Barrick Gold Corp (ABX)

[NYBob]

Barrick Gold joint venture awarded $5.4-billion payout over Pakistan mining lease dispute
NIALL MCGEE MINING REPORTER
PUBLISHED 2 HOURS AGO
UPDATED JULY 15, 2019
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The World Bank has ordered Pakistan to pay a joint venture (JV) operated by Barrick Gold Corp. and Chile’s Antofagasta PLC US$5.4-billion in damages stemming from a multiyear dispute over a mining lease.

The fracas dates back to 2011 when the Balochistan province in Pakistan rejected the JV’s attempts to secure a mining lease for the Reko Diq copper-gold project. Barrick and Antofagasta appealled the decision and launched an international arbitration claim shortly after.

Barrick and Antofagasta claim they would have invested US$3.3-billion into the construction of Reko Diq in the Balochistan province of Pakistan if the project had gone ahead.

The JV, called Tethyan Copper Company Pty Limited, also spent US$220-million in development costs before Pakistan halted the project.

The payment comprises US$4.1-billion, the fair market value of the project when the lease was denied and accumulated interest of $1.75-billion.

Barrick and Antofagasta both indicated a willingness to come to a negotiated settlement with Pakistan in dual statements.

Shares in Toronto-based Barrick were up about 0.5 per cent in premarket trading in New York.

https://beta.theglobeandmail.com/business/industry-news/energy-and-resources/article-barrick-gold-joint-venture-awarded-54-billion-payout-over-pakistan/