Antofagasta PLC ANTOFAGASTA AGREES IN PRINCIPLE TO EXIT REKO DIQ (3616F)
21 Marzo 2022 - 1:00AM
UK Regulatory
TIDMANTO
RNS Number : 3616F
Antofagasta PLC
21 March 2022
NEWS RELEASE, 20 MARCH 2022
ANTOFAGASTA AGREES IN PRINCIPLE TO EXIT REKO DIQ PROJECT IN
PAKISTAN
Antofagasta plc (the "Company"), Barrick Gold Corporation
("Barrick") and the Governments of Pakistan and Balochistan have
today reached agreement in principle on a framework that provides
for the reconstitution of the Reko Diq project ("Project"), and a
pathway for the Company to exit the Project.
The Project was suspended in 2011 due to a dispute over the
legality of its licensing process. Antofagasta has decided not to
participate in the reconstituted project as the Company's growth
strategy is focused on the production of copper and by-products in
the Americas (particularly Chile, Peru, the USA and Canada) and the
Reko Diq project does not support this strategy.
The parties have agreed to work together over the course of this
year to finalise and approve definitive agreements. If definitive
agreements are executed and the conditions to closing are
satisfied:
-- the project will be reconstituted under Tethyan Copper
Company Pty Limited ("TCC"), a joint venture held equally by the
Company and Barrick, and TCC's International Centre for the
Settlement of Investment Disputes ("ICSID") award will be
resolved;
-- a consortium comprising various Pakistani state-owned
enterprises will acquire shares in TCC's subsidiary which will hold
the Project for consideration of approximately US$900 million;
and
-- proceeds will be distributed to Antofagasta in return for its
exit from the TCC holding structure.
If the conditions to closing are satisfied during 2022, the
Company would expect to receive those proceeds during 2023.
The Company notes that, although this agreement in principle is
an important step towards its exit from the Reko Diq project and
the resolution of the ICSID litigation announced in July 2019,
there can be no certainty that definitive agreements will be
finalised or approved, or that the conditions to closing will be
satisfied.
Investors - Media - London
London alindsay@antofagasta.co.uk Carole Cable antofagasta@brunswickgroup.com
Andrew Lindsay
Telephone +44 20 7808 0983 Telephone +44 20 7404 5959
Rosario Orchard rorchard@antofagasta.co.uk
Telephone +44 20 7808 0988
Investors - Media - Santiago
Santiago raguilar@aminerals.cl Pablo Orozco porozco@aminerals.cl
Rene Aguilar
Telephone +56 2 2798 7000 Carolina Pica cpica@aminerals.cl
Telephone +56 2 2798 7000
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