Barrick Gold is coming back to Reko Diq

[farok84]

https://twitter.com/x/status/1505503906713030659

 

[Thinker3]

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.

First they invested few hundred million at most(I don't think they invested even that much) as they claim and then were forcing us to pay pelenty of billions of dollars, now if they will invest 10 billion$, in future they will force us to give 100 billion $ or whole mine. we should not be naive and not let them have the mines at any cost.

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.

And do you think they will be investing 10 billion $ on a small part of mine?

 

[Thinker3]

I term this deal as another black day in the history of Pakistan, the government can make claims and show it as their achievement but the truth is they were coerced into this agreement and now the western company (western powers) are again in control of our gold, they can again give bribe and steal the gold and if we took any action again, they will penalize us with 100 billion dollars or more. May Allah protect this country.

In Pakistan opposition is working with the enemies and the government is run by naive people, only IK has some sense but he is alone.

 

[farok84]

Copper/gold will processed in Balochistan

Hi,

Do you have more information on the processing, is it only limited till concentrates or are they planning treatment plants too?

 

[Pakstallion]

Compared to the original deal this is dramatically better deal, 100 percent better it seems. Question is how it compares to other deals signed in similar jurisdictions. The gov was at a huge disadvantage having the 10 billion hanging over its heads so getting a better deal than original is certainly a good achievement at baseline. It will start in 5-6 years like most IK plans (dams, local edible oil etc) but in the long run good for Pakistan. Hopefully we can develop downstream industries of copper ore smelting etc locally to have better finished copper to have more value addition and local jobs.

Also interesting how PTI seems to be doing this despite political pressures. PML N blamed army for not even finishing small local projects 2013-2018.

 

[ghazi52]

If true,, may we will see some progress.
Previous governments had made this crime of stealing money and had a contract like this..

Barrick Gold Corp, Pakistan agree to revive Reko Diq Project​

• Project will be developed by Barrick Gold in partnership with Pakistani entities

BR Web Desk
20 Mar, 2022

Barrick Gold Corporation and the governments of Pakistan and Balochistan have reached an agreement on a framework that provides for the reconstitution of the Reko Diq project in the province.

The development was confirmed by Prime Minister Imran Khan on Sunday in a Twitter post. "I congratulate the nation and people of Balochistan on successful agreement with Barrick Gold for development of Reko Diq mine after 10 years of legal battles and negotiations. Penalty of approx $ 11bn is offset, $10bn will be invested in Balochistan, creating 8,000 new jobs,” he wrote.

In another tweet, he added: “RD will potentially be the largest gold & copper mine in the world. It will liberate us from crippling debt & usher in a new era of development & prosperity.”

Separately, Barrick Gold Corporation issued a press release, which said: “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’s president and chief executive officer Mark Bristow hailed the agreement as an important step towards the development and operation of Reko Diq.
“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.

As per the new agreement, 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 finalise 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," Gold Barrick's statement noted.
"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," it said.
Last year, Pakistan initiated talks with Barrick Gold to settle the dispute on Reko Diq as M/s Antofagasta of Chile was seeking financial settlement of their share in the award of $6 billion, well-informed sources told Business Recorder.
Sharing the details, the sources said, on July 17, 2019, a Tribunal of the World Bank’s International Centre for Settlement of Investment Disputes (1CSID) found Pakistan to have violated the Pakistan-Australia Bilateral Investment Treaty and awarded $6 billion (approx.) plus interest against Pakistan to Tethyan Copper Company Pty Limited (TCC), that is jointly owned by Barrick Gold PLC of Canada (Barrick) and Antofagasta PLC of Chile.
The tribunal had found that Pakistan unlawfully denied the TCC a lease to mine copper and gold deposits at the Reko Diq Mine, located in the Chagai district of Balochistan.
The sources said, on the directions of Prime Minister Imran Khan, a process of settlement talks with TCC was initiated. On August 22, 2019, the Prime Minister constituted a committee to steer the negotiations.

..

 

[Bilal.]

پاکستان اور بلوچستان کیلئے تاریخی لمحات!
‏دس سال کی قانونی جنگ کے بعد ریکوڈک پراجیکٹ پر حکومت پاکستان اور بیرک گولڈ کارپوریشن کے درمیان معاہدے پر دستخط ہو گئے! پاکستان پر عائد اربوں ڈالرز کا جرمانہ ختم، پاکستان کو 50 فیصد شیئرز مل گئے!

Yet another great win for Pakistan after Karkaray by IK government.

 

[AZ1]

This is huge news and achievemt of pti govt

 

[HaMoTZeMaS]

10 Billion is not for buying tucks and loaders to transport the raw minerals

I believe they are going to set up processing plants of some level, if not full segregations

10 Billion is not for buying tucks and loaders to transport the raw minerals

I believe they are going to set up processing plants of some level, if not full segregations

 

[ghazi52]

.....

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

Press Release...........

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

....

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

March 20, 2022 – Barrick 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...

www.barrick.com

....

 

[Hakikat ve Hikmet]

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.

No Cu and Au, no semiconductor products....

 

[AZADPAKISTAN2009]

Removing 6 Billion Dollar fine and changing it to 25% more share for Pakistan is big achievement, for current government's side

Also the company needs to perform this Project is 25 years old , China extracted coal in in Record 3-4 year time

• 100% local Factory / Local Extraction / Local Heavy Machinery / Local hiring

However with the new agreement a risk lies that there should be smooth operation at ground level and no more issues. As the company can now walk off and this time if they filed a claim , Pakistan will be liable to pay Layer Fees for Company and Pakistan's side and the lawyers fees can rack up by Millions

 

[CrazyZ]

Settlement is the best option for both parties. Demand for copper will increase dramatically with higher EV use. No new copper mines have been opened for years now and existing ones are close to depletion. World economy needs more copper.

Pakistan is judgment proof. ICSID can't make Pakistan pay the fine. Hotels in NYC are worth a fraction of what they were 10 years ago.....so going after the Roosevelt hotel is hardly worth the legal fees for Barrick.

 

[ghazi52]

1,1,1,,
The Balochistan cabinet on Saturday approved the proposed agreement and settlement regarding the Reko Diq project.

The approval was given during a special cabinet meeting chaired by Balochistan Chief Minister Abdul Quddus Bizenjo.

"The cabinet thoroughly reviewed all aspects and points of the agreement," an official handout said. The provincial cabinet expressed satisfaction over the stance of the Balochistan government regarding the multibillion-dollar copper and gold project.

Reko Diq project would guarantee an end to the prevailing sense of deprivation and backwardness of Balochistan, the statement stated. "It would be a game-changer," it mentioned.

Secretary minerals briefed the cabinet about the benefits of implementing the proposed agreement and project for Balochistan and its people. Full details of the agreement and settlement would be released after a meeting chaired by Prime Minister Imran Khan on Sunday (today).............,

 

[WinterFangs]

Operations start in 5-6 years.