Proactive Investors - Barrick Gold (NYSE:GOLD) Corp. (TSX:ABX, NYSE:GOLD) told investors that Papua New Guinea Governor-General Sir Bob Dubae has granted a special mining lease to its New Porgera Limited (NPL) joint venture, clearing the way for production to restart at the gold mine.
Barrick’s shares rose 4.15% to $15.76 by midday in New York.
Mine operator Barrick Niugini owns a 49% stake in the New Porgera mine, with Papua New Guinea shareholders holding a majority 51% stake.
After being on care and maintenance for three years, Barrick said in a statement that the mine was positioned to restart before the end of the year, subject to an agreement on compensation.
Recruitment was being accelerated to employ the full workforce that would be required when the mine started ramping up operations as soon as the compensation agreements were in place, the company added.
“It’s been a long road, but the end is now in sight. Negotiations between Barrick, the government and the other stakeholders required patience and persistence but the spirit of partnership in which they were conducted eventually led to an outcome acceptable to all,” Barrick president and chief executive Mark Bristow said.
“Barrick’s commitment to partnership with its host countries is also reflected in NPL’s ownership structure, which ensures the equitable sharing of the value created by Porgera with all stakeholders.”