Reko Diq mine to generate $74bn in free cash flow over 37 years, says Barrick Gold CEO
The global demand for copper is expected to surge on the back of the electrification of mobility, the surge in renewable energy projects, and an insatiable demand for electricity to meet the growing demand for computing power. All such advancement remains contingent on the availability and supply of copper, which is expected to remain constrained in the near term.
In an exclusive interview with the President and CEO of Barrick Gold, Mark Bristow suggests that Rekodiq remains the largest untapped resource of copper in the world. The history of Rekodiq has been marred by political turmoil, and judicial overreach, but as things are put in motion, as work progresses, the mine may start producing copper and gold by 2028 — right when the market for copper is at its tightest.
Barrick Gold estimates that an initial capital expenditure of $5.5 billion will be incurred to develop the first phase of the mine, which may be referred to as a starter mine, that can produce 200,000 tonnes of copper concentrate, and 250,000 ounces of gold annually. A subsequent expansion may call for capital expenditure of another $3.5bn, which would double the size of the mine to 400,000 tonnes of copper and 500,000 ounces of gold.
Rekodiq has one of the better grades of copper globally at 0.53 per cent, meaning that for every tonne of ore (or raw rock) that is mined, five kilograms of copper is extracted. Following the expansion of the subsequent phase, the mine would provide over 90........
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