Barrick Announces Reko Diq Arbitration Award
July 15 2019 - 7:08AM
Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today announced that the World Bank International Centre
for Settlement of Investment Disputes (“ICSID”) has awarded $5.84
billion in damages to Tethyan Copper Company Pty Limited (“TCC”), a
joint venture held equally by Barrick and Antofagasta plc, in
relation to the arbitration claims filed against the Islamic
Republic of Pakistan following the unlawful denial of a mining
lease for the Reko Diq project in Pakistan in 2011.
Damages include compensation of $4.087 billion
in relation to the fair market value of the Reko Diq project at the
time the mining lease was denied, and interest until the date of
the award of $1.753 billion. Compound interest continues to
apply at a rate of US Prime +1% per annum until the award is
paid.
“After a lengthy and thorough arbitration, the
tribunal has ruled upholding our rights,” said Barrick president
and chief executive Mark Bristow. “Along with our partners at
Antofagasta, we remain willing to engage with Pakistan to explore
the potential for a negotiated settlement.”
Prior to denial of the mining lease application,
TCC had completed a feasibility study showing that Reko Diq is one
of the world’s largest undeveloped copper and gold deposits, with a
potential mine life of over 50 years and an estimated initial
capital investment of over $3 billion.
ENQUIRIES: |
|
|
President and chief executive officerMark Bristow+1 647 205 7694+44
788 071 1386 |
Senior executive vice-president and chief financial officerGraham
Shuttleworth+44 1534 735 333+44 779 771 1338 |
Investor and media relationsKathy du Plessis+44 20 7557 7738Email:
barrick@dpapr.com |
WEBSITE: www.barrick.com
Cautionary Statement on Forward-Looking
InformationCertain information contained in this press
release, including any information as to Barrick’s strategy,
projects, 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 “engage”, “explore”, “potential”, “study”, “estimate”
“will”, and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to Barrick’s engagement with the Government of Pakistan and
the potential mine life and initial capital expenditures associated
with the development of the Reko Diq project.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. 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. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper, or certain other commodities
(such as silver, diesel fuel, natural gas, and electricity); risk
of loss due to acts of war, terrorism, sabotage and civil
disturbances; litigation and legal and administrative proceedings;
the speculative nature of mineral exploration and development;
changes in mineral production performance, exploitation, and
exploration successes; risks associated with the Reko Diq project
which is in the early stages of evaluation, and for which
additional engineering and other analysis is required; diminishing
quantities or grades of reserves; increased costs, delays,
suspensions and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; timing of receipt of, or failure
to comply with, necessary permits and approvals; changes in
national and local government legislation, taxation, controls or
regulations and/ or changes in the administration of laws, policies
and practices, expropriation or nationalization of property and
political or economic developments in Pakistan, Canada, the United
States, and other jurisdictions in which the Company or its
affiliates do or may carry on business in the future; lack of
certainty with respect to foreign legal systems, corruption and
other factors that are inconsistent with the rule of law; damage to
the Company’s reputation due to the actual or perceived occurrence
of any number of events, including negative publicity with respect
to the Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; risks
associated with working with partners in jointly controlled assets;
increased costs and physical risks, including extreme weather
events and resource shortages, related to climate change;
availability and increased costs associated with mining inputs and
labor. In addition, there are risks and hazards associated with the
business of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion, copper
cathode or gold or copper concentrate losses (and the risk of
inadequate insurance, or inability to obtain insurance, to cover
these risks).
Many of these uncertainties and contingencies
can 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 behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the 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 on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
The Company disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law.
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