New Porgera Limited (NPL) Sets a New Standard for Landowner Benefits and Community Development
New Porgera Limited (NPL), a key player in the mining industry of Papua New Guinea, is taking significant steps to ensure that the benefits from its operations reach the right people. The company’s decision to pay benefits directly to landowner households, bypassing traditional middlemen, is a move that promises to revolutionize the way community benefits are distributed. This change, as outlined by Barrick President and Chief Executive Mark Bristow, will be implemented once the Community Development Agreement (CDA) is executed.
This initiative is part of a broader strategy by NPL to foster transparency and accountability in resource distribution. By cutting out intermediaries, the company aims to ensure that the financial and developmental benefits reach those who are most entitled to them—the landowner households. This approach is expected to significantly enhance the socio-economic conditions of the communities surrounding the Porgera mine.
A Commitment to Community Development
During his recent visit to Papua New Guinea to review NPL’s second-quarter results, Bristow emphasized the company’s dedication to making additional infrastructure contributions to the Porgera area. These efforts will be facilitated through the effective use of the tax credit scheme, in close collaboration with local and provincial authorities. This approach aligns with NPL’s vision to not only extract resources but to invest back into the communities that support its operations.
Overcoming Operational Challenges
Despite facing significant operational challenges, such as the recent Mulitaka landslide, the Porgera gold mine has demonstrated resilience and exceeded expectations. Since resuming mining activities in December of the previous year, the mine has consistently met or surpassed its targets. Gold production for the first half of the year was above guidance, and the all-in sustaining costs are trending lower, showcasing efficient operational management.
The success of the mine amid these challenges underscores NPL’s commitment to maintaining its status as a tier-one asset. The company’s ability to adapt quickly and effectively to unforeseen events is a testament to its robust operational strategies and its dedication to delivering value to stakeholders.
Ensuring Fair and Equitable Distribution of Benefits
The execution of the CDA is a crucial step in ensuring that benefits are distributed fairly and equitably among all eligible landowners and the broader Porgera community. This agreement is designed to be consistent with the New Porgera project agreements, ensuring that the interests of provincial and national stakeholders are also addressed.
Bristow emphasized the importance of this agreement, stating that it must reflect the principles of fairness and equity to foster a harmonious relationship between the mine and the community. By doing so, NPL aims to set a new standard for community engagement and benefit-sharing in Papua New Guinea’s mining sector.
Employment and Economic Impact
New Porgera Limited is not only contributing to the community through benefit sharing but also significantly impacting the local economy by providing employment opportunities. The company currently employs 2,500 workers, with 57% of them hailing from Porgera and Enga provinces. An additional 40% of employees are from other parts of Papua New Guinea, while only 3% are expatriates. This employment strategy underscores NPL’s commitment to empowering local communities and contributing to the national economy.
The successful resumption of operations at the mine has also seen several key milestones achieved. The first gold was poured in January, and electricity from the Hides power plant in Hela was restored in April. Additionally, a throughput performance test, agreed upon with the Papua New Guinea government, was completed in June, four months ahead of schedule. These achievements highlight NPL’s operational efficiency and its ability to deliver on its promises.
Addressing Challenges and Building Resilience
While NPL has made significant progress, Bristow identified the poor state of law and order as the greatest threat to the continued operation and profitability of the Porgera mine. He called for active support from all stakeholders to address this issue, emphasizing that a stable and secure environment is essential for the mine to realize its full potential as a tier-one asset.
In response to the recent Mulitaka landslide, NPL demonstrated its commitment to swift and effective disaster response. By keeping the mine open, the company was able to contribute significantly to the collective recovery effort while maintaining its contribution to the provincial and national economies.
“We reacted rapidly to the disaster,” Bristow stated. “Our teams put into operation an air bridge and a temporary pipe across the slip to supply fuel and essential goods not only to the mine but also to local businesses serving tens of thousands of residents in the Porgera valley.” He highlighted the importance of the Mulitaka community’s cooperation in maintaining these lifelines until a permanent bypass road can be completed.
Supporting Disaster Recovery and Community Resilience
In the wake of the landslide, NPL has been actively involved in supporting the affected communities. Porgera employees have been on the ground in Mulitaka daily, embedded at the Enga provincial government’s disaster relief centre in Wabag. Their efforts include delivering essential goods and fuel, contributing geotechnical expertise for ground stabilization, and assisting in the design of the new bypass road.
Bristow expressed his deepest sympathies to the families and friends of the landslide victims and reaffirmed NPL’s commitment to the impacted communities. “Barrick and joint venture partner Zijin have contributed US$1 million (approximately K3.8 million) towards relief efforts, with half of that already deployed,” Bristow announced.
Collaboration with Government and Stakeholders
During his visit to Papua New Guinea, Bristow met with key government figures, including Prime Minister James Marape, Enga Governor Sir Peter Ipatas, and Provincial Administrator Sandis Tsaka. These meetings focused on discussing the Mulitaka recovery efforts, CDA negotiations, and other pertinent issues.
The collaboration between NPL and the government underscores the company’s commitment to working closely with national and provincial authorities. This partnership aims to ensure that the benefits of the Porgera mine extend beyond economic gains to include sustainable community development and improved living standards for the local population.
A Vision for the Future
New Porgera Limited’s approach to benefit distribution, community development, and operational excellence sets a benchmark for the mining industry in Papua New Guinea. By prioritizing transparency, fairness, and community engagement, NPL is paving the way for a more equitable and sustainable future.
As the company continues to navigate challenges and seize opportunities, its commitment to empowering landowners and fostering community resilience remains steadfast. Through strategic initiatives, effective partnerships, and a focus on long-term impact, NPL is poised to make a lasting difference in the lives of those who call the Porgera valley home.
In conclusion, New Porgera Limited’s dedication to direct benefit payments, community development, and operational success exemplifies the positive role that responsible mining can play in shaping a brighter future for Papua New Guinea. By embracing innovation, collaboration, and accountability, NPL is not only securing its position as a leading industry player but also contributing to the prosperity and well-being of its host communities.
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