Barrick: To Spend $69 Mln To Expand Argentina Veladero Mine
Last update: 2:54 p.m. EST Jan. 9, 2009
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BUENOS AIRES, Jan 09, 2009 (Dow Jones Commodities News via Comtex) -- Barrick Gold Corp. (ABX) plans to invest 238 Argentine pesos ($69 million) to expand its Veladero gold mine in Argentina, company spokesman Vince Borg confirmed Friday.
Barrick will make the investment to increase its crushing capacity from 50,000 to 85,000 tons per day, Argentina's Mining Ministry said in a release Friday.
The Veladero mine, located in the important mining province of San Juan, came on line in 2005 after an investment of more than $520 million, according to the Ministry.
The investment comes as positive news to provincial authorities, which have seen mining activity drop in recent months due to tight credit and falling metals prices
.
Exploration in San Juan province last year fell 14% from 2007 to 175 million pesos ($51 million), according to a study from the provincial mining ministry.
In addition to Barrick's Veladero mine, development projects include Yamana Gold Inc.'s (AUY) Gualcamayo mine and Xstrata PLC's (XTA.LN) $1.8 billion-to-$2 billion El Pachon copper mine project.
Barrick also hopes to develop its $2.4 billion Pascua Lama gold-mine project in San Juan, but the company's plans are on hold as Argentine and Chilean officials continue to negotiate tax sharing for cross-border mine projects like Pascua Lama.
-By Shane Romig, Dow Jones Newswires; 54-11-4590-2438; shane.romig@dowjones.com
(END) Dow Jones Newswires
01-09-09 1454ET |
