📰 Barrick’s Reko Diq Mine to Drive Growth as Company Plans Zaldivar Sale
Barrick Gold expects $74 billion from Reko Diq and shifts focus to larger, more profitable projects with Zaldivar sale.
Barrick Gold GOLD 0.00%↑ is making significant moves in the mining sector, focusing on growth through the development of its Reko Diq mine in Pakistan and divesting from its smaller Zaldivar copper mine in Chile. These strategic decisions are expected to reshape Barrick's portfolio and position the company for greater profitability in the coming decades.
Reko Diq unlocks $74 billion potential
The Reko Diq copper-gold mine in Pakistan’s Balochistan province is set to generate $74 billion in free cash flow over 37 years. Barrick holds a 50% stake in the mine, with the federal and provincial governments of Pakistan owning the rest. Beyond its financial promise, the project is expected to significantly bolster Pakistan’s economy through dividends, royalties, and taxes.
After years of delays resolved in 2022, Barrick plans to start production by 2028. The first phase, requiring $5.5 billion in investment, will produce 200,000 tonnes of copper annually by 2029. A second phase will double output, with an additional investment of $3.5 billion. Infrastructure improvements, including modernizing a coal terminal at Port Qasim, will enhance copper transport within the country and for export.
This project’s potential has drawn international attention, with Saudi Arabian mining company Manara Minerals considering an investment. With Pakistan’s foreign reserves around $11 billion, Reko Diq offers a vital boost to the nation’s financial outlook.
Zaldivar marks Barrick’s shift
Barrick is also seeking to sell its 50% stake in the Zaldivar copper mine in Chile, a joint venture with Antofagasta. Producing 80,000 tonnes of copper annually, Zaldivar is smaller compared to Barrick’s other assets. While Antofagasta is investing $1.2 billion to extend operations to 2051, Barrick’s focus has shifted to larger, more profitable projects like Reko Diq and the Lumwana mine in Zambia.
This divestment aligns with Barrick’s strategy to simplify its portfolio, reduce debt, and concentrate on tier-one assets. By prioritizing high-quality, high-return projects, Barrick is positioning itself for stronger long-term growth and shareholder value.
Source: Mining.com, Mining Technology
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