Tuesday, 24th February 2004 (3866 views)

Barrick Gold Corp has announced that it plans to increase metal production by 40 per cent by 2007.

The world's third largest gold producer has opened new mines in Latin America, Australia and Tanzania and expects to produce as many as 7 million ounces of gold in 2007, at a total cash cost of less than $200 an ounce.

The Toronto-based company's chief executive, Greg Wilkins, revealed that he plans to spend $2 billion building new mines to boost production.

'We have the global scope, the technical and international development experience, the financial strength, and the high-quality reserve and production base for this undertaking,' said Mr Wilkins.

Barrick's cash costs have been rising at its older projects and Barrick admitted that production costs this year may be as high as $215 an ounce.

The Veladero mine in Argentina, Alto Chicama in Peru, Cowal in Australia and Tulawaka in Tanzania will enter production between the first quarter of next year and the 2006 first quarter. Overall, higher production and lower costs are expected in the early years from these new mines.

Barrick expects to decide in the second quarter on the development of its Pascua-Lama project in Chile and Argentina, which has proven and probable reserves of about 17 million ounces of gold.

 

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