Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) announced today that
the Dominican Government had completed its strategic review of the
location of the new Tailings Storage Facility (TSF) for the Pueblo
Viejo mine. The new TSF forms part of the expansion project that is
designed to extend the Tier One1 mine’s life to beyond 2040 and
support annual production in excess of 800,000 ounces2.
The Government, through their process, have
identified a select number of alternatives for further assessment.
At the same time, Barrick conducted its own alternatives
assessment, completed by a multi-disciplinary team of external
subject matter experts from various independent consulting
companies. Several sites were initially identified and after
various screening phases, which considered environmental, social,
and technical factors, potentially feasible sites were identified
for further evaluation.
The two separate assessments independently
identified four alternative sites, of which two sites, located in
the Sanchez Ramirez Province, would be put forward for further
investigation.
Barrick president and chief executive Mark Bristow
said that although these alternative sites existed as determined by
the reviews, the final location and construction of the facility
would be subject to the completion of an Environmental and Social
Impact Assessment (ESIA) in accordance with Dominican Republic
legislation and international standards. Once completed, the ESIA
would be submitted to the Government for evaluation and final
decision.
The ESIA will identify and implement mechanisms to
mitigate potential environmental impacts as well as initiatives to
improve the livelihoods of the communities. Barrick is committed to
following international standards and will adhere to the Global
Industry Standard on Tailings Management in terms of design,
construction, operation, and closure of the tailings facility.
The new TSF would enable operations at Pueblo Viejo
to continue beyond 2040. As a major creator of value for the
Dominican Republic, the project will stop the decline in
production, and will facilitate the continued payment of taxes,
exportation, jobs, national and local purchases, and social
benefits the mine brings to the country.
In 2021 the Tier One mine paid $527 million in
direct and indirect taxes which brings total tax payments since
2013 to more than $3 billion.
“Our goal in the Dominican Republic, as elsewhere
in the world, is to create long-term value for all our stakeholders
through our strategy of sustainable development. Pueblo Viejo’s
expansion project is expected to increase total direct and indirect
taxes to over $9 billion from the beginning of commercial
production in 2013 through to the extended life of mine beyond
20403,” Bristow said.
About Pueblo Viejo
Pueblo Viejo is located in the Dominican Republic,
approximately 100 kilometres northwest of the capital city of Santo
Domingo and is operated by the Pueblo Viejo Dominicana Jersey 2
Limited – 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. In
2020, the conversion of the mine’s Quisqueya 1 power plant to
natural gas was successfully completed. This conversion from fuel
oil to natural gas is expected to 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 under
development to further contribute to the local communities.
Enquiries
Investor and Media RelationsKathy du Plessis+44 20
7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Notes
- A Tier One Gold Asset is an asset with
a reserve potential to deliver a minimum 10-year life, annual
production of at least 500,000 ounces of gold and total cash costs
per ounce over the mine life in the lower half of the industry cost
curve.
- On a 100% basis. 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.
- 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 “move forward”, “design”,
“support”, “commit”, ”continue”, “goal”, “expected”, “develop”,
“extend”, “expand”, “would”, “will”, “potential”, “create”, “plan”,
“vision”, “strategy”, 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 to support targeted levels of
production and extend the life of the mine beyond 2040 as well as
planned investments, social benefits, economic contributions and
direct and indirect taxes to the Dominican Republic; forecasted
annual production; the completion of the independent strategic
environmental assessment for the new TSF and the selection of the
final location and construction of that facility following the
completion of an ESIA and final decision by the government;
Barrick’s commitment to mitigating environmental impacts and
improving the livelihoods of impacted communities in connection
with the ESIA; Barrick’s adherence to the Global Industry Standard
on Tailings Management in the design, construction, operation, and
closure of the TSF; 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 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;
the impact of inflation and the availability and increased costs
associated with mining inputs and labor; 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; and increased costs and
physical risks, including extreme weather events and resource
shortages, related to climate change. 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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