Photo credit: Post Courier
The New Porgera Limited now stands as the guiding platform to ensure proper governance and transparency of the operations of the mine, once reopened, will be unlike before.
New Porgera Limited chairlady Nellie James said the incorporation of New Porgera Limited will be for Porgera Mine as the previous unincorporated venture running of operations and sale of gold was only privy to the individual shareholders.
Ms James said the incorporated project company structure allows for a board which is made up of directors representing the shareholders and the full board will be privy to the operation of the mine and to ensure there is proper governance and transparency of the operations.
She said actual mining operations will be undertaken by Barrick (Niugini) Ltd, as the operator of the mine and report to NPL, and shareholders await their dividend payment when profit is declared.
Other mines in PNG also have an incorporated corporate structure and that includes Ok Tedi and Lihir, and it is not a new concept.
“Given the circumstances, this arrangement is better, as all of the parties are seated around the table, rules are set out in the operatorship agreement and transparency and accountability is ensured among the parties in respect to the operations of the mine,” Ms James said.
“Also, we now see an equity structure that is a first for PNG as New Porgera has secured 15 per cent protected equity for project area landowners and the province.
They get to see their benefits from the moment the mine starts selling gold, while the State, through Kumul Mineral Holdings Limited, awaits the full repayment of the cost incurred during care and maintenance up to mine reopening.
“There are other immediate benefits of Porgera Mine reopening that will be seen by other PNG stakeholders earlier than KMHL.”
Reference: Post-Courier (25 October 2022). “New Porgera Limited Vital For Mine Reopening”.
