Commodities News

PNG Seeks Bigger Portion of Giant Porgera Gold Mine

Papua New Guinea plans to obtain a more significant share of the Porgera gold mine as a part of lease-renewal discussions, diluting the possession of joint venture associates Barrick Gold and Zijin Mining.

Porgera, situated in PNG’s northern highlands area, is expected to create 240,000 to 260,000 ounces of gold this year. Barrick and Zijin both own 47.5% of the mine, with the remaining 5% retained by landowner, Mineral Resources Enga.

Wera Mori, PNG’s Minister for Commerce and Industry, stated a portion of Barrick and Zijin’s stakes would be given to the national and regional; governments and landowners.

The final determination to be held by Barrick and Zijin would be decided during meetings, he said.

“It will bend correspondingly, like if the state picks up 30% or 40%,” said Mori.

The planned modifications are part of a drive-by PNG to transform its economy under a brand new government.

PNG was the world’s 14th largest gold farmer in 2018, per the World Gold Council (WGC).

Mori addressed an investor forum in Sydney on Monday morning that the resources-rich country was creating policies to maintain more of the commodities it produces in the nation to boost its economy.

PNG’s central bank currently fixes its forex to a narrow U.S. dollar line, propping up the kina’s value while creating a scarcity of dollars obtainable in the Pacific country.

James Marape, the former finance minister who turned PNG’s new chief in May after winning a vote in congress, has put some of the world’s greatest resources corporations on notice over a noted lack of wealth flowing from their projects back to groups.