Canadian mining firm Barrick Gold Corporation (BGC) on Friday said that it had completed the reconstitution of one of the world's largest undeveloped copper-gold projects after receiving nods from Pakistan's top court and parliament.
On Thursday, Pakistan inked the final deal with Barrick and Antofagasta PLC representatives in London to revive the Reko Diq mining project and settle a long-running $11 billion dispute. The development came after the government received a ‘favourable opinion' from the Supreme Court on the settlement agreement and required legislation was passed into law.
Following the agreement, Reko Diq will be owned 50% by Barrick; 25% by three state-owned enterprises — the Oil and Gas Development Company Limited (OGCDL), Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL); 15% by Balochistan on a fully-funded basis and 10% by the province on a free-carried basis.
In a statement, Barrick president and chief executive Mark Bristow said completion of the legal processes was key for the development of Reko Diq into "a world-class, long-life mine" which would substantially expand the company’s copper portfolio and "benefit its Pakistani stakeholders for generations to come".
Also read: Pakistan inks final deal for Reko Diq project
“We are currently updating the project’s 2010 feasibility and 2011 feasibility expansion studies. This should be completed by 2024, with 2028 targeted for first production,” 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," he said.
Bristow said that Reko Diq would not contribute to Pakistan’s economy, but also have a transformative impact on the underdeveloped Balochistan province, with 7,500 jobs expected to be created during peak construction and around 4,000 long-term jobs once it reaches the production phase.
“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," he said.
"In addition, Reko Diq will advance royalties to the government of Balochistan of up to $50 million until commercial production starts.”
The developments come after the Foreign Investment (Promotion and Protection) Bill, 2022, flew through the parliament on Monday, as the National Assembly and Senate gave their approval to it. The legislation guaranteed protection for foreign investment in connection with the Reko Diq project.
As the sword of heavy financial penalties hanged on its head, the government moved with lightning speed to solicit its allies’ support to pass the bill through parliament. The ruling alliance, while bulldozing concerns raised by some allies, managed to put parliament’s rubber stamp on the bill on the grounds that the country could not afford to miss the December 15 deadline and face billions of dollars in penalties.
Read the full story at the express tribune website.
