Barrick reported net earnings of $400m during Q1 2020. Credit: Dennis Crabtree.

Barrick Gold has reduced its 2020 production guidance following a conflict with the Papua New Guinea government regarding the Porgera mine last month, concerning the renewal of a 20-year special mining lease.

This year, the miner now expects to generate gold between 4.6 and 5 million ounces (Moz), which is 200,000oz lower than its earlier estimate.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Barrick stated that it did not expect any further impact on production due to the coronavirus pandemic, which has compelled mine closures across the world.

Last month, Papua New Guinea’s government announced it would take control of the Porgera gold mine after refusing to extend Barrick Niugini’s special mining lease (SML) over the facility.

Barrick Niugini, which is jointly owned by Barrick Gold and China-based Zijin Mining, owns a 95% stake in the Porgera Joint Venture that owns the Porgera gold mine.

The Porgera gold mine is located in Enga Province, about 600km north west of Port Moresby.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Barrick previously said that it would contest the move, which it regards as “tantamount to nationalisation”.

Barrick Gold president and CEO Mark Bristow said: “Our sustainability and regional teams have done a great job in taking timely action to introduce comprehensive and carefully considered measures at all our sites and offices to manage and mitigate any impacts of Covid-19 on our employees and contractors.

“In Barrick’s spirit of partnership, we have extended Covid-19 support to our local communities and our host countries and are working closely with their health authorities.

“To date we have donated more than $20m to our host countries, many of whom have limited healthcare facilities, to fund the purchase of medical equipment and PPE.”

Furthermore, Barrick reported net earnings of $400m during the first quarter this year, compared to $111m in the first quarter of last year.

The company’s adjusted net earnings came to $285m in Q1 2020, compared with $184m in the same period last year.