Barrick Gold

Barrick Gold Corporation
Public company
Traded as TSX: ABX
NYSE: ABX
S&P/TSX 60 component
Industry Metals and Mining
Founded 1983 (1983)
Founder Peter Munk
Headquarters Toronto, Canada
Key people
 John L. Thornton
(Executive Chairman since September 16, 2014)
Kelvin Dushnisky
(President)
Products Gold
Silver
Copper
Website www.barrick.com

Barrick Gold Corporation is the largest gold mining company in the world, with its headquarters in Toronto, Canada.[1] The company has mining operations in Argentina, Australia, Canada, Chile, the Dominican Republic, Papua New Guinea, Peru, Saudi Arabia, the United States and Zambia.[2] More than 75% of Barrick’s gold production comes from the Americas region[3]. In 2016, it produced 5.52 million ounces of gold at all-in sustaining costs of US $798/ounce and 415 million pounds of copper at all-in sustaining costs of $2.05/pound[4]. As of December 31, 2016, the company had 85.9 million ounces of proven and probable gold reserves[5].

History

Founding and early years

Barrick Gold Corporation evolved from a privately held North American oil and gas company,[6] Barrick Resources.[7] After suffering financial losses in oil and gas,[8] founder Peter Munk decided to refocus the company on gold.[9] He saw an opportunity to create a gold company based in North America, at a time when Apartheid-era sanctions prevented North American investors from owning shares in South African gold companies, who dominated the industry at that time [10]. Barrick Resources Corporation became a publicly traded company on May 2, 1983,[11] listing on the Toronto Stock Exchange.[12]

The company’s first acquisition was the Renabie mine, near Wawa, Ontario,[13]. In 1984, Barrick acquired Camflo Mining,[14] which had operations in the province of Quebec[15] and in the U.S. state of Nevada.[16] The company continued to grow with the acquitting of the Mercur mine in Mercur, Utah in June 1985[17] followed by the Goldstike mine in Nevada in 1986[18]. Goldstrike mine is located on the Carlin Trend.

1986 to 2005

Reflecting its identity as a North American producer, distinct from its South African competitors, the company’s name was changed to American Barrick Resources in 1986.[19] It was listed on the New York Stock Exchange in February 1987.[20] Its name was later changed to Barrick Gold Corporation in 1995.[21]

American Barrick became the third-largest gold mining company in the world when it acquired Lac Minerals in 1994, which owned mining properties in North and South America.[22] Two years later, in 1996, Arequipa Resources, owner of properties including the Pierina mine in Peru, accepted a takeover offer from the renamed Barrick Gold Corporation. A third acquisition followed in early 1999, when Barrick Gold acquired Sutton Resources Ltd., assuming ownership of properties in Tanzania.[23] In 2001, Barrick acquired Homestake Mining Company for $2.3 billion in stock, then one of the oldest mining companies in the United States.[24] The purchase made Barrick the second-largest gold producer in the world.[24]

Placer Dome acquisition

On October 31, 2005, Barrick launched an unsolicited takeover bid valued at US$9.2 billion for rival Canadian gold miner Placer Dome[25]. Placer Dome initially recommended shareholders reject the offer.[26] In December, Placer Dome’s board of directors accepted an increased offer from Barrick worth US$10.4 billion.[27] The transaction closed in early 2006, making Barrick the world’s largest gold producer.[28]

2006 to present

Barrick launched what was then the largest stock offering in Canadian history in 2009,[29] when it launched a $3 billion equity offering, which was increased the following day to $3.5 billion in response to market demand.[30] Proceeds from the offering were used to eliminate the company’s gold hedges, which locked in the sale price of future production, rather than selling it at market prices.[31]

In February 2010, Barrick Gold announced plans to create a separate company to hold its assets in Tanzania, called African Barrick Gold.[32] Barrick Gold would retain majority ownership in the new company, after its listing on the London Stock Exchange.[32] African Barrick Gold was listed on the London Stock Exchange in mid-March 2010, with an IPO valuation at US$3.6 billion.[33] The shares offered on the LSE raised just more than 500 million pounds.[34] In June the company was admitted to the FTSE 100 Index.[35]

In April 2011, Barrick beat a takeover offer for Equinox Minerals by China Minmetals.[36][37]

Operations

Argentina

Veladero mine

In April 2017 Barrick announced it had sold a 50% interest in the Veladero mine to Shandong Gold for US$960 million. [38]

Australia

Super Pit gold mine (50% ownership)

Canada

Hemlo gold mine

Chile

Pascua Lama
Zaldivar copper mine (50% ownership)

In April 2017 Barrick announced it had formed a partnership with Shandong Gold to explore joint-development of the Pascua-Lama deposit. [39]

Dominican Republic

Pueblo Viejo mine (60% ownership)

