Porgera MOA review completed

Post Courier

THE third review on the Memorandum of Agreement for the Porgera project that was signed 24 years ago was completed in Kokopo, East New Britain last week with a revised version by the end of the week.

In 1989, under a tripartite arrangement, the Porgera MoA was signed between the national and provincial governments, and landowners.

Contained in the agreement were benefit sharing arrangements and projects to be undertaken by various parties mineral royalty payments, special support grant, tax credit scheme, equity, Porgera Long Term Sustainable Development Plan, law and order, environment protection, preference in supply and procurement, local business development, training and employment, and Porgera township development among other issues.

Following the outcome of this review, some new clauses were added into the MoA to include issues like resettlement, review timeframe, law and order, and women in mining.

These were not in the existing MoA and will be included in the revised version.

During the review, Barrick was invited to be a party to the MoA but declined saying it was happy to participate in development arrangements with the MOA parties as the project developer.

It also made a commitment to honor projects and developments that would require its input during the meeting.

According to Dr Ila Temu, the company has many other agreements in place in for many of the issues similar to the ones contained in the MoA that are current and are yet to be fulfilled.

“Any commitment in the MoA for Barrick to come in, we will take in.

“We don’t need an MoA to fulfill our commitments,” he said

The review was concluded last Saturday, with all parties agreeing for the revised MOA draft to be finalised and submitted to cabinet for approval.

3 Comments

Filed under Financial returns, Papua New Guinea

3 responses to “Porgera MOA review completed

  1. Hello! I hope the LOs of Porgera Mine and the State have raised Mine Closure issues in the recent MOA review. Barrick Gold Corporation is solely responsible for Misima Mine’s Closure and look what is happening to the once gold mine Island Misima. There is very little economic activity and the environment or mine site is quite useless and these stringent impacts is specifically the result of an improper closure. Porgera is absolutely on the same part as Misima as it does not have a Closure plan like that of OK Tedi. Hopefully they must sort this issue out ASAP as Porgera might just be the Next Misima .

    • Gideon Mathew

      I believe the LOs have now realize the importance of Mine Review after 26 years of operation and as a result the LOs calling of Barrick to be the party to the signing of agreement. I wonder why Barrick is reluctant to be the party to the revised MOA

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