Barrick expects expanded Pueblo Viejo plant to reach nameplate throughput in 2Q24

The expanded plant at the Pueblo Viejo gold mine in the Dominican Republic, operated by Barrick Gold, is expected to reach nameplate throughput in 2Q24, the company stated in its 4Q23 MD&A report.

The Toronto-based miner had previously said that it expected to reach full capacity at the plant during the first quarter of 2024, but it suffered a setback due to a structural failure of the crushed ore stockpile feed conveyor at the start of 4Q23.

Pueblo Viejo, Latin America’s largest gold mine, is a 60:40 JV with Denver-based Newmont. Its plant expansion and mine life extension is designed to increase throughput to 14Mt/y and sustain gold production above 800,000oz/y going forward. 

“The construction and commissioning activities for the plant expansion were substantially completed by the end of 2023, with both of the new oxygen plants as well as the Vertimil now operational,” the company said in its report. “Premature equipment failures encountered early in commissioning were resolved in collaboration with the original equipment manufacturers, including a new agitator gearbox design installed on all the flotation cells,” it added. 

With regard to the failure of the ore stockpile feed conveyor, Barrick said, “While the reconstruction work is underway, the new SAG mill is being fed through smaller mobile crushers and a temporary conveyor system running from the gyratory crusher, albeit at a reduced rate. This reconstruction is expected to be completed in the second quarter of 2024, which will allow the plant to reach full throughput.”

During the first quarter of 2024, Barrick is focusing on the continued stability and optimization of the flotation circuit.

According to its 4Q23 MD&A report, the technical and social studies for additional tailings storage capacity (El Naranjo) continued to advance as planned. “Geotechnical drilling and site investigations are ongoing and continue to support the feasibility study, due for completion in the third quarter of 2024.”

As of December 31, 2023, total project spending was US$1.03bn (including US$16mn in 4Q23) on a 100% basis. The estimated capital cost of the plant expansion and mine life extension project is approximately US$2.1bn (100% basis), Barrick said.

Pueblo Viejo's gold production in 4Q23 was 14% higher than in 3Q23 due to higher recovery and higher grades processed, "partially offset by lower throughput, mainly caused by the structural failure of the crusher conveyor at the start of October 2023," the company added, also underscoring that "productivity at the mine was negatively impacted by a 1 in 500 year tropical storm in November 2023."

However, in full-year 2023, its attributable gold production fell 22% to 335,000oz from 428,000oz in 2022, below its 470,000-520,000oz guidance for the year.

Barrick's total attributable gold output for the entire year was 4.0Moz, 2% lower than the 4.1Moz reported in 2022 and below its guidance of 4.2-4.6Moz.