Tag Archives: Porgera

Barrick calls for collaboration with MPs on ‘grim challenges’

Post Courier | October 10, 2017

In the face of a number of grimchallenges, the Porgera Joint Venture (PJV) mining operator Barrick Niugini Limited (BNL) has now called for greater cooperation from Engan members of parliament towards the achievement of the provinces’ development agenda.
At a recent briefing session with Engan leaders in Port Moresby, BNL executive managing director, Richmond Fenn highlighted a number of challenges that were impeding the progress of the provincial development agenda, which included; illegal mining, the state of the highlands highway, law and order, resettlement and the Memorandum of Agreement (MOA) review.
Mr Fenn highlighted the management issues of the Porgera Development Authority (PDA), the Paiam Hospital and functions of the District Administration.
He also raised issues faced by the mine such as the proposed amendments to the Mining Act; the proposed amendment to the MRA Act and increasing the Tax Credit Scheme(TCS) rate.
“While some of the issues we can manage as a company, others are more complex and need considerable amounts of commitment from the government to make it work,” said Mr Fenn.
“The partnerships that we generate from these kinds of gatherings where we are required to work together on issues that affect us all, are of the utmost importance to us,’’ he said.
Engan governor Sir Peter Ipatas supported the call, adding that as a non-renewable venture, sufficient collaborative action needed to be taken to secure the future of Enga.
“We have to work to sustain Porgera to continue to provide services. The mine will come to an end.
In the future, the province will have to fall on its own economy,” said Sir Peter said.
“We have the right leadership and we have to incorporate our plans for development into the government agenda,” he said.
Sir Peter said the national government should consider funding arrangements for Enga’s special project plans, particularly through an increase in the TCS rate.
Given the mines history and contributions to the national economy for over 20 years.

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Mining industry to extract K11 billion from PNG in 2017

K11 billion mining revenue for 2017
Cedric Patjole | PNG Loop | October 4, 2017

K11 billion in mineral revenue is expected to be generated from both large and small scale mining in 2017.

This is based on gures reported from January to August, according to the Mineral Resources Authority (MRA).

The MRA says this revenue is the result of continued overall increases in mineral commodity prices, production and ore exports.

In a statement, the MRA says the estimated K11 billion revenue represents an increase of 13.4 percent against 2016 mineral revenue, underpinning an ongoing upward trend in mineral receipts which will boost the economy.

Based on gures from operating mines in the country, major projects expect to surpass results from 2016.

Ok Tedi Mine forecasts indicate a 2017 end of year outturn of an additional K700 million, with revenue potentially exceeding K2.7 billion.

Lihir is also turning in another solid performance and revenue forecasts indicate an increase in 2016 of around K200 million, exceeding K3.7 billion for the full year.

Ramu operations still continue to suffer from regulatory and compliance issues, however 2017 production has improved and could exceed 2016’s disruptive year by K300 million.

Revenue from the newly re-opened Kainantu mine is estimated at over K8 million from the first two shipments. Unfortunately the mine suffered a significant setback with illegal damage caused by landowners and this will take some months to recover from.

Simberi mine continues to generate revenue despite moving towards closure next year, coincident with the expiry of their mining lease.

Porgera and the alluvial sector are maintaining reasonably steady positions, while Hidden Valley mine has entered its temporary closure phase. Loss of revenue during this period will hopefully be made up by Kainantu once they return to production.

The Tolukuma mine remains problematic as they struggle with tenement and regulatory issues as well as funding, all of which is hindering a return to production under new owners, Asidokona.

Crater Mountain mine is also a icted by nancial di culties with the failure of a capital raising, but it is hoped that the board and management changes will nally see some positive results from this small operation shortly.

The MRA says while gold still represents an ‘unhealthy’ 68.75 percent of PNG mineral revenue, this percentage has been whittled away by the increase in copper, nickel and cobalt providing that widening of the mineral base’.

The gold price has again uctuated wildly with a recent spike on the back of international tensions surrounding North Korea’s nuclear ambitions, hitting over $USD1340 early in September, only to have now dropped back below $USD1290.

Copper, nickel and cobalt have also continued to rise erratically in recent months with copper hitting a 52 week high of $USD3.13/lb in September.

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Ongoing unrest affecting Porgera mine operations

The National aka The Loggers Times | September 20, 2017

PORGERA mine operations have been disrupted by the ongoing unrest and roadblocks, according to mine operator Barrick Niugini Limited.

Executive managing director Richmond Fenn said it had significantly impacted communities and businesses in the district.

“The unrest and violence we have seen in recent weeks, combined with frequent road closures on the Highlands Highway, not only impact operations at the Porgera mine, but also prevent the movement of people and goods to and from the region,” Fenn said.

“We hope that the situation improves soon, and we are working to assist the government and community leaders in bringing about lasting peace in the area.”

