Tag Archives: Barrick Gold

Barrick and Newmont Goldcorp launch Nevada Gold Mines

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Barrick Gold and Newmont Goldcorp have officially launched their Nevada Gold Mines LLC joint venture, just over three months since the two signed an implemtentation agreement.

The new JV, owned 61.5% and operated by Barrick, and owned 38.5% by Newmont Goldcorp, will rank as the largest global gold producing complex by a “wide margin”, according to Barrick, with three of the world’s top 10 Tier One gold assets (Goldstrike/Carlin, Cortez and Turquoise Ridge/Twin Creeks) and potentially another one in the making (Goldrush), the company said.

Nevada Gold Mines’ assets in north-eastern Nevada comprise 10 underground and 12 open-pit mines, two autoclave facilities, two roasting facilities, four oxide mills, a flotation plant and five heap leach facilities. In 2018, these operations produced a total of 4.1 Moz of gold, approximately double that of the industry’s next largest gold mine (Muruntau, in Uzbekistan).

The company has a reserve and resource base with proven and probable reserves of 48.3 Moz; measured and indicated resources of 27.4 Moz; and a further 7.5 Moz of inferred resources with still more potential, Barrick said.

Nevada Gold Mines is targeting production of between 1.8-1.9 Moz at a preliminary estimated cost of sales of $940-970/oz and all-in sustaining cost of $920-950/oz for the second half of 2019.

Barrick President and Chief Executive Officer, Mark Bristow, who is chairman of the new company, says the establishment of Nevada Gold Mines was designed to combine, arguably, the industry’s best assets and people in order to deliver the best value to stakeholders.

“Its creation was driven by a compelling logic which had long been evident to all but had been elusive for two decades until we finally achieved a breakthrough this year,” Bristow said.

“Over the past months, we have selected and set Nevada Gold Mines’ leadership in place. The company now has one team that shares one vision, and who are more than ready to race out of the starting blocks. We have also identified the very significant synergy opportunities which are immediately available and those which have been targeted for the future.”

Gary Goldberg, Newmont Goldcorp’s Chief Executive Officer, said: “This innovative joint venture represents a unique opportunity to generate additional long-term value for our shareholders, employees, and the communities of northern Nevada. By combining our assets and talent in Nevada, the joint venture will extend safe, profitable and responsible production much further than what each company could have done on its own. We look forward to actively participating in and supporting the JV to deliver a positive step-change in results.”

Identified synergies are expected to deliver up to $500 million/y over the first five years from 2020, stepping down over time after that. These will come mainly from integrated mine planning, optimised mining and processing, cost reductions and the combination of the adjacent Turquoise Ridge and Twin Creeks, which will be operated as a single mine.

Barrick said: “Second half guidance builds in those synergies that the company believes it should be able to realise within the next six months, representing approximately half of the targeted annual cash flow improvements. With the closing of the JV now complete, the company will look to incorporate further synergies to benefit 2020 and beyond.”

The future benefits include longer profitable mine lives, longer-term employment opportunities, longer-term benefit-sharing with local communities and longer-term advantages for Nevada’s economy, according to Barrick.

Bristow noted that the Nevada Gold Mines management team included executives from both joint venture partners. The Executive Managing Director is Greg Walker, formerly Head of Operations and Technical Excellence for Barrick’s North American region. Barrick has three board seats and Newmont Goldcorp two, with the board supported by technical, finance and exploration advisory committees on which both companies have equal representation.

Second Sandvik roadheader heading to Turquoise Ridge gold mine

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The transition of Barrick Gold and Newmont Mining’s Turquoise Ridge gold mine (owned 75:25) in Nevada, US, to a Tier One operation is tracking to plan, the Canada-based miner said recently, with the Sandvik MR361 roadheader it took delivery of back in 2017 continuing to prove its worth.

Barrick said in its December quarter results that it is looking to increase production and resources at Turquoise Ridge through mechanisation, automation, and innovation.

The ramp up of the roadheader over 2018 improved safety, increased throughput, and dropped mining costs per tonne, the company said in its results statement. This has led to Barrick ordering a second roadheader, manufactured by Sandvik, which will be delivered to the operation later this year. On top of this, Barrick said it is evaluating the opportunity associated with increasing the level of mechanisation and automation for the operation.

Barrick already has extensive experience using Sandvik roadheaders, with the company having employed a MH620 unit at its Cortez gold mine, also in Nevada, US. Weighing 125 t and driven by a 300-kW cutting motor, the MH620 cutting the Range Front declines at Cortez is one of the world’s largest roadheaders.

