Barrick Gold Points to Notable Dip in Gold Mine Life

SEATTLE (Scrap Monster): Mark Bristow, CEO, Barrick Gold warned that a serious reserve crisis seems to be looming over the African gold industry. Furthermore, he noted that the regional industry leaves room for more consolidation. He was speaking at the Joburg Indaba Mining Conference.

According to him, the average mine life across the gold mining sector has witnessed substantial decline, falling from 20 years to almost 10 years now, mainly due to dearth of exploration. He noted that the industrial gold production has increased only marginally by 1.6% every year for the past two decades or so.

RELATED NEWS:

Barrick Gold Alliance Expands Footprint with New Acquisition

Barrick Gold Confident of Meeting Gold Production Target for 2020

Commenting on the merger deal between Northern Star Resources and Saracen Mineral Holdings, he said that it is considered as a great example of industry consolidation. It must be noted that the recent $4.1 billion merger had led to creation of the world’s eighth largest gold miner.

Bristow termed the 18-month transition to full civilian rule in Mali as ambitious. All of the state organs have been functioning normally, he added. The company is interested in acquiring Freeport-McMoran’s Grasberg mine in Indonesia, he said. He remained confident that the company will be able to repatriate very soon, the sum of $500 million of its Kibali joint venture in Congo.