Barrick Gold Open To Cobre Panama Partnership: 'We, Of Course, Stand Available,' Says CEO

Besides posting positive Q2 results driven by higher revenues, Barrick Gold‘s GOLD management has expressed interest in partnering with the Panamanian government.

The Cobre Panama mine, a world-class copper mine, has been idle since last December, and the company says the new administration will eventually have to resolve this situation.

“At the end of the day, it is the Panamanian government that has to decide what it wants to do with this asset, and we, of course, stand available to be considered as a potential partner sometime in the future,” said CEO Mark Bristow, as reported by Reuters.

Now Read: Gold Fields Acquires Osisko Mining for $1.57B, Secures Control Over Highly Prospective Windfall Project

The future of the Cobre Panama mine has been uncertain since the mine’s owner, First Quantum Minerals FQVLF, clashed with the Panamanian government over contractual disputes. These tensions culminated in a shutdown of the mine following widespread protests and a ruling by Panama's top court that deemed First Quantum's contract unconstitutional.

Cobre Panama is a significant asset in the global mining industry. As one of the largest new copper mines, it accounted for 1% of global copper production and contributed about 5% to Panama's GDP before its closure. The mine’s large scale and influence make it a critical point of interest for both the Panamanian government and international mining companies.

In response to the shutdown, First Quantum initiated arbitration against Panama, seeking $20 billion in damages. The company argues that the closure has severely impacted its operations and financials.

Newly elected President Jose Raul Mulino has stated that the decision regarding the mine's future will be made next year, leaving room for potential new partnerships or operational changes. However, he has also urged First Quantum to drop its arbitration proceedings as a precursor to any further talks.

First Quantum has taken steps to reduce costs at the mine. Bloomberg reported that the miner would trim working hours and end Sunday activities, which is expected to cut expenses further. The company reportedly spent $115 million on maintaining the site from January to June.

Still, despite a surge in interest in prospective assets, Bristow stated that Barrick must be careful about overpaying.

"We always say, ‘be careful about paying at the top of the market,’" he said.

He also noted that management has looked into Teck Resources TECK, a Canadian miner with prominent resources that fended off Glencore's hostile bid before offloading its coal assets to them. However, he believes the company's dual-class share structure with multiple voting rights could hinder that deal.

Also read: