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Barrick Announces Strategic Partnership with Zijin Mining Group

May 26, 2015

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All amounts expressed in US dollars unless otherwise indicated.

Zijin Mining Group Chairman Chen Jinghe (left) and Barrick Gold Corporation Chairman John L. Thornton (right) signed a strategic cooperation agreement at a ceremony at Zijin’s offices in Xiamen, China on May 26, 2015.

TORONTO, May 26, 2015 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) ("Barrick" or "the company") today announced that it has formed a strategic partnership with leading Chinese mining company Zijin Mining Group Co., Ltd ("Zijin").

As a first step, Zijin will acquire 50 percent of Barrick (Niugini) Limited ("BNL"), the company which owns 95 percent of and manages the Porgera Joint Venture gold mine in Papua New Guinea. In addition, Barrick and Zijin have signed a long-term strategic cooperation agreement which outlines the intent of both companies to collaborate on future projects and joint investments, leveraging the strengths of each company.

"A twenty-first century mining company with global reach and the intention to become an industry leader must, by definition, have a distinctive relationship with China. This is particularly true in our industry, where China has become both the largest producer and consumer of gold, and a major source of capital and expertise for the mines of the future," said Barrick Chairman John L. Thornton. "Our partnership with Zijin is the first step in a long-term strategic relationship with one of China’s leading mining companies—a multi-faceted partnership that will provide significant opportunities to work together on an ongoing basis as we continue to create value for our respective owners."

"A strategic partnership with Barrick is an excellent fit for Zijin and a powerful combination as we look to expand our business globally outside of China. Our companies have complementary expertise and experience and share a common vision for creating long-term value for our owners," said Zijin Chairman Chen Jinghe. "Barrick has strong international operating presence and experience as well as many of the best assets in the gold industry, while we have unrivaled access to the Chinese market, including distinctive engineering and construction management capabilities and advanced technology. We are excited to leverage our competitive strengths together, to start with at Porgera, while exploring additional joint opportunities for the future."

By partnering with Zijin, Barrick advances two fundamental objectives set out as part of the company’s "back to the future" strategy. The first is to strengthen the company’s balance sheet; the proceeds from the transaction will be used to pay down debt. The second is to form strategic partnerships that will create long-term value for all stakeholders.

Details of the Porgera transaction

Zijin and Barrick recognize the significant potential that exists at Porgera. Combining Barrick’s experience and track record of operating success in Papua New Guinea with Zijin’s strong cost management capabilities will help to unlock the full value of this mine for the benefit of all stakeholders.

Zijin will pay $298 million in cash for a 50 percent interest in BNL. The transaction is expected to be completed in the third quarter of 2015 and is subject to customary closing conditions.

Under the new structure, Barrick and Zijin will jointly control BNL (the manager of the Porgera Joint Venture), and BNL will have a joint Barrick-Zijin Board of Directors consisting of three Barrick nominees and three Zijin nominees. One party will nominate the Executive Managing Director, taking primary responsibility for operations of the mine, and the other party will nominate the Chairman of the Board of Directors and the Deputy Managing Director. In order to ensure continuity of operations and demonstrate Barrick's ongoing commitment to its stakeholders in Papua New Guinea, the current BNL management team will remain in place, with incumbent Executive General Manager, Greg Walker, nominated by Barrick as the first Executive Managing Director, while Zijin will nominate the first Chairman of the Board and Deputy Managing Director. Zijin’s role in BNL’s management of the Porgera Joint Venture is expected to grow over time as the company gains experience operating in Papua New Guinea.

Barrick looks forward to working with Zijin to realize the full potential of the Porgera mine, where both companies see significant value creation opportunities. Both Barrick and Zijin are committed to working with local communities and other partners in Papua New Guinea to ensure the Porgera mine generates value for all of its stakeholders for many years to come.

Credit Suisse is acting as financial advisor to Barrick. Davies Ward Phillips & Vineberg LLP and Herbert Smith Freehills LLP are acting as legal counsel to Barrick.

Details of the strategic cooperation agreement

As part of the strategic cooperation agreement, Barrick and Zijin will explore long-term opportunities to collaborate on future projects. Substantial synergies and value may be realized by bringing to Barrick the expertise and relationships that Zijin offers, including low-cost capital from Chinese institutions, leading Chinese engineering and construction skills, and Chinese machinery, equipment and other critical suppliers that meet world-class standards of quality at competitive costs. BNL will continue to honor its contracts with local suppliers at the Porgera Joint Venture. As opportunities for major projects arise in the future, Barrick and Zijin may agree to develop the mine together if it is considered in the best interests of both companies.

