Canada’s Barrick Gold is open to bringing in the Kingdom of Saudi Arabia’s (KSA) Public Investment Fund (PIF) as one of its partners in Pakistan’s Reko Diq gold and copper mine, CEO Mark Bristow told Reuters in an interview on Tuesday.
Contrary to recent reports and rumors, Birstow said Barrick will not dilute its shares in the project but “will not mind” if PIF wishes to buy out the Pakistan government’s equity.
“There is a strong relationship between Saudi and Pakistan and since we control the project we have the first right of refusal,” he added.
Barrick, the world’s second-largest gold producer, views Middle Eastern sovereign wealth funds as “serious” long-term investors for increasing its copper and gold businesses.
Bristow said Barrick will support PIF’s entry into the project through a 25 percent equity investment in the Government of Pakistan’s shares. When asked about Barrick’s interest in First Quantum Minerals, he remarked that the business will continue to develop its production organically and that its acquisition strategy will be “measured”.
The Canadian firm’s stance on Saudi investments in Pakistan’s mineral sector comes after last week’s reports that KSA was in talks with Barrick about investing in its Reko Diq copper project in the country.
Saudi Arabia is looking for a stake in the global mining game with access to strategic minerals as the Kingdom looks to diversify its economy away from oil. The kingdom is ready to splash some big cash, meanwhile, the Canadian firm looks to ease cash constraints.
Besides having a collaborator on site with massive funding abilities, Barrick sees KSA as a potential partner with enormous political clout in Pakistan.
Barrick Gold controls half of Pakistan’s Reko Diq mine, with the remaining half held by the center and provincial government of Balochistan. According to Barrick, the mine is one of the world’s largest undeveloped copper-gold regions.