Pakistan’s top court declares lease for Barrick joint-venture project invalid

TORONTO – The Supreme Court of Pakistan has cancelled a lease agreement for a copper-and-gold project being developed by a joint venture between Barrick Gold Corp. (TSX:ABX) and a Chilean company.

The country’s top court ruled that a joint venture agreement regarding the project was also illegal as it broke Pakistan’s mine development laws.

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Tethyan Copper Company, a joint venture between Barrick and Antofagasta Minerals, is trying to develop the Reko Diq project in Balochistan, a rough and tumble province that shares borders with Afghanistan and Iran.

Balochistan is one of the poorest provinces in Pakistan and rife with tribal fighting and insurgents.

Tethyan filed for international arbitration in 2011 after the Pakistani government rejected its mining lease application.

The case is being heard by the International Centre for Settlement of Investment Disputes.