Barrick Gold plans a $35 million investment in Chile’s El Alto project and is expanding the Veladero mine in Argentina. The firm aims to increase production amid record gold prices, with positive market predictions due to geopolitical factors. In Chile, Barrick seeks approval for exploratory drilling near the Pascua-Lama site, while cost management at Veladero reflects operational efficiencies.
Barrick Gold, a Canadian multinational, plans to invest $35 million in an exploration project called El Alto in Chile’s Atacama region, where previously it pursued the now-abandoned Pascua initiative. The project aims to enhance resource potential in the Alto del Carmen area. An environmental impact assessment (EIA) has been submitted to the review agency SEA, seeking approval for 43 drilling platforms in the Andes, with activities projected to begin in July 2026.
The Pascua-Lama project, which was active for over 20 years and cost more than $8 billion, faced court-ordered closure due to environmental violations, halting production of gold, silver, and copper. Despite this setback, Barrick has not dismissed the idea of reassessing the area’s potential, as they pursue further exploration.
In Argentina, the Veladero mine is also undergoing expansion, with Barrick exceeding its production guidance by mining 505,000 ounces of gold last year. This increase was attributed to plant expansions and enhanced operational efficiencies, allowing the firm to keep costs below estimates despite rising royalty payments due to elevated gold prices.
Analysts foresee a continued rise in gold prices, influenced by Federal Reserve policies and geopolitical climate. Remarkably, gold prices briefly soared past $3,000 per ounce, driven by macroeconomic factors including U.S. inflation trends and interest rate expectations. This surge in prices has intensified gold’s appeal as a safe-haven asset during turbulent economic times.
Barrick is doubling down on its Veladero endeavors, recently completing phase 7B of its leach pad expansion worth $159 million, and starting phase 8 with an estimated capital outlay of $250-270 million. The company is also drilling at two promising targets, Fabiana and Brujas, and aims to extend the mine’s operational life before the winter season begins.
Barrick Gold’s strategic investments in Chile and Argentina reflect its commitment to increasing gold production amid favorable market conditions. The El Alto project signifies a potential revival of mining activity in Chile following the closure of Pascua-Lama. Concurrently, the ongoing expansion at Veladero positions Barrick to capitalize on record-high gold prices, reinforcing the company’s role in the mining sector and its response to economic uncertainties around gold investments.
Original Source: www.bnamericas.com
