900-million Porgera project gets green light

Placer Dome is operator holding a 30% interest with Highlands Gold Properties (controlled by MIM Holdings) and RGC Pty., a wholly-owned subsidiary of Renison Goldfields, each holding 30%. The government of Papua New Guinea has elected to back in for 10%.

Once in production Porgera is expected to produce an average of 800,000 oz gold per year over the first six years of its life. Cash costs are estimated to be $105(US) per oz, among the lowest in the world.

Rumors of civil unrest in Papua New Guinea were downplayed by Placer Dome President Anthony Petrina at the company’s annual meeting. He said much of the trouble involves native people seeking redress from old agreements signed with various mining companies.

“We have paid a lot of attention to land and to people,” he said. He saw no reason why existing agreements wouldn’t be honored, adding the company “doesn’t expect these type problems.”

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