Barrick Announces Strategic Cooperation Agreement with Shandong Gold

April 06, 2017
  • As a first step, Shandong Gold will acquire 50 percent of the Veladero mine
  • As a second step, both companies will explore joint development of Pascua-Lama
  • As a third step, Shandong will evaluate further opportunities with Barrick

PDF (English)  |  PDF (Spanish)  |  PDF (Chinese)  |  All amounts expressed in U.S. dollars
Full remarks by Executive Chairman John L. Thornton

Barrick Executive Chairman John L. Thornton (left) and Shandong Gold Chairman Chen Yumin (right) mark the signing of a strategic cooperation agreement between the two companies in Jinan, Shandong province, China on Thursday, April 6.

Barrick Executive Chairman John L. Thornton (left) and Shandong Gold Chairman Chen Yumin (right) mark the signing of a strategic cooperation agreement between the two companies in Jinan, Shandong province, China on Thursday, April 6.

TORONTO, April 6, 2017 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” or the “Company”) today announced that it has entered into a strategic cooperation agreement with Shandong Gold Group Co., Ltd. (“Shandong”), the leading underground mining company in China, based in Jinan, Shandong province.

As a first step in the new partnership, Shandong Gold Mining Co., Ltd, the listed company of Shandong Gold Group, will acquire 50 percent of Barrick’s Veladero mine in San Juan province, Argentina, for $960 million. As a second step, Barrick and Shandong will form a working group to explore the joint development of the Pascua-Lama deposit. As a third step, both companies will evaluate additional investment opportunities on the highly prospective El Indio Gold Belt on the border of Argentina and Chile, which hosts a cluster of world-class gold mines and projects including Veladero, Pascua-Lama, and Alturas.

“Our ambition is to make Barrick a leading twenty-first-century company in any industry in any jurisdiction, and by definition, that means creating a distinctive, enduring, and trust-based relationship with China and China’s best companies. This agreement moves us down that path. Shandong is an ideal partner to help us unlock the untapped mineral wealth of the El Indio Belt over the long-term, while working with us to generate more value from the Veladero mine today,” said Barrick Executive Chairman John L. Thornton. “We look forward to working in partnership with Shandong, sharing mining and development expertise, talent, and capital in ways that will create added value for our respective owners, and our government and community partners in San Juan province.”

“Our goal is to build a long-term relationship with Barrick, and this agreement encapsulates exactly what we wanted to achieve,” said Shandong Chairman Chen Yumin. “In this global economy, it is more important than ever to find international partners with a common vision for developing mines and generating prosperity in an environmentally and socially responsible manner. We are excited to enter Argentina’s dynamic mining industry in partnership with Barrick at Veladero, while exploring other opportunities in one of the most prospective mineral districts in the world.”

Upon completion of the transaction, the Veladero mine will be overseen by a Joint Venture Board consisting of three nominees appointed by each company. In order to ensure continuity of operations, both companies intend to maintain the mine’s current management team following closing of the transaction.

Proceeds from the transaction will be used to reduce debt and for investments in our business to grow free cash flow per share.

The transaction is expected to close at the end of the second quarter of 2017, and is subject to regulatory and other approvals, including Shandong Gold Mining Co., Ltd shareholder approval, and other customary closing conditions.

Shandong Gold Group Co. Ltd., the direct and indirect holder of 56 percent of the outstanding shares in Shandong Gold, has irrevocably agreed to vote in favor of the proposed transaction.

The transaction has received approvals from China’s National Development and Reform Commission (NDRC), and the State-owned Assets Supervision and Administration Commission (SASAC) of Shandong Province. Applications for approval by other Chinese regulatory authorities, including MOFCOM (Ministry of Commerce) and SAFE (State Administration of Foreign Exchange), are underway.

Shandong has financing commitments in place for the full value of the transaction.

Details of the Strategic Cooperation Agreement

The Strategic Cooperation Agreement with Shandong is consistent with Barrick’s strategy to develop partnerships of depth with the potential to create long-term value for the Company’s owners, as well as our community and government partners.

Barrick and Shandong began to develop such a partnership in April of 2016 with a meeting between the two companies’ chairmen. In the year since, we have engaged extensively to understand each other’s respective values, strategic priorities, and operating capabilities. Senior management and cross-functional teams have participated in multiple joint site visits to Barrick and Shandong operations in Argentina, Canada, and China. Given both companies’ commitment to innovation in mining, we have established a channel to share ideas on using technology and digitization to achieve step changes in efficiency, safety, and environmental stewardship. Barrick’s team is led by Chief Innovation Officer Michelle Ash. Shandong’s team is led by Deputy General Manager for Technology Cui Lun.

Under the Agreement, Barrick and Shandong will leverage their respective strengths to optimize and enhance the value of the Veladero mine, in line with step one of the partnership. As step two, Shandong will work with Barrick to explore the potential of investing in and jointly developing the Pascua-Lama deposit. To advance this, Shandong will embed a team of underground mining engineers and project development specialists with Barrick’s Pascua-Lama project team.

As step three, the companies have also agreed to work together to explore additional investment and development opportunities on the El Indio Belt, including the Alturas project, in addition to other global opportunities.

Complementing Barrick’s operating experience and expertise in the region, Shandong will provide access to substantial internal engineering, construction, and mining expertise, with a particular focus on underground mining, as well as access to capital and equipment.

CIBC World Markets Inc. is acting as financial advisor to Barrick. Davies Ward Phillips & Vineberg LLP is acting as legal counsel to Barrick.

