ISLAMABAD, March 20 (Reuters) – Barrick Gold (ABX.TO), has ended a long-running dispute with Pakistan and can now begin to develop one of many world’s greatest gold and copper mining initiatives underneath an settlement signed on Sunday.
Underneath the out-of-court deal, an $11 billion penalty slapped in opposition to Pakistan by a World Financial institution arbitration court docket and different liabilities might be waived and Barrick and its companions will make investments $10 billion within the venture, Pakistan Finance Minister Shaukat Tarin stated.
The Reko Diq venture in southwestern Pakistan, which hosts one of many world’s largest undeveloped copper and gold deposits, was suspended in 2011 after Pakistan denied Barrick Gold and Chile’s Antofagasta (ANTO.L) a licence to develop it.
Barrick stated in a press release it’ll function the venture which might be granted a mining lease, exploration licence and floor rights.
In a separate assertion, Antofagasta stated it had agreed to exit the venture as its progress technique was now targeted on the manufacturing of copper and by-products within the Americas.
“The brand new venture firm shall be owned 50% by Barrick Gold. The remaining 50% shareholding shall be owned by Pakistan, divided equally between Federal Authorities and the provincial authorities of Balochista,” a press release from the workplace of Prime Minister Imran Khan stated after the signing ceremony in Islamabad.
The Barrick-Antofagasta three way partnership found the huge mineral deposits greater than a decade in the past on the foot of an extinct volcano within the Balochistan area on Pakistan’s borders with Iran and Afghanistan.
It stated it had invested greater than $220 million.
Reporting by Asif Shahzad in Islamabad and Syed Raza Hasan in Karachi; Modifying by David Clarke and Emelia Sithole-Matarise
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