Barrick asks for vetting Rekodiq deal from Parliament, apex Court
Report
Copper and mining company Barrick Gold wants the Pakistani government to ratify the Rekodiq gold and copper deal with the Parliament and Supreme Court for legal protection.
During the previous administration, Pakistan and the consortium led by Barrick Gold Copper reached an out-of-court settlement deal.
Barrick decided to become a 50 per cent partner in the Rekodiq gold and copper mining project in Balochistan, while the Chilean company decided to exit a contract in exchange for $900 million.
Currently, the government of Pakistan holds fifty percent of the shares, while the government of Balochistan holds twenty-five percent following Rekodiq deal.
Bristow wants legal protection on the Rekodiq gold Deal
Mark Bristow, president and chief executive officer of Barrick, stated at a press conference that the company was still negotiating the legal framework with the current government and desired legislation pertaining to this transaction.
For the long-term viability of this project’s investment, they desired that parliament and the Supreme Court review this deal.
“We want a partnership framework that complies with the law,” he said, adding that total transparency was desired in the project’s execution.
Additionally, he stated that they desired long-term stability with Pakistan.
According to him, Pakistan is the most desirable location for investment. He added that legal protection was essential in Pakistan due to the substantial foreign investment.
The international court of arbitration ruled in favour of foreign companies, including Barrick, in a legal dispute between Pakistan and foreign firms.
“We had been fighting for a long time and decided to find a way to execute the Rekodiq gold project because the conflict was bad for all parties,” he said, adding that it would attract additional investment in the region.
He stated that they had an extensive history of working with IFC, which managed private banks.
They were negotiating with IFC and export-import banks for a $4 billion debt comprising fifty percent of the total debt. $2 billion will be secured by the project’s consortium.
In response to a question about funding from the Barrick side, he ruled out offering an IPO to generate funds and added that they had a strong balance sheet and did not need to raise money because they could support investments.
Investment in Rekodiq Project
According to him, the project will attract $10 billion in investment, with a $7 billion minimum investment in the first phase and a $3 billion minimum investment in the second phase.
Regarding the establishment of a refinery in Pakistan to process the project’s raw materials, he stated that at this time it is not feasible.
In response to a question about the security situation in Balochistan, he stated that the Barrick firm had worked in conflict-ridden regions.
It devised its own strategy for project execution.
“We will invest in the communities, in social responsibility, and provide 100 per cent employment to Pakistani nationals,” he said. He added that another objective of the project would be the importation of technology to train locals.
He announced to offer scholarships to Pakistani students at the world’s leading universities.
In response to a second question, he stated that they would also establish a distillation plant and adhere to all international environmental standards.
NRL offers BMEC for developing Rekodiq
The company would employ a three-pronged strategy to provide high-quality assets following the Rekodiq deal in order to unlock additional value for the Pakistani and Baloch people. They will improve Balochistan’s infrastructure, water security, and energy supply.
