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SINGAPORE (Reuters) - Papua New Guinea Prime Minister James Marape said on Thursday that a joint venture of Barrick Gold Corp ABX.TO and China's Zijin Mining 601899.SS2899.HK was set to remain operator of the Porgera gold mine following talks in Port Moresby.
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In April, Marape had refused to extend the expired mining lease of operator Barrick Niugini Ltd (BNL), citing environmental and social problems.
That led BNL to mount legal challenges and close down the mine in a year spot gold prices XAU= have hit all-time highs.
“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,” Marape said in a statement after talks with Barrick Gold Chief Executive Mark Bristow on reopening the mine.