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Barrick Gold Corp
Symbol ABX
Shares Issued 1,777,956,611
Close 2020-04-24 C$ 38.21
Market Cap C$ 67,935,722,106
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Globe says Barrick may sue over non-renewal at Porgera

2020-04-27 08:10 ET - In the News

The Globe and Mail reports in its Saturday edition that Barrick Gold is considering legal action against Papua New Guinea after its government sought control of the Porgera mine and refused to renew Barrick's mining lease, citing environmental infractions. The Globe's Niall McGee writes that located in the remote highlands of the South Pacific country, Porgera is a joint venture between Barrick, China's Zijin Mining Group and the PNG government. In a statement on Friday, Barrick said that Papua New Guinea's move to seize control of Porgera was "tantamount to nationalization," and "in violation of the government's legal obligations." Barrick said it intends to "pursue all legal avenues" to challenge the decision. After mulling a sale of Porgera a couple of years ago, Barrick later committed to keeping it, and recently had talked up its prospects. Porgera accounts for slightly less than 5 per cent of Barrick's annual gold production and has roughly 10 years of mine life remaining. PNG's nationalist-leading Prime Minister, James Marape, told reporters on Friday that the government had "every right to refuse the lease," and did so because of environmental, resettlement, "and many, many other legacy issues."

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