Tribal Conflict Leaves 30 Dead Near Porgera Gold Mine

A violent conflict between rival tribes in Papua New Guinea's central highlands has resulted in at least 30 deaths, with authorities struggling to restore order near the country's Porgera gold mine.

On Sunday (September 15), more than 300 shots were exchanged as peace talks between the groups failed.

The clash was fueled by illegal mining and an ongoing land dispute between the Sakar and Piande clans, with the unrest forcing the nearby gold mine to shut down operations to maintain safety.

According to the BBC, Porgera has been a flashpoint for tensions between local groups. It is a significant source of revenue for the country, once accounting for around 10 percent of its annual export earnings

“The deteriorating situation has been caused by illegal miners and illegal settlers who are victimizing traditional landowners and using violence to terrorize local communities,” the news outlet quotes David Manning, Papua New Guinea's police commissioner, as saying about the situation.

This isn't the area's first instance of violence. In 2022, at least 17 people were killed in a shootout between rival clans.

Porgera belongs to the New Porgera joint venture, which is 51 percent owned by Papua New Guinea stakeholders and 49 percent held by an affiliate of Barrick Gold (TSX:ABX,NYSE:GOLD). The Barrick affiliate is a 50/50 partnership between Barrick and China's Zijin Mining Group (OTC Pink:ZIJMF,SHA:601899), giving each a 24.5 percent stake in the asset.

The mine is one of Papua New Guinea's largest mining properties, and despite ongoing tribal violence and a landslide in Mulitaka in July, Barrick and Zijin have reported strong performance since operations resumed in December of last year.

However, the ongoing tribal conflict and lawlessness in the area pose a serious threat to its long-term viability.

Manning said that the use of "lethal force" to quell the violence near the mine has already been authorized as security forces attempt to restore order in the region. The government has imposed a curfew and banned alcohol sales in an effort to stem the violence, and security teams have been deployed along the highway leading to the Porgera mine.

Despite the challenges posed by tribal violence and recent natural disasters, Barrick has maintained its commitment to the region, calling for law and order to protect the mine’s status as a tier one asset.

Currently, New Porgera employs 2,500 people, with the majority hailing from the local Porgera and Enga communities.

In January, the mine poured its first gold following the resumption of operations, and by June the mine had completed a throughput performance test, finishing it four months ahead of schedule.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.