Papua New Guinea

Porgera Gold Mine (95% ownership)

Peru

Lagunas Norte mine
Pierina gold mine

Saudi Arabia

Jabal Sayid (development)

United States

Cortez Gold Mine
Golden Sunlight mine
Goldstrike mine
Donlin Gold Project (50% ownership)
Turquoise Ridge gold mine (75% ownership)

Zambia

Lumwana mine

Mining practices

Relations to local populations

In 2008, the company negotiated an agreement with four of five regional Western Shoshone tribes, providing financial resources for education and wellness initiatives, including a long-term scholarship program, allocated at the Tribes’ discretion.[40] A former tribal chairman of the Duck Valley Shoshone spoke of the company as "a pretty progressive entity."[41] In British Columbia the Tahltan Nation has thanked the company for encouraging local sustainable development while operating the Eskay Creek mine from 2001 to 2008.[42][43]

In 2010, Barrick Gold Corporation became the 18th company to join the Voluntary Principles on Security and Human Rights[44] which provides "guidance to extractives companies on maintaining the security of their operations in a manner that respects human rights and fundamental freedoms."[45] Admission follows an eight step process that requires approval by the Voluntary Principles plenary,[46] the main decision-making body, consisting of all active members, drawn from participating governments, companies and non-governmental organizations.[47] Barrick Gold participates in a number of corporate social responsibility programs, such as the United Nations Global Compact.[48] The company is a signatory to the Extractive Industries Transparency Initiative.[49] It also participates in The Global Reporting Initiative, Business for Social Responsibility[50] and The Global Business Coalition on HIV/Aids, Tuberculosis and Malaria.[51] On September 7, 2007, Barrick was added to the Dow Jones Sustainability Index.[52] The company is a member of The International Leadership Council (ILC) of The Nature Conservancy.[53] In Papua New Guinea, the Porgera Joint Venture participated in the development of a wildlife conservation area in the Kaijende Highlands.[54]

In 2011, Human Rights Watch (HRW) published a report that alleged that the private security force at Barrick's Porgera mine in Papua New Guinea had carried out "gang rapes and other violent abuses". Barrick conducted an internal investigation, assisted a police investigation and a number of security personnel were arrested and charged. HRW said the company should have "acted long before Human Rights Watch conducted its research prompted them into action" but had "taken meaningful steps to investigate past abuses and make it less likely for similar abuses to occur in future".[55][56] Barrick Gold revealed in 2013 that, after an independent investigation, the company was paying indemnities to 14 women raped by mine security guards in Tanzania. In addition to cash, the women were also receiving therapy, job training, relocation, and child education expenses. .[57]

Renewable energy

DeWind D8.2 2MW wind turbine[58] at the Veladero mine in San Juan Province, Argentina

In 2007, Barrick Gold installed the world's highest-situated wind turbine at the Veladero mine in San Juan Province (Argentina) at nearly 4,200m elevation.[58][59]

The company has made a request to Chile’s environmental authority, COREMA, to expand a proposed wind farm project in Chile’s Region IV from ten wind turbines to eighteen wind turbines, that would generate 36 megawatts of electricity into the national power grid.[60][61] In Nevada, Barrick operates a 1-megawatt solar panel farm.[62] There are also plans to build a 9-turbine wind farm at the Golden Sunlight mine in Montana when the operation closes.[63]

Through 2009 and into 2010 Barrick Gold’s Cortez Hills project was the subject of litigation in Nevada, seeking to block the project.[64] Opponents appealed to the United States Court of Appeals for the Ninth Circuit, challenging a ruling in the United States District Court for the District of Nevada, which denied the bid to block the project.[65] The Appeals Court "upheld a federal judge's finding that opponents of the mine failed to prove they were likely to prevail on claims the mine would cause visual harm to Mount Tenabo and create a substantial burden on the tribes' ability to exercise their religion" but ruled the U.S. Bureau of Land Management’s previous environmental review of water and air pollution impacts "was inadequate under the National Environmental Policy Act" and ordered the District Court to provide "appropriate" injunctive relief while the Bureau of Land Management conducted further study.[66] In March 2011 the Bureau of Land Management approved a subsequent study on environmental impacts, allowing the mine to operate as originally proposed.[67]

