ANTOFAGASTA EXITS REKO DIQ PROJECT IN PAKISTANSource: RNS
NEWS RELEASE, 15 DECEMBER 2022
Antofagasta Exits Reko Diq Project in Pakistan
As previously announced, on 20 March 2022 Antofagasta plc (the "Company"), Barrick Gold Corporation ("Barrick") and the Governments of Pakistan and Balochistan reached agreement in principle on a framework that provided for the reconstitution of the Reko Diq project (the "Project") and a pathway for the Company to exit the Project.
Today the parties entered into definitive agreements under which:
· the Project has been reconstituted under Tethyan Copper Company Pty Limited ("TCC"), the joint venture registered in Australia held equally by the Company and Barrick;
· a consortium of various Pakistani state-owned enterprises has acquired shares in the TCC subsidiary which holds the Project (the "Sale"); and
· TCC's International Centre for Settlement of Investment Disputes ("ICSID") award has been resolved.
Accordingly, TCC no longer has any rights or claims against the Governments of Pakistan and Balochistan arising from the suspension of the Project in 2011.
The proceeds of the Sale, which together with accrued interest totals US$945 million, will be held by TCC until they are distributed and are expected to be received by the Company by the end of 2023.
Although Antofagasta will retain its shareholding in TCC until the proceeds have been distributed, it will cease to have any appointees on the board and will no longer be involved in the business of TCC.
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