Canada’s Barrick Gold has served a dispute notice to the Papua New Guinea with an ICSID claim over the country’s refusal to extend a mining lease. The world’s second-largest gold producer had applied for twenty Year Lease renewal and argues that Papua New Guinea Decision to reject the application for the lease extension violated a bilateral investment treaty between the country and Australia. Barrick, which is the operator and Zijin mining group of China each owns 47.5% as Joint Venture and with the remaining 5% held by landowner group mineral resources Enga.
Prime Minister James Marape warned Barrick in a social media that the government would be forced to take control of the mine if it were to be closed during the transition period. Prime Minister mentioned as “My letter will ask Barrick to continue operating the mine when we go through this phase, but if you sabotage or close the mine, you leave me no choice but to invoke orders to take over the mine for the sake of land owners and provincial government,” he said. Barrick stated that closure comes as gold prices have escalated on the back of central governments printing money to avert the worst of the economic downturn, hitting the highest in more than seven years at US$1,746.50 an ounce mid-month. Gold traded last at US$1,708. After it’s a Joint Venture company launched Conciliation proceedings at the centre against state.