Home Factor company Barrick Gold Corporation – Reko Diq alliance between Pakistan and Barrick poised to create long-term value

Barrick Gold Corporation – Reko Diq alliance between Pakistan and Barrick poised to create long-term value

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Reko Diq is one of the largest undeveloped copper-gold deposits in the world.

Finance Minister Miftah Ismail and Barrick Chairman and CEO Mark Bristow said after meeting here today that they shared a clear view of the national strategic importance of the Reko Diq copper-gold project and s were committed to developing it as a world-class mine that would create value for the country and its people across generations.

Reko Diq is one of the largest undeveloped copper-gold deposits in the world. An agreement in principle reached between the government of Pakistan, the provincial government of Balochistan and Barrick earlier this year provides for the reconstitution and restart of the project, suspended since 2011. It will be operated by Barrick and 50% owned by Barrick, 25 % by the provincial government of Balochistan and 25% by Pakistani public companies.

The definitive agreements underlying the framework agreement are being finalized by the Barrick and Pakistan teams. Once this is complete and the necessary legalization steps have been taken, Barrick will update the original feasibility study, a process that is expected to take two years. The construction of the first phase will follow that with the first production of copper and gold scheduled for 2027/2028.

“During negotiations, the Federal Government and Barrick have confirmed that Baluchistan and its people should receive their fair share of benefits under the Pakistani ownership group,” Bristow said.

“At Barrick, we know that our long-term success depends on the equitable sharing of benefits we create with our host governments and communities. In Reko Diq, Balochistan’s stake will be fully funded by the project and the federal government, allowing the province to reap dividends, royalties and other benefits from its 25% stake without having to contribute financially to construction or development. operation of the project. It is equally important that Balochistan and its people see these benefits from day one. Even before construction begins, once the legalization process is completed, we will implement a series of social development programs, backed by an initial commitment to improving health care, education, food security and drinking water supply in a region where groundwater has a high salt content.

Finance Minister Ismail said the Reko Diq development represented the largest foreign direct investment in Balochistan and one of the largest in Pakistan.

“Like Barrick, we believe that the future of mining lies in mutually beneficial partnerships between host countries and world-class mining companies. The Reko Diq deal exemplifies this philosophy and also signals to the international community that Pakistan is open for business,” he said.

Subject to the updated feasibility study, Reko Diq is envisioned as a conventional open pit mine and milling operation, producing high quality copper-gold concentrate. It will be built in two phases, starting with a plant that will be able to process around 40 million tonnes of ore per year, a figure that could be doubled in five years. With its unique combination of large scale, low strip and good grade, Reko Diq will be a multigenerational mine with a mine life of at least 40 years. At the peak of construction, the project is expected to employ 7,500 people and once in production will create 4,000 long-term jobs. Barrick’s policy of prioritizing local employment and suppliers will have a positive impact on the downstream economy.

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Kathy du Plessis

Investor Relations and Media
+44 20 7557 7738
E-mail: [email protected]

Caution regarding forward-looking information

Certain information contained or incorporated by reference in this press release, including any information regarding our strategy, plans, 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 “partnership”, “framework”, “opportunity”, “provide”, “plan”, “anticipate”, “contemplate”, “propose”, “work towards”, “expect”, “consider”, “will” , “could”, “should”, “intend”, “future”, “commitment” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements, including, but not limited to, regarding: the planned update of Reko Diq’s landmark feasibility study; the future construction, development and operation of the Reko Diq Project, including the expected benefits of a two-phase construction approach and schedule and the expected initial throughput of the processing plant; the future ownership of the Reko Diq project; the proposed tax terms applicable to the Reko Diq project and the joint venture by which it is owned; the timing and process for reconstituting a joint venture to carry out the future development and operation of the Reko Diq Project; the intended mine life of the Reko Diq project; the anticipated sharing of benefits from the Reko Diq project with governments and Barrick’s host communities, including social development and public health programs as well as potential levels of local employment and local procurement during construction and operation of the project; and expectations regarding financial performance and other outlook or advice.

Forward-looking statements are necessarily based on a number of estimates and assumptions, including significant estimates and assumptions relating to the factors set forth below which, although believed to be reasonable by Barrick as of the date of this press release in light of management’s experience and perception of expected conditions and developments, are inherently subject to significant commercial, economic and competitive uncertainties and hazards. 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. These factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities (such as diesel fuel, natural gas and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, mining and exploration success; risks associated with projects in the early stages of appraisal and development and for which additional engineering, technical and other analyzes are required; disruption of supply routes which may cause delays in development, construction and mining activities; reduction in the quantities or qualities of reserves; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; operational or technical difficulties related to mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required information technology infrastructure and systems; failure to comply with environmental, health and safety laws and regulations; inability to obtain key licenses from governmental authorities; changes in national and local government laws, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; the expropriation or nationalization of property and the political or economic development of the Islamic Republic of Pakistan or the province of Balochistan; timing of receipt or non-compliance with necessary permits and approvals; lack of certainty about foreign legal systems, corruption and other factors 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 occurrence or perceived occurrence of a number of events, including negative publicity regarding Barrick’s handling of environmental issues or dealings with community groups, whether true or not ; the possibility that future exploration results will not meet Barrick’s expectations; the risks that exploration data will be incomplete and that considerable additional work will be required to complete a more in-depth assessment, including but not limited to drilling, engineering and socio-economic studies and investments ; risk of loss due to acts of war, terrorism, sabotage and civil unrest; dispute; disputes over title deeds, particularly title to undeveloped properties, or access to water, electricity and other necessary 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 the loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages related to climate change; and the increased availability and costs associated with mining inputs and labor. In addition, there are risks and hazards associated with exploration, development and mining activities, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, floods and gold bars, copper cathodes or gold or copper concentrates. losses (and the risk of inadequate insurance, or the inability to obtain insurance, to cover such risks).

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