Barrick President and Chief Executive Mark Bristow, along with
Zijin Executive Director and Senior Vice President George Fang, met
today with Papua New Guinea’s new Prime Minister James Marape and
reaffirmed the company’s commitment to working with the PNG
government and local communities to ensure that the Porgera gold
mine continues to deliver value to its stakeholders past the expiry
of the current Special Mining Lease on August 16, 2019.
While in the country, Bristow also held meetings
with Enga Governor Sir Peter Ipatas, Porgera landowners, and other
stakeholders.
Since pouring its first gold in 1990, Porgera
has paid more than Kina 3.6 billion ($1.1 billion) in taxes and
Kina 1 billion ($297 million) plus Kina 600 million ($178 million)
in equity cash payments and royalties respectively to the
provincial government and customary landowners. This represents a
significant contribution to the country’s economy, as well as a
substantial amount to the landowners on whose properties the mine
is located. An application to extend Porgera’s special mining lease
for a further 20 years is currently in progress.
Bristow said Porgera was an important long-term
asset for PNG as well as the mine’s owners, Barrick Gold
Corporation and Zijin Mining Group.
“The proposed extension to its lease will allow
the mine to remain productive for at least another 20 years.
To sustain mine operations, however, it will require a significant
capital injection, and it is difficult to justify that kind of
investment without the security of an extended mine lease,” he
said.
“Barrick believes in true partnership with our
host countries, sharing both the responsibilities and the benefits
that come with mining. We are engaging with the government to
breathe new life into our long-standing partnership, so that
Porgera continues to deliver value to all its stakeholders. In our
meeting with the Porgera landowners, we invited our stakeholders to
join us in continuing to improve the quality of life, security and
welfare in the Porgera valley.”
Porgera is a joint venture between Barrick and
the Zijin Mining Group, which each owns 47.5% with the remaining 5%
interest being held by Mineral Resources Enga (owned equally by
Porgera Special Mining Lease Landowners and the Enga Provincial
Government). The mine is operated by Barrick (Niugini) Limited.
About the Porgera JVThe Porgera
gold mine is in the Enga Province of Papua New Guinea at an
altitude of 2,200 – 2,700m. It is 130km west of Mt. Hagen and 600km
northwest of the capital Port Moresby. Porgera employs over 3,300
Papua New Guineans of which 1,900 are from Porgera and nearby Enga.
Over the life of mine it has produced more than 20Moz of gold and
contributed approximately 10% of Papua New Guinea’s total annual
exports. Since inception, the mine has distributed K1 billion
($297.2 million) to landowners and the provincial government, has
spent K4.9 billion ($1.4 billion) on contracts with PNG businesses,
of which K1.2 billion ($356 million) on businesses in Porgera, and
K480 million ($142 million) on schools, health facilities, water,
electricity, roads, and community programs.
About BarrickOn January 1,
2019, a new Barrick was born as a result of the merger between
Barrick Gold Corporation and Randgold Resources Limited. Shares in
the new company trade on NYSE (GOLD) and TSX (ABX).
The merger has created a sector-leading gold
company which owns five of the industry’s Top 10 Tier One gold
assets Cortez and Goldstrike in Nevada, in the United States
(100%); Kibali in the Democratic Republic of the Congo (45%);
Loulo-Gounkoto in Mali (80%); and Pueblo Viejo in the Dominican
Republic (60%) and two with the potential to become the gold assets
of the first level: Goldrush / Fourmile (100%) and Turquoise Ridge
(75%), both in the United States. With mining operations and
projects in 15 countries, including Argentina, Australia, Canada,
Chile, the Ivory Coast, the Democratic Republic of the Congo, the
Dominican Republic, Mali, Papua New Guinea, Peru, Saudi Arabia,
Senegal, the United States and Zambia, Barrick has the lowest total
cash cost position among its senior gold peers and a diversified
asset portfolio positioned for growth in many of the world's most
prolific gold districts.
Enquiries:
Mark BristowPresident and CEO+1 647 205 7694+44 788 071 1386 |
Mark HillCOO LATAM and Asia Pacific+1 416 307 7429+1 416 358
4667 |
Kathy du PlessisMedia and Investor relations+44 20 7557
7738barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, 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
“extension”, “continues”, “commitment”, “long-term”, “sustain”,
“remain”, “committed”, “future” and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: the application to extend Porgera’s special mining
lease and related engagement with the Government of Papua New
Guinea and other stakeholders; future contributions to the economy
of Papua New Guinea and related benefits; and capital investment
required for the continued operation of the Porgera 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 Barrick 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: 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; lack of certainty with respect to
foreign legal systems, corruption, and other factors that are
inconsistent with the rule of law; timing of receipt of, or failure
to comply with, necessary permits and approvals; the speculative
nature of mineral exploration and development; changes in mineral
production performance, exploitation, and exploration successes;
diminishing quantities or grades of reserves; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
fluctuations in the spot and forward price of gold, copper, or
certain other commodities (such as silver, diesel fuel, natural
gas, and electricity); failure to comply with environmental and
health and safety laws and regulations; litigation or
administrative proceedings; damage to the Barrick’s or the Porgera
joint venture’s reputation due to the actual or perceived
occurrence of any number of events, including negative publicity
with respect to the joint venture’s or Barrick’s handling of
environmental matters or dealings with community groups, whether
true or not; 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; the impact of
global liquidity and credit availability on the timing of cash
flows and the values of assets and liabilities based on projected
future cash flows; the impact of inflation; fluctuations in the
currency markets; contests over title to properties, particularly
title to undeveloped properties, or over access to water, power,
and other required infrastructure; 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.
Barrick disclaims 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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