Barrick Gold

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Barrick Gold Corporation TSX: ABX NYSE: ABX is the largest gold mining company in the world, with its headquarters in Toronto, Ontario It currently maintains operating mines and development projects in the United States, Canada, Australia, Peru, Chile, Argentina and Tanzania. For 2004, it produced 4.958 million troy ounces (154,200 kg) of gold. As of December 31, 2004 its proven and probable gold mineral reserves stand at 89 million troy ounces (2,800,000 kg).

As of January 20, 2006, Barrick acquired a majority of Placer Dome shares. As a result, Barrick is currently integrating the assets, people and projects of Placer Dome [1].

1 Criticisms
2 Pascua Lama
3 NovaGold and Pioneer plays
4 See also
5 External links

[edit] Criticisms

Barrick Gold has been accused of a number of environmentally unsound practices, as well as illegal trading activities. These include the proposed use of cyanide leach tailing dams for its gold mine project at Lake Cowal, the release of at least seven tons of mercury during 2004-2005 at the Super Pit gold mine near the city of Kalgoorlie-Boulder, Western Australia.

Barrick has also been sued by Blanchard and Co. of New Orleans for allegedly manipulating the price of gold in an anti-competitive way. The case was settled out of court on November 18, 2005 with no payment of damages by Barrick. Barrick had counter-sued Blanchard for libel. This case also settled out of court, with damages payed by Blanchard to Barrick. In settlement, Blanchard issued the following statement "We regret having made the statements that gave rise to the libel action filed by Barrick in Canada and any embarrassment those statements may have caused Barrick or its officers or directors."

[edit] Pascua Lama

Pascua Lama is a project involving mining a very rich field of gold and silver in the high mountains south of Atacama on the border between Chile and Argentina.

Barrick Gold is investing US$1.5 billion in this project planned to run for 20 years. Barrick intends to commence building on September 2006 with extraction operations beginning in 2009. Before work begins, the Chilean government needs to provide final approval.

The gold fields lie under two glaciers which currently feed the rivers of the Huasco Province. Access to the gold will require removal of substantial areas of this ice to form an open pit mine, and a landfill site of similar size will accommodate the waste generated by the mining process. Barrick Gold maintains that 5 hectares of "ice reserves" will be removed by their operations and that another 10 hectares will melt as a consequence.

Chemical waste, such as cyanide and sulphuric acid will be removed via drainage into the nearby rivers.

[edit] NovaGold and Pioneer plays

On July 24, 2006, Barrick announced their intent to purchase NovaGold Resources and Pioneer Metals. The unsolicited bid for NovaGold Resources was at US $1.29 billion or US $14.50 per share, and the solicited bid for Pioneer Metals was at US $53 million or US $.88 per share. NovaGold management quickly characterized Barrick's bid for their company as undervalued. Pioneer management however quickly endorsed Barrick's bid for their company. Previously on June 19, 2006, NovaGold made an unsolicited bid for Pioneer Metals at US $31 million. NovaGold and Pioneer are currently in litigation over the Grace project in British Columbia, Canada. That project is adjacent to NovaGold's Galore Creek project and 75 kilometers away from Barrick's Eskay Creek mine. NovaGold and Barrick also cross paths at the Donlin Creek project in Alaska where NovaGold is 70% owner and Barrick is 30% owner, however Barrick has the right to earn in a 70% share as a result of their takeover of Place Dome in January of 2006.

On August 14, 2006, NovaGold filed a lawsuit in British Columbia, Canada alleging that Barrick misused confidential information to make its bid fro Pioneer metals. [2] As part of the suit, NovaGold is asking that any shares tendered to Barrick under the Pioneer bid be held in a trust for NovaGold. On August 25, 2006, NovaGold filed a second lawsuit against Barrick [3] - this time in the District of Alaska court alleging that Barrick violated U.S. security laws by misrepresenting its position by repeatedly stating it is on-track to earn a 70% interest in the Donlin Creek mine. The suit seeks a temporary suspension of Barrick's hostile bid for NovaGold.

On December 16, 2006, after extending the bid for NovaGold 6 times, increasing the offer once, and lowering the threshold for takeup of tendered shares from 75% to 50%, and then to no minimum, Barrick finally let the bid expire [4]. The net result for Barrick was a takeup of 12.7% of the outstanding NovaGold shares. Barrick's Chief Executive Greg Wilkins indicated that the company would look elsewhere for acquisition opportunities.

[edit] See also

[edit] External links

Barrick Gold profile on Infomine.com
Official site
Barrick Gold In The News on rainforestinfo.org.au

Barrick Gold Corporation
Corporate Directors: Howard Beck • C. William Birchall • Gustavo Cisneros • Marshall Cohen • Peter Crossgrove • Peter Godsoe • Angus MacNaughton • Brian Mulroney • Anthony Munk • Peter Munk • Joseph Rotman • Steve Shapiro • Jack Thompson • Gregory Wilkins