Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Barrick Gold is interested in early-stage exploration in South America’s Guyana Shield and wants “more exposure” in Canada, Executive Vice President of Exploration Rob Krcmarov said in an investor presentation Friday.
“We’d also look to copper opportunities that are within our operating regions, but only if they meet our investment criteria,” he said via webcast from the London event.
Barrick has a 15-percent stake in Reunion Gold, an exploration company active in the Guyana Shield, which crosses Suriname, Guyana and French Guyana.
Barrick will require a 15 percent rate of return, based on a $1,000 gold price, to approve projects with more than 5 million ounces of gold, said head of projects and evaluation Rod Quick. For projects with more than 3 million ounces of gold it will need a 20 percent return, he said in advance of the $6.1 billion merger with Randgold Resources expected to close Jan 1.
(Reporting by Susan Taylor Editing by Chizu Nomiyama)
