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Author: Abraham Yalip

Porgera Gold Mine Restart: New SML Application Lodged

New Porgera Limited

Media Release

Porgera Gold Mine Restart: New SML Application Lodged

Port Moresby, 13th June 2023 – New Porgera Limited (NPL) is pleased to announce that it today filed an application with the Mineral Resources Authority (MRA) for a Special Mining Lease and supporting tenements for the Porgera gold mine.

Chairman of Kumul Minerals Holdings and Director of New Porgera Limited, Dr Ila Temu, hailed the lodgment of the application by NPL as a significant step towards the restart of the mine.

“The lodgment of the SML application is an important milestone for the reopening of the Porgera gold mine. This follows the approval and registration of the transfer of Exploration Licence No. 454 and SML 11 to New Porgera Limited and the subsequent surrender of SML11 and all ancillary tenements by NPL. The application will now be subject to the normal regulatory assessment process which will include the Minister for.Mining convening a Development Forum in accordance with the requirements of the Mining Act to canvas the views of stakeholders. New Porgera Limited will work cooperatively with the MRA and other State agencies to enable them to complete the regulatory assessment process as soon as possible.” Dr Temu said.

Barrick Gold President and Chief Executive Officer, Dr Mark Bristow, congratulated NPL on reaching this key milestone towards the mine’s restart.

“The lodgment of the SML application is a big step forward on BNL’s journey with the State to reopen the mine as true partners. The parties are now focused on satisfying the remaining conditions under the New Porgera Commencement Agreement. In parallel, and in our role as operator of New Porgera, BNL is undertaking certain preparatory work on the processing plant with the support of the MRA and is building a committed team, the majority of whom will be Papua New Guineans,. We are moving ever closer to enabling the people of the Porgera Valley to finally see the ‘white smoke’ they have been waiting for”, Bristow said.

About NPL

The applicant for the new SML, New Porgera Limited, is a company owned jointly by Kumul Mineral Holdings Limited (which holds the equity on behalf of the State), Barrick Niugini Limited and Mineral Resources Enga Limited, with a further 10% of the equity reserved for PNG stakeholders. Over the life of mine, PNG shareholders will receive 53% of Porgera’s overall economic benefits. BNL will receive the remaining 47%. The proportion of equity and economic benefits that belong to the landowners is a first in PNG’s agreements with international investors.

LODGEMENT OF SPECIAL MINING LEASE APPLICATION

MEDIA STATEMENT

PORGERA GOLD MINE

LODGEMENT OF SPECIAL MINING LEASE APPLICATION

HON.SIR ANO PALA KBE CMG ISO, MP

Minister for Mining

13th June 2023

I am very delighted to be here, at the invitation of the New Porgera Limited, to witness another significant achievement on our progressive milestone calendar, which brings us closer to the re-opening of Porgera gold mine.

The occasion today, is the official lodgement of the Special Mining Lease (SML) Application, SML 1 lA and associated Proposal for Development.

This occasion marks a very special and important step in the regulatory process of reviving the Old Porgera Mine under the new Por.iera Project Commencement

Agreement or PPCA.

Under the PPCA, it was agreed that the underlying EL454 held by Barrick Niugini Limited (BNL) & Mineral Resources Enga (MRE) had to be transferred to New Porgera Limited, (NPL). Thence, the transfer of SML 11 from Kumul Minerals Holdings Limited (K1v1HL) to NPL. These tenements were successfully transferred to NPL on 22 May 2023.

Last Friday, 9th of June 2023, the Board of Directors for NPL opted to surrender SML 11 and apply for a new SML. As a consequence, NPL is submitting its application for a new SML today.

Ever since the closure of old Porgera mine three years ago, after the State refused the extension application by Porgera Joint Venture (PJV), there were insurmountable disagreements and legal battles.

However, under the leadership and guidance of the Prime Minister, Hon. James Marape, he garnered the support of various parties to enter into negotiations. After lengthy renegotiations, the parties agreed to shelve all legal proceedings and agree to a re-commencement pathway, by way of signing various agreements.

This occasion would not be possible, without first, the parties in this new Porgera arrangement, enter into a binding agreement called the Porgera Project Commencement Agreement. The PPCA chartered the way forward for the new Porgera arrangement.

