Barrick Gold rolls out new 10-year plan at Kibali mine

Barrick Gold (TSX: ABX; NYSE: GOLD) said on Wednesday it was rolling out a new 10-year plan at its Kibali mine in the Democratic Republic of Congo, which is Africa’s largest gold operation.

President and chief executive Mark Bristow said the company had begun implementing a new business plan for the mine, which aims to secure the operation status as Tier One asset for the next decade.

Tier One mines are those capable of producing 500,000 oz. or more of gold for at least 10 years at a cost below the industry average.

Kibali stepped up production significantly in the past quarter as part of its planned ramp-up and is well on track to achieve its annual guidance, Barrick said. At the same time, successful exploration is expected to more than replace reserves depleted by mining again this year.

The mine draws most of its power from its three hydropower stations on the Kibali river. A planned 16MW solar farm, designed to back up the hydropower during the Democratic Republic of Congo’s (DRC’s) dry season, is expected to increase the renewable power contribution to the mine’s energy grid from 79% to 88%, with Kibali running entirely on renewables during the wet season.

“Our stakeholders in the DRC have benefited enormously from Kibali, which over the past 10 years has contributed $4.6 billion to the country in the form of dividends, royalties and taxes,” Bristowsaid. “In line with our local procurement policy, Kibali gives preference to Congolese suppliers and contractors, who to date have received $2.5 billion from the mine,” he noted.

The Canadian gold giant said its has also showed its commitment to the DRC by helping preserve the Garamba National Park, including the reintroduction of 16 white rhinos to it. These animals had been last seen in the area 13 years ago and another 60 rhinos should be arriving over the next three years, Barrick said.