The two-week closure of the Wabag-Porgera road was lifted yesterday but a truck belonging to iPi Transport was torched soon after.

iPi Transport general manager Maso Mangape told The National that the roadblock was set up by relatives of a boy alleged to have been killed by the security forces last month.

“As two of our trucks were returning empty from Porgera, one was held up or hijacked at the Liop-Ipai section of the road just before Laiagam, and torched. Nothing is recoverable,” Mangape said.

“We are yet to establish the reasons and motives behind this action. It was at around the same location that a local was held up in his bus and shot dead about two weeks ago.”

Roadblocks at Surunki, Jiwaka and Chuave in the past two months “have cost this company so much”.
Mangape said it was frustrating for road-users such as iPi servicing the giant Porgera gold mine and helping contribute to the economy of this country, pay taxes and create employment.

“It is disappointing to see the Government not acting promptly to address these issues on the road,” he said.

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All that glitters is profit in China’s gold mines as demand for safe haven boost precious metal sales

All that glitters is profit in China’s gold mines as demand for safe haven boost precious metal sales

Zijin Mining’s first-half profit almost triples as Zhaojin Mining’s profit grows 56 per cent.

Enoch Yiu | South China Post | Sunday, 20 August, 2017

Zijin Mining Group and Zhaojin Mining Industry, among two of the Chinese gold industry’s leading miners, reported bumper interim profits, bolstered by surging gold prices amid rising global demand for safe haven investments, and increasing ales at home.

Zijin’s net profit almost tripled to 1.5 billion yuan (US$224.8 million), or 0.069 yuan per share, in the first six months of the year. Zhaojin’s net income rose 56 per cent to 396.64 million yuan, or 0.13 yuan per share, in the same period.

“Hedging demand triggered by political uncertainty became the main driver of the periodical increases in gold price” in the first half, Zhaojin’s chairman Weng Zhanbin said in a statement to the Hong Kong stock exchange.

The improving earnings underscore how an 8 per cent rise in the global price of gold in the first six months of the year has lifted the fortunes of Chinese miners. Earnings were also bolstered by China’s increasing appetite for the precious metal, both as a safe haven investment and as collectible, with the industry’s sales rising 10 per cent to 545 tonnes during the period.

“Mining segment delivered promising results, with the production volume of gold, copper, zinc and other key metals continuing to lead the industry,” said Zijin Mining chairman Chen Jinghe said in the result statement.

Zijin operates mines in nine overseas countries, extracting silver, zinc and copper. Among them, copper production increased 10 per cent while zinc production rose 8.6 per cent.

“During the reporting period, the company’s overseas projects maintained a good trend of development. The outputs of the Porgera gold mine in Papua New Guinea, the Jilau/Taror gold mine in Tajikistan, and the zinc and multi-metals mine in Tuva, Russia increased,” Chen added.

“ In the second half of 2017, developed economies such as Europe and the United States are expected to stabilise and gradually recover, while the Chinese economy will remain stable and sustain a positive trend, the results of supply-side reform will begin to emerge, and the cyclical consolidation of bulk commodities has probably completed,” Chen said.

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Another Barrick mine plagued by human rights problems

This short film tells in stark detail the stories of some of the victims at the North Mara Gold Mine in Tanzania operated by UK listed company, Acacia Mining. The mine has been plagued by human rights problems. Barrick Gold Corporation, is the majority shareholder of Acacia Mining, holding 63 per cent.

SEE ALSO: Allegations of Human Rights Abuses at the Porgera Mine – Village Burning, Forced Eviction, Assault, Rape

Since 2014, at least 22 people have been killed and 69 injured, many by bullet wounds, at or near the remote mine in security related incidents, according to research conducted by RAID and MiningWatch Canada (MWC). Nine women and girls have been raped. A Tanzanian parliamentary inquiry set up to look into the problem in 2016, received 65 reports of killings and 270 people injured by police responsible for mine security. Tanzanian opposition and human rights monitors believe the number is higher, estimating 300 mine related deaths since 1999.

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Women in Porgera impacted with violence

Grace Auka Salmang | Post Courier | June 22, 2017

Family Sexual Violence is one of the most critical issues that women in the extractive area of Porgera are faced with.

Chair of Family Sexual Violence Action Committee (FSVAC) of Enga  and  founder of Voice for Enga Women Association Everlyne Sap revealed this when speaking on the sub theme: Leadership, gender equality and women empowerment for equitable service in extractive resource areas: Porgera in Enga Province at the Consultative Implementation & Monitoring Council (CIMC) National Development Forum yesterday at Crowne Plaza Hotel in Port Moresby.

According to Ms Sap, Porgera is a district of about 65,000 people and 50 percent of women about half of the population are impacted by mining activities just like in any other extractive resource areas in PNG.

“Of the many direct and indirect issues related to mining, Family Sexual Violence or Gender Based Violence is one major issue affects the lives of women and families at different degrees.

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Allegations of Human Rights Abuses at the Porgera Mine – Village Burning, Forced Eviction, Assault, Rape

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