Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) (“Barrick” or the
“company”) president and chief executive Mark Bristow said his
meeting today with prime minister James Marape had served to
confirm the need for a partnership approach to the future of the
Porgera gold mine. This was Bristow’s second meeting with the
recently elected prime minister and his third visit to Papua New
Guinea (PNG) since he joined Barrick at the beginning of the year.
Porgera’s special mining lease expires this
month and the government is currently considering an application
for a 20-year extension by its operator, Barrick Niugini Limited, a
joint venture between Barrick and Zijin Mining Group of China.
Bristow said Prime Minister Marape’s view that
PNG should receive a better share of the benefits generated by the
development of its mineral resources was in line with Barrick’s own
commitment to ensuring that the value created by its operations
should reward all its stakeholders, especially its host governments
and communities.
“The people of PNG have a right to benefit from
these resources and the government is their steward. The mining
companies invest the capital and provide the expertise that makes
profitable resource development possible. This common cause calls
for a productive, mutually rewarding partnership between the miners
and their hosts. Barrick has successfully established and
maintained such relationships at its operations worldwide,” he
said.
Bristow noted that Porgera was one of the
largest mines in PNG and had been a key driver in its regional,
provincial and national economies for the past 30 years.
Over that time the mine has paid more than
4.3 billion Kina ($1.27 billion) in taxes and royalties
to the government and has contributed, on average, approximately
10% of the country’s annual export income. It is one of the largest
employers in the country, with more than 3,100 full-time PNG
employees, 1,000 of them recruited in the Porgera region. It has
spent 1.2 billion Kina ($353 million) with Porgera
businesses, helping hundreds of them to grow. The Enga provincial
government and Porgera landowners have also benefited directly from
their part-ownership of the mine, earning more than
1 billion Kina ($294 million) in equity cash
payments.
“Our presence here has also been a force for
good in many other ways, and the development projects and education
and training initiatives we have funded, including our donations,
to the total value of 544 million Kina ($160 million)
have provided schools, health services, water, power, bridges and
roads, changing the lives of many for the better. The imminent
reopening of the much-needed Paiam hospital in Porgera, made
possible by the mine’s financial and technical support, is the most
recent example of our commitment to the community,” Bristow
said.
Bristow said Barrick and its joint venture
partner Zijin saw a bright future ahead for Porgera. It is a
world-class gold deposit and with the right level of investment and
appropriate mining technology combined with prudent management,
there are opportunities to maintain and even increase production
while continuing to curb costs.
“I am travelling to the mine tomorrow where I
look forward to continuing the discussions I have had with
government with our local stakeholders. I am confident that we
shall be able to reach a broad agreement on the terms of the lease
extension, and that we shall develop the kind of partnership that
will ensure that Porgera continues to benefit the country and
community for many years to come,” he said.
Enquiries
President and chief executiveMark Bristow+1 647 205 7694+44 788 071
1386 |
COO LATAM and Asia PacificMark
Hill+1 416 307 7429 +1 416 358 4667 |
Investor & media relationsKathy du Plessis+44 20 7557
7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
InformationCertain information contained or incorporated
by reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance, constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “future”, “commitment”,
“potential”, “development”, “possible”, “initiative”,
“opportunities”, “continue”, “look forward”, “shall”, “will”,
“should” and similar expressions identify forward-looking
statements. In particular, this press release contains
forward-looking statements including, without limitation, with
respect to: the future for Porgera, including opportunities to
maintain and increase production while continuing to reduce costs,
and continued benefits to the country and community; and
discussions to reach agreement with the PNG government regarding an
extension of Porgera’s special mining lease and the terms of any
such agreement.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: timing of receipt of, or
failure to comply with, necessary permits and approvals, including
with respect to Barrick Niugini Limited’s application for an
extension to the Porgera mine’s special mining lease; changes in
national and local government legislation, taxation, controls or
regulations and/or changes in the administration of laws, policies
and practices, expropriation or nationalization of property and
political or economic developments in PNG; lack of certainty with
respect to foreign legal systems, corruption and other factors that
are inconsistent with the rule of law; risks associated with
illegal and artisanal mining; fluctuations in the spot and forward
price of gold, copper or certain other commodities (such as silver,
diesel fuel, natural gas and electricity); the speculative nature
of mineral exploration and development; changes in mineral
production performance, exploitation and exploration successes;
risks associated with projects in the early stages of evaluation
and for which additional engineering and other analysis is
required; diminishing quantities or grades of reserves; increased
costs, delays, suspensions and technical challenges associated with
the construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; uncertainty whether some or all of
Barrick's targeted investments and projects will meet the Company’s
capital allocation objectives and internal hurdle rate; the impact
of global liquidity and credit availability on the timing of cash
flows and the values of assets and liabilities based on projected
future cash flows; adverse changes in our credit ratings; the
impact of inflation; fluctuations in the currency markets; changes
in U.S. dollar interest rates; disruption of supply routes which
may cause delays in construction and mining activities; damage to
the Company’s reputation due to the actual or perceived occurrence
of any number of events, including negative publicity with respect
to the Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation and
legal and administrative proceedings; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; business
opportunities that may be presented to, or pursued by, the Company;
our ability to successfully integrate acquisitions or complete
divestitures; risks associated with working with partners in
jointly controlled assets; employee relations including loss of key
employees; increased costs and physical risks, including extreme
weather events and resource shortages, related to climate change;
and availability and increased costs associated with mining inputs
and labor. In addition, there are risks and hazards associated with
the business of mineral exploration, development and mining,
including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion, copper cathode or gold or copper concentrate losses (and
the risk of inadequate insurance, or inability to obtain insurance,
to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release. We disclaim any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required by
applicable law.
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