Chinese the only bidders for Barrick’s troubled Porgera mine

Chinese State owned mining company Zijin is the only company bidding to buy Barrick Gold’s Porgera mine according to reports from Bloomberg [see below].

porgera_burns-266x300If the sale goes through Porgera would be the third mine in PNG in Chinese hands. The Chinese already operate the Ramu nickel mine and have recently purchased the rights to build the Frieda river mine

Zijin Mining is based out of Fujian Province. It is the largest gold producer in China and second largest copper producer. It also produces zinc, tungsten and iron ore.

Barrick is looking to off load its troubled Porgera mine but most potential bidders will be wary of the mines troubled environmental and human rights record.

Final bidders emerge for Barrick’s Australian gold mine
David Stringer and Brett Foley | Bloomberg
Gold Fields Ltd. is among final bidders competing to acquire a $400 million US Australian mine from Barrick Gold Corp., people with knowledge of the matter said.
The Johannesburg-based producer and China’s Zijin Mining Group Co. submitted final offers for the Cowal gold mine in New South Wales state, according to the people, who asked not to be identified as the details are private. They are competing with local suitors Evolution Mining Ltd. and Independence Group NL, which also submitted binding bids, they said.
Barrick, the world’s biggest gold miner, said last month it has fielded interest for mines it’s seeking to divest in Australia, Papua New Guinea and Chile. The Toronto-based company plans to reduce net debt by at least $3 billion US this year, partly by selling the assets and cutting staff at its head office.
Zijin Mining has also expressed interest in Barrick’s Porgera mine in Papua New Guinea, the people said. Representatives for Gold Fields, Independence Group and Evolution declined to comment, while spokesmen for Barrick and Zijin didn’t immediately respond to calls and e-mails seeking comment.
Cheaper Production
The Cowal mine, which produced 268,000 ounces of gold last year, may be worth at least $400 million, Morgans Ltd. wrote in an April 22 note to clients. Barrick, which is working with Credit Suisse Group AG on the potential sales, could raise as much as $1.1 billion from divesting Cowal and Porgera, TD Securities Inc. said in February.
Gold Fields, which purchased three Australian mines from Barrick in 2013, is hunting for mines with production costs equal to or lower than its existing assets, Chief Executive Officer Nick Holland said in a Feb. 12 interview. Its production at all major operating regions including Peru, Australia and South Africa fell in the three months to March 31, the company said May 7.
The South African producer had all-in sustaining costs of about $1,143 an ounce in the three months to March. That compares to equivalent costs of $740 to $775 an ounce at Cowal, according to Barrick.

3 Comments

Filed under Financial returns, Papua New Guinea

3 responses to “Chinese the only bidders for Barrick’s troubled Porgera mine

  1. Fred Hela

    MAD CHINESE!!!! do they think the landowners are still pushovers. Have they done their due diligence, do they care there is court proceedings against Barrick and the State by landowners as we speak in the PNG National court?. The rumor is there is $4billion claim against Barrick and State for damages, for agreements signed that have not been kept by the two. Fix the landowner issue before buying or selling to each other. The minerals belong to the landowners, not Barrick who has been allowed to steal while the landowners suffer. Hope the PM, Mining Minister and their workers at MRA do not entertain any of this crab until the landowner’s concerns are first taken care of. Mad Chinese, you may think it would be only 300-400 million you’re paying for. Not only is there a $4billion claim but furious landowners who have been neglected by mining co and State for too long. For them, enough is enough.

  2. Barrick Gold Corporation Ltd will go down in genes book of records as the most stupidest, unethical, corrupt and most notorious criminal in the whole world.You seem to act smart by doing your crook deals with those Chinese crooks out there. You fail to show respect to the court of law, the supreme court decision to stop you from this sale. You seem to be above the law. You have spoiled our environment, mistreated our people like pigs and dogs. Now you want to escape through the back door without taking responsibility for your action. Mind you, your sin will always find you out. You are treating us like stone age people who do not know anything. Mark my word, your sin will catch up with you where ever you go. The way you have treated us is the way you will be treated. Because you are leaving us with nothing, you will become nothing. You will collapse and end and not even a trace of you will remain in this world. Your mistreatment of the people of Enga and PNG will come back to you 7 times more. My advise to Barrick is that you don’t sell the mine to a Chinese company. We have seen the fruits of the Chines operations in the country. Enough is enough with the Chinese! Give it back to the people of Porgera and Enga. Find out whether they have a company to bid for. Talk to us and we will talk to you. Please don’t and I say again, don’t give it to a Chinese Company. Give it back to the people of Enga or the nation. Thank you.

  3. Barrick cannot walk away like that through the back door without telling the people of PNG through its elected government. Just going out like that keeping us in suspense selling it to another crook Chinese company is not acceptable. We had enough of Chinese! The fruits on the ground are bad already. Barrick has mistreated the people of Porgera enough; We cannot entertain another bad company like Barrick. We want a good company that can do something good for the people of Porgera and Enga. MRE and the government of PNG must do something. The government must not keep silent. The government must help its people to stop the sale and find a good buyer to buy the mine.

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