By:Thenational

PORGERA gold mine in Enga is expected to go in full swing next week after being shut down on Oct 11, according to Kumul Mineral Holdings Limited (KMHL).

Managing director Sarimu Kanu said the mine had resumed operation on Tuesday after the fuel lines at Mulitaka were restored.

“We ramped up fuel stock and operations on Tuesday because we had no fuel and mining is a high fuel consumer,” he said.

Kanu also noted that an audit would be conducted on funds expended by Barrick in reopening the mine.

“The audit into funds is mandatory. The State needs to pay Barrick for its start-up costs.

“The audit is based on conclusion of several things one is the community development agreement and the other is the long-term compensation agreement.

The cost of Barrick stopped on June 3.

“From then on, all capital costs belonged to New Porgera Ltd which Kumul Minerals is part of. So we will audit up to June 3.”

Kumul Minerals is a major shareholder in Porgera, Ok Tedi (Western) and the proposed Wafi-Golpu project in Morobe.

Earlier this year, Kumul Minerals inked a deal with Chinese firm, Ramu Nico Management Ltd particularly for the downstream processing of nickel and cobalt.

Ramu Nico, as the majority partner in the world-class US$1.2 billion (about K4.12 billion) Ramu nickel-cobalt mine near Madang, is at the forefront of this venture.