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Barrick Gold is coming back to Reko Diq

CrazyZ

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Barrick Gold is coming back to Reko Diq​


To understand why we’re 30 years behind schedule we have to turn back the clock.

FEBRUARY 20, 2022
By
Asad Ullah Kamran
1645761826239.png


Barrick Gold, one of the two companies that had previously been working on the Reko Diq project as part of a joint-venture under the name of the Tethyan Copper Company (TCC), has once again stepped into the fray and will take on the development of the project itself.

Antofagasta on the other hand has decided to get out and try its luck elsewhere. As per information received by Profit, the company has opted for a monetary compensation from the profits and revenues generated by the project that has yet to commence. The exact details of the agreement have not yet been made public, it is expected to be signed soon.

The TCC had originally been formed as a consortium between the Canadian based mining company Barrick Gold and Chile’s Antofagasta to work specifically on the Reko Diq project. However, as the dispute over the mining project heads towards a settlement, sources familiar with the matter have confirmed to Profit that Barrick will itself be taking on the project without Antofagasta.

Although it was originally claimed that the NRL (National Resource Limited) was in the lead, Profit has confirmed from sources within the NRL that they are currently out of the race. However, the firm stated that it will seek leases for other blocks in the Chagai district, including those near Reko Diq. The company also highlighted the potential of Afghanistan as a mineral rich area that can be an opportunity for Pakistan.

Meanwhile, this also means that the Tethyan Copper Company is likely to be dissolved. The development is the latest in a long series of events that has shaped the entire Reqo Diq saga. The fifth largest gold mine in the world, the deposits are buried at the foot of an extinct volcano in Chaghai district near the Iran and Afghanistan borders


I read somewhere that the world was running out of easily extractable copper ore and the copper could become the new oil. Not to mention the importance of gold with all the fiat money printing. A settlement over Reko Diq is emanant.
 
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Shah_Deu

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The ore should be processed in pakistan and then exported. Exporting slush copper and gold ore would just be like exporting raw diamonds. We need a refinery in pakistan to up the skills of local manpower. And exporting processed copper/gold would bring us immense foreign currency too. Only agreeing on a 50% share in profit without copper/gold processing in pakistan would just be silly on our part. I hope people immune to kickbacks are in the decision making seats and we end up making a right call.
 

Shah_Deu

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Too late if the other company sues , we will pay all lawyer fees for us and them plus fine
It wont. Apparently things have been worked out.

"Antofagasta on the other hand has decided to get out and try its luck elsewhere. As per information received by Profit, the company has opted for a monetary compensation from the profits and revenues generated by the project that has yet to commence."
 

Last starfighter

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The ore should be processed in pakistan and then exported. Exporting slush copper and gold ore would just be like exporting raw diamonds. We need a refinery in pakistan to up the skills of local manpower. And exporting processed copper/gold would bring us immense foreign currency too. Only agreeing on a 50% share in profit without copper/gold processing in pakistan would just be silly on our part. I hope people immune to kickbacks are in the decision making seats and we end up making a right call.
If I do that then I won't be able to afford my luxury properties in the UK and around the world , so no thanks
 

Oom

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Barrick Gold is coming back to Reko Diq​


To understand why we’re 30 years behind schedule we have to turn back the clock.

FEBRUARY 20, 2022
By
Asad Ullah Kamran
View attachment 818421

Barrick Gold, one of the two companies that had previously been working on the Reko Diq project as part of a joint-venture under the name of the Tethyan Copper Company (TCC), has once again stepped into the fray and will take on the development of the project itself.

Antofagasta on the other hand has decided to get out and try its luck elsewhere. As per information received by Profit, the company has opted for a monetary compensation from the profits and revenues generated by the project that has yet to commence. The exact details of the agreement have not yet been made public, it is expected to be signed soon.

The TCC had originally been formed as a consortium between the Canadian based mining company Barrick Gold and Chile’s Antofagasta to work specifically on the Reko Diq project. However, as the dispute over the mining project heads towards a settlement, sources familiar with the matter have confirmed to Profit that Barrick will itself be taking on the project without Antofagasta.

Although it was originally claimed that the NRL (National Resource Limited) was in the lead, Profit has confirmed from sources within the NRL that they are currently out of the race. However, the firm stated that it will seek leases for other blocks in the Chagai district, including those near Reko Diq. The company also highlighted the potential of Afghanistan as a mineral rich area that can be an opportunity for Pakistan.

Meanwhile, this also means that the Tethyan Copper Company is likely to be dissolved. The development is the latest in a long series of events that has shaped the entire Reqo Diq saga. The fifth largest gold mine in the world, the deposits are buried at the foot of an extinct volcano in Chaghai district near the Iran and Afghanistan borders


I read somewhere that the world was running out of easily extractable copper ore and the copper could become the new oil. Not to mention the importance of gold with all the fiat money printing. A settlement over Reko Diq is emanant.
You are absolutely right. Copper supply is really constrained as there are few new discoveries, and almost all existing ones have been developed or are in the process with the exception being Reko Diq. Major copper producers are in high risk jurisdictions like Congo, Zambia and Central Asia, so western mining firms like Barrick Gold should have no qualms in operating in Pakistan, we fare way better than those countries.

This will create jobs, and hopefully prosperity for Balouchistan. I want to comment on how the profit distribution should be on a variable basis, but I’m sure we have worked out a good deal.

The last thing we want is for resource nationalism to negate more investment in Pakistan’s extraction industry. Mineral wealth is useless unless it’s extracted.

