REG - Antofagasta PLC - ANTOFAGASTA EXITS REKO DIQ PROJECT IN PAKISTAN

AntofagastaAnnouncement

15/12/2022 17:15

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RNS Number : 9047J  Antofagasta PLC  15 December 2022

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.

 

 Investors -                                                                                                                              Media - London
 London

                                                                                                                                        Carole Cable            antofagasta@brunswickgroup.com
 Andrew Lindsay

 alindsay@antofagasta.co.uk                                                                                                               Telephone               +44 20 7404 5959

 Telephone                               +44 20
 7808 0988

                                                                                                                                        Media - Santiago
 Rosario Orchard

 rorchard@antofagasta.co.uk                                                                                                               Pablo Orozco           porozco@aminerals.cl

 Telephone                               +44 20                                                                                           Carolina Pica           cpica@aminerals.cl
 7808 0988

                                                                                                                                          Telephone               +56 2 2798 7000

 

 

Cautionary Statement

This announcement contains certain forward-looking statements. All statements
other than historical facts are forward-looking statements. Examples of
forward-looking statements include, without limitation, those regarding the
Group's strategy, plans, objectives or future operating or financial
performance, reserve and resource estimates, commodity demand and trends in
commodity prices, growth opportunities, and any assumptions underlying or
relating to any of the foregoing. Words such as "intend", "aim", "project",
"anticipate", "estimate", "plan", "believe", "expect", "may", "should",
"will", "continue" and similar expressions identify forward-looking
statements.

 

Forward-looking statements involve known and unknown risks, uncertainties,
assumptions and other factors that are beyond the Group's control. Given these
risks, uncertainties and assumptions, actual results, performance or
achievements could differ materially from any future results, performance or
achievements expressed or implied by these forward-looking statements, which
apply only as at the date of this report. These forward-looking statements are
based on numerous assumptions regarding the Group's present and future
business strategies and the environment in which the Group will operate in the
future. Important factors that could cause actual results, performance or
achievements to differ from those in the forward-looking statements include,
but are not limited to: natural events, global economic and financial
conditions (which may affect our business, results of operations or financial
condition); various political, economic, legal, regulatory, social and other
risks and uncertainties across jurisdictions in which the Group operates;
changes to mining concessions or the imposition of new mining royalties, or
changes to existing mining royalties in the jurisdictions in which the Group
operates; the Group's ability to comply with the extensive body of regulations
governing the mining industry, as well as the need to manage relationships
with local communities; the ongoing effects of the global COVID-19 pandemic;
demand, supply and prices for copper and other long-term commodity price
assumptions (as they materially affect the timing and feasibility of future
projects and developments); trends in the copper mining industry and
conditions of the international copper markets; the effect of currency
exchange rates on commodity prices and operating costs; the availability and
costs associated with mining inputs and labour; operating or technical
difficulties in connection with mining or development activities;  risks,
hazards and/or events and conditions inherent to the mining industry, which
may affect our operations or facilities; employee relations; climate change as
well as the effects of extreme weather conditions; the outcome of any
litigation arbitration, regulatory or administrative proceedings to which the
Group is and may be subject in the future; and actions and activities of
governmental authorities, including changes to laws, regulations or taxation.

 

Except as required by applicable law, rule or regulation, the Group does not
undertake any obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. Past performance cannot be relied on as a guide to future
performance.

 

No statement in this announcement is intended as a profit forecast or estimate
for any period. No statement in this announcement should be interpreted to
indicate a particular level of profit and, as a consequence, it should not be
possible to derive a profit figure for any future period from this report.

 

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