TORONTO - Barrick Gold Corp. says it has suffered further setbacks in its fight with the national government over control of its Porgera Gold Mine in Papua New Guinea.

The operating company that represents the Toronto-based miner and its partners says it lost a court challenge in the country over rights to the gold mine and intends to appeal to the country's supreme court.

It adds it has confirmation from the prime minister that the government has granted a special mining lease for Porgera to Kumul Mineral Holdings Ltd., the national mining company.

Barrick Niugini Ltd., the joint venture mine operator that is owned 47.5 per cent each by Barrick and Zijin Mining Group of China, with the rest held by local landowners and the Enga provincial government, suspended production in April and placed the mine on care and maintenance status.

It laid off 2,650 local mine workers in July, making permanent temporary layoffs enacted when the government said it would not extend its special mining lease.

In May, Barrick Gold removed Porgera output from its overall 2020 production guidance, dropping it by about 200,000 ounces to between 4.6 and 5.0 million ounces, just as gold prices began to soar to record heights.