Union at BHP’s Escondida mine accuses firm of anti-union practices
The union accuses the company of making an offer outside of a government-mandated mediation process.
Barrick Gold (NYSE: GOLD) stands ready to be a partner in the Cobre Panama copper mine once the Panamanian government decides on the disputed asset’s future, Mark Bristow, CEO of the Canadian gold and copper mining company, said on Monday.
The mine, owned by First Quantum Minerals, has been under dispute since November when protests led to the mine’s closure.
The new government, led since July by President Jose Raul Mulino, has said the future of the mine – which accounted for 1% of global copper output and 5% of Panama’s GDP – will be decided next year.
“At the end of the day, it is the Panamanian government that has to decide what it wants to do with this asset, and we of course, stand available to be considered as a potential partner sometime in the future,” Bristow told Reuters at his Toronto office.
First Quantum initiated proceedings last year against Panama at the International Court of Arbitration in Florida, seeking $20 billion over the mine shut-down.
First Quantum and the Panamanian government did not immediately respond to requests for comment.
Even as demand for copper assets heats up among big miners, Bristow said Barrick will take a conservative approach to deal-making and remains wary of paying a premium, despite a recent surge in copper prices.
“We always say, ‘be careful about paying at the top of the market,'” Bristow said.
Some of the biggest copper miners viewed by bankers and industry insiders as potential acquisition targets are Anglo American and Teck Resources.
BHP’s failed bid to acquire Anglo American for $49 billion and Lundin Mining’s recent joint venture with BHP have spurred expectations of more big-ticket copper deals.
Teck’s controlling shareholders, Norman Keevil and Sumitomo Metal Mining Co, rejected last year a hostile bid from Glencore. Teck later spun off its coal assets to Glencore for C$8.9 billion and said it would focus on copper.
Bristow said Barrick reviews everything it considers world-class copper and gold assets and that it had looked at Teck, but added that its share structure could be a hindrance to any deal.
“We have a strong balance sheet, we have no real debt, and we are Canadian. So that is also important,” said Bristow.
Teck has a dual class share structure with multiple voting rights attached to its class-A common shares, the majority of which are controlled by Keevil and Sumitomo.
Bristow noted that Teck’s dual-share structure sunsets in four years, so there is time to think through options.
Teck said the company does not comment on market rumors or speculation.
(By Divya Rajagopal and Felix Njini; Editing by Kevin Liffey and Rod Nickel)
Read More: First Quantum to trim work hours at stalled Panama copper mine
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