By Staff Reporter
ISLAMABAD: Canada-based mining firm Barrick Gold Corporation said on Thursday it had signed agreements with Pakistan’s provincial and federal governments to complete the reconstitution of the Reko Diq project after the Supreme Court endorsed a settlement to resume mining at the world’s largest underdeveloped sites of copper and gold deposits.
Barrick chief Mark Bristow said the completion of the legal processes was a key step in progressing the development of Reko Diq into “a world-class, long-life mine which would substantially expand the company’s strategically significant copper portfolio and benefit its Pakistani stakeholders for generations to come”.
“We are currently updating the project’s 2010 feasibility and 2011 feasibility expansion studies. This should be completed by 2024, with 2028 targeted for the first production,” Bristow said in a statement.
“With its unique combination of large scale, low strip, and a 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.”
Canadian firm Barrick Gold ended a long-running dispute with Pakistan last March to start work at Riko Diq but only after an endorsement from the country’s top court.
Under the out-of-court deal, an $11 billion penalty was slapped against Pakistan by a World Bank arbitration court, other liabilities stand waived and Barrick and its partners plan an investment of $10 billion in the project.
The Reko Diq project in Balochistan was suspended in 2011 after the country denied Barrick Gold and Chile’s Antofagasta a licence to develop it. Later Antofagasta left the project.
One of the largest undeveloped copper-gold projects in the world, Reko Diq is owned 50 percent by Barrick, 25 percent by three federal state-owned enterprises, 15 percent by the province of Balochistan on a fully funded basis, and 10 percent by the same province on a free carried basis.
The company’s chief said Reko Diq will be a major contributor to Pakistan’s economy which is expected to have a transformative impact on the underdeveloped Balochistan province.“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.
He said 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. In addition, Reko Diq will advance royalties to the government of Balochistan of up to $50 million until commercial production starts.”
During peak construction, the project is expected to employ 7,500 people and once in production, it will create around 4,000 long-term jobs. “As elsewhere in the group, Barrick prioritizes the employment of local people and host country nationals.”
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