Barrick Gold (TSX: ABX) (NYSE: GOLD) has cut its 2020 production guidance after running into conflict with the government of Papua New Guinea over the Porgera gold mine last month.
The world’s second-largest gold producer now expects to produce between 4.6 million and 5 million ounces of gold this year, lowering its previous estimate by 200,000 ounces.
Barrick had said it not expected
any significant impact on production from the coronavirus outbreak, which has
forced the closure of mines worldwide — some of them permanently.
The Canadian miner and its Chinese partner in Porgera, Zijin Mining, temporarily halted operations at the mine last week. The move stemmed from Prime Minister James Marape’s decision not to renew the operation’s long-sought lease.
PNG hit back, saying it would be “forced” to take immediate control of Porgera if it remained closed during the transition of ownership period.
Barrick revealed on Wednesday that PNG is also asking the company and Zijin to pay $191-million in back taxes, arising from tax audits of Barrick Niugini Limited (BNL), the manager of Porgera, conducted between 2006 and 2015.
More to come …