See also

References

  1. ↑ "Barrick Gold Corporation - Operations". Retrieved December 19, 2016.
  2. ↑ "Barrick Gold Corporation - Company". Retrieved December 19, 2016.
  3. ↑ http://www.barrick.com/files/quarterly-reports/2016/Barrick-2016-Q4-Year-End-Report.pdf
  4. ↑ http://www.barrick.com/files/quarterly-reports/2016/Barrick-2016-Q4-Year-End-Report.pdf
  5. ↑ http://www.barrick.com/files/quarterly-reports/2016/Barrick-2016-Q4-Year-End-Report.pdf
  6. ↑ Rohmer, pp. 191-192.
  7. ↑ Rohmer, p. 193.
  8. ↑ Rohmer, p. 198.
  9. ↑ Rohmer, p. 197.
  10. ↑ http://mininghalloffame.ca/inductees/m-o/peter_munk
  11. ↑ Abrams, Ovid (May 19, 2008). "Barrick grows from zero to 8 million oz of output in 25 years". Metals Week.
  12. ↑ "Mining Claim Abstract Transaction Listing". Ontario Ministry of Northern Development, Mines and Forestry. July 14, 1984. Retrieved September 29, 2009.
  13. ↑ Rohmer, p. 202.
  14. ↑ "Hall of Fame Inductee Robert M. Smith". Archived from the original on July 3, 2009. Retrieved October 1, 2009.
  15. ↑ Rohmer, P.206
  16. ↑ Rohmer, p. 228.
  17. ↑ Rohmer, p. 228.
  18. ↑ Rohmer, p. 228.
  19. ↑ Rohmer, pp. 232-233.
  20. ↑ Rohmer, p. 235.
  21. ↑ Rohmer, p. 291.
  22. ↑ Farnsworth, Clyde H. (August 25, 1994). "Lac Minerals Agrees to Friendly Takeover". The New York Times. Retrieved September 16, 2009.
  23. ↑ "Barrick Gold to Buy Sutton Resources for $350 Million". The New York Times. February 19, 1999. Retrieved September 16, 2009.
  24. 1 2 DePalma, Anthony (June 26, 2001). "Canadian Company to Buy A U.S. Miner for $2.3 Billion". The New York Times. Retrieved September 16, 2009.
  25. ↑ http://www.canadianminingjournal.com/news/special-report-barrick-launches-bid-for-placer-dome/
  26. ↑ Alexander, Doug (November 23, 2005). "Placer Dome Urges Investors to Reject Barrick Bid (Update4)". Bloomberg. Retrieved October 1, 2009.
  27. ↑ "Placer Dome accepts Barrick's sweetened $10.4B US takeover bid". CBC News. December 22, 2005. Archived from the original on August 9, 2007. Retrieved October 1, 2009.
  28. ↑ Choy, Leng Yeong (August 2, 2006). "Barrick Profit Surges to Record as Gold Price Rallies (Update2)". Bloomberg. Retrieved October 1, 2009.
  29. ↑ Greenwood, John (January 27, 2010). "How Barrick unloaded its deadweight". The Vancouver Sun. Financial Post. Retrieved February 1, 2010.
  30. ↑ French, Cameron (September 9, 2009). "Barrick boosts equity offering, shares slide". Reuters. Retrieved February 1, 2010.
  31. ↑ Nystrom, Scott (September 14, 2009). "Bullish Move: Barrick Breaks Free From Hedges". Forbes.com. Archived from the original on January 26, 2010. Retrieved February 1, 2010.
  32. 1 2 Bieshuevel, Thomas (February 18, 2010). "Barrick Spinoff to Create Biggest UK Gold Miner (Update 3)". Business Week. Bloomberg. Retrieved July 9, 2013.
  33. ↑ "African Barrick Gold IPO priced at 575 pence". Reuters. March 19, 2010. Retrieved August 16, 2010.
  34. ↑ Ku, Daisy; Crust, Julie (March 20, 2010). "African Barrick's IPO bought up fully in London". The Star. Toronto. Retrieved August 16, 2010.
  35. ↑ "African Barrick Gold and Essar Energy to join FTSE 100". June 9, 2010. Retrieved August 16, 2010.
  36. ↑ "Equinox rejects Minmetals". April 11, 2011. Retrieved April 11, 2011.
  37. ↑ "Barrick Gold beats Minmetals to buy Equinox Minerals". BBC News. April 25, 2011. Archived from the original on April 26, 2011. Retrieved April 25, 2011.
  38. ↑ "Barrick Gold Sells 50% Stake in Veladero Mine to Shandong Gold for US$960 Million". www.juniorminingnetwork.com. Retrieved 2017-04-06.
  39. ↑ "Barrick Gold Sells 50% Stake in Veladero Mine to Shandong Gold for US$960 Million; Forms Working Group to Explore Joint-Development of Pascua-Lama Deposit". www.juniorminingnetwork.com. Retrieved 2017-04-06.
  40. ↑ McMurdo, Doug (October 31, 2008). "Tribes, Barrick reach historic accord". Elko Daily Free Press. Retrieved December 1, 2009.
  41. ↑ McMurdo, Doug (November 1, 2008). "Making history, Part 2: Establishment of trust vital to accord". Elko Daily Free Press. Retrieved December 1, 2009.
