THE operator of the Porgera gold mine, Barrick Niugini Ltd (BNL), says more than 3,600 people will lose their jobs because of the Government’s refusal to renew its special mining licence.
The joint venture is between Barrick Gold (47.5 per cent), Zijin Mining Group (47.5 per cent), Mineral Resources Enga owned by the Porgera special mining lease landowners and the Enga government (5 per cent).
The application for the renewal was lodged in 2017.
Prime Minister James Marape said on Friday that Cabinet recently decided to reject the application “in the best interest of the nation”.
In a statement yesterday, BNL said the impact on the economy would be “immediate and severe”, including the:
- termination of the more than 3,600 people in direct employment with BNL, and loss of work for more than 1,000 contractor companies who employ locals;
- loss of local business contracts to the value of around K400 million per annum;
- loss of 1.5 megawatts in power supply to the Porgera Valley communities, currently supplied at no cost;
- end of support for institutions in the Porgera Valley, including the Paiam Hospital and Porgera Development Authority;
- end of support for the Highlands Highway maintenance;
- end of support for police operations and end to the community emergency services provided at no cost;
- Immediate loss of tax revenue streams, royalties and equity distribution payments, which totalled more than K500 million in 2019.
BNL said the process and policy of rejecting the extension of the special mining lease and nationalisation of the Porgera mine assets presented “enormous financial and reputational risks for local communities, businesses and the country during a time when the country was dealing with the economic impact of the coronavirus pandemic”.