ISLAMABAD: Pakistan government has signed the deal to settle $11 billion Reko Dig project allowing Barrick Gold Corporation to start work on the mega project.
Barrick Gold, a Canadian mining company, announced the completion of the reconstitution of the Reko Diq project after the Supreme Court of Pakistan’s decision in its favour.
Balochistan government and Barrick Gold announced on Thursday that they have signed a deal with the federal government.
According to a joint statement, one representative each from the Barrick Gold, federal and Balocistan governments signed the accord.
Resultantly Pakistan will receive $8 billion investment while it will also stave off a penalty of $11 billion that was imposed on Pakistan for violating deal with the company.
Now Barrick Gold owns 50 percent stake in Reko Diq, 25% by three federally state-owned enterprises, 15% by the Province of Balochistan on a fully funded basis and 10% by the Province of Balochistan on a free carried basis.
President and CEO of company Mark Bristow said the completion of the legal processes was a major leap for the development of Reko Diq into a world-class, long-life mine.
“We are currently updating the project’s 2010 feasibility and 2011 feasibility expansion studies. This should be completed by 2024, with 2028 targeted for first production,” Bristow said.