Tribal warfare kills at least 20 near Porgera mine in PNG

Tribal warfare near Barrick Gold‘s (TSX: ABX: NYSE: GOLD) 49%-owned Porgera gold mine in Papua New Guinea has escalated into a violent shootout that’s killed at least 20 people and led to a brief suspension of the mine, according to multiple news outlets including the BBC.

Mate Bagossy, the UN’s humanitarian adviser for Papua New Guinea, confirmed on Monday that the death toll from the tribal conflict had reached “at least 20” but was “likely up to 50 people” based on information from community members and local authorities.

The fighting, involving hundreds of tribal warriors from the Sakar and Piande clans, started days ago. Both groups sought to gain control of local mining access, said the PNG government, which has called for “lethal force” to to stop the fighting.

PNG’s police commissioner David Manning told the BBC illegal miners and settlers are terrorizing local communities.

On Sunday alone, it is estimated that more than 300 shots were fired after peace talks between the rival tribes had failed, the police said.

In addition, the Porgera mine – the second largest in the South Pacific island nation – was briefly forced to cease operations as the fighting intensified, according to local media reports cited by the BBC.

“Over the past 24 hours, a significant escalation in tribal fighting has impacted many of our local employees. Homes have been destroyed, family and friends injured or killed, and people have been unable to sleep while living in fear,” Porgera’s general manager James McTiernan said in a statement to the South China Morning Post.

Barrick holds a 49% stake in the joint venture that owns Porgera, New Porgera Ltd., and is the mine’s operator. PNG stakeholders own the remaining 51%.

Located in Enga province, about 600 km northwest of Port Moresby, the mine employs over 3,300 locals and has produced more than 20 million oz. of gold over the life of mine, contributing around 10% of Papua New Guinea’s total annual exports.

However, tribal violence and government takeover had put a halt to Porgera’s mine production for nearly four years. A resolution was reached to resume the operations earlier this year.