Investing  in Innovative Energy Projects

First published in Beyond Borders - December 2007

Barrick will invest approximately US$68 million in projects that will harness the advantages of clean energy and enhance existing power infrastructure in Chile and Tanzania.

In Chile, Barrick has received approval from national environmental authorities to build a US$40 million wind farm, located in the Punta Colorada area of La Higuera, Coquimbo Region. The Punta Colorada wind farm project will feature 10 state-of-the-art wind turbines and contribute up to 20 megawatts of energy to Chile’s national power grid. Once built, it will be the country’s largest source of wind-generated power, consistent with the Chilean government’s efforts to promote the development of renewable energy sources.  “The Punta Colorada wind farm project is an investment in the power of innovation,” said President and CEO Greg Wilkins. “As part of Barrick’s efforts to reduce greenhouse gas emissions, we are working on innovative energy strategies, while improving the efficiency of our mine sites.”

In Tanzania, Barrick is financing a US$28 million project to bring electricity to parts of the remote Mara region where the company’s North Mara mine is located. The project, a partnership between Barrick and the Tanzanian government, is in line with the government’s plan to bring electricity to 25 per cent of the population by 2010. Currently only 10 per cent of the country has access to electricity, largely in urban areas. This initiative will benefit both people and businesses in the area which currently have no access to electricity. Sourced primarily from hydro-electric power, the project will supply energy to a region that currently relies on diesel-generated electricity.

“Bringing electricity to people and businesses in the region will be a tremendous catalyst for community development, while ensuring a cost-effective electricity supply for our business,” said Wilkins.

Under the plan, Barrick will finance the construction of transmission lines to the Mara region, which will connect the area to the national power grid by early 2009. The power lines will be operated and maintained by the country’s national utility, the Tanzania Electric Supply Company (TANESCO).

This vital electricity infrastructure will be in place long after the mine closes, ensuring lasting benefits to the community.

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