May I take this opportunity, to thank the parties involved in the PPCA which include; Barrick Niugini Ltd, Zijin Mining Group, the Landowners, Kumul Minerals Holdings Limited, New Porgera Limited and the State, for burying your differences and putting your heads together to arrive at this occasion, which will see the beginning of a new era at the Porgera Gold Mine.

This occasion, the lodgement of the new Porgera SML application and the supporting tenements applications, commences the permitting process for which I now, ask my regulator, the Mineral Resources Authority (MRA) to fast track this process so that within the next three months we can see the new Porgera mine up and running, to bring in the much-needed services and benefits to the concerned parties and the affected people.

I reiterate the importance of this project to the State and the intent of the Government in seeing this Porgera Gold Mine start producing gold again as soon as possible.

Once again thank you all that have made this occasion possible. My profound gratitude to Board, Management and Shareholders of Barrick Niugini Ltd and your partners Zijin Mining Group, thank you Kumul Minerals Holdings Ltd and thank you New Porgera Limited.

On behalf of the Government, I would also take this opportunity to thank those behind the scenes that contributed immensely towards making this occasion became a reality; thank you Attorney General, the State Solicitor, the State Negotiation Team and thank you the regulators, the MRA and DMPGM.

Thank you all and you all have a blessed day.

No Porgera dividend payments for KMHL

Wednesday may 24th 2023

KUMUL Mineral Holdings Limited (KMHL) will not secure any cash-flow or dividend payments from the multi-billion-kina Porgera mining project in the next 10 years, says chairman Ila Temu. He said this is the result of the new Porgera arrangement which will see their dividends swept for the payment of the 51 per cent interest that the country has under the new Porgera arrangement. Under the new shareholding arrangement of the mine, KMHL holds 36 per cent, Barrick Gold Corporation and Zijin Mining Group both share 49 per cent, landowners 10 per cent and while the Mineral Resources Enga (MRE) has five per cent.


“Under the arrangement, both the provincial government and the landowner entities are going to be carried for the duration of the project moving forward,” Dr Temu said.
“This means that they don’t pay their share of the costs that are required from each of the shareholders.
“This will be carried by Kumul Minerals so under the arrangement, Kumul Mineral’s share of the dividends are going to go towards paying off the cost of the care and maintenance that has been incurred by Barrick over the last two or three years now and the cost of the operations moving forward.
“And under that arrangement unfortunately, Kumul Minerals is not going to secure any cash-flow or any dividends for the next 10 years moving forward because its dividend is going to be swept for the payment of the 51 per cent interest that the country has under the new Porgera arrangement.”

Temu: Mine to reopen once new Porgera SML is granted.

THE multi-billion Porgera gold mine in Enga can re-start once the new Special Mining Lease (SML) is granted, says Kumul Mineral Holdings Limited (KMHL) chairman Dr Ila Temu. Mining Minister Sir Ano Pala on Monday signed three instruments which makes way for the New Porgera Limited (NPL) to apply for a new SML which will see mine re-start.

• The Exploration License EL 454 to the New Porgera Limited from Barrick Niugini Limited 110plift the reservation over Porgera area; and
• Transfer of SML 11 from Kumul Mineral Holdings Limited to the New Porgera Limited

“The only way to start the mine is to apply for a new SML,” Dr Temu said. “Once that’s guaranteed by the regulator, which is l\1RA (Mineral Resource Authority), then Porgera can see the beginning of operations at one point.


“We are hoping that it will be in que for this year, but we will see how quickly l\1RA can process the application for the new SML and grant the new SML before we start.” Dr Temu said the signing of the three instruments is a very big step forward and a big hurdle crossed in terms of ensuring that the Porgera mine re-starts operation. Sir Ano when signing the three instruments said the signing of the instruments and transfer of tenements indicates the final progressive steps towards re-opening the mine. He said the NPL is the new vehicle for the Porgera Mine and the shareholders.


It is understood subsequent applications and processing of variations or new tenement applications, rests with the Board of Directors for the NPL. I also want to assure you all, my Ministry and l\1RA, will ensure we discharge our statutory obligations expeditiously, to ensure Porgera mine reopens swiftly.”

Cheque Presentation Ceremony by Kumul Minerals Holdings Limited and PNG Kidney Foundation,

Wednesday 22 February 2023

Kumul Minerals Holdings Limited (Kumul Minerals) today presented a cheque for One Million Kina to the PNG Kidney Foundation (Kidney Foundation) today.

