Progress for Barrick over closed PNG mine

Toronto-based Barrick Gold Corp. says it has held “constructive meetings” with the Papua New Guinea national government to try to resolve a dispute and reopen the suspended Porgera Gold Mine in the southwestern Pacific island nation.

In a joint statement issued Thursday afternoon, Prime Minister James Marape says he and Barrick CEO Mark Bristow met in the capital of Port Moresby and reached an agreement in principle that the country will take “a major share of equity” in the mine while Barrick Niugini Ltd. will remain the operator.

In an email, however, Barrick spokesperson Kathy du Pessis quoted Bristow as saying there was progress made on an “amicable set of agreements” but there is still some way to go until a binding deal is reached.

The mine was shut down in April after the PNG government refused to renew the expired special mining lease held by Barrick Niugini, which is owned 47.5 per cent each by Barrick and Zijin Mining Group of China, with the rest held by local landowners and the Enga provincial government.

On Thursday, Barrick reported production of 1.16 million ounces of gold and 103 million pounds of copper in the third quarter, based on preliminary results.

Barrick said it sold 1.25 million ounces of gold and 116 million pounds of copper in the three months ended Sept. 30 at average market prices of $1,909 (U.S.) per ounce and $2.96 per pound, respectively.

Barrick says gold production for the first nine months of 2020 totalled 3.6 million ounces and the company remains on track to achieve its full-year production guidance.

Barrick shares closed down 53 cents at $36.68 on Thursday.