The proposed expansion of the Pueblo Viejo gold mine will extend
its life as well as its significant contribution to the Dominican
Republic’s economy until 2040 and beyond, Mark Bristow, president
and chief executive of operator Barrick Gold Corporation, said here
today.
Speaking to local media and businessmen, Bristow said the
project would require an initial investment of $1.3 billion to
expand the process plant and the tailings facility1. Extending its
life would unlock the mine’s potential to increase exports by $22
billion and generate more than $4 billion in taxes at a gold price
of $1,500 per ounce. Between 2013 and 2016 Pueblo Viejo paid $1.8
billion in direct taxes and last year its exports accounted for
more than 38% of the country’s total. The company’s workforce
(which is 97% Dominican) is expected to grow as the project
develops and it will increase opportunities for female
participation (currently 12% of the workforce). It will also
further promote the development of the local economy based on the
mine’s suppliers and contractors.
“Our aim is to continue contributing to the social and economic
development of the Dominican Republic by applying our
sustainability philosophy to create long-term value for all our
stakeholders, especially the governments and people of our host
countries. Without this project mining at Pueblo Viejo would have
ceased in the next two years,” he said.
The expansion will enable the mine to exploit the lower grades
in the orebody and is not intended to process ore from outside the
current concession area.
In the meantime, Bristow noted, the conversion of the mine’s
Quisqueya 1 power plant to natural gas had successfully been
commissioned. This will cut greenhouse gases by 30% and nitrogen
oxide by 85%, further reducing Pueblo Viejo’s impact on the
environment. An agribusiness project is also planned as an
additional benefit for the communities impacted by the
expansion.
Enquiries:
Mark BristowPresident and CEO+1 647 205 7694+44
788 071 1386
Mark HillChief Operating Officer LATAM and Asia
Pacific+1 416 307 7429+1 416 358 4667
Kathy du PlessisInvestor and Media Relations+44
20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Endnote
1 On a 100% basis. For additional detail regarding
Pueblo Viejo, see the Technical Report on the Pueblo Viejo mine,
Sanchez Ramirez Province, Dominican Republic, dated March 19, 2018,
and filed on SEDAR at www.sedar.com and EDGAR
at www.sec.gov on March 23, 2018.
Technical Information
The scientific and technical information contained in this press
release has been reviewed and approved by John Steele, CIM,
Metallurgy, Engineering and Capital Projects Executive, who is a
“Qualified Person” as defined in National Instrument 43-101 –
Standards of Disclosure for Mineral Projects.
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press release, including
any information as to Barrick’s strategy, plans, or future
operating or environmental performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“provide”, “benefits”, “proposed” “will”, “would”, “potential”,
“plan”, “future”, “expansion”, “estimated” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to estimated capital expenditures and the
potential for the expansion project at Pueblo Viejo to extend the
life of mine for 15 years while maintaining significant
contributions to exports, creating new jobs generating more taxes,
and other potential benefits including the proposed agribusiness
project.
Forward-looking statements are necessarily based upon a number
of estimates and assumptions including material estimates and
assumptions related to the factors set forth below that, while
considered reasonable by the company as at the date of this press
release in light of management’s experience and perception of
current conditions and expected developments, are inherently
subject to significant business, economic and competitive
uncertainties and contingencies. Known and unknown factors could
cause actual results to differ materially from those projected in
the forward-looking statements, and undue reliance should not be
placed on such statements and information. Such factors include,
but are not limited to: fluctuations in the spot and forward price
of gold, copper, or certain other commodities (such as silver,
diesel fuel, natural gas, and electricity); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation, and exploration successes;
risks associated with the Pueblo Viejo expansion project and other
projects in the early stages of evaluation, and for which
additional engineering and other analysis is required to fully
assess their impact; diminishing quantities or grades of reserves;
increased costs, delays, suspensions and technical challenges
associated with the construction of capital projects; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges and disruptions in
the maintenance or provision of required infrastructure and
information technology systems; failure to comply with
environmental and health and safety laws and regulations; timing of
receipt of, or failure to comply with, necessary permits and
approvals; uncertainty whether some or all of targeted investments
and projects will meet the company’s capital allocation objectives
and internal hurdle rate; the impact of global liquidity and credit
availability on the timing of cash flows and the values of assets
and liabilities based on projected future cash flows; adverse
changes in our credit ratings; the impact of inflation; changes in
national and local government legislation, taxation, controls or
regulations and/ or changes in the administration of laws, policies
and practices, expropriation or nationalization of property and
political or economic developments in the Dominican Republic,
Canada, the United States, and other jurisdictions in which the
company or its affiliates do or may carry on business in the
future; lack of certainty with respect to foreign legal systems,
corruption and other factors that are inconsistent with the rule of
law; damage to the company’s reputation due to the actual or
perceived occurrence of any number of events, including negative
publicity with respect to the company’s handling of environmental
matters or dealings with community groups, whether true or not; the
possibility that future exploration results will not be consistent
with the company’s expectations; risks that exploration data may be
incomplete and considerable additional work may be required to
complete further evaluation, including but not limited to drilling,
engineering and socioeconomic studies and investment; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
litigation and legal and administrative proceedings; contests over
title to properties, particularly title to undeveloped properties,
or over access to water, power and other required infrastructure;
business opportunities that may be presented to, or pursued by, the
company; our ability to successfully integrate acquisitions or
complete divestitures; risks associated with working with partners
in jointly controlled assets; employee relations including loss of
key employees; increased costs and physical risks, including
extreme weather events and resource shortages, related to climate
change; availability and increased costs associated with mining
inputs and labor. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion, copper cathode or gold or copper concentrate losses
(and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our
actual results and could cause actual results to differ materially
from those expressed or implied in any forward-looking statements
made by, or on behalf of, us. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40- F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
The company disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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