Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) –– Barrick Pueblo
Viejo and its key stakeholders have agreed on independent
government-led oversight of the strategic environmental and social
impact assessment studies for the new tailings storage facility.
This facility, which forms part of an expansion project that will
require an initial new investment by Pueblo Viejo of $1.3 billion1,
is key to the mine continuing to operate beyond 2021 and could
extend the Tier One mine’s life to beyond 2040, supporting annual
production in excess of 800,000 ounces1.
The agreement comes after more than a year of
engagement with the communities that could be directly or
indirectly affected by the proposed facility and is an important
step towards starting fieldwork and advancing the permitting
process. The independent investigation will be conducted by a
leading international firm of specialists and run in parallel with
Barrick’s engineering and environmental studies.
The studies will ensure that the applicable
environmental standards and regulations are complied with,
including actions for the protection of surface water and
groundwater, biodiversity and cultural heritage.
“The expansion project has the potential to allow
Pueblo Viejo to convert approximately 9 million ounces1 of measured
and indicated resources to proven and probable reserves,” says
Barrick president and chief executive Mark Bristow.
“At Barrick we have a commitment to responsible
mining and transparency, so we welcome such initiatives. From
2013 to July 2021, Barrick Pueblo Viejo has paid more than $2.9
billion in direct and indirect taxes and last year its exports
accounted for 37% of the total national asset exports2.
Barrick has also started work on a local agribusiness development
which will be integrated into the tailings facility and create a
further benefit for the community,” he said.
Bristow said that with the expansion project,
Pueblo Viejo’s total economic contribution to the Dominican
government in direct and indirect taxes is expected to be over $9
billion from the beginning of commercial production in 2013 through
the extended life of mine beyond 20403. Pueblo Viejo is the
Dominican Republic’s largest corporate taxpayer.
“Pueblo Viejo has had a significant positive
environmental, social and economic impact in the country and we
hope that this will continue for many years to come. Our purpose is
to continue contributing to the social and economic development of
the country, while applying our sustainability vision which is to
create long-term value for all our stakeholders, including the
governments and people of our host countries,” said Bristow.
Pueblo Viejo’s previous operator, Rosario
Dominicana, effectively abandoned the mine in 1995 without a
proper closure, leaving it with a major water contamination
problem. When Barrick took over the asset, it launched the largest
environmental clean-up campaign in the country’s history, and the
water quality of the aquifers around the operation has
significantly improved and now meets regulatory standards.
About Pueblo Viejo
Pueblo Viejo is located in the Dominican Republic,
approximately 100 kilometers northwest of the capital city of Santo
Domingo, and is operated by the Pueblo Viejo Dominicana Corporation
— a joint venture between Barrick (60%) and Newmont (40%).
Development of the Pueblo Viejo project started in 2009, with first
production in 2012. The company’s workforce is 97% Dominican. Last
year, the conversion of the mine’s Quisqueya 1 power plant to
natural gas was successfully completed. This conversion from fuel
oil to natural gas will reduce greenhouse gas emissions 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 local communities.
Enquiries
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Endnote 1
On a 100% basis.
Endnote 2
Excluding exports from free trade zones.
Endnote 3
Future economic contribution over extended mine
life assuming a gold price of $1,599 per ounce and a silver price
of $20.96 per ounce.
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans, or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “advance”, “potential”,
”will”, “extend”, “continue”, “commitment”, “intend”, “ensure”,
“create”, “plan”, “vision”, “strategy”, “expand”, “partnership” and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to the anticipated
benefits of Pueblo Viejo’s mine life extension project including
planned investments and economic contributions to the Dominican
Republic, forecasted annual production and the expected conversion
of resources to reserves, the completion of the independent
strategic environmental assessment for the new tailings storage
facility, Pueblo Viejo’s commitment to protecting the environment,
biodiversity and cultural heritage, and Barrick’s sustainability
vision and partnership with its host governments, communities and
other stakeholders.
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 Barrick Gold Corporation (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; risk of loss
due to acts of war, terrorism, sabotage and civil disturbances;
risks associated with projects in the early stages of evaluation,
and for which additional engineering and other analysis is
required; failure to comply with environmental and health and
safety laws and regulations; timing of receipt of, or failure to
comply with, necessary exploration permits and other permits
approvals; uncertainty whether some or all of targeted investments
and projects will meet the Company’s capital allocation objectives
and internal hurdle rate; 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 and other jurisdictions in
which the Company or its affiliates do or may carry on business in
the future; 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;
risks associated with artisanal and illegal mining; risks
associated with new diseases, epidemics and pandemics, including
the effects and potential effects of the global Covid-19 pandemic;
litigation and legal and administrative proceedings; employee
relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource
shortages, related to climate change; and 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.
Barrick 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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