Barrick open to buyout participation of Saudi funds in Pakistan’s Reko Diq project

TORONTO, Aug 8 (Reuters) – Barrick Gold Corp (ABX.TO) is open to bringing in the Saudi wealth fund as one of its partners in Pakistan’s Reko Diq copper-gold mine, Barrick Chief Executive Officer Mark Bristow told Reuters in an interview on Tuesday.

also fired a June media report that Barrick was in talks with Canadian mining company First Quantum Minerals (FM.TO) about a possible acquisition as a “rumor”.

Barrick Gold owns a 50% interest in Pakistan’s Reko Diq mine, with the remaining 50% owned by the governments of Pakistan and Balochistan province. Barrick considers the mine to be one of the largest undeveloped copper and gold areas in the world.

Bristow said Barrick will not dilute its capital in the project but “won’t care” if Saudi Arabia’s Public Investment Fund (PIF) wants to buy the capital from the Pakistani government.

“There is a strong relationship between Saudi Arabia and Pakistan and since we control the project, we have the first right of refusal,” Bristow added.

He said Barrick will support PIF’s entry into the mine through Pakistan’s 25% shareholding.

Pakistan has not publicly stated that it is considering selling.

Earlier this month, Pakistan hosted officials of Saudi Arabia at a mining conference in its capital Islamabad where Barrick officials were also present. Barrick and Saudi state mining company Ma’aden jointly operate a copper project in Jeddah.

PIF has been looking to invest in copper projects around the world as part of its push to finance energy transition projects. Earlier this month, PIF agreed acquire a 10% stake in Brazilian miner Vale (VALE3.SA) base metal business.

Barrick, the world’s second-largest gold producer, views Middle Eastern sovereign wealth funds as “serious” long-term investors to whom the company can sell its long-term vision of growing its copper and gold business.

When asked about the company’s interest in First Quantum Minerals, Bristow said Barrick will continue to increase production organically and its acquisition strategy will be “measured.”

“We have people suggesting First Quantum … but our shareholders are bullish,” Bristow said. “So I don’t know where that rumor came from, it definitely wasn’t us, but it certainly helped push his stock up.”

Reporting by Divya Rajagopal; Edited by Mark Porter and Conor Humphries

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