The mine was placed on care and maintenance earlier this year after the government refused to renew Barrick Niugini's special mining licence and subsequently handed it to state entity Kumul Holdings.
Barrick Niugini reports that Barrick Gold chief executive Mark Bristow met with Prime Minister James Marape and Enga Provincial Governor Peter Ipatas "to discuss terms"
Marape said he was very happy with the discussions that had taken place.
"I was very pleased to be able to meet with Mr Bristow and his team today to discuss a way forward to reopening the Porgera gold mine. We have agreed in principle that Papua New Guinea will take a major share of equity under the new arrangements and BNL will retain operatorship and there will be a fair sharing of the economic benefits. This is a very significant step forward and I look forward to hearing of the outcomes of further discussions on the economic principles to guide future mining operations," Marape said.
Bristow left Papua New Guinea last night bound for Africa, but said he was leaving behind a high-level team to progress negotiations.
"I am certain that my team will be able to work with the PNG state negotiation team, led by its chairman Isaac Lupari in finalising full commercial details," Bristow said.
Barrick Niugini says that Marape and Bristow have agreed to meet again in the coming weeks once negotiations conclude.
"I have full confidence that we will be able to broker an historic agreement that will provide a lasting legacy and enduring partnership that will benefit our nation for many years to come," Marape said.