Barrick Gold Denies First Quantum Rumors, Focuses On Developing Existing Tanzanian Projects

Barrick Gold GOLD has dismissed recent reports suggesting a meeting between one of its executives and First Quantum Minerals FM representatives in Panama to discuss a potential takeover.

The Globe and Mail reported that Juana Barceló, president of Barrick's Pueblo Viejo operations, met with First Quantum officials for a possible merger.

Barrick denies this claim, stating that Barceló’s last visit to Panama was in early 2023 for a mining conference. Despite reports of Barrick assessing support for a deal from First Quantum’s top shareholders, Barrick emphasizes no formal approach has been made.

First Quantum is facing financial challenges due to the closure of its Cobre Panama copper mine, which accounted for 5% of Panama’s GDP. This setback led to the suspension of dividends, voluntary retirements and contributed to a temporary halt of the Ravensthorpe nickel operation in Western Australia amid other market challenges.

As First Quantum has openly considered asset sales, Barrick's increasing copper interest with projects like the Lumwana super pit in Zambia and the Reko Diq mine in Pakistan have fueled speculations about an acquisition.

Still, First Quantum's main assets are in Panama and Zambia, the jurisdictions that Barrick's CEO Mark Bristow characterized as "challenging."

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Meanwhile, Barrick is strengthening relations in Tanzania. The company just handed over a new airport terminal at the closed Buzwagi gold mine’s Kahama airstrip, concluding an eight-month partnership with the Tanzania Airport Authority. Following the mine's closure in July 2022, Barrick has undertaken a feasibility study for a Special Economic Zone (SEZ), showing commitment to leaving a positive legacy in this community.

Barrick also reported meeting production goals for its North Mara and Bulyanhulu mines. These mines, part of the Twiga Minerals joint venture with the Tanzanian government, now produce gold at a Tier One level. Conversion drilling has replenished reserves, and Barrick is exploring opportunities for further production.

Since Barrick’s takeover of the Tanzanian mines in 2019, they have become the most significant contributor to the government’s revenue and a top domestic employer. Yet, the company is not resting on its laurels; it is investing $30 million in the Future Forward education initiative, improving Tanzania's educational infrastructure by delivering classrooms, dormitories, and washroom facilities for an additional 49,000 pupils.  

"Barrick has made an enormous difference for the better on every front in Tanzania. The success of the partnership model we pioneered here represents, I believe, the future of mining, particularly in developing countries," Bristow said.

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