About BNL

Barrick (Niugini) Limited is the manager of and holds a 95 percent participating interest in the Porgera Joint Venture. The remaining five percent participating interest is held by Mineral Resources Enga Limited and is divided between the Enga Provincial government (2.5 percent) and local landowners (2.5 percent). Barrick’s share of gold production from the Porgera mine in 2014 was 493,000 ounces at all-in sustaining costs of $996 per ounce1. Production for 2015 is expected to be 500,000-550,000 ounces of gold at all-in sustaining costs of $1,025-$1,125 per ounce (95 percent share)2. At the end of 2014, Barrick had 3.0 million ounces of proven and probable gold reserves and 4.1 million ounces of measured and indicated gold resources at the Porgera mine (95 percent share)3.

About Zijin

Started from Zijinshan Gold Mine in 1993, Zijin Mining Group Co., Ltd ("Zijin") has developed an extensive portfolio of gold, copper, lead and zinc, tungsten, iron and other base metals over the past 20 years, with gold being its main focus. Zijin has become a large mining group specializing in gold and mineral resource exploration and production with subsidiaries in more than 20 provinces, municipalities, autonomous regions across China and seven countries. Listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange, Zijin ranked number 117 on the Forbes List of the Top 500 Chinese enterprises in 2014.

INVESTOR CONTACT:
Amy Schwalm

Vice President
Investor Relations
Telephone: +1 416 307-7422
Email: aschwalm@barrick.com

MEDIA CONTACT:
Andy Lloyd

Vice President
Communications
Telephone: +1 416 307-7414
Email: alloyd@barrick.com

  1. All-in sustaining costs per ounce is a non-GAAP financial performance measure with no standard meaning under IFRS. For further information and detailed reconciliations, see pages 83-89 of Barrick's Fourth Quarter and Year-End 2014 Report.
  2. 2015 guidance is based on gold and oil price assumptions of $1,200/oz and $50/bbl, respectively, and a AUS:US exchange rate of 0.80:1.
  3. Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. For a breakdown and additional details on tonnes, grade and ounces, see pages 26-33 of Barrick's 2014 Annual Information Form.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained or incorporated by reference in this press release, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "intend", "project", "continue", "potential", "may", "will", "could" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper or certain other commodities; changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and political or economic developments in Papua New Guinea and other jurisdictions in which the company does or may carry on business in the future; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; diminishing quantities or grades of reserves; operating or technical difficulties in connection with mining or development activities, including disruptions in the maintenance or provision of required infrastructure and information technology systems; damage to the company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the company’s handling of environmental matters or dealings with community groups, whether true or not; the speculative nature of mineral exploration and development; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; fluctuations in the currency markets; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; our ability to successfully complete transactions; and employee relations. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements.


新闻稿 -  2015年5月26日
除非有特别标注,所有金额单位为美元。

巴理克宣布与紫金矿业集团达成战略合作关系

多伦多 — 巴理克黄金公司(NYSE:ABX)( TSX:ABX)(“巴理克”或“公司”)今日宣布已与中国领先的矿业公司紫金矿业集团(“紫金”)达成战略合作关系。

作为合作的第一步,紫金将收购巴理克(新几内亚)有限公司(“BNL”)50%的股权。巴理克(新几内亚)经营巴布亚新几内亚境内波格拉合资联合体(Porgera Joint Venture)金矿并拥有其95%的权益。此外,巴理克和紫金还签署了长期战略合作协议,在协议中规划了两家公司如何在未来项目和联合投资活动中共同协作并发挥各自优势的意向。

巴理克董事长约翰·桑顿表示,“每一个志在21世纪成为活跃在全球舞台的领先矿业公司都必须与中国建立卓越的合作关系。这一点在我们行业尤为显著,因为中国已经成为全球最大的黄金生产国和消费国,也是未来矿产行业的重要资金和人才来源。” 他还说,“紫金是中国领先的矿业公司之一,巴理克与紫金的合作是我们双方共同开启长期战略合作的第一步 — 这一多方位的合作伙伴关系将会给我们持续的共同合作提供重要机遇,并为我们各自的股东创造价值。”

紫金董事长陈景河表示,“紫金正在寻求开拓海外市场,与巴理克的战略合作非常符合我们的期望,是强强联合。两家公司在专长和经验上实现了优势互补,并有着为股东创造长期价值的共同愿景。” 他还说,“巴理克在全球各地都有着丰富的运营经验和优质的资产,而我们在中国本土市场拥有无可比拟的优势,包括卓越的工程和建设管理能力和先进的技术。我们非常高兴能聚合双方的竞争优势,以波格拉为为起点,并探索未来其他合作的机会。”

