Barrick Gold Corporation – Barrick, Pakistan and Baluchistan Agree in Principle to Relaunch Reko Diq Project
Islamabad – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) and the governments of Pakistan and Balochistan have reached agreement on a framework for the replenishment of the Reko Diq project in Balochistan province. The project, which was put on hold in 2011 due to a dispute over the legality of its permitting process, hosts one of the largest undeveloped open-pit copper-gold porphyry deposits in the world.
The reconstituted project will be 50% owned by Barrick and 50% by Pakistani stakeholders, comprising a 10% gratuitous and non-contributory share owned by the Government of Balochistan, an additional 15% owned by a special purpose company owned by the government. of Balochistan and 25% owned by other federal public enterprises. A separate agreement provides for Barrick’s partner, Antofagasta PLC, to be replaced in the project by the Pakistani parties.
Barrick will be the operator of the project, which will be granted a mining lease, an exploration permit, surface rights and a mining agreement stabilizing the tax regime applicable to the project for a fixed period. The process of finalizing and approving the final agreements, including the stabilization of the fiscal regime in accordance with the mining agreement, will be completely transparent and will involve the federal and provincial governments, as well as the Supreme Court of Pakistan. If the definitive agreements are executed and the conditions of closing are satisfied, the project will be reconstituted, including resolution of damages originally awarded by the International Center for Settlement of Investment Disputes and challenged before the International Chamber of Commerce .
Barrick Chairman and CEO Mark Bristow hailed the agreement as an important step towards the development and operation of Reko Diq and a tribute to the decisions of all parties to work towards a mutually beneficial outcome in a spirit of partnership.
“Barrick has successfully partnered with host countries around the world and our philosophy of equitably sharing the economic benefits our mines generate with key stakeholders is also evident in the ownership structure of the new Reko Diq. This is a unique opportunity for substantial foreign investment in Balochistan Province and will bring enormous direct and indirect benefits not only to this region but also to Pakistan for decades to come. In addition to local employment and skills development, local procurement, infrastructure upgrades, and improved medical and education systems, Reko Diq could also be the springboard for further exploration and development. ‘other mineral discoveries along the very promising Tethys metallogenic belt,’ he said.
At closing, Barrick will begin a full update of the feasibility studies for the project in 2010 and pre-feasibility studies for the expansion in 2011, which envisioned conventional open pit mining by truck and shovel with fragmentation and flotation processing facilities. producing high quality copper-gold concentrate. Bristow said that if all goes according to plan, Reko Diq could be in production within five to six years.
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Caution regarding forward-looking information
Certain information contained or incorporated by reference in this press release, including any information regarding our strategy, plans, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “framework”, “proposed”, “working towards”, “will”, “would”, “intend”, “future” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements, including, without limitation, relating to: the planned reconstitution of the Reko Diq project and the issuance of a mining lease therefor; the future development and operation of the Reko Diq project; the future ownership of the Reko Diq project; the proposed tax and governance terms applicable to the Reko Diq project and the joint venture through which it is held; the timing and process for executing definitive agreements and reconstituting a joint venture to carry out the future development and operation of the Reko Diq Project; and expectations regarding financial performance and other outlook or advice.
Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set forth below which, although believed to be reasonable by Barrick as of the date of this press release in light of management’s experience and perception of expected conditions and developments, are inherently subject to significant commercial, economic and competitive uncertainties and hazards. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. These factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity ); the speculative nature of mineral exploration and development; changes in mineral production performance, mining and exploration success; risks associated with projects in the early stages of appraisal and development and for which additional engineering, technical and other analyzes are required; disruption of supply routes which may cause delays in development, construction and mining activities; reduction in the quantities or qualities of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operational or technical difficulties related to mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required information technology infrastructure and systems; failure to comply with environmental, health and safety laws and regulations; failure to obtain key licenses from governmental authorities, including the mining lease and exploration permit for the Reko Diq project; changes in national and local government laws, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; the expropriation or nationalization of property and the political or economic development of the Islamic Republic of Pakistan or the province of Balochistan; the timing of receipt or non-compliance with necessary permits and approvals; lack of certainty about foreign legal systems, corruption and other factors inconsistent with the rule of law; risks associated with illegal and artisanal mining; risks associated with new diseases, epidemics and pandemics, including the effects and potential effects of the global Covid-19 pandemic; damage to Barrick’s reputation due to the occurrence or perceived occurrence of a number of events, including negative publicity regarding Barrick’s handling of environmental issues or relationships with community groups, whether true or not ; the possibility that future exploration results will not meet Barrick’s expectations; the risks that exploration data will be incomplete and that considerable additional work will be required to complete a more in-depth assessment, including but not limited to drilling, engineering and socio-economic studies and investments ; risk of loss due to acts of war, terrorism, sabotage and civil unrest; litigation; disputes over title deeds, particularly title to undeveloped properties, or access to water, electricity and other necessary infrastructure; business opportunities that may be presented to, or pursued by, Barrick; risks associated with working with partners in jointly controlled assets; employee relations, including the loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages related to climate change; and the increased availability and costs associated with mining inputs and labor. In addition, there are risks and hazards associated with exploration, development and mining activities, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, floods and gold bars, copper cathodes or gold or copper concentrates. losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover such risks).
Many of these uncertainties and contingencies may affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by or on our behalf. Readers are cautioned that forward-looking statements are not guarantees of future performance. All forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form filed with the SEC and Canadian provincial securities regulators for a more detailed discussion of some of the factors underlying the forward-looking statements and risks that could affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this press release.
We disclaim any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
