Barrick is seeking a Chinese partner to revive Pascua Lama project
This was confirmed to the Argentine media El Inversor Online close to the Canadian mining who are aware of the strategy of the firm in Asia
Due to the sharp decline in the price of metals and the urgent financial situation that afflicts the entire mining industry internationally, Barrick, the largest gold producer in the world, is seeking a strategic partner from China to strengthen its credit and financial solvency .
The main objective is to revive the Pascua Lama’s construction, the binational project with Chile, which is regarded as the jewel in the company future. This was confirmed by the Argentine media El Inversor Online relatives to the Canadian mining who are aware of the strategy of the firm in Asia.-
John Thornton’s appointment as the new chairman of the company, replacing Peter Munk, Barrick’s historic leader, explained in that tune. The Executive has experience in business development in the East. As Co-CEO of Goldman Sachs International successfully endured the Asian financial crisis of the late ’90s. While also on the boards of companies with substantial assets in Africa as China Netcom and he is still a member of the Investment Company China (CIC, for its acronym in English), the sovereign wealth fund responsible for managing a substantial part of the foreign exchange reserves of the Asian giant.
Although he has a thorough knowledge of the mining sector, his election as chairman responded more to his valuable address book in China than his specific expertise in the industry. To shovel the low cycle affecting mining worldwide, but especially in the West, Barrick aims to shield its position from a strategic alliance with an Asian partner. The company had already slipped that possibility in the quarterly statement issued at the end of October, by which the “temporary slowdown” construction of Pascua Lama was announced.
Still, it is unclear when the association could take place. The company avoided providing details about the play. Today-warn-channel priority is negotiations with San Juan as part of the slowdown in Pascua Lama, a mega project that will require an over U.S. $ 8,500 million investment (Barrick and paid U.S. $ 5,200 million).
Source: La Tercera
