Barrick Gold willing to be partner in Cobre Panamá mine

Barrick Gold has expressed its willingness to be considered as a possible partner in the Cobre Panamá copper mine after the Panamanian government makes a decision on the future of the asset. 

First Quantum Minerals owns the mine, which has been idle since November after operations were halted in the wake of widespread public protests against its renewed contract. 

“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,” Barrick CEO Mark Bristow was reported as saying by Reuters.

The new government, led by President Jose Raul Mulino since July, has stated that the mine's future will be decided next year. 

Cobre Panamá is an important mine as it accounted for 1% of global copper output and around 5% of Panama’s GDP.

First Quantum has begun international arbitration proceedings against Panama, launching a US$30bn case before the International Chamber of Commerce in Paris and threating US$20bn arbitration under the Canada-Panama Free Trade Agreement

These legal proceedings will encourage negotiations with the government that will shape the future of the mine.

A First Quantum spokesman said the company would not comment on the Reuters story, and Panama's economy and finance minister Felipe Chapman did not immediately respond to a request for comment from BNamericas.

Bristow said, however, that Barrick will take a conservative approach to deal-making and remains wary of paying a premium despite a recent surge in copper prices. 

“We always say, ‘be careful about paying at the top of the market,” Bristow said.

Barrick reported increased earnings and production for its second quarter, in line with guidance, and the company said it is on track for a strong second half of the year. April-June, the Toronto-based miner produced 948,000oz of gold and 43,000t of copper.

The company is completing an expansion project at its Pueblo Viejo operation in the Dominican Republic which is designed to increase gold production to more than 800,000oz beyond 2040. Recovery optimization would drive Pueblo Viejo's production growth and cost improvement in H2.