Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) president and chief
executive Mark Bristow says the process of completing the final
agreements and legal steps that would enable the development of the
Reko Diq project is making steady progress. Once the transaction is
completed, Reko Diq, one of the largest undeveloped copper-gold
deposits in the world, will be owned 50% by Barrick, 25% by
Balochistan province and 25% by major Pakistani state-owned
enterprises (SOEs).
He was speaking after a four-day visit to
Pakistan during which he and the project team held discussions with
prime minister Shehbaz Sharif and Balochistan chief minister Abdul
Quddus Bizenjo and their teams, as well as Barrick’s SOE partners.
With the approval of Pakistan president Dr Arif Alvi, the necessary
documents for the Presidential Reference were filed on Saturday
with the country’s supreme court, a significant process
milestone.
During the course of the trip, the Barrick team
also visited Balochistan’s Chagai District, which hosts Reko Diq,
to brief local leaders and community stakeholders on the project,
which will bring enormous benefits to the region in the form of
employment, skills and economic development, as well as community
initiatives focused on food security, environmental management and
access to healthcare, education and potable water.
Bristow says Barrick is setting up community
development committees (CDCs) to identify priority projects and
supervise their implementation.
“Barrick has been built on successful
partnerships with our host countries, and these encompass the full
range of stakeholders, from governments through suppliers to the
communities around our mines. Our CDC model provides a transparent
and accountable mechanism for tailoring development programmes to
the needs of these communities with their full participation,” he
says.
Once the current legal processes have been
finalised, Barrick will complete its update of the feasibility
study, which currently envisages an open-pit operation with a life
of more than 40 years. It is envisaged that the project will be
built in two phases at an initial estimated capital cost1 of
approximately $7 billion and is expected to go into production
between 2027 and 2028.
While in Pakistan Bristow announced that Barrick
was donating an additional $150,000 to the Balochistan flood relief
fund, bringing the company’s total contribution to $300,000.
Enquiries:Kathy du
PlessisInvestor and Media Relations+44 20 7557 7738Email:
barrick@dpapr.com
Website: www.barrick.com
Endnote 1Subject to change
following the completion of the updated feasibility study.
Cautionary Statement on Forward-Looking
InformationCertain information contained or incorporated
by reference in this press release, including any information as to
our 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 “review progress”, “enable”,
“provide”, “finalize”, “envisage”, “expect”, “implement”,
“estimate”, “approximately”, “future”, plan”, will” and similar
expressions identify forward-looking statements. In particular,
this press release contains forward-looking statements including,
without limitation, with respect to: Reko Diq’s status as one of
the world’s largest undeveloped copper-gold deposits and the
potential benefits for Balochistan from its development; the future
ownership of the Reko Diq project, including the 25% fully funded
share to be held by Balochistan; the proposed fiscal terms
applicable to the Reko Diq project and the joint venture through
which it will be held; the timeline and process for legalization
and reconstitution of a joint venture to carry out the future
development and operation of the Reko Diq project; the contemplated
life of mine of the Reko Diq project and estimated initial capital
costs for its construction; the anticipated sharing of the benefits
from the Reko Diq project with Barrick’s host governments and
communities including investments in social development programs,
the creation of community development committees and the payment of
advance royalties as well as potential levels of local employment
during project construction and operation; Barrick’s planned
contributions to the Balochistan flood relief fund; and
expectations regarding financial performance and other outlook or
guidance.
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 Barrick 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 diesel fuel,
natural gas and electricity); the speculative nature of mineral
exploration and development; changes in mineral production
performance, exploitation and exploration successes; risks
associated with projects in the early stages of evaluation and
development and for which additional technical, engineering and
other analysis is required; disruption of supply routes which may
cause delays in development, construction and mining activities;
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; the failure to obtain key licenses
by governmental authorities; 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 the Islamic Republic of Pakistan or the
Province of Balochistan; timing of receipt of, or failure to comply
with, necessary permits and approvals; lack of certainty with
respect to foreign legal systems, corruption and other factors that
are 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 actual or perceived occurrence of any number
of events, including negative publicity with respect to the
Barrick’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 Barrick’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; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required 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 loss of key employees; increased costs and physical
risks, including extreme weather events and resource shortages
related to climate change; and 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.
We disclaim 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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