Barrick To Spend $1.3 Billion On Pueblo Viejo's Expansion
Zacks Investment Research | Mar 11, 2020 09:18PM ET
Barrick Gold Corporation (NYSE:GOLD) announced that the proposed expansion of the Pueblo Viejo gold mine will boost the mine life and also contribute to the economy of Dominican Republic till 2040 and beyond.
The project will require an initial investment of $1.3 billion for expansion of the process plant and the tailings facility. The investment will extend the mine’s life and unlock potential to increase exports by $22 billion. The company also stated that this is likely to generate more than $4 billion in taxes at a gold price of $1,500 per ounce.
Notably, Pueblo Viejo paid $1.8 billion in direct taxes between 2013 and 2016. Moreover, exports from the mine accounted for more than 38% of the country’s total exports in 2019. The expansion will also create more job opportunities. Currently, 97% of the company’s workforce at Pueblo Viejo is Dominican, of which 12% is female participation. Barrick will also promote the development of local economy-based contractors and suppliers for the mine.
Importantly, the Pueblo Viejo expansion will enable the mine to exploit the lower grades in the ore body. Also, the expansion is not aimed at processing ores from outside the current concession area.
The company noted that the conversion of the mine’s Quisqueya 1 power plant to natural gas was commissioned successfully. The move is likely to make a favorable impact on the environment by reducing greenhouse gases by 30% and nitrogen oxide by 85%.
Barrick’s shares have gained 40.7% in the past year compared with the Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.