Barrick Gold, Antofagasta JV Awarded $5.84 Billion in Damages for Pakistan Project

By Chris Wack

Barrick Gold Corp. (GOLD) said Monday that the World Bank International Center for Settlement of Investment Disputes has awarded $5.84 billion in damages to Tethyan Copper Company Pty Ltd., a joint venture held equally by Barrick and Antofagasta PLC (ANTO.LN), in relation to the arbitration claims filed against Pakistan following the denial of a mining lease for the Reko Diq project in Pakistan in 2011.

Barrick Gold said that damages include compensation of $4.087 billion in relation to the fair market value of the Reko Diq project at the time the mining lease was denied, and interest until the date of the award of $1.753 billion. Compound interest will continue to be applied until the award is paid.

Barrick said that prior to denial of the mining lease application, Tethyan Copper had completed a feasibility study showing that Reko Diq is one of the world's largest undeveloped copper and gold deposits, with a potential mine life of over 50 years and an estimated initial capital investment of over $3 billion.

Write to Chris Wack at [e-mail]

(END) Dow Jones Newswires

July 15, 2019 07:52 ET (11:52 GMT)

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