The capital cost of expanding the Pueblo Viejo mine in Dominican Republic has risen to $1.4-billion, bullion major Barrick Gold reported on Friday.
The company explained that the expansion, which would deliver a mine capable of producing more than 800 000 oz/y until at least 2040, had experienced logistical challenges, owing to the impact of the Covid-19 pandemic on the global supply chain. These disruptions have delayed the timing of the project completion from July to the end of the year.
The new cost estimate compares with the $1.3-billion price tag announced when the decision to proceed with the project was made in March 2020.
Barrick, which owns Pueblo Viejo in a 60:40 joint venture with Newmont, reported that it had incurred $450-million on the project by the end of December 2021.
The new tailings storage facility remained in the permitting phase. The miner noted that studies for additional tailings and mine waste rock capacity continued to advance and that alternative sites were being reviewed.
CEO Mark Bristow said in February that Pueblo Viejo would be a “super mine” once the expansion was completed. For most of the extended mine life, the project would deliver more than 900 000 oz/y and there were two years that it would produce more than one-million ounces a year.