Barrick's Pueblo Viejo plant expansion over 80% complete

The Pueblo Viejo plant expansion at the Barrick Gold-operated mine in the Dominican Republic was 84% complete as of end-2022, up from 70% at September 30, the Toronto-based company said.

The plant expansion and mine life extension projects are designed to increase throughput to 14Mt/y, allowing the operation to maintain minimum average annual gold production of approximately 800,000oz.

In its 2022 annual report, Barrick reported that commissioning of the project began this January, which, together with a new tailings storage facility (TSF), has added 11Moz to its reserves and extended its life by at least 20 years.

During this quarter, Barrick said it expects to process first ore and substantially complete the commissioning of the new plant infrastructure. 

“Areas of the expanded plant are being commissioned and handed over from construction to operations, and full plant capacity is planned to be reached by Q3 2023,” the Canadian miner added.

“In Central America, the plant expansion project we initiated at the Pueblo Viejo gold mine in the Dominican Republic is rapidly taking shape. With its unlocked reserve base now standing at 20Moz, the life of the mine… has been extended beyond 2040,” CEO Mark Bristow said in a press release on Friday.

TAILINGS STORAGE FACILITY

The company reported that site investigation works continue to plan a feasibility-level design for the new TSF in 2024.

Pueblo Viejo consists of two main open pits, Moore and Monte Negro, with processing through autoclaves. The plant expansion and mine life extension project remains on track, and the new TSF is in the permitting phase, according to the annual report. 

The technical and social studies for additional tailings storage capacity continued to advance. “Barrick completed an ESIA [environmental and social impact assessment] on one of the site alternatives, Naranjo, identified in both the government and Barrick alternative assessments in accordance with the Dominican Republic’s terms of reference, which was submitted during the fourth quarter of 2022,” the report says. 

The company and the authorities had to rethink the dam's location after the original proposal sparked violent protests in 2021.

“We continue to expect the government of the Dominican Republic’s decision on the ESIA during the first half of 2023,” Barrick added. 

As of end-2022, total Pueblo Viejo project spending was US$828mn, including US$110mn in Q4, on a 100% basis. Barrick has 60% of Pueblo Viejo, Latin America’s largest gold mine, and US-based Newmont the other 40%.  

“As previously disclosed, the estimated capital cost of the plant expansion and mine life extension project is now approximately US$2.1bn (on a 100% basis), which incorporates the selected TSF site submitted under the ESIA,” the company said.

Initially, the Pueblo Viejo expansion project’s capex was estimated at US$1.3bn, with a lifespan of 15 years.

Barrick’s gold production was 4.1Moz in 2022, and guidance for 2023 is 4.2-4.6Moz.