K500m hides power asset transfer and K40 million annual compensation secured for Hela
Hela Governor Philip Undialu has announced an agreement following more than two and a half years of intensive negotiations with Barrick and New Porgera Ltd, delivering a historic victory for the people of Hela.
The agreement provides for the transfer of a K500 million power asset and long-overdue compensation to neglected Hela landowners, specifically the Hides PDL 1, Hiwa and Tuguba clans, Pina Clan, and the 70km Hides Power Transmission Landowners (HTL), marking an important act of justice after decades of exclusion.
The agreement centers on two major provisions, which Governor Undialu has described as his most significant achievement, particularly in asset negotiation and transfer is concerned.
“First, the 75-megawatt Hides Gas Power Plant, valued at K500 million, will be transferred to Hela stakeholders at no cost.
The plant has supplied electricity to the Porgera Gold Mine since 1992 and is regarded as a gifted asset in compensation for more than 35 years of neglect, during which local landowners were merely spectators while the asset powered national wealth.
“Ownership will transfer to Hela stakeholders through a Trust Company, while New Porgera Ltd will continue to manage the facility,”
He told NBC News in an interview.
He further explained that secondly, the Hela Provincial Government and designated landowner groups will receive K40 million in direct cash payments every year for the next 20 years, subject to the continued operation of Porgera Gold Mine and the Hides gas power facility.
He stressed that this represents an anticipated K800 million in total cash benefits over two decades, commencing in January 2026, in addition to the K500 million asset transfer.
Governor Undialu said the asset transfer and annual compensation represent a goodwill offer by Barrick, the State, and New Porgera Ltd, strongly supported by the Pangu-led Government under the leadership of Prime Minister James Marape.
In return, Hela stakeholders will ensure the social license, security, and stability required for uninterrupted power supply to the mine.
He emphasized his personal commitment, stating that he pushed strongly for the asset handover when the Porgera review process began, and thanked the PM Marape for entrusting him to lead the critical negotiations.
He also thanked former Chairman and Managing Director of Barrick Mark Bristow.
He described the agreement as “a fitting 50th Anniversary Gift to Hela”, symbolizing a decisive turning point where Hela reclaims ownership, recognition, and long-overdue benefits from its resources.
He reminded landowners that for 35 years they protected assets they did not own, receiving less than K4 million annually.
“Today and for the next 20 years, we will own a K500 million asset and receive K40 million every year or total of K800m.
Look after it well,” he said, adding that the power plant could become a foundational asset for future power supply to other projects such as Mt Kare, Kili Teke, and others in the Province.
Governor Undialu called on Santos Ltd to come forward and honor the commitment made by the former owner, Oil Search Ltd, to transfer the petroleum segment of the Hides power assets.
He noted that a two-year transition agreement was interrupted by the Santos–Oil Search merger and urged Santos to return to the table to conclude the deal.