Millions of Kina will be poured into the economy by Porgera Gold Mine

Start of gold mining in Porgera Valley, Enga Province is expected to boost the local economy and also bring in much needed foreign currencies into the reserves.

A statement released by mine operator, New Porgera Limited [NPL] states that K600 million will be spent for procuring goods and services in PNG for this year.  

On top of that by end of 2024 “over 3,000 Papua New Guineans will be employed with a payroll of K150 million.

“Royalties, paid to landowners and the Enga Provincial Government, and 0.5% production levy to Mineral Resources Authority will amount to K63.4 million. Withholding taxes and customs duties payable to the National Government is estimated to be K28.2m for 2024.”

NPL general manager, Chad Coulin confirmed work is underway to ready the mine for production -first gold production is expected to be achieved in quarter one of 2024.

The bill for mine operation for 2024 stands at a total “K2.7 billion, which is divided between K1.6 billion of direct operating costs and K1.1 billion of capital.”

“The expected export revenue from Porgera gold sales in 2024 is K1.8 billion which will assist in boosting PNG’s foreign exchange reserves,” Mr Coulin said.   

He further said “NPL has already commenced payment of K4.6 million in outstanding compensation fees for the period that Porgera was under care and maintenance and will shortly commence negotiation of the long term compensation agreements with landholder agents.”