  42. ↑ Adsit, Bill C. (2008). "An Open Letter to Barrick Gold Corporation from the Tahltan Development Corporation". Stepping Stone, Issue 6, Fall 2008. Retrieved February 22, 2010.
  43. ↑ Bill C. Adsit. "An Open Letter to Barrick Gold Corporation from the Tahltan Nation Development Corporation". Retrieved February 22, 2010.
  44. ↑ "NEWS & EVENTS Barrick Gold Corporation Joins the Voluntary Principles on Security and Human Rights". Voluntary Principles on Security & Human Rights. Retrieved November 3, 2010.
  45. ↑ "VPs 10 Year Anniversary Press Release" (PDF). Voluntary Principles on Security & Human Rights. March 18, 2010. Archived from the original (PDF) on April 22, 2014. Retrieved November 3, 2010.
  46. ↑ "New Applicant Process Companies and NGOs" (PDF). Voluntary Principles on Security & Human Rights. Archived from the original (PDF) on April 22, 2014. Retrieved November 3, 2010.
  47. ↑ "The Voluntary Principles on Security & Human Rights Resources" (PDF). Voluntary Principles on Security & Human Rights. Archived from the original (PDF) on April 23, 2014. Retrieved November 3, 2010.
  48. ↑ United Nations Global Compact web site http://www.unglobalcompact.org/ParticipantsAndStakeholders/search_participant.html?detail=Barrick+Gold+Corporation
  49. ↑ "Supporting Companies | Extractive Industries Transparency Initiative". Eitransparency.org. Retrieved April 21, 2011.
  50. ↑ "Member List | BSR | Sustainability, Corporate Social Responsibility Network and Consultancy". BSR. Retrieved April 21, 2011.
  51. ↑ "Global Business Coalition on HIV/AIDS, Malaria and Tuberculosis Member Profiles". Archived from the original on July 26, 2011. Retrieved July 9, 2013.
  52. ↑ "Barrick Named to Dow Jones Sustainability Index – Press Releases on CSRwire.com". Retrieved December 19, 2016.
  53. ↑ Nature Conservancy
  54. ↑ Richards (editor), Stephen J. (2007). "A Rapid Biodiversity Assessment of the Kaijende Highlands, Enga Province, Papua New Guinea" (PDF). RAP Bulletin of Biological Assessment. Retrieved June 2, 2010.
  55. ↑ "Papua New Guinea: Serious Abuses at Barrick Gold Mine". Human Rights Watch. February 1, 2011.
  56. ↑ "Response to Human Rights Watch Report". Barrick Gold. February 1, 2011.
  57. ↑ "Barrick Gold se ve obligada a indemnizar a 14 mujeres violadas por sus guardias de seguridad". Retrieved December 19, 2016.
  58. 1 2 "DeWind D8.2 HE 50Hz Veladero, Argentina" (PDF). DeWind. Archived from the original (PDF) on July 24, 2011. Retrieved April 16, 2010.
  59. ↑ "Barrick Gold Starts Up World's Highest-Altitude Wind Turbine in Argentina, an Industrial Info News Alert". Reuters. August 18, 2008. Retrieved November 29, 2008.
  60. ↑ (Mar 4, 2009) "‘Barrick Awaiting Approval for Expansion of Punta Colorada Wind Project’" Check |url= value (help). June 25, 2008.
  61. ↑ (Mar 4, 2009) "‘Preliminary Earthwork Begins for Phase I of Punta Colorada Windfarm in Chile’" Check |url= value (help). Aug 19, 2008.
  62. ↑ 1/14/2008 "John Seelmeyer, Northern Nevada Business Weekly, ‘Barrick Gold nearly done with major solar facility’, 14 Jan, 2008" Check |url= value (help).
  63. ↑ Gevock, Nick. (@ 6 Mar 2009) ""Wind Farm Planned for Golden Sunlight Mine Land," The Montana Standard, 9 Sep 2008," Check |url= value (help).
  64. ↑ Schneider, Joe (January 26, 2010). "Barrick Gold Proposes Ore-Shipping Halt During Review (Update 1)". Bloomberg. Retrieved February 1, 2010.
  65. ↑ "South Fork Bank v. DOI Per Curiam Opinion" (PDF). U.S. Court of Appeals for the Ninth Circuit. Retrieved February 2, 2010.
  66. ↑ Sonner, Scott (December 3, 2009). "US court blocks huge gold mine project in Nevada". The San Francisco Chronicle (online version). Archived from the original on April 24, 2010. Retrieved February 1, 2010.
  67. ↑ McClelland, Colin (March 16, 2011). "Barrick Says Bureau’s Decision Lifts Restrictions on Gold Mine in Nevada". Bloomberg. Retrieved March 26, 2011.

Further reading

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