Challenge of Porgera legacy issues

THE two legacy issues at the Porgera gold mine in Enga Province are the relocation of the affected landowners and the environmental impacts of mining activities, according to the operator.
Challenge of Porgera legacy issues Challenge of Porgera legacy issues Challenge of Porgera legacy issues Challenge of Porgera legacy issues Challenge of Porgera legacy issues

Mark Bristow

Staff Reporter

Barrick Gold Corporation chief executive officer Mark Bristow during his visit to the country last week, said they had received complaints about relocation, The National newspaper reported.
 
"To relocate, you need land. To have land, you need to have access to land and we can't do it," he said.
 
"So it is in the hands of the state and the provincial government to work with us to relocate those people that have been impacted by our operations and we recognise that."
 
Bristow said the same went for the environment: "The environment is always an emotional issue and we as miners have a responsibility here. At the same time, we are in the part of the world where there's a high level of seismicity (earthquakes and tremors), there's always landslides, because it's a dynamic geology.
 
"So you can't impound the tailings that come from our processing like you would anywhere else in the world because you create an added liability because if it collapses in an earthquake, then that would really damage the environment and put peoples' lives at risk."
 
Bristow said the mine was placing tailings back in the underground mine.
 
"So as we mine it, we park the tailings back, we process the tailings, neutralise all the chemicals and we pump it back into the mine," Bristow said.
 
Meanwhile, Haydn Black reports that Bristow says there's been no shortage of interest in the company's 50% stake in Kalgoorlie's Super Pit.
 
The 50% stake in Newmont Goldcorp-operated Kalgoorlie Consolidated Gold Mines has long been up for sale, even before Bristow took over as CEO of Barrick in January following its merger with Randgold.
 
Speaking after the release of Barrick's second quarter results, Bristow said the Super Pit was the only operation in Barrick's portfolio that could be performing better.
 
"While it continues to be a valuable asset, we are moving down the road of selling our 50% stake in this icon of gold mining, given we are not the operators, it does not fit with our filters as we do not want to be passive investors in assets that we own," he said on a conference call overnight.
 
The geotechnically constrained Super Pit is slated to produce 550,000 ounces of gold this year, but was forecast to produce 700,000-800,000oz in 2018 prior to rock falls in the pit.
 
Barrick's share of June quarter production was 57,000oz at all-in sustaining costs of $1204 an ounce.
 
Earlier this year, JP Morgan valued the Super Pit, on a 100% basis, at $885 million, though JPM said it had a storied past and unclear future given wall slips last year.
 
The hot speculation at the Diggers and Dealers Forum last week was Northern Star Resources' interest in the asset.
 

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