This represents the first tranche of the K3 million sponsorship package by Kumul Minerals as agreed under the Charity Partnership Agreement as signed recently on the 22 December 2022.

Professor Kaul Gena, Director of Kumul Minerals on behalf of the Board and Management of Kumul Minerals presented the cheque to Sir Martin Poh, Chairman of PNG Kidney Foundation

Professor Gena says that Kumul Minerals as a state-owned company under its government-approved Community and Social Obligations charter is obliged to fund projects that have the potential to impact and improve the lives of our people.  

Professor Gena says that Kumul Minerals recognizes that chronic kidney failure is a lifestyle disease which has and will continue to threaten the lives of every Papua New Guinean citizen.  Statistics show already that chronic kidney failure among PNG citizens is increasing rapidly around the country and is rated as a major contributor to fatalities annually in the country.  It is an economic cost to the country as working citizens are affected and, at times, may not be able to continue working and contributing as fully functional individuals.

Kumul Minerals recognized that PNG Kidney Foundation is leading the drive to effectively deal with chronic kidney diseases in the country.  We also appreciate that the Foundation needs funds to provide dialysis and related service to our people.   As PNGKF Brand Partner, Kumul Minerals is ready to support the Foundation as and when we can. And we begin today with this presentation of K1 million.

PRESS RELEASE FOR THE OCCASION OF AGREEMENT SIGNING BETWEEN
KUMUL MINERALS HOLDINGS LIMITED AND PNG KIDNEY FOUNDATION

PRESS RELEASE FOR THE OCCASION OF AGREEMENT SIGNING BETWEEN KUMUL MINERALS HOLDINGS LIMITED AND PNG KIDNEY FOUNDATION

Thursday 22 December 2022

Kumul Minerals Holdings Limited (Kumul Minerals) and The PNG Kidney Foundation (Kidney Foundation) today signed a Charity Partnership Agreement to work together to support the PNG Kidney Foundation in providing subsidized kidney dialysis treatment to ordinary Papua New Guineans who suffer from chronic kidney disease. The Agreement was signed today by the Chairlady of Kumul Minerals Board, Ms Nellie James and the Chairman of the PNG Kidney Foundation, Sir Martin Poh.

Chairlady James states that Kumul Minerals as a state-owned company under its government-approved Community and Social Obligations charter is obliged to fund projects that have the potential to impact and improve the lives of our people. This Agreement will see Kumul Minerals provide a three- year financing package totaling K3 million to the PNG Kidney Foundation to be paid in tranches of K1 million annually.

Ms James says that Kumul Minerals recognizes that chronic kidney failure is a lifestyle disease which has and will continue to threaten the lives of every Papua New Guinean citizen. Statistics show already that chronic kidney failure among PNG citizens is increasing rapidly around the country and is rated as a major contributor to fatalities annually in the country. It is an economic cost to the country as working citizens are affected and at times, may not be able to continue working and contributing as fully functional individuals.

PNG Kidney Foundation is an established charitable organization that has been providing kidney dialysis treatment at affordable rates in Port Moresby since 2009. More recently, it has started a smaller operation in collaboration with the Mendi General Hospital in the Southern Highlands Province. The Kidney Foundation is working in collaboration with the Port Moresby General Hospital (PMGH) which allows exchanges of resources and training of PMGH medical personnel (nephrologists and kidney dialysis technicians) by the Foundation. Under this co-operative arrangement and with financial support from Kumul Minerals, it is anticipated that the Kidney Foundation can expand its services throughout the country and increase training programs for national doctors, nephrologists and technicians in this field.

It is also pleasing to note that one of the Foundation’s key objectives is to collaborate with Port Moresby General Hospital to explore and prepare our institutions to be able to conduct Kidney Transplant Operations in the country. This will be a game-changer as ordinary Papua New Guineans could start

having access to such facilities without the need to travel overseas for treatment which we know is very expensive and not easily affordable by many Papua New Guineans.

