Question Period Note: Papua New Guinea accuses Barrick of illegal export plan

PNG's mining regulator plans to bring criminal proceedings against Barrick joint venture alleging that it has attempted to illegally export US$13m of gold and silver to Australia.

• We have been in communication with Barrick during their request for an extension of their mining lease and our officials remain engaged on the issue

• We are very concerned over the current escalation of the issue with the allegations of illegal exports against Barrick and the potential arrests of Barrick staff

• We understand that these allegations have been strongly denied by Barrick

• We are monitoring the situation closely, and urge that the issue be resolved in full accordance of laws and appropriate proceedings.

The Porgera gold mine is a strategic asset for PNG contributing approximately 3.8 percent of current GDP. It is jointly owned by Barrick Gold Corporation, Chinese state-owned enterprise Zijin Mining Group and the PNG-state-owned Mineral Resources Enga. Since June 2017, Barrick has been engaging with the PNG Government on its application to extend the Special Mining Lease (which was set to expire in August 2019).
Prime Minister Marape announced on April 24, 2020, that the PNG government has refused the extension application and requested Barrick to continue operating and negotiate a managed departure. Barrick proceeded to halt mining operations, and filed for a Court Order restraining the Government Decision pending a judicial review into its legality.
On May 1, PNG's National Court ordered the Government and Barrick to negotiate. On May 13, Deputy Chief Justice Kandakasi set June 3 for a substantive ruling on Barrick's petition for leave to seek Judicial Review of the Government's decision not to extend the Special Mining Lease. On June 5, the Deputy Chief Justice ruled in Barrick's favour to hear on a Judicial Review, commencing on July 20. The issue of an injunction on the Government's decision will be taken on June 12.
Immediately after the ruling, the Mineral Resources Agency levelled allegations of illegal exports at Barrick. These allegations have been strongly denied by the company. The issue has been picked up by the international media, including by Reuters.

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