The Papua New Guinea government’s decision not to extend the mining lease on the economically important Porgera gold mine has shocked the joint venture operator, but the K17 billion (US$4.8 billion) Wafi-Golpu project is likely to be signed off in September.
The current Porgera lease expired last August, but Barrick New Guinea Ltd (BNL) had sought a 20-year extension as far back as June 2017. Barrick’s CEO, Mark Bristow had met with Prime Minister James Marape four times after his election last June to negotiate an extension.
In a shock statement on 24 April, the government said it had carefully considered the issue and decided it was “in the best interests of the State, especially in lieu of the environmental damages claims and resettlement issues”, that the lease not be renewed. That weekend, Marape sent in 100 troops to secure the mine site.
Over the 30 years of the mine’s operation, there have been numerous controversies, claims and counter-claims about water pollution, environmental and social problems, questions around local economic returns and violent clashes in the area, according to ANU analysts John Burton and Glenn Banks.