Loading ...Barrick Gold (TSX: ABX) (NYSE: GOLD) confirmed on Monday reports indicating that Papua New Guinea prime minister James Marape had announced an imminent deal to reopen the Porgera gold mine.
The operation has been closed for a year, after Barrick and its Chinese partner, Zijin Mining, became embroiled in a dispute with the PNG government, when Marape refused to renew the companies’ mining license.
The companies temporarily halted operations in response. They also served Marape with a dispute notice arguing the license extension refusal violated a bilateral investment treaty between PNG and Australia.
PNG authorities cited environmental and social issues for denying the permit renewal then. Instead the government gave it to a state-owned mining company, Kumul Minerals Holdings Ltd.
“We are in a better position now to sign an agreement with Barrick for what will be a new Porgera,” Marape said, according to local media.
The Prime Minister noted that Barrick had agreed to an exit option in 10 years. “Other benefits include securing an increased and upfront tax with no concession, higher royalties as well as a better handle on environment and resettlement issues,” Marape said.
more https://www.mining.com/barrick-ready-to-sign-deal-to-reopen-porgera-mine/