During the announcement of its year-end results, the Canadian company, operator of the iconic Veladero gold deposit located in the Iglesia department of San Juan province, stated that "the operation comfortably exceeded its production expectations and managed to reduce costs, marking a significant shift in its trajectory."
By Panorama Minero
Now, the expansion phase of the leaching system, previously postponed, will be completed this year, while Phase 8 will be initiated, aiming to support a robust production level and extend the mine's lifespan by two years beyond the initial estimate, reaching a total of ten years of continuous operation. The average annual production rate will be approximately 400,000 ounces.
According to the company, at the time of the merger in 2019, the gold mine was viewed as a liability rather than an asset: "Its performance was, at best, lackluster, it had a checkered environmental record, shaky geology, and difficult relationships with stakeholders."
Furthermore, they noted that Argentina's ongoing financial crisis exacerbated these issues, making 2023 a particularly challenging year for the mine. "However, in the face of all these adversities, Veladero comfortably exceeded its production guidance and surpassed its cost guidance." Following the merger, Barrick set out to revitalize Veladero by reinterpreting its geology, thoroughly reviewing its business plan, and adopting a productive approach to partnering with communities and authorities.
The execution of the revitalization strategy required disciplined execution by the new management team, agile decision-making focused on business, and addressing issues in the country head-on. It also necessitated right-sizing the cost base, which meant postponing some projects as now planned to be restarted during the current year, Phase 7B and Phase 8 respectively.
"The consistent performance improvement in 2023 was supported by the Libertadores powerline's first full year of operation. The line supplies renewable power from Chile's national grid, reducing greenhouse gas emissions and adding cost efficiencies."
Additionally, according to Mark Hill, Chief Operating Officer of Barrick's Latin America and Asia Pacific region, recent changes in the Argentine government have also improved Veladero's prospects: "We are optimistic that the new administration intends to promote mining investment with a stable regulatory and economic framework. We will continue to work closely with both federal and local governments, employing the Barrick partnership model that has served us so well in other jurisdictions."
