Barrick Gold is looking to sell its stake in a relatively small Chilean copper mine, as the company focuses on bigger and more profitable operations elsewhere, according to people with knowledge of the matter.
The firm has appointed advisors and reached out to possible buyers for its 50% holding in the Zaldivar mine, the people said, asking not to be identified because the matter is private. Antofagasta owns the other 50%. The process is at an early stage and may not lead to a deal, they added.
While the world’s No. 2 gold miner is keen to expand into copper to tap into the decarbonisation theme many investors favor, Barrick has also looked to simplify its business as its focuses on tier one assets and paying down debt.
A spokesperson for Barrick declined to comment.
The Zaldivar mine in Chile is relatively small, producing a total of about 80 000 t of copper last year. While that’s dwarfed by the large mines that dot the Andes, the project will still require sizable investments in the coming years.
Instead Barrick is focused on its huge Reko Diq copper project in Pakistan, as well as Lumwana in Zambia. In both cases, Barrick would be the operator.
Barrick has spent years working to improve its balance sheet after amassing debt from acquisitions. Mark Bristow, who joined as chief executive officer in 2019 as part of the Canadian company’s takeover of Randgold Resources, has paid down that debt while exercising restraint in dealmaking. He has also pursued diversification into copper, just as the global energy transition boosts demand for the wiring metal.
The company is also facing a major problem at one of its flagship mines in Mali. Barrick said earlier this month that it was suspending operations in the country after the government started removing gold from the nation’s biggest mine in the latest escalation of a months-long dispute.