Construction of a third shaft at Turquoise Ridge continues to advance according to schedule and within budget, Barrick said in the results statement, with efforts in 2019 focused on earthworks and shaft sinking.

“The construction of this shaft is expected to increase annual production to more than 500,000 oz/y (100% basis), at an average cost of sales of around $720/oz, and average all-in sustaining costs of roughly $630/oz,” Barrick said.

“As of December 31, we have spent $62 million (including $3 million in the December quarter of 2018) out of a total estimated capital cost of $300-$325 million (100% basis) on the construction of this shaft.”

Initial production from the new shaft is expected to begin in 2022, with sustained production from 2023.

Since the end of 2015, reserves at Turquoise Ridge have increased by 3.5 Moz (100% basis), primarily through driving down mining costs per tonne, which has allowed for a lower cutoff grade, thereby optimising the way the orebody is mined.

“The focus in 2019 is to realise the potential to further grow reserves, extend mine life, and grow production over and above the current mine plan, through reducing costs to further lower the cutoff grade, as well as extending mineralisation at depth,” Barrick said.

Barrick and Newmont agree on Nevada gold joint venture

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Barrick Gold and Newmont Mining have signed an implementation agreement that should see the two companies’ Nevada mining operations, assets, reserves, and talent combine under a joint venture.

The joint venture will, according to the two companies, allow them to capture an estimated $500 million in average annual pre-tax synergies in the first five full years of the combination, which is projected to total $5 billion pre-tax net present value over a 20-year period.

“The joint venture is an historic accord between the two gold mining companies, which have operated independently in Nevada for decades, but have previously been unable to agree terms for cooperation,” they said.

Barrick Gold had previously made an offer to take over Newmont, which itself is in the middle of trying to complete the acquisition of fellow gold miner Goldcorp. The company has agreed to withdraw this offer, in addition to proposals for the Newmont annual general meeting that it submitted on February 22. These included, according to Newmont, an amendment to Newmont’s by-laws to lower the share ownership threshold necessary to requisition shareholder meetings to 15% from the current 25% and to repeal all by-law amendments implemented since October 24, 2018.

Barrick President and Chief Executive Officer, Mark Bristow, said the Nevada agreement marked the successful culmination of a deal that had been more than 20 years in the making. “We listened to our shareholders and agreed with them that this was the best way to realise the enormous potential of the Nevada goldfields’ unequalled mineral endowment, and to maximise the returns from our operations there.

“We are finally taking down the fences to operate Nevada as a single entity in order to deliver full value to both sets of shareholders, as well as to all our stakeholders in the state, by securing the long-term future of gold mining in Nevada.”

Gary Goldberg, Chief Executive Officer of Newmont, said the logic of combining the two companies’ operations was compelling. “This agreement represents an innovative and effective way to generate long-term value from our joint assets in Nevada, and represents an important step forward in expanding value creation for our shareholders. Through the joint venture, we will also continue to pursue the highest standards in safety, along with responsible and meaningful engagement with our employees, communities, and other stakeholders,” he said.

Following the completion of the joint venture, the Nevada complex will be the world’s single-largest gold producer, with a pro-forma output of more than 4 Moz in 2018, three Tier One assets, potentially another one in the making, and 48 Moz of reserves.

The establishment of the joint venture is subject to the usual conditions, including regulatory approvals, and is expected to be completed in the coming months.

The joint venture will exclude Barrick’s Fourmile project and Newmont’s Fiberline and Mike deposits, pending the determination of their commercial feasibility.

Renewable energy use can bring savings to Africa mining sector, report claims

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THEnergy and Voltalia’s latest report on the use of renewable energy in the Africa mining sector says the industry can realise significant cost savings when employing these power solutions.

The authors said the mining sector has shifted from phase one – where the focus of renewable power adoption was on integrating and testing out the reliability of these solutions – to phase two – where potential cost savings are being considered.

“In the last few years, more and more mining companies have adopted wind and solar systems to reduce their energy costs at remote off-grid mines,” THEnergy and Voltalia said. “In this first phase, the initial focus was on the integration capabilities as miners were afraid that adding intermittent renewables such as solar and wind could affect the reliability of power supply and even lead to production losses.”

In various microgrid applications, renewables combined with diesel, heavy fuel oil (HFO), or gas have proven to provide reliable power supply to remote mines, according to the two firms.

