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.”