Antofagasta PLC on Thursday said it has exited the Reko Diq project in Pakistan as Barrick Gold Corp updated its plans for the mine.
Antofagasta, a London-based mining company, said the project has been reconstituted under Tethyan Copper Co Pty Ltd, a joint venture registered in Australia held equally by Antofagasta and Barrick Gold.
It said a consortium of ‘various Pakistan state-owned enterprises’ has acquired shares in the Tethyan Copper Co subsidiary which holds the project.
The proceeds of the sale, which together equals $945 million, will be held by Tethyan Copper. Antofagasta expects to receive the proceeds by the end of 2023.
While Antofagasta retains its shareholding in Tethyan Copper until the proceeds are distributed, it ‘will cease to have any appointees on the board and will no longer be involved in the business of TCC.’
Antofagasta also said Tethyan Copper’s International Centre for Settlement of Investment Disputes award has been resolved. It, therefore, has no claims against the governments of Pakistan and Balochistan after the project was suspended in 2011.
The dispute centred on the alleged ‘unlawful’ denial of a mining lease for the Reko Diq project.
Barrick Gold, which will remain involved with the project, said it has started updating its plans for the mine after receiving a ‘favourable opinion’ from the Supreme Court of Pakistan.
President & Chief Executive Officer Mark Bristow said: ‘With its unique combination of large scale, low strip and good grade, Reko Diq is expected to have a life of at least 40 years. We envisage a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. We expect it to be constructed in two phases with a combined process capacity of 80 million tonnes per annum.’
The company said Reko Diq will be a ‘major contributor to Pakistan’s economy’.
‘Reko Diq’s ownership structure is a further manifestation of Barrick’s commitment to partnership with its host countries and communities and to sharing the value our operations create fairly with all our stakeholders,’ Bristow said.
‘We’re making sure that Balochistan and its people will see these benefits quickly. Starting early next year, Barrick will implement a range of social development programs prioritizing the improvement of healthcare, education, vocational training, food security and the provision of potable water. Our investment in these is expected to amount to around $70 million over the feasibility and construction period,’ Bristow continued.
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