PORGERA Mine workers that have been laid off will be called back to work under a new agreement, says Prime Minister James Marape.
A total of 2,650 local mine workers have been put out of job last July (2020) due to ongoing differences between the State and Barrick Niugini Limited (BNL) over the special mine lease extension in the National Court.
The layoff has costed Barrick Niugini Ltd., the joint venture mine owner and operator and partner Zijin Mining Group of China more than US$52 million (K183 million).
Its production was halted in April and the mine was placed on care and maintenance after the government said it would not extend its special mining lease. Workers were temporarily kept on the payroll.
However, Prime Minister Marape in a press conference in Port Moresby yesterday said Barrick Niugini and the joint venture company under the new agreement indicated that “all of those who have been laid off will be called back to work.”
Papua New Guinea’s largest superannuation fund, Nasfund has commended the government and welcomed the announcement.
In acknowledging this development, Nasfund CEO Ian Tarutia, says the decision by the government to work together with former Porgera developer Barrick Niugini Limited is one that bodes well for the future of the mine, and its employees.
“Following the closure of Porgera in April 2020, many direct employees and contractors have been hard hit, with the fund playing our part in providing relief through unemployment benefit payments for eligible members.
“We look forward to welcoming back our contributing members when Porgera restarts operations,” Mr Tarutia said.
Meanwhile, the signed framework agreement launching will be held today at Paiam station in the Porgera valley, Enga province. PM Marape and Barrick CEO Mark Bristow will be the guest of honour.
Porgera based landowner leadership has been conducting community awareness following the signing of a framework agreement between the State and BNL in April which paves the way for the reopening of the mine.
During the community awareness activities key aspects of the framework agreement that impact landowners have been shared.
The framework agreement provides, among other things, for:
- PNG stakeholders and BNL to share the economic benefits generated over the life of mine on a 53/47% basis;
- BNL to finance the capital required to restart the mine;
- an increase in the equity allocated to a broad group of landowners who are the customary owners of the land where Porgera is located; and
- the state to retain the right to acquire the remaining 49% of the mine from BNL at fair market value after 10 years.
The landowners of Porgera Mine and other stakeholders in the valley are happy and looking forward to welcoming the State and Barrick Niugini Limited (BNL) teams under tight security.
The mine was closed for over 14 months since April last year after its 30-year mine lease expired, thus many direct employees, contractors landowners have been hard hit.
The mine is on track to resume operations later this year, with BNL to finance the restart.