The successful two-decade partnership between the government of
Mali and Randgold (now Barrick Gold Corporation
(NYSE:GOLD)(TSX:ABX)) has made the gold mining industry one of the
key drivers of the country’s economy, Barrick president and chief
executive Mark Bristow said here today.
Briefing local media on the Loulo-Gounkoto
complex’s current performance, Bristow said Barrick was committed
to further investment in Mali. It was currently developing a new
underground mine at Gounkoto, replenishing existing reserves
through brownfields exploration, prospecting for another
world-class discovery along the Mali/Senegal shear zone and
undertaking mapping and research in the south of the country.
He cautioned, however, that Mali’s mining
industry was facing many social and fiscal challenges. Overcoming
these to ensure that the sector could sustain its contribution to
the economy required closer cooperation between government and
industry in a spirit of transparency and engagement.
Bristow noted that Barrick entered Mali through
Randgold’s discovery and development of Morila, which laid the
foundation for its mining industry as well as marking the first
true partnership between a host country and investors in West
Africa.
Since then, Barrick’s operations have paid
approximately $2.7 billion (almost CFA1.6 trillion) in taxes,
royalties and dividends to the state. Its mines currently
contribute more than 40% of the country’s total gold production. In
line with its commitment to creating value not only for its
shareholders and the treasury but to all the other stakeholders, it
pioneered the concept of building national capacity. Today all its
mines in the country are managed by all-Malian executive teams. In
addition, some of the key leaders in Barrick’s Africa and Middle
East region are the products of the group’s human capital
development programs in Mali.
Barrick also contributes to the economy through
its support for local businesses, to which it has paid
approximately $190 million (almost CFA112 billion) so far this year
alone.
Likewise, it continues to invest in the
community and all the villages around its mines now have schools,
primary healthcare clinics and access to potable water.
At Morila, which is nearing closure, it has
invested significantly in an Agripole which will provide a
sustainable post-mining micro-economy for the villages around the
mine. At Loulo, it has established an agricultural college which
this year produced 40 farming graduates who have been deployed
across 10 farms.
Turning to the operations, Bristow said in the
past quarter Loulo-Gounkoto had again set production records and
was on track to meet its production guidance of 690,0001 ounces of
gold for 2019. Successful exploration was replacing depleted
reserves, ensuring that its remaining life exceeded 10 years.
Loulo-Gounkoto is one of the world’s largest
gold mining operations and one of the largest businesses in West
Africa in terms of revenue, employment and taxes and dividends paid
to the state.
Bristow said that progress had been made in the
search for a global and amicable settlement of the tax and fiscal
issues between Barrick and the Government of Mali and negotiations
on the settlement’s implementation were nearing finalization.
Enquiries
President and chief executiveMark Bristow+1 647 205 7694+44 788 071
1386 |
Group regional manager West Africa Mahamadou Samaké +223 66 75 61
36 |
Investor & media relationsKathy du Plessis+44 20 7557
7738Email: barrick@dpapr.com |
Website: www.barrick.com
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to Barrick’s strategy, 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
“committed”, “further”, “currently”, “developing”, “replenishing”,
“prospecting”, “establishing”, “challenges”, “overcoming”,
“creating”, “continue”, ”nearing”, “guidance”, “replacing”,
“progress”, “negotiations”, “could” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to: forward-looking production guidance,
within the range of published guidance of 520-570koz (80%); the
potential for multiple zones of mineralization to be extended and
combined at the Loulo-Gounkoto complex; mineral reserve and mineral
resource replacement at the Loulo-Gounkoto complex; mapping,
research and prospects for mineral development in other regions of
Mali; the status of negotiations and implementation of a final
settlement with respect to tax and fiscal issues between Barrick
and the Government of Mali and continued cooperation between the
parties; and future investments in community projects, including
post-closure plans at Morila, and disease prevention programs.
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 Barrick 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: 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;
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; 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 Mali; lack of certainty with respect to foreign
legal systems, corruption, and other factors that are inconsistent
with the rule of law; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; the risks associated with
infectious diseases presenting as major health issues; timing of
receipt of, or failure to comply with, necessary permits and
approvals; failure to comply with environmental and health and
safety laws and regulations; litigation and legal and
administrative proceedings; damage to the Barrick’s reputation due
to the actual or perceived occurrence of any number of events,
including negative publicity with respect to the Barrick’s handling
of environmental matters or dealings with community groups, whether
true or not; 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; the impact of
inflation; fluctuations in the currency markets; contests over
title to properties, particularly title to undeveloped properties,
or over access to water, power, and other required infrastructure;
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.
Barrick disclaims 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.
Endnotes1. On a 100% basis.
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