By Rhiannon Hoyle
SYDNEY--Barrick Gold Corp. (ABX) and Newmont Mining Corp.'s
(NEM) giant Super Pit mine in Western Australia could continue
processing gold for the next 15 years under plans unveiled
Wednesday that will extend the life of the operation.
Kalgoorlie Consolidated Gold Mines, which operates the site for
the 50-50 joint-venture partners, said it might keep the complex
running until 2029, as it looks to process more low-grade
stockpiles of the precious metal. Under prior plans, processing at
the Super Pit--one of the world's largest gold mines--would have
ended in 2021.
The proposed extension contrasts with moves by global mining
companies to sell operations and focus on the best quality material
after a sharp slide in gold prices. Barrick, the world's largest
gold mining company by production, has reported billions of dollars
worth of write-downs against its assets and slashed its return to
shareholders after a sudden halt to the precious metal's 12-year
bull run.
"Of course this [timetable] may change, as the economical
viability of any project can fluctuate due to external factors such
as gold price, taxes, labor costs and so on," the mine operator's
general manager, Russell Cole, said in a statement.
The Super Pit operations--which produce around 800,000 ounces of
gold a year--run 24 hours a day, every day of the year, according
to the operator's website. Australia is the world's second-largest
producer of gold, behind China.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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