通过与紫金的合作,巴理克推动了为实现其“回到未来”(“back to the future”)战略所设定的两大基本目标。第一是改善公司的财务状况,此次交易的收益将被用于偿还债务。第二是建立战略合作为所有利益相关方创造长期价值。

波格拉交易的具体细节

紫金和巴理克认为波格拉蕴藏着巨大潜力。将巴理克在巴布亚新几内亚境内拥有的丰富经验和成功运营与紫金在管理成本方面的杰出才能相结合,将进一步充分挖掘这一矿产的价值,让所有利益相关方从中受益。

紫金矿业将支付2.98亿美元现金用以换得巴理克(新几内亚)50%的股权。如果惯例性交割条件得以满足,该交易预计将于2015年第三季度完成交割。

在新的框架下,巴理克和紫金将会共同控股巴理克(新几内亚)(波格拉合资联合体的经营者),巴理克(新几内亚)的董事会将由巴理克和紫金双方共同组成,包括三位巴理克的提名董事和三位紫金的提名董事。其中一方将提名一位执行董事总经理,主要负责金矿的运营工作;另一方将提名董事会主席和副董事总经理。为确保日常运营的连贯性、显示巴理克对巴布亚新几内亚各利益相关方的一贯承诺,巴理克(新几内亚)现有的管理层将保持不变,现任执行总经理Greg Walker由巴理克提名为第一任执行董事总经理,同时紫金方面将提名第一任董事会主席和副董事总经理。未来随着紫金矿业在巴新运营经验的积累,其将在波格拉合资联合体的巴理克(新几内亚)管理团队中扮演更重要的角色。

巴理克期待与紫金矿业共同合作,挖掘波格拉金矿的潜力,实现双方对该矿的价值预期。巴理克和紫金都将致力于与当地社区及其他巴新合作伙伴的通力协作,以保证波格拉金矿能在未来的多年中为所有利益相关方创造价值。

瑞信证券担任巴理克的财务顾问。Davies Ward Phillips & Vineberg LLP 和Herbert Smith Freehills LLP担任巴理克的法律顾问。

战略合作协议的具体细节

作为战略合作协议的一部分,巴理克和紫金在未来的项目中将会探索长期合作机会。紫金矿业所拥有的专业技能和关系资源将为巴理克带来巨大的协同效应,包括从中国机构获得领先的机械和建筑技术及符合国际标准且性价比高的机械设备和其他供应商资源。巴理克(新几内亚)金矿还将继续履行波格拉合资联合体与当地供应商签订的合约。未来在有重大项目机会且符合双方最佳利益的情况下,巴理克和紫金可能会合作开发新的矿产资源。

关于BNL

巴理克(新几内亚)有限公司是波格拉合资联合体的经营者并拥有其95%的权益。剩余5%的权益由恩加矿产资源有限公司(Mineral Resources Enga Limited)所有,并由恩加省政府(2.5%)以及当地土地所有者(2.5%)平均分配。2014年,巴理克在波格拉金矿所分得的黄金产量份额为493,000盎司,每盎司总维持成本为996美元1。波格拉矿山2015年黄金产量有望达到50万—55万盎司,每盎司总维持成本为1,025美元-1,125美元(95%权益) 2。截至2014年年底,巴理克在波格拉矿山拥有300万盎司已探明及可能黄金储量,以及410万盎司的测量及推定黄金储量(95%权益)3

关于紫金矿业

紫金矿业集团股份有限公司(“紫金”)1993年从福建省紫金山金矿起步,经过20余年的发展,形成以黄金为主,铜、铅锌、钨、铁等基本金属并举的产品格局。现在,紫金已经成为一家以黄金和矿产资源勘探和开发为主的大型矿业集团,在全国20多个省份、直辖市和自治区及海外7个国家有分属公司。紫金矿业在上海和香港两地上市,位居《财富》杂志“2014年中国企业500强”排行榜第117位。

  1. 每盎司总维持成本是在不按并非国际财务报告准则(non-GAAP)下中的一项财务业绩指标,在按国际财务报告准则(IFRS)中亦没有标准定义。详情参见巴理克2014年第四季度及年度末报告83-89页。
  2. 2015年指引是以黄金每盎司1,200美元和石油每桶50美金,澳元和美元汇率为0.80:1为基础作出的预测。
  3. 据加拿大证券监管部门规定,由美国国家仪器公司43-101测量所得。有关明细及有关吨数、级别和盎司的进一步细节参见巴理克2014年年度信息表26-33页。

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