Court Orders Negotiation with Barrick Gold on Mine Lease Extension

SEATTLE (Scrap Monster):  The National Court ordered that the Papua New Guinea (PNG) government should negotiate with Barrick Gold on extension of lease of Porgera gold mine. Barrick Gold welcomed the court decision.

The Court ordered that the government should take initiative to discuss with the miner on possibilities of extending the gold mine lease. It directed the government to update the Court with regards to the progress of the negotiations on May 8^th, when the court takes up the matter again. Also, it instructed Barrick Gold subsidiary to ensure maintenance of mine infrastructure and assets during the period of negotiation. In case of failure of the talks between the government and the miner, the court hinted at appointing an accredited mediator to oversee the negotiation talks.

The PNG government had refused to renew the mine license that expired in August last year, on environmental concerns. This led to temporary halt in mine operations by Barrick Gold and its Chinese partner. Following this, the government warned of taking immediate control of the mine. In response, Zijin Mining had threatened that the refusal of extension of mining license could impact the country’s relations with China.

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The Porgera gold mine is a joint venture project between Barrick and Zijin Mining who own 47.5% each, with the remaining 5% ownership held by landowner group Mineral Resources Enga.