Low prices may force early end to Porgera
Copyright 2000, Post-Courier (PNG)
December 22, 2000
LOW gold prices combined with high fuel costs and low gold productivity could force the early closure of the world-class Porgera gold mine, a senior company executive said yesterday.
According to the mine’s superintendent and acting general manager Mike Fisher, mine life could be shortened by five to eight years.
Mr Fisher told highlands governors visiting the mine that this meant the mine only had about seven years of operation left.
“These factors are making mine operation here very difficult and it is likely that we’ll shut down earlier than the normal time length,’’ Mr Fisher said.
He told governors Fr Louis Ambane of Chimbu, Fr Robert Lak of Western Highlands, Peti Lafanama of Eastern Highlands and host governor Peter Ipatas that plans for the mine’s closure were in progress.
“The mine should have 15 or 12 years of operational time left, but due to the low gold price, the low gold productivity and rise in fuel costs, it could operate for less time. Productivity and effectiveness depends now on the lots of tonnes we produce, not the grade because it is very low.”
The Post-Courier understands that disagreement between landowners and the mine on a site for waste disposal is another major factor in the plans to shorten the mine’s life.
However, Mr Fisher told the governors that Porgera produced more gold this year compared to last year.
It produced about 900,000 ounces of gold compared to 754, 754 ounces last year.
He attributed the increase in productivity to the underground mines being fully operational.
According to PJV community relations co-ordinator Jack Scott, the mine is looking at developing sustainable projects to help the local people after the mine life. He said the mine had started two coffee plantations and women’s schemes.