“For almost all mines, the integration of renewables will have a positive impact on their energy cost position. Mining companies do not have to invest their own money; independent power providers (IPPs) invest in the renewable energy infrastructure and sell electricity to mines through power purchase agreements (PPAs),” THEnergy and Voltalia explained.

Thomas Hillig, Managing Director of THEnergy, a consultancy focused on microgrids/mini-grids and off-grid renewable energy, said this second market phase is characterised by price competition.

“With the support of a leading renewable energy player, the new report analyses how IPPs can offer extremely competitive PPAs to remote miners,” he said.

Large IPPs take advantage of economies of scale on components for solar and wind power plants not only for remote mining projects but also for much bigger grid-connected plants, the two firms said.

“Market leaders have managed to optimise the planning and construction processes substantially. However, conducting projects in remote locations, especially in Africa, requires an extended experience,” they added. Among the challenges of undertaking projects in Africa is financing, which requires relationships with local and international banks, according to THEnergy and Voltalia.

“Cost optimisation does not necessarily mean minimising capital expenditure but rather focusing on the total lifetime of the project and including operation and maintenance. It is also important to take the interplay of the different energy sources into consideration. Not every kWh of solar and wind energy generated means equivalent fossil fuel savings. When gensets run at suboptimal loads, they lose efficiency and require additional maintenance,” the two firms said.

Alexis Goybet, Head of Hybrid Solutions at Voltalia, a player in the renewable energy sector, said his company has much experience in renewable energy projects, including solar-diesel hybrid microgrids, projects in remote locations and in developing countries.

“Our experience adds up to our economies of scale in procurement and translates into significant overall cost-reductions in the range of 20-30% in comparison to new market entrants,” he said.

These overall cost reductions will make solar and wind energy extremely attractive for many mines, according to the two firms, with the number of remote mines adding renewables to diesel, HFO or gas expected to grow quickly all over Africa.

There are already several mining companies that have made – or are planning to make – this transition in Africa, as can be seen by the map above (credit: THEnergy, Voltalia). This includes Resolute Mining and its Syama underground gold mine in Mali, Newmont Mining and its Akyem gold mine in Ghana and B2Gold and its Otjikoto operation in Namibia.

In the past month alone, Barrick Gold and GoviEx Uranium have also stated plans to use hybrid solutions at their Loulo and Madaouela assets, respectively.

Barrick’s Loulo gold operation readies for introduction of off-grid solar hybrid plant

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Barrick Gold is to install a 24 MW off-grid solar hybrid plant to support its existing 63 MW thermal power station at the Loulo mine in Mali as it looks to cut costs and reduce greenhouse gas emissions at the operation.

The renewable energy project is part of Barrick’s wider strategy of moving away from thermal power in Africa, where lack of infrastructure means many mines rely on self-generated diesel energy, making this their largest cost item, the company said.

“Utilising hydropower in the Democratic Republic of Congo, grid power in Côte d’Ivoire, and heavy-fuel baseload generators in Mali, Barrick has already cut its energy costs significantly, and the continuing roll-out of renewable energy sources will ensure that its future needs are met in the most cost-efficient and environmentally friendly manner,” Barrick said.

The solar feasibility study at Loulo forecasted that the photovoltaic plant will replace 50,000 MWh/y of thermal generation, saving 10 million litres/y of fuel and reducing CO² emissions by 42,000 t over the same period. The introduction of the solar component is also expected to cut the complex’s energy cost by around 2 cents/kWh.

Construction of the project—which meets Barrick’s investment criteria of generating at least a 20% internal rate of return—will start later this year. The plant is scheduled for commissioning in late 2020.

“The plant will use the latest weather prediction models, which will enable the power management system to switch between thermal and solar without compromising the micro-grid,” Barrick said.

Barrick’s 80%-owned Loulo-Gounkoto operation is expected to produce 520,000-570,000 oz of gold in 2019 at all-in sustaining costs of $810-850/oz.

Barrick working with Sandvik on autonomous and manned equipment interaction

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Barrick Gold says it is advancing autonomous production systems and projects as it looks to become the global leader in mining efficiency.

President and CEO Mark Bristow said in the company’s 2018 financial results that to achieve its goal of being the world’s most valued gold company, in a rapidly evolving environment where the industry’s shift to developing countries will continue, Barrick will have to be at the leading edge of automation.

