Barrick Gold Expresses Interest in Cobre Panama as Future Partner Amid Ongoing Disputes
Barrick Gold (NYSE: GOLD) is prepared to step in as a partner in the Cobre Panama copper mine once the Panamanian government resolves the ongoing dispute over the asset, CEO Mark Bristow stated on Monday.
The mine, currently owned by First Quantum Minerals, has been embroiled in controversy since November, leading to its closure following widespread protests.
The new administration under President Jose Raul Mulino, in power since July, has announced that a decision regarding the mine’s future—which contributes 1% of global copper output and 5% of Panama’s GDP—will be made next year.
“Ultimately, it is up to the Panamanian government to determine the fate of this asset, and we are available to be considered as a potential partner in the future,” Bristow told Reuters from his Toronto office.
First Quantum initiated legal proceedings against Panama at the International Court of Arbitration in Florida last year, seeking $20 billion in damages due to the shutdown. Both First Quantum and the Panamanian government have not yet responded to requests for comment.
As competition for copper assets intensifies among major mining companies, Bristow emphasized Barrick’s cautious approach to acquisitions, stressing the importance of avoiding overpaying despite the recent surge in copper prices. “We always caution against buying at the peak of the market,” Bristow remarked.
Industry insiders and bankers have identified Anglo American and Teck Resources as potential acquisition targets among the leading copper miners.
Recent developments, including BHP’s unsuccessful $49 billion bid for Anglo American and Lundin Mining’s joint venture with BHP, have fueled speculation about forthcoming large-scale copper deals.
Teck Resources, whose controlling shareholders—Norman Keevil and Sumitomo Metal Mining Co—rejected a hostile bid from Glencore last year, later divested its coal assets to Glencore for C$8.9 billion and declared its focus on copper.
Bristow mentioned that Barrick continually reviews world-class copper and gold assets, including Teck, but noted that Teck’s dual-class share structure could complicate any potential deal. “We have a strong balance sheet, no significant debt, and we are a Canadian company, which also plays a role,” Bristow added.
Teck’s dual-class share structure, which grants multiple voting rights to its class-A common shares—primarily controlled by Keevil and Sumitomo—is set to expire in four years, providing time to consider future options. Teck has declined to comment on market rumors or speculation.
