Barrick Gold (TSX: ABX; NYSE: GOLD), the world's second-largest producer of the precious metal, warns that mining at its Pueblo Viejo operation in the Dominican Republic could finish this year if a new tailings storage facility (TSF) doesn't get approved.
Mining at Pueblo Viejo, a 60-40 joint venture with Newmont (TSX: NGT; NYSE: NEM), depends on the possibility of building a new tailings storage facility (TSF).
The mine waste depository is part of a planned US$1.3 billion expansion. It will also enable the mining of lower grades in the existing deposit, supporting annual output of more than 800,000 ounces of gold.
"The extension of its life means that it would continue to be a major creator of value for the Dominican Republic and its people far into the future," Mark Bristow, Barrick's president and CEO, said at a local media briefing.
He noted that the mine has paid US$522 million in direct and indirect taxes so far this year, which brings its total tax payments since it went into commercial production in 2013 to just under US$3 billion.
The decision to proceed with project, under study since May 2019, was made in March last year. The company has been working with nearby communities since then, which doesn't mean it has not faced opposition.
In May, 87 environmental and aid groups signed a letter opposing the expansion and construction of the related tailings dam, citing risks posed by increased mine waste and threats to local communities' rights.
The company agreed in August to independent environmental studies, led by the government of Dominican Republic, for the expansion.
Pueblo Viejo is forecast to produce between 470,000 and 510,000 ounces of gold this year at an all-in sustaining cost of US$760-$810 per ounce.