“Kibali, in the Democratic Republic of Congo, is currently at the forefront, with its mission control system which manages the underground ore handling logistics without human intervention from the surface, but across Barrick there are many automated operations and developments which are now being unified in a group strategy,” he said.

These include, Barrick said, underground drills that can be run from surface during shift changes; automated underground and open-pit haulage trucks; fully-autonomous backfill systems; remote-controlled open-pit drills; and autonomous drilling of development and production blastholes by multiple units controlled by a single remote operator.

Glenn Heard, Senior Vice President Mining, said ongoing projects currently cover five main areas: underground development and production drilling, production and haulage, and open-pit haulage and production.

“At present, all our systems have barriers which prevent human access to the autonomous operating zones. Our next big step will be to create a situation where autonomous and manned units can work together seamlessly within the same active areas, and we’re working with Sandvik and other providers to achieve this,” he said.

Barrick Gold to sell AuTec R&D division, WSJ says

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Barrick Gold is said to be selling research and development company AuTec as part of a new strategy tied to the upcoming merger with Randgold Resources.

The Wall Street Journal, citing people familiar with the matter, said one of the first assets to go as part of a plan to offload non-core assets, reduce costs and reduce management head count, devised by incoming CEO Mark Bristow, would be AuTec, a full-service metallurgical testing lab and piloting facility, serving the mining industry.

The news comes soon after the company eliminated the executive role of Chief Innovation Officer, a post previously held by Michelle Ash.

Barrick is in the middle of merging with Bristow’s Randgold in a deal that would solidify Barrick’s position as the world’s number one gold miner by production.

AuTec has previously carried out metallurgical test work at Barrick’s Pueblo Viejo, Golden Sunlight and Goldstrike mines, among others. it has capabilities tied to mineral analysis, comminution, environmental and cyanide detox, hydrometallurgy, mineralogy and mineral processing, among others.

Epiroc helps Barrick Gold’s Hemlo mine go deeper with automation and teleremote control

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An autonomous and teleremote solution from Epiroc has allowed Barrick Gold’s team at Hemlo in Ontario, Canada, to enhance safety, and reduce ventilation and climate control requirements, even as the underground mine goes deeper.

These innovations are the most recent addition to an automation programme at Barrick’s Hemlo open stope mine. The programme began with an autonomous truck circuit in 2007 and is now accelerating with a five-year plan following a year-long search for a solution offering the lowest cost, quickest implementation and solid product support, according to Epiroc.

Hemlo has produced more than 21 Moz of gold, and has been operating continuously for more than 30 years. It produced 196,000 oz last year and is expected to produce 200,000-220,000 oz this year.

The complex is made up of an open pit and underground mine, with the latter expected to operate until 2021 at an average production rate of approximately 3,600 t/d, according to the latest mine technical report.

Patrick Marshall, Manager Automation Projects for Barrick, said the company studied all available technology before settling on Epiroc’s solution.

“We had conferences with manufacturers and visited their facilities. We toured operations where their equipment was at work,” he said.

“We believe the Epiroc package featured the product support we wanted, had the best integration capability for our multivendor operation, had the right pricing model and, in general, was the best fit for our needs.”

Barrick preferred to use Cisco for wireless infrastructure, with Marshall explaining the Epiroc system was “easily adaptable for use with third-party wireless systems”.

For Hemlo, which is now being mined from around 1.4 km below surface, safety is the greatest benefit of the automation-ready Epiroc Scooptram ST14. Combining autonomous tramming with teleremote operation also increases productivity, according to Epiroc.

Hemlo Mine Superintendent Jon Laird said: “Automation and teleremote control get workers away from the operating environment to an office on the surface ‒ the ultimate in safe operation. And, since it continuously mucks from stopes at a steady rate even through shift changes, it eliminates having to move operators to it every shift.”

Laird said the 14 t-capacity Epiroc Scooptram is “so efficient it threatens to outpace crushing operations at the ore pass”.

One solution to this ‘overproduction’ being discussed is creating additional ore passes to give one crushing operation time to clear ore between dumps. The Scooptram loader can easily learn multiple routes and alternate between them.

“Other systems Hemlo looked at took up to a full shift for the route-learning process,” Epiroc said.

The automation zone is marked with a laseractuated barrier at Hemlo. Crossing this light curtain will trip a shutdown of the level and alarm those on surface. An electronic ‘key’ from a safety box near the light curtain is required before a unit can enter the zone.

Operator Wayne Locht said: “It (the key) connects the rig to the automation area so that the safety system knows that the rig is in the area.”

