The process of re-opening the Porgera gold mine under the terms of
the binding framework agreement between the government and operator
Barrick Niugini Limited (BNL) took a major step forward with a
discussion between Barrick President and Chief Executive Mark
Bristow, Prime Minister James Marape and the various Porgera
Landowners groups and others here today.
The framework agreement provides that Porgera will
be owned by a new joint venture held 51% by Papua New Guinea (PNG)
stakeholders and 49% by BNL, with BNL continuing as the
operator. The framework agreement also calls on the Porgera
Landowners and the Enga Province to have a dialogue to determine
how the 10% ‘protected equity’ which forms part of PNG’s 51%
interest will be allocated.
Speaking at the event, which was attended by Prime
Minister James Marape, Enga Governor Peter Ipatas and local Member
of Parliament Tomait Kapili, Bristow said the agreement made each
of the parties — the landowners, the national government, the
province and BNL — a committed stakeholder responsible for the
long-term success of the mine.
“In aligning our interests, it recognizes the
importance of the landowners and the communities, and prioritizes
the benefits they will receive, not only from the mine but from a
new Porgera Development Fund that will invest tens of millions of
Kina in promising local projects. In addition, BNL is
committed to giving preference to competitive local contractors and
suppliers and to employing Porgerans first. With BNL as
operator, Porgera will also redouble its efforts to be a
responsible steward of the environment,” he said.
“The road to re-opening is a long one, and between
the state, local communities and BNL, the implementation details of
the agreement still need to be finalized. However, if all
parties work together uninterrupted in the spirit of partnership
envisaged by the agreement, our hope is that the mine will be able
to restart later this year. It is no small task. But we
are committed to playing our part, so that the new Porgera can
realize its extraordinary potential and deliver decades of value to
the people of the Porgera Valley, Enga, Papua New Guinea and the
shareholders of BNL.”
Enquiries:
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “move closer”, “restart”,
“will”, “would”, “commit”, “redouble”, “hope”, “potential”,
“deliver”, “make”, “future” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: the anticipated benefits of the framework
agreement and resumption of operations at the Porgera mine for
local landowners and communities, including with respect to local
hiring initiatives, stewardship of the environment, and investments
by the new Porgera Development Fund; the composition of the portion
of the new Porgera joint venture to be held by local Papua New
Guinea stakeholders; the terms of a new partnership for Porgera’s
future ownership and operation under the framework agreement, and
the timeline for execution of definitive agreements and formation
of a new joint venture to implement the framework agreement and
recommence operations at Porgera; and the potential to make Porgera
a world-class, long-life gold mine.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; risks associated with projects in the early stages of
evaluation and for which additional engineering and other analysis
is required; disruption of supply routes which may cause delays in
construction and mining activities at Barrick’s more remote
properties; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; non- renewal of key licences by
governmental authorities, including non-renewal of Porgera’s
special mining lease; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices; expropriation
or nationalization of property and political or economic
developments in Papua New Guinea; timing of receipt of, or failure
to comply with, necessary permits and approvals; lack of certainty
with respect to foreign legal systems, corruption and other factors
that are inconsistent with the rule of law; risks associated with
illegal and artisanal mining; risks associated with new diseases,
epidemics and pandemics, including the effects and potential
effects of the global COVID-19 pandemic; damage to the Company’s
reputation due to the actual or perceived occurrence of any number
of events, including negative publicity with respect to the
Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; business opportunities that may be
presented to, or pursued by, the Company; risks associated with
working with partners in jointly controlled assets; employee
relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource
shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).
Many of these uncertainties and contingencies can
affect our actual results and could cause actual results to differ
materially from those expressed or implied in any forward-looking
statements made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
We disclaim any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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