Barrick Gold CEO Advocates Exploration Over Mergers for Copper Supply
Mark Bristow, CEO of Barrick Gold (NYSE: GOLD), expressed his belief that mergers and acquisitions (M&A) would not effectively expand the copper supply needed for the energy transition.
While mining giant BHP (ASX: BHP) pursues a $39 billion deal for Anglo American (LON: AAL), Bristow emphasized to the Financial Times the importance of companies prioritizing investments in exploring and developing new copper deposits. He argued that BHP’s pursuit of Anglo underscores the necessity for industry investment in its future.
Bristow cautioned against the misconception that consolidation automatically leads to increased production. Instead, he stressed that consolidation often results in production reduction.
Projections indicate a significant surge in copper demand in the coming decades. BloombergNEF forecasts an 11.1-fold increase in demand from the transport sector alone by 2050 compared to 2022. Additionally, demand to expand the global electricity grid is expected to rise by 4.8 times during the same period.
By 2030, the global copper supply gap is projected to approach 10 million metric tons.
BHP has until May 22 to determine whether to make a formal offer for Anglo. Bristow acknowledged the complexity of BHP’s potential acquisition, describing BHP as the “ultimate 800-pound gorilla.” He expressed skepticism about Barrick Gold’s ability to compete in such a process.
Furthermore, Bristow dismissed any notions of taking over Canada’s First Quantum Minerals (TSX: FM), which has faced challenges due to a dispute with Panamanian authorities over its Cobre Panama mine.
Last November, Panama’s Supreme Court ruled First Quantum’s mining contract unconstitutional, leading to the closure of the country’s only mining operation.
Bristow emphasized that without clarity on the situation, Barrick Gold has no interest in pursuing the opportunity, considering it not viable in its current state.
SOURCE:mining.com
