Barrick Announces Reko Diq Arbitration Award
PRESS RELEASE
NYSE : GOLD TSX : ABX
Barrick Announces Reko Diq Arbitration Award
ALL AMOUNTS EXPRESSED IN US DOLLARS
TORONTO — July 15, 2019 — Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“Company”) today announced that the World Bank International Ce ntre for Settlement of Investment
Disputes (“ICSID”) has awarded $5.84 billion in damages to Tethyan Copper Company Pty Limited (“TCC”),
a joint venture held equally by Barrick and Antofagasta plc, in relation to the arbitration claims filed against
the Islamic Republic of Pakistan following the unlawful denial of a mining lease for the Reko Diq project in
Pakistan in 2011.
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 continues to apply at a rate of US Prime +1% per annum until the award is paid.
“After a lengthy and thorough arbitration, the tribunal has ruled upholding our rights,” said Barrick president
and chief executive Mark Bristow. “Along with our partners at Antofagasta, we remain willing to engage
with Pakistan to explore the potential for a negotiated settlement.”
Prior to denial of the mining le ase application, TCC had comple ted a feasibility study showing that Reko
Diq is one of the world’s largest undeveloped copper and gold d eposits, with a potential mine life of over
50 years and an estimated initial capital investment of over $3 billion.
ENQUIRIES:
President and
chief executive officer
Mark Bristow
+1 647 205 7694
+44 788 071 1386
Senior executive vice-president and
chief financial officer
Graham Shuttleworth
+44 1534 735 333
+44 779 771 1338
Investor and
media relations
Kathy du Plessis
+44 20 7557 7738
Email: [email protected]
WEBSITE: www.barrick.com
Cautionary Statement on Forward-Looking Information
Certain information contained in this press release, including any information as to Barrick’s strategy,
projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are forwa rd-looking statements. The words “engage”,
“explore”, “potential”, “study”, “estimate” “will”, and similar expressions identify forward-looking statements.
In particular, this press release contains forward-looking stat ements including, without limitation, with
respect to Barrick’s engagement with the Government of Pakistan and the potential mine life and initial
capital expenditures associated with the development of the Reko Diq project.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including
material estimates and assumptions related to the factors set forth below that, while considered reasonable
by the Company as at the date of this press release in light of management’s experience and perception of
current conditions and expected developments, are inherently su bject to significant business, economic
BARRICK GOLD CORPORATION PRESS RELEASE
and competitive uncertainties and contingencies. Known and unkn own factors could cause actual results
to differ materially from those projected in the forward-lookin g statements, and undue reliance should not
be placed on such statements and information. Such factors incl ude, but are not limited to: fluctuations in
the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural
gas, and electricity); risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation and
legal and administrative proceedings; the speculative nature of mineral exploration and development;
changes in mineral production performance, exploitation, and exploration successes; risks associated with
the Reko Diq project which is in the early stages of evaluation , and for which additional engineering and
other analysis is required; diminishing quantities or grades of reserves; increased costs, delays,
suspensions and technical challenges associated with the constr uction of capital projects; operating or
technical difficulties in connection with mining or development activities, including geotechnical challenges
and disruptions in the maintenance or provision of required inf rastructure and information technology
systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt
of, or failure to comply with, necessary permits and approvals; changes in national and local government
legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and
practices, expropriation or nationalization of property and pol itical or economic developments in Pakistan,
Canada, the United States, and other jurisdictions in which the Company or its affiliates do or may carry on
business in the future; lack of certainty with respect to forei gn legal systems, corruption and other factors
that are inconsistent with the rule of law; damage to the Company’s reputation due to the actual or perceived
occurrence of any number of events, including negative publicit y with respect to the Company’s handling
of environmental matters or dealings with community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s expectations; risks that exploration data may
be incomplete and considerable additional work may be required to complete further evaluation, including
but not limited to drilling, engin eering and socioeconomic stud ies and investment; contests over title to
properties, particularly title to undeveloped properties, or ov er access to water, power and other required
infrastructure; risks associated with working with partners in jointly controlled assets; increased costs and
physical risks, including extreme weather events and resource s hortages, related to climate change;
availability and increased costs associated with mining inputs and labor. In addition, there are risks and
hazards associated with the business of mineral exploration, de velopment and mining, including
environmental hazards, industrial accidents, unusual or unexpec ted formations, pressures, cave-ins,
flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate
insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results
to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf
of, us. Readers are cautioned that forward-looking statements a re not guarantees of future performance.
All of the forward-looking statements made in this press releas e are qualified by these cautionary
statements. Specific reference is made to the most recent Form 40- F/Annual Information Form on file with
the SEC and Canadian provincial securities regulatory authoriti es for a more detailed discussion of some
of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve
the expectations set forth in the forward-looking statements contained in this press release.
The Company disclaims any intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as required by applicable law.