Barrick Gold Concluded Long-Pending Dispute with Pakistan

SEATTLE (Scrap Monster): Barrick Gold announced that it has ended long-pending dispute with Pakistan, which will enable it to restart development of Reko Diq mine, considered as one of the world’s largest gold and copper mining projects. The agreement to this effect was signed on Sunday.

As per the deal, the liabilities including the $11 billion penalty slapped against Pakistan by a World Bank arbitration court will be waived. Also, Barrick Gold alog with its partners has committed to make investment of approximately $10 billion in the project, said Shaukat Tarin, Pakistan’s Finance Minister.

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It must be noted that the Pakistan government had denied license to Barrick Gold and its associate to develop the rich copper and gold deposit. Following this, the project was suspended in 2011.

The new agreement states that Barrick Gold to single-handedly operate the project, further to the administration granting a mining lease, exploration license and surface rights. Antofagasta had already agreed to exit the project. The joint venture between Barrick Gold and Antofagasta has already invested close to $220 million over this period.

The new joint venture company to operate the mine will be 50% owned by Barrick Gold, 25% owned by Pakistan Federal Government and the remaining 25% by the provincial government of Baluchistan.