US Markets

Barrick Gold sends dispute notice to Papua New Guinea over Porgera mine

Credit: REUTERS/CHRIS HELGREN

Canadian miner Barrick Gold Corp said on Friday it served a dispute notice to the Papua New Guinea (PNG) government over the country's refusal to extend a mining lease in the Porgera valley.

Adds background, Zijin Mining statement

July 10 (Reuters) - Canadian miner Barrick Gold Corp ABX.TO said on Friday it served a dispute notice to the Papua New Guinea (PNG) government over the country's refusal to extend a mining lease in the Porgera valley.

The company said the notice was sent by its subsidiary Barrick (PD) Australia Pty Limited, an investor in the Porgera mine, citing a violation in a bilateral investment treaty between PNG and Australia as well as international law governing foreign investment.

In April, Papua New Guinea's government refused to extend Barrick's expired lease on environmental and social concerns, prompting the company to trim its annual gold production forecast to 4.6 million-5.0 million ounces from an earlier 4.8 million-5.2 million ounces.

In May, the miner offered an extra 15% stake in the Porgera mine to local landowners, according to a letter from its CEO, in a bid to break an impasse with the national government over the mine's future.

In a separate statement, Barrick's joint venture partner Zijin Mining Group Co Ltd 601899.SS said on Friday the two companies have approached the World Bank's International Centre to settle the dispute over the Porgera lease extension.

Barrick and China's Zijin Mining Group each own 47.5% of the Porgera mine.

(Reporting by Shradha Singh in Bengaluru; Editing by Ramakrishnan M.)

((Shradha.Singh@thomsonreuters.com; within U.S. +1 646 223 8780 Ext: 2804, outside U.S. +91 80 6182 2630;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest US Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More