Barrick Gold to Lay Off 2.7K Workers in Papua New Guinea Gold Mine

SEATTLE (Scrap Monster): Barrick Gold Corporation announced its decision to lay off as many as 2,650 mine workers at its disputed Poregera gold mine in Papua New Guinea (PNG). The layoffs will be effective end of July this year and is expected to cost more than 52 million.

Barrick Niugini Ltd, which operates as a joint venture between Barrick and Chinese Zijin Mining Group Ltd. noted that the decision follows repeated refusal by the government authorities to enter into a meaningful discussion with the company on the long-pending issues related with the mine operations.

ALSO READ: Court Orders Negotiation with Barrick Gold on Mine Lease Extension

The company stated that it cannot continue to maintain the mine, especially when it is not producing any revenue as it has been kept in care and maintenance mode. It must be noted production at the mine was halted in the month of April this year, following the government’s decision not to extend the mine’s special mining license, which had expired during that month.

Mark Bristow, Chief Executive, Barrick noted that the mine will have only essential personnel required for care and maintenance on site. Meantime, a government spokesperson declined to comment immediately.

The loss of employment is likely to have significant impacts on workers, their families and the Porgera community.