Mining under-investment threatens sector: Barrick Gold CEO
Barrick Gold Corp. says it will pursue all legal avenues to prevent what it's calling the "nationalization without due process" of its Porgera gold mine in Papua New Guinea.
Barrick, the operator, and Zijin Mining Group of China each own 47.5 per cent of the open pit and underground gold mine.
In a news release, Barrick says it applied for an extension of its special mining lease in June 2017 but the government refused to comply and it expired last August.
It called for more talks with Prime Minister James Marape to head off what it said would be a "catastrophic situation" for local communities and for the country as a whole.
Analyst Mike Parkin of National Bank says he estimates Porgera represents 2.6 per cent or $1.22 billion of Barrick's net asset value and accounts for 5.3 per cent of its 2020 gold production estimate at 267,000 ounces.
Barrick says it has refused to discuss transitional arrangements for the management of the mine as proposed by Papua New Guinea, adding the government has rejected its proposal for a new benefit-sharing arrangement that would deliver more economic benefits to the country.