Chinese mining firm buys half share in PNG gold mine

3:20 pm on 27 May 2015

The Canadian multi-national gold miner, Barrick Gold, has sold half of its Papua New Guinea operation to China's Zijin Mining Group.

The Chinese company has acquired 50 percent of Barrick Niugini Ltd, which owns 95 percent of the Porgera Joint Venture gold mine in PNG.

Barrick also operates Porgera.

Barrick's chair, John Thornton, says the partnership with Zijin is the first step in a long-term strategic relationship with one of China's leading mining companies.

Zijin's chairman, Chen Jinghe, says the companies have complementary expertise and experience and share a common vision for creating long-term value for the owners.

Under the new structure, Barrick and Zijin will jointly control the company that manages Porgera.

Zijin Mining Group Chairman Chen Jinghe (left) and Barrick Gold Corporation Chairman John L. Thornton (right) signed a strategic cooperation agreement at a ceremony at Zijin’s offices in Xiamen, China on May 26, 2015.

Zijin Mining's Chen Jinghe and Barrick Gold's John Thornton Photo: Supplied