By Rachelle Younglai
The Globe and Mail
Incoming Barrick Gold Corp. chairman John Thornton has friends in high places in China — including the country’s premier, central bank chief and anti-corruption czar, to name a few.
Now Mr. Thornton’s job is to turn those connections into new business opportunities for the gold miner as it seeks to turn the corner on a string of costly setbacks.
Mr. Thornton’s clout in China is the key reason Barrick founder and outgoing chairman Peter Munk chose him as his successor and persuaded the company’s board to award a $11.9-million (U.S.) signing bonus – an amount that became a flashpoint for shareholders already upset with the company’s performance. Barrick’s stock price has dropped sharply amid nearly $14-billion in writedowns tied to two major projects and a recent $3-billion share issue to help pay down its $15-billion debt load.