On December 11, Zijin announced that its part-owned Porgera gold mine in Papua New Guinea will resume production on December 22, and is expected to start producing gold dore products in the first quarter of 2024.
According to the project’s new partnership agreement, the equity in New Porgera is shared by PNG stakeholders (51%), including local landowners and the Enga Provincial Government, and BNL (49%), a joint venture between Zijin and Barrick Gold that operates Porgera.
BNL and the PNG government have previously signed a framework agreement regarding the distribution of economic benefits throughout the life of the Porgera mine. The agreement allocates 53% of the mine’s overall economic benefits to PNG stakeholders, while BNL will receive the remaining 47%.
Porgera is one of the top ten gold mines in the world. According to BNL’s latest plan, the mine has 417 tonnes of gold resources. After reaching its nameplate capacity, Porgera is expected to produce 21 tonnes of gold per annum.
Considering Zijin’s indirect ownership of a 24.5% interest in Porgera through BNL, the annual gold production attributed to Zijin is estimated at 5 tonnes, which will significantly increase the company’s gold output.
Timeline
In 2015, Zijin acquired a 47.5% interest in the Porgera gold mine from Barrick for $298 million. Zijin and Barrick each held a 50% interest in the joint venture BNL, collectively owning a 95% interest in the Porgera gold mine.
In August 2019, Porgera’s mining license expired. The National Court of PNG granted permission for Porgera to continue production until a decision on the renewal of the license was made by the PNG government.
On April 24, 2020, the PNG government decided not to approve the renewal application for the special mining lease of Porgera.
In October 2023, BNL was granted a special mining lease by the PNG government.
Translator: Jian Reviser: Lin xindi Editor-in-Chief: Wang Jie
About Zijin Mining
Zijin Mining is a leading global metals and mining company and one of the world’s largest producers of gold, copper, and zinc. The company has more than 30 large-scale mining operations and projects across 19 countries on 5 continents. Leveraging strong in-house research, engineering, and development capabilities, Zijin maintains high operational efficiency and low costs in both acquisitions and operations. This enables the company to be an industry leader in value creation, underpinned by its philosophy of pursuing development for all and sustained by superior environmental, social, and governance performance. Zijin’s shares trade on the Hong Kong Stock Exchange (HKEX: 2899) and the Shanghai Stock Exchange (SSE: 601899).