Equipment at Hemlo is tagged to display its location in the mine with Mobilaris real-time tracking software. The same Mobilaris technology is planned for miners’ hard hats by the end of 2018.

Once in the zone, Locht radios the operator waiting at the control room operator station on the surface, 1.4 km above the mine. The rig can now be operated from this vantage point.

Certiq, the telematics system installed on the Scooptram, will be important for tracking, documenting and analysing operational data to learn how much Barrick gains from its investment in automation, according to Epiroc.

Mucking is not yet an automated feature, so this task is carried out by Locht remotely once back on surface.

“Until the rig is refueled, after approximately 16 hours, no human being will visit the rig or enter the automation zone. Teleremote operators will monitor its routine, taking control only during loading and dumping operations,” Epiroc said.

Barrick’s next step is finishing the wireless infrastructure throughout the Hemlo mine, expanding the automation zones, and getting more loaders. A single operator will run more than one machine from a control station, and the mine will have more than one station. Operators at any station will be able to control any of the automated Scooptram loaders, anywhere in the mine.

Marshall said: “Today, we’re connected. Tomorrow we’ll have optimised fleet management. In the near future, we’ll achieve our ultimate goal – fully autonomous mining underground executed by our operators from the surface.”

Epiroc names five keys to success of this operation:

  • “Mobilaris real-time location tracking: Mine-wide use of Mobilaris Mining Intelligence not only gives Hemlo real-time equipment tracking, but the precise location of each person underground – a vital advantage in case of an emergency;
  • “Designed with operators in mind: Operators report high satisfaction with the ergonomics, power, comfort and features of the Scooptram ST14 loader. Transitioning to teleremote and autonomous operation is quick and easy to learn;
  • “Capacity and speed boost productivity: The Scooptram ST14 loader with 14 t bucket capacity gives fast, fully loaded tramming speeds rated up to 29.5 km/h on level ground and up to 4.8 km/h up a 25% grade;
  • “Safer, more comfortable environment: Automated LHD operation reduces ventilation and climate control requirements for deep mining operations and moves operators to a safer, more comfortable environment than is possible with line-of-sight radio remote control;
  • “Multi-use Wi-Fi: Wireless infrastructure for autonomous operation also enables live access to performance data and provides minewide network access for location tracking and communication capabilities like mid-interval reporting.”

Barrick Gold’s sustainability strategy pays off with Dow Jones index inclusion

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The biggest gold miner by production, Barrick Gold, has been named to the Dow Jones Sustainability World Index (DJSI) for the 11th consecutive year.

Barrick was also included in the Dow Jones Sustainability North America Index for a 12th year.

While the company did not get top position in the Metals and Mining category of the – a place reserved for its biggest rival Newmont Mining – its Chief Sustainability Officer Peter Sinclair said being included for 11 consecutive years was an honour.

“At Barrick, we believe we can generate sustained value by partnering with local communities and host governments. Being included in the index gives us confidence that we are living up to this commitment,” he said.

Each year, the DJSI independently evaluates more than 2,500 companies using sustainability criteria to identify the top 10% of performers. Companies are evaluated on a range of sustainability metrics, including governance, social performance, environment, and economic contributions—taking into account both industry-specific trends, as well as sustainability issues facing multiple sectors.

Barrick said by operating in a responsible manner, the company creates significant value for its shareholders, employees, local communities, and host countries.

In 2017, this included:

  • Continuing a 12-year trend of reducing the company’s total reportable injury frequency rate (TRIFR). Since 2005, there has been an 88% improvement in Barrick’s TRIFR (from 2.79 to 0.35 in 2017);
  • Developing a climate change strategy aligned with its overall business strategy to grow free cash flow per share through safe and responsible mining. Barrick’s strategy has three pillars: understand and mitigate the risks associated with climate change; reduce its impacts on climate change; and improve the company’s disclosure on climate change. Barrick has set a goal to keep its current greenhouse-gas emissions flat in the short term, and to reduce emissions by 30% by 2030 from its 2016 baseline of 3.5 Mt of carbon dioxide equivalent emitted;
  • Contributing $5.1 billion to its host countries and communities in the form of wages and benefits, royalties and taxes, purchases of goods and services, and community investments. This includes more than $351 million in purchases from the local communities where Barrick operates;
  • Employing more than 97% of our 10,000-plus workforce from the countries in which it operates. In addition, approximately 60% of its employees come from the local communities nearest to its mines.