Hamilton Locke is delighted to have acted for Barrick (Nuigini) Limited (Barrick) on their successful negotiations with the Independent State of Papua New Guinea for the reopening of the Porgera Gold Mine in Papua New Guinea.
PNG Prime Minister, James Marape announced last week that mining operations at the Porgera Gold Mine, which has been in care and maintenance since 2020, will recommence in late December 2023. This follows the grant of a new special mining license and the successful signing of a Mining Development Contract and Project Operatorship Agreement in October. Hamilton Locke advised Barrick on the negotiation of the project documents and on the restructuring of shareholdings in New Porgera Limited, which will deliver 53% of the overall economic benefits of the mine to PNG stakeholders.
The re-opening of the Porgera Gold Mine holds immense significance for PNG and, in particular, for the local community in Enga Province, where the mine is located. PNG Prime Minister, James Marape commented:
“ It has been a long road we have travelled to the reopening of Porgera Mine, but it has been worth the effort”
“ New Porgera will deliver unprecedented benefits to the people of Papua New Guinea.”
Mark Bristow, President and Chief Executive of Barrick Gold said:
“It’s been a long journey but in the process we have secured the buy-in of all the stakeholders and we look forward to steering the mine back to world-class production. It undoubtedly has the potential to join our Tier One1 gold mine portfolio”
Commenting on the transaction, Hamilton Locke Partner Justin Fox said:
“We are delighted to have worked with Barrick in their negotiations with the State of Papua New Guinea. It is deeply satisfying to have secured a successful outcome on a matter of genuine national significance.”
“This was one of the most challenging matters that I have ever advised on. We enjoy helping our clients work through complex environments.”
Barrick Gold is one of the largest mining companies in the world, with an unmatched portfolio of Tier One and world-class gold and copper assets. Barrick is listed on the Toronto Stock Exchange and New York Stock Exchange with a market capitalization of over USD 25 billion. Barrick (Nuigini) Limited is a joint venture between Barrick Gold and Zijin Mining. The Porgera Gold Mine is widely regarded as one of the world’s top ten gold mines.
The team at Hamilton Locke was led by Partner Justin Fox and included Partners Clementyne Rawlyk and Michael Boyce, Special Counsel Kathryn May and Senior Associate Den Montag.
Click here to read James Marape, Prime Minister of PNG’s press release.
Click here to read Barrick Gold’s press release.
