Barrick Gold Uncovers Significant Deposits at Kibali Mine in DRC
On 8 October 2024, Barrick Gold (NYSE: GOLD, TSX: ABX) announced that it has discovered ‘new significant deposits’ around its Kibali mine in the Democratic Republic of Congo (DRC). Already, Kibali is the the largest gold mine in Africa and is under operation for the 15 years. The discovery will consolidate Barrick’s position as the largest gold producer in Africa.
To date, Barrick has injected nearly USD 3 billion into Kibali mine, including payments to local contractors and suppliers. Barrick Kibali has established partnerships with 500 local Congolese companies so far.
Barrick is active in contributing to the local community development. It has built 7 schools in villages around the Kibali mine. It has built a concrete bridge across Lowa River and 40 km or road at Kokoro-Awilaba. Furthermore, it has implemented a 2MW solar farm at Durba and another 1 MW one at Makoro to provide access to energy for local residents.
In the announcement, Barrick highlighted that its Kibali mining operations is nearly 80% powered by renewable energy coming from hydropower plants. It plans to set up another 16 MW #PV plant which will increase its green energy usage to 85%. Current, the Kibali mine includes both open pit and underground operations as well as a refining plant.
In terms of shareholding, both Barrick and AngloGold Ashanti (NYSE: AU, JSE: ANG, GSE: AGA) each owns 45% and the remaining 10% goes to Societe Miniere de Kilo-Moto (SOKIMO). As part of its commitment to localization, Barrick Kibali has 1,943 local employees representing 30% of the workforce, compared to 164 expat employees.
Barrick Gold and Anglo Gold Ashanti are both among the top gold companies in the world. Whether measured by market capitalization, production capacity or owned reserves, these two giants are ranked in the Global Top 10.
Kibali Mine is a tier-one asset with an estimated reserve of 5 million ounces over a 10-year lifespan, assuming an annual production of 500,000 ounces of gold. Basd on survey conducted by Randgold Resources in 2010, the ore grade is as high as 4.21 grams per tonne (gpt) based on the JORC Reporting Standards.
