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Barrick will restart Reko Diq project in deal ending decade-old dispute

ISLAMABAD: Barrick Gold has ended a long-running dispute with Pakistan and can now begin to develop one of many world’s greatest gold and copper mining initiatives underneath an settlement signed on Sunday.

Under the out-of-court deal, an $11 billion penalty slapped towards Pakistan by a World Bank arbitration court docket and different liabilities will likely be waived and Barrick and its companions will make investments $10 billion within the undertaking, Pakistan Finance Minister Shaukat Tarin mentioned.

The Reko Diq undertaking in Balochistan — which hosts one of many world’s largest undeveloped copper and gold deposits and is able to producing 200,000 tons of copper and 250,000 ounces of gold a yr for greater than half a century — was suspended in 2011 after the federal government denied Toronto-based Barrick Gold and Chile’s Antofagasta a licence to develop it.

Barrick mentioned in a press release it’ll function the undertaking which will likely be granted a mining lease, exploration licence and floor rights.

In a separate assertion, Antofagasta mentioned it had agreed to exit the undertaking as its progress technique was now centered on the manufacturing of copper and by-products within the Americas.

“The new project company shall be owned 50 percent by Barrick Gold. The remaining 50 percent shareholding shall be owned by Pakistan, divided equally between Federal Government and the provincial government of Balochistan,” a press release from the workplace of Prime Minister Imran Khan mentioned after the signing ceremony in Islamabad.

According to Bloomberg, public shareholders will embody:

  • A ten p.c free-carried, non-contributing share held by the federal government of Balochistan.
  • An extra 15 p.c held by a particular goal firm owned by the federal government of Balochistan.
  • 25 p.c owned by different federal state-owned enterprises.

In the unique settlement, the fairness sharing between Tethyan Copper Company (TCC) and the federal government was to be 75 p.c and 25 p.c respectively, though that settlement was by no means reached as a result of the Supreme Court struck down the grant of a mining lease in 2011.

The Barrick-Antofagasta three way partnership found the huge mineral deposits greater than a decade in the past on the foot of an extinct volcano within the Balochistan area on Pakistan’s borders with Iran and Afghanistan.

It mentioned it had invested greater than $220 million.

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