The funding will also help to drive awareness campaigns around the country to prevent kidney diseases and lifestyle diseases in general such as diabetes. It will also aim to provide information for family members about the Steps to Take when someone in the family is diagnosed with chronic kidney disease. It is usually a lifestyle change for the whole family whenever a family member is diagnosed with chronic kidney failure and the support of the family as a whole is always critical. Individuals affected with chronic kidney failure can continue to perform and contribute meaningfully in some capacity to society as normal citizens of the country when services such as those provided by the Foundation is available nationwide. The generous funding from Kumul Minerals will be used for the purposes specified in the Agreement.

Chairlady James stated that this funding is consistent with and compliments the Government’s priority objectives in the health sector as announced recently by the Minister for Health Hon. Dr. Lino Tom in his statement on Update on Health Sector and Brief Plan for 2023. She quoted the Minister who said that the Government “have addressed the rise of lifestyle diseases. The 4 biggest killers are Cancer, Heart Diseases with stroke and kidney diseases.” The Minister made specific reference to the need for funding of kidney disease treatment.

Chairlady James assured the PNG Kidney Foundation Chairman Sir Martin Poh of Kumul Mineral’s support as the Foundation’s partner. She also officially thanked Sir Martin and the PNG Kidney Foundation Board for approving and accepting Kumul Minerals Holdings Limited as its brand partner for the next three years.

Authorised for Release by: Ms Nellie James
Chairlady, Kumul Minerals Holdings Ltd

                                                

KUMUL MINERAL HOLDINGS LIMITED PARTICIPATES AT BI-ANNUAL MINING AND PETROLEUM CONFERENCE IN SYDNEY FROM DEC 5–7

Kumul Minerals Holdings Limited (KMHL) is proud to participate at the Bi-Annual Mining and Petroleum Conference in Sydney from the December 5th to December 7.

Kumul Minerals was officially launched on July 1 st 2016.

Kumul Minerals Holdings Limited (“ Kumul Minerals”) is established by the Government of Papua New Guinea for the purpose of participating in the Mineral Industry to create wealth for the collective benefit of Papua New Guinea.

The Conference showcases all the Mining Fraternity in Papua New Guinea and across the World.

Kumul Minerals Holdings Limited (“Kumul Minerals”) has embarked on fulfilling its vision and mission underpinned by strategic priorities of its five-year Corporate Plan 2023-2027 and the core business objectives of its three-year Business Plan 2023-2025.

Kumul Minerals has embarked on a strategy formulation process and its strategic direction priorities includes:

  1. Maintaining and strengthening the core business.
  2. Business and operational excellence.
  3. Stakeholder relationship management.
  4. Financial management.
  5. Human Resources management.
  6. Environment Compliance and Management.
  7. Government relationship. 
  8. Risk Management.

Kumul Minerals will focus on building and consolidating the company to carrying out its investment mandate and evaluate investment alternatives diligently and objectively invest into viable options

KANU NAMED KUMUL MINERALS HOLDINGS LTD MANAGING DIRECTOR

Kumul Minerals Holdings Limited has named Sarimu Kanu as its new managing director (KMHL).

Nellie James, KMHL’s Board Chairlady, made the declaration.

“Under the KMHL constitution, the power to appoint a managing director lies with the board,” James explained.

According to James, Vanguard International’s independent recruiting procedure resulted in Kanu’s hiring, and the board’s choice was based on the panel’s recommendations.

“He is a highly experienced senior national mining engineer with professional knowledge in mineral engineering, having held very senior management roles in the mining industry,” James said.

“I congratulate Mr Kanu on his appointment and welcome him on board.”

James also acknowledged Hengene Ivan for acting as MD over the past three months.

Kanu graduated from the University of Technology in 1992 and has knowledge of the mining industry spanning 29 years.

“Mr Kanu brings to the company a wealth of experience from the mining industry. His current role is country manager, PanAust, the developer of the Frieda River gold-copper molybdenum project in West Sepik.

Additionally, he has served in a variety of high managerial positions for mining firms, most notably as vice president of the Ramu-Nickel mine in the Madang, according to James.

“Mr Kanu as the managing director and chief adviser to Kumul Minerals is a game-changer for the company in the highly competitive and challenging mining industry, as he brings high experience and energy to the company,” James said.

She continued by saying that the appointment would help the company carry out its responsibilities as the nation’s mining company as it worked to increase PNG’s involvement in significant mining projects across the nation.

Reference: The National (11 November 2022). “New Kumul Minerals Holdings Ltd MD appointed”.