The grand prize for Pakistan should be investment in our oil and gas industry to extract tight oil and shale gas, which we have plenty. But this technology is with western firms, who need stable and predictable investment environment as the capital investment upfront is hefty, so this should be our first step project.
 

farok84

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MARCH 20, 2022

Barrick, Pakistan and Balochistan Agree in Principle to Restart Reko Diq Project​


Islamabad – Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) and the governments of Pakistan and Balochistan have reached agreement on a framework that provides for the reconstitution of the Reko Diq project in the country’s Balochistan province. The project, which was suspended in 2011 due to a dispute over the legality of its licensing process, hosts one of the world’s largest undeveloped open pit copper-gold porphyry deposits.

The reconstituted project will be held 50% by Barrick and 50% by Pakistan stakeholders, comprising a 10% free-carried, non-contributing share held by the government of Balochistan, an additional 15% held by a special purpose company owned by the government of Balochistan and 25% owned by other federal state-owned 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, exploration licence, surface rights and a mineral agreement stabilizing the fiscal regime applicable to the project for a specified period. The process to finalize and approve definitive agreements, including the stabilization of the fiscal regime pursuant to the mineral agreement, will be fully transparent and involve the federal and provincial governments, as well as the Supreme Court of Pakistan. If the definitive agreements are executed and the conditions to closing are satisfied, the project will be reconstituted including the resolution of the damages originally awarded by the International Centre for the Settlement of Investment Disputes and disputed in the International Chamber of Commerce.

Barrick’s president and chief executive officer 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 worldwide and our philosophy of sharing the economic benefits our mines generate equitably with core stakeholders is also evident in the ownership structure of the new Reko Diq. This is a unique opportunity for substantial foreign investment in the 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 other mineral discoveries along the highly prospective Tethyan Metallogenic Belt,” he said.

On closing, Barrick will start a full update of the project’s 2010 feasibility and 2011 expansion prefeasibility studies, which envisaged a conventional truck-and-shovel open pit operation with comminution and flotation processing facilities producing a high-quality copper-gold concentrate. Bristow said that if all went according to plan, Reko Diq could be in production within five to six years.

Enquiries:​

Investor and Media Relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com

Cautionary Statement on Forward-Looking Information​

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, 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”, “work towards”, “will”, “would”, “intend”, “future” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect 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 fiscal and governance terms applicable to the Reko Diq project and the joint venture through which it is held; the timeline and process for the execution of definitive agreements and the reconstitution of 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 guidance.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by Barrick as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. 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. Such 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, exploitation and exploration successes; risks associated with projects in the early stages of evaluation and development and for which additional technical, engineering and other analysis is required; disruption of supply routes which may cause delays in development, construction and mining activities; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; the failure to obtain key licenses by governmental authorities, including the mining lease and exploration license for the Reko Diq project; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in the Islamic Republic of Pakistan or the Province of Balochistan; timing of receipt of, or failure to comply with, necessary permits and approvals; lack of certainty with respect to foreign legal systems, corruption and other factors that are 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 actual or perceived occurrence of any number of events, including negative publicity with respect to the Barrick’s handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with Barrick’s expectations; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required 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 loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can 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 behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the 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 on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may 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 statements whether as a result of new information, future events or otherwise, except as required by applicable law.

 

Thinker3

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It is not good to let a foreign company extract our gold, we don't know how much of our gold they have already taken without our knowledge, reko diq gold reserves if properly used can pay all of our foreign debt and make us rich, these western powers will never let that happen so as a result they are again trying to take over by any means possible and it seems they are successful, we have seen to what length these western powers have gone to force us to give reko diq mines back to these companies. if nothing else is possible then give 900 million$ to this company and then extract gold by ourselves, make a new state-owned company with strick checks and balances that will extract the gold.
 
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It is not good to let a foreign company extract our gold, we don't know how much of our gold they have already taken without our knowledge, reko diq gold reserves if properly used can pay all of our foreign debt and make us rich, these western powers will never let that happen so as a result they are again trying to take over by any means possible and it seems they are successful in again robbing us, we have seen to what length these western powers have gone to force us to give reko diq mines back to these companies. if nothing else is possible then give 900 million$ to this company and then extract gold by ourselves, make a new state owned company with strick check and balances that will extract the gold.

we have gone through this. This recent deal is game changer for couple of reasons. Now Pakistan entities will develop Reko Diq alongside Barrik. Gaining experience etc Copper/gold will processed in Balochistan as they will build centers to educate locals in mining. Will create 8000 jobs for Balochistan youth.

And this is small part of mine. If work start without problems then next you will see more companies lining up to invest in mining.
 

Thinker3

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we have gone through this. This recent deal is game changer for couple of reasons. Now Pakistan entities will develop Reko Diq alongside Barrik. Gaining experience etc Copper/gold will processed in Balochistan as they will build centers to educate locals in mining. Will create 8000 jobs for Balochistan youth.

And this is small part of mine. If work start without problems then next you will see more companies lining up to invest in mining.
I don't agree with you, if it was a small part of mine then how will this Barrik company get 900 million$ from a small part, as they plan on getting this 900 million$ from the revenues they will get from extraction? we can not trust them.
 
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I don't agree with you, if it was a small part of mine then how will this Barrik company get 900 million$ from a small part, as they plan on getting this 900 million$ from the revenues they will get from extraction? we can not trust them.

Barrick isn't getting anything, they are investing $10b. Its other company that will get $900m to give up their share that will be taken by Pakistan SOE. Because they didn't want to come back. You confused the two.
 

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