GOLD: Barrick, Zijin form joint venture at Porgera

PAPUA NEW GUINEA – Barrick Gold of Toronto and China’s Zijin Mining Group have created a joint venture in respect to Barrick’s 95% interest in the Porgera gold mine in the Enga province. Zijin bought into the project for US$298 million in cash, that Barrick will use to pay down another portion of its debt.

The deal is in line with China’s strategy of expanding business outside the country. Barrick now has access to Chinese engineering, construction management, and technology.

The Porgera project includes both open pit and underground mining as well as a mill. In 2014, Barrick’s share of production was 493,000 oz of gold at an all-in sustaining cost of US$996 per ounce.

Barrick has a lovely portfolio of photos from Porgera on its website, Barrick.com.