Canadian gold major Barrick has initiated proceedings before the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) over Papua New Guinea’s decision not to extend a special mining lease (SML) for the Porgera joint venture (JV) mine.
The company argues that the government’s decision to reject the application for the lease extension was in breach of its right to renewal, noting that the rejection was publicly announced without notifying Barrick (Niugini) (BNL) or following appropriate processes.
“This conciliation proceeding is not intended to, nor can it, displace the judicial review proceedings that are properly pending before the National Court of Justice in PNG,” BNL said in a statement on Friday.
BNL stated that it would continue to prosecute the judicial review action pending before the Papua New Guinea National Court of Justice, in which it was seeking an order quashing the decision not to extend the Porgera SML.