Global Supply Of Gold Tightens After Barrick Mine Closure

An Argentinian judge has ordered an indefinite suspension of mining at Barrick’s Veladero gold mine in Argentina due to a serious cyanide leak.  To underscore the severity of the situation,it is being speculated that Barrick’s mine manager – who is no longer working at the site – has fled to Canada to avoid any possible prosecution.

Lawrence Williams provides a good analysis of the situation here:  LINK.   However, it is also worth reading an article in the Buenos Aires Herald, which reports that the Government has filed a complaint against Barrick:  LINK.

This is an interesting development because the Valedero mine produces 10% of ABX’s 6 million ounces per annum – or 17 tonnes.  This represents approximately .6% of the annual global gold mine production.

It’s not clear how long this mine will remained close.  Certainly longer than the couple weeks that Barrick CEO, Kelvin Dushnisky, asserted after making light of the issue at the Denver Gold Forum.

In the opinion of this blog and the Mining Stock Journal,  Barrick is a corporate abortion of a company and should be avoided at all costs as an investment.

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4 thoughts on “Global Supply Of Gold Tightens After Barrick Mine Closure

  1. Dave,

    I know somebody that worked at Barrick years ago. Said it was the worst run company they had ever worked for. Years later I read somewhere that Barrick was a front for the CIA and one of Canada’s former Prime Ministers sat on the Board of Directors. His name being Brian Mulroney who immediately after leaving office under much controversy. Moved to Georgetown, Washington.

    1. You’re right. That’s what happens when I write a blog post during the Broncos’ game. Not as dramatic effect on global supply but not insignificant. Thanks for pointing out the error

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