrick Niugini Ltd (BNL), to lodge an application with Mineral Resources Authority for a mining licence.

Once the MRE signs the Shareholders Agreement and other associated agreements, the first step towards restarting preparations can begin with the incorporation of the new project company, New Porgera Ltd, and the submission of a new SML (special mining lease) application to the Mineral Resources Authority.

Sir Peter said: “We (MRE) want the 15 per cent free equity split reflected (in the shareholder’s agreement) before we can sign.

“That’s the only hold up.”

BNL president and chief executive officer Mark Bristow earlier explained that the restarting of the Porgera mine remained on hold, awaiting the completion of the conditions for the mine to reopen.

The first step if the full execution of the Shareholders Agreement by the MRE.

Bristow said BNL continues to maintain regular discussions with the State negotiation team and concerned parties, including MRE and the Porgera Landowners Association, with the hope that MRE will sign the Shareholders Agreement at the earliest possible date.

Bristow said Barrick was ready to finalise all remaining matters to allow the mine to restart.

The recent conflict in the Porgera Valley has led to deaths, assaults on Porgera residents, including women and children, the burning of houses and businesses, and the closure of

the Paiam Hospital, Porgera Secondary school and BSP Financial Group Ltd.

Chief executive officer Robin Fleming yesterday said BSP had to close its Porgera branch temporarily last month following a deterioration in the law and order situation in the area.

Fleming said: “The safety of our staff at Porgera was at risk as were the safe operations of our branch.

“Our staff who are not from Porgera and critical assets were moved from Porgera as part of this process.

“July 20, BSP’s staff residential properties were broken into and ransacked despite the presence of external security personnel at the premises.

“We have been monitoring the situation and security assessments have indicated that the situation has not improved over the past two weeks.”


Next : PNG LNG Landowners to access K22 million

Previous Post Next Post