Court Decision Allows Continued Mining At Porgera
August 02 2019 - 8:00AM
The National Court of Papua New Guinea today ruled that the
provisions of the country’s 1992 Mining Act applied to the
Porgera gold mine, thus allowing it to continue operating while the
application to extend its Special Mining Lease is being
considered. The current lease expires on August 16,
2019.
Porgera is operated by Barrick Niugini Limited,
a joint venture between Barrick Gold Corporation (NYSE:GOLD)
(TSX:ABX) and Zijin Mining Company. Barrick president and
chief executive Mark Bristow and Zijin executive director and
senior vice-president George Fang are currently in Papua New Guinea
to discuss the proposed extension with the government and the
Porgera Special Mining Lease landowners.
Bristow and Fang welcomed the court’s ruling,
saying it allowed for continuation of their operations at Porgera
post August 16th, which would enable the mine to continue
delivering substantial benefits to communities and landowners in
the Porgera Valley, as well as to the national and provincial
governments, while the SML Extension was finalized. The
ruling also confirmed that Porgera operated under the
1992 Mining Act and was entitled to seek an extension.
They noted that Porgera was one of the largest
mines in PNG and had been a key driver in its regional, provincial
and national economies for the past 30 years. Over that
time it has paid more than 4.3 billion Kina
($1.27 billion) in taxes and royalties to the government and
has contributed, on average, 10% of the country’s export
income. It is also one of the largest employers in the
country, with more than 3,100 PNG employees. It has
spent 1.2 billion Kina ($353 million) with local
businesses and paid 1 billion Kina ($294 million) in
equity cash to the Enga provincial government and Porgera
landowners, who are part-owners of the mine.
Enquiries:
Mark BristowPresident and chief executive+1 647 205 7694+44 788 071
1386 |
Mark HillCOO LATAM and Asia Pacific+1 416 307 7429 +1 416 358
4667 |
Kathy du PlessisInvestor & media relations+44 20 7557
7738barrick@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 “continue”, “proposed”,
“would”, “seek”, “will”, “should” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: the outcome of discussions to reach agreement with
the PNG government to extend Porgera’s Special Mining Lease and the
terms of any such agreement; Porgera’s ability to continue to
generate benefits to the community, landowners, and national and
provincial governments; and the future of the Porgera mine
including opportunities to maintain and increase production while
continuing to reduce costs.
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: timing of receipt of, or
failure to comply with, necessary permits and approvals, including
with respect to Barrick Niugini Limited’s application for an
extension to the Porgera mine’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 PNG; 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; fluctuations in the spot and forward
price of gold, copper or certain other commodities (such as silver,
diesel fuel, natural gas and electricity); risk of loss due to acts
of war, terrorism, sabotage and civil disturbances; litigation and
legal and administrative proceedings; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; 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; 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;
disruption of supply routes which may cause delays in construction
and mining activities; 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; 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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