Islamabad: Barrick Gold ended a long dispute with Pakistan and will now start to develop one of the world’s largest gold and copper mining projects under a signed agreement on Sunday.
Under the out-of- judicial agreement, an 11 billion dollars penalty slapped against Pakistan from a World Bank arbitration tribunal and other liabilities will be exonerated and Barrick and his partners will invest $ 10 billion in the projectMinistro for Finances Shaukat Tarin said.
The Reko Diq project in Balochistan – hosting one of the world’s largest undeveloped copper and gold deposits and is capable of producing 200,000 tons of copper and 250,000 ounces of gold A year for more Of half a century – has been suspended in 2011 after government they denied Toronto’s Barrick Gold and Chilean Antofagasta a license to develop it.
Barrick said in a statement that will operate on project which will be granted a mining lease, exploration license and surface rights.
In a separate statement, Antofagasta said he agreed to quit the project like his growth strategy now he was concentrated on production of copper and derivatives in the Americas.
“The new project the company must be owned 50 percent by Barrick Gold. The remaining 50 percent the stake will be owned by Pakistan, split equally between the federal and provincial governments government of Baluchistan ”, a statement from office of Prime Minister Imran Khan said this after the signing ceremony in Islamabad.
The remaining 50% stake will be owned by Pakistan, split equally between the federal and provincial governments government of Baluchistan.
– Office of the Prime Minister, Pakistan (@PakPMO) March 20, 2022
According to Bloomberg, public shareholders will include:
- A 10 percent free, non-taxpayer share held by government of Baluchistan.
- Others 15 percent held by a special purpose company owned by the government of Baluchistan.
- 25 percent owned by other federal state enterprises.
In original agreementthe share capital between Tethyan Copper Company (TCC) and the government he must have been 75 years old percent and 25 percent respectively, although tale agreement was never reached because the The Supreme Court has struck down the grant of a mining lease in 2013.
The Barrick-Antofagasta joint venture discovered the vast mineral deposits more of ten years ago on the feet of an extinct volcano in Baluchistan.
He claimed to have invested more of $ 220 million.