Bullion major Barrick Gold has reached the seventeenth anniversary since it poured the first gold at its Veladero mine, in Argentina, and while the company remains committed to the asset, CEO Mark Bristow has flagged concerns about the future of mining in the South American country.

In a statement issued following a media briefing at the weekend, he said that Barrick, which was exploring in San Juan and across the country, had “raised concerns about the mining industry’s viability”.

“At Veladero, we have observed how the current financial situation in Argentina, with currency restrictions, inflation, and taxation, combines with the global financial crisis to create risks for the mine plan.

“As partners we urgently need to work together for a sustainable long-term future,” Bristow said.

The South American nation is on pace to hold the world’s highest inflation rate among major economies, with economists forecasting an inflation rate of 100% by December, according to news agency Bloomberg. The forecast, published in the central bank’s monthly survey last week, is the first time private economists have projected triple-digit inflation, not seen in Argentina since the early 1990s when hyperinflation ruined the economy. As of August, yearly inflation stood at 79%.

Veladero is a 50:50 joint venture between Barrick and Shandong Gold. Barrick aims to extend the mine life beyond 2030 and to elevate it to a tier-one asset, meaning that it will produce at least 500 000 oz/y of gold and have a life of no less than ten years.

Bristow reported that recent integrated work from the exploration team in the Veladero district had identified four high interest targets that would be tested with drilling campaigns starting in October.

Also, to continue developing an open partnership with local communities, Veladero would launch four new Community Development Committees (CDC) in the departments of Iglesia and Jáchal, bringing the total to six, and increasing the frequency of participatory environmental monitoring. The role of the CDC is to allocate the community investment budget to projects prioritized by local stakeholders, with each committee made up of a mix of local leaders and a variety of community members.

“We call San Juan our home and since 2019 we have significantly improved our relations with all stakeholders based on our DNA of open and transparent communication. I’m thrilled to see this commitment expand with the installation of new Community Development Committees in our neighbouring communities of Iglesia and Jáchal”, Bristow said.

Another important initiative is to enhance environmental participatory monitoring. The first activity took place at the start of October when water quality samples were collected at Veladero's compliance point by community members and analysed at a certified laboratory. Over the next six months, monitoring would occur monthly and then quarterly, significantly increasing participation from the current yearly frequency.

In terms of value creation, the participation of local community suppliers reached $22-million in goods and services supplied to the mine in the last 12 months. This development process has generated new opportunities such as earthworks, construction, manufacturing of grinding balls, glass cutting, hardware, mining road maintenance, and cargo transportation among others. At the same time, the company has developed an incubation programme for non-mining related small businesses, which has produced about 60 initiatives in the last three years.