Global major Barrick Gold has revealed ambitious plans to boost gold output by 30% by the end of the decade, along with a significant (if belated) increase in its copper production.
From what CEO Mark Bristow told the annual Denver Gold Forum this week, Barrick expects gold-equivalent ounces to rise by nearly a third from its existing mines and new projects, such as the Reko Diq copper and gold project in Pakistan and the newly opened Goldrush mine in Nevada, where production is projected to reach 400,000 ounces per year by 2028, alongside the adjacent Fourmile project.
"We have six Tier One gold mines, with more in the making, and our long-term plans are based on quality ore bodies with industry-leading grades that drive improving cost profiles," Bristow said during the presentation.
The speech and accompanying graphics show that none of the expansion will come from Australia; instead, all of it will be sourced from existing mines.
A 30% increase in production by the end of the decade would bring annual gold output to between 5.2 million and 5.6 million ounces per year—still leaving Barrick second behind Newmont, which is currently digesting the $A26 billion paper takeover of Newcrest Mining last year.
In July, Barrick reaffirmed its annual gold production outlook of 3.9 million to 4.3 million ounces for this year, compared to analysts' expectations of 4 million ounces and last year's 4.05 million ounces.
"Alongside our peerless gold portfolio, we are also building a substantial copper business, both to feed the rising demand for this strategic metal and because it enhances our growth optionality to include copper-gold porphyries," Bristow said.
To increase its copper output, Barrick is focusing on the expansion of a key mine in Zambia.
Bristow mentioned that Barrick expects to complete the feasibility study for the expansion of the Lumwana mine in Zambia by the end of the year, paving the way for development to begin next year.
He added that the expansion would transform the Lumwana mine into a long-life, high-yielding Tier 1 copper mine, expected to rank among the top 25 in the world.
According to Barrick, the expansion involves first doubling the mine's throughput from the current 27 million tonnes to 52 million tonnes by twinning the existing processing circuit and significantly increasing mining volumes.
This would result in a life-of-mine average annual production of 240,000 tonnes of copper, compared to the current average of 120,000 tonnes.
The proposed Reko Diq copper-gold project in Pakistan is designed to produce 400,000 tonnes of copper and 500,000 ounces of gold per year in the second phase of its development post-2030.
By 2030, Barrick expects its mines to be processing more than 290 million tonnes of ore annually worldwide.
Fresh from its first post-Newcrest takeover asset sale last week, Newmont says it is on track to meet its target of raising $US2 billion from the disposal of low-quality mines and associated assets.
“We’ll get at least that,” Chief Operating Officer Natascha Viljoen said in an interview Tuesday at the Denver Gold Group's annual forum in Colorado. “All of them are tracking according to plan.”
Last week, Newmont announced the sale of the ageing Telfer gold and copper mine in Western Australia, as well as the nearby Havieron gold-copper prospect. The buyer is the 30% shareholder in Havieron, Greatland Gold, with help from Twiggy Forrest's privately owned Wyloo Metals.
The sale price is up to $US475 million, with more than 20% coming from Wyloo, which is Greatland’s biggest shareholder.
Newmont will now focus on finalising sales of mines and projects in Ghana, the US, and Canada by the end of the March quarter in 2025.
The process to sell its Akyem mine in Ghana is in "advanced stages," said Newmont’s Chief Financial Officer Karyn Ovelmen during a panel discussion at the Forum.
The process to sell a handful of gold mines in Canada and the US is in its "second stage," with the company undergoing due diligence with interested parties, she added.
