Barrick and Pakistan Review Progress on Reko Diq Project

All amounts expressed in US dollars

QUETTA, Pakistan, Oct. 17, 2022 (GLOBE NEWSWIRE) -- 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.

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Kathy du Plessis

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Endnote 1

Subject to change following the completion of the updated feasibility study.

Cautionary Statement on Forward-Looking Information

Certain 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.

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