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Argentina approves restart of Barrick’s Veladero mine

Veladero mine, Argentina

Veladero mine, Argentina

Photo by Reuters

4th October 2016

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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VANCOUVER (miningweekly.com) – The world’s largest gold miner by output Barrick Gold has been given permission to restart operations at its Veladero mine – one of its cornerstone mines – in San Juan, Argentina.

Operations at the mine were suspended on September 15, a week after falling ice damaged a pipe carrying cyanide-saturated process solution in the leach pad area of the high-latitude mine, causing some material to leave the leach pad.

Barrick on Tuesday said it did not expect the nearly three-week halt in operations to impact the mine's 2016 guidance.

Normal operations at the mine were allowed to resume, following approval from San Juan provincial authorities of a series of remedial works carried out by Barrick.

This was designed to prevent similar recurring incidents, including increasing the height of the perimeter berms that surround the leach pad.

According to Barrick, the crushed ore saturated with process solution was contained on site and returned to the leach pad. Extensive water monitoring in the area has confirmed the incident did not result in any environmental impacts, Barrick reported.

The company will continue to assess the impact of the temporary suspension on Veladero's output for 2016, but reaffirmed company-wide output in the range of 5-million to 5.5-million ounces of gold, at all-in sustaining costs (AISC) of between $750/oz and $790/oz for the full year.

Veladero produced 602 000 oz of gold in 2015 and is expected to produce between 580 000 oz and 640 000 oz this year, at an AISC of $790/oz to $860/oz.

The same San Juan province had fined Barrick nearly $10-million for a similar leak in September 2015.

Barrick's TSX-listed stock on Tuesday traded down more than 10% at C$20.46 apiece, broadly in line with other gold stocks reeling from the precious metal's drop below $1 300/oz on Monday, its lowest level in three months.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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