About the Veladero mine

The Veladero mine is located in the San Juan province of Argentina, on the highly prospective El Indo Belt, approximately 10 kilometers away from Barrick’s Pascua-Lama project. Veladero is located at elevations of between 4,000-4,850 meters above sea level, approximately 375 kilometers northwest of the city of San Juan. As of December 31, 2016, the mine had proven and probable gold reserves of 6.7 million ounces, and measured and indicated gold resources of 3.3 million ounces1. The mine is expected to produce 770,000-830,000 ounces of gold in 2017, at a cost of sales of $750-$800 per ounce, and all-in sustaining costs2 of $840-$940 per ounce.

About Shandong Gold

Headquartered in Jinan, Shandong province, China, Shandong Gold Group was founded in 1996 and today has 23,000 employees. Shandong Gold Mining Co., Ltd. was listed on the Shanghai Stock Exchange in 2003, and has a current market capitalization of approximately $9.6 billion. Shandong Gold Group produced approximately 1.2 million ounces of gold in 2016, and is the only mining company in China to be named a “National Environmentally Friendly Enterprise” by the Chinese government.

Daniel Oh

Senior Vice President
Investor Engagement and Governance
Telephone: +1 416 307-7474

Andy Lloyd

Senior Vice President
Telephone: +1 416 307-7414


The scientific and technical information contained in this press release has been reviewed and approved by Rick Sims, Registered Member SME, Senior Director, Resources and Reserves of Barrick, a “Qualified Person” as defined in National Instrument 43-101 Standards of Disclosure for Mineral Projects.


  1. Estimated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Estimates are as of December 31, 2016. Proven reserves of 23.99 million tonnes grading 0.78 g/t, representing 602,000 ounces of gold. Probable reserves of 228.14 million tonnes grading 0.84 g/t, representing 6.15 million ounces of gold. Measured resources of 7.64 million tonnes grading 0.48 g/t, representing 118,000 ounces of gold. Indicated resources of 204.70 million tonnes grading 0.48 g/t, representing 3.19 million ounces of gold. Complete mineral reserve and mineral resource data for the Veladero mine, including tonnes, grades, and ounces, can be found on pages 28-35 of Barrick’s Annual Information Form for the year ended December 31, 2016 (“AIF”). Additional information about the Veladero mine can be found on pages 68-74 of Barrick’s AIF.

  2. “All-in sustaining costs” per ounce is a non-GAAP financial performance measure. “All-in sustaining costs” per ounce begins with “Cash costs” per ounce (cost of sales less, among other items, the impact of depreciation) and adds further costs which reflect the additional costs of operating a mine, primarily sustaining capital expenditures, general & administrative costs, and minesite exploration and evaluation costs. Barrick believes that the use of “all-in sustaining costs” per ounce will assist investors, analysts, and other stakeholders in understanding the costs associated with producing gold, understanding the economics of gold mining, assessing our operating performance and also our ability to generate free cash flow from current operations and to generate free cash flow on an overall Company basis. “All-in sustaining costs” per ounce is intended to provide additional information only and does not have any standardized meaning under International Financial Reporting Standards (“IFRS”). Although a standardized definition of all-in sustaining costs was published in 2013 by the World Gold Council (a market development organization for the gold industry comprised of and funded by 18 gold mining companies from around the world, including Barrick), it is not a regulatory organization, and other companies may calculate this measure differently. This measure should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Further details on this non-GAAP measure are provided in the MD&A accompanying Barrick’s financial statements filed from time to time on SEDAR at and on EDGAR at


Certain information contained in this press release, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “ambition”, “potential”, “will”, “expect”, “goal”, “ensure”, and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Barrick in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: the risk that the transaction may not close when planned or at all or on the terms and conditions set forth in the transaction agreement; the benefits expected from the transaction being realized; fluctuations in the spot and forward price of gold, silver, or certain other commodities; the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; increased costs, delays, suspensions and technical challenges associated with the development and construction of capital projects; operating or technical difficulties in connection with mining or development activities, including disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; timing of, receipt of, or failure to comply with necessary permits and approvals; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; adverse changes in our credit ratings; the impact of inflation; fluctuations in the currency markets; changes in U.S. dollar interest rates; risks arising from holding derivative instruments; changes in national and local government legislation, taxation, controls, or regulations and/or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States, Argentina, and other jurisdictions in which Barrick does or may carry on business in the future; risks related to international operations, including economic and political instability in foreign jurisdictions in which Barrick operates; damage to Barrick’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the handling of environmental matters or dealings with community groups, whether true or not; the possibility that future exploration results will not be consistent with Barrick’s expectations; risk of loss due to acts of war, terrorism, sabotage, and civil disturbances; litigation; contests over title to properties, particularly title to undeveloped properties, or over access to water, power, and other required infrastructure; risks associated with working with partners in jointly controlled assets; and employee relations. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding, and gold bullion, copper cathode, or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements. Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Barrick anuncia Acuerdo de Cooperación Estratégica con Shandong Gold

  • Como primer paso, Shandong Gold adquirirá el 50 por ciento de la mina Veladero
  • Como segundo paso, ambas compañías explorarán en conjunto el desarrollo de Pascua-Lama
  • Como tercer paso, Shandong evaluará oportunidades adicionales con Barrick

PDF  |  Todos los montos se expresan en Dólares Americanos (USD)

TORONTO, 6 de Abril de 2017 — Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (“Barrick” o la “Empresa”) anunció hoy que ha ingresado a un acuerdo de cooperación estratégica con Shandong Gold Group Co., Ltd. (“Shandong”), la compañía minera líder en minería subterránea de China, con base en Jinan, provincia de Shandong.

Como primer paso en esta nueva sociedad, Shandong Gold Mining Co., Ltd, la compañía antes mencionada de Shandong Gold Group, adquirirá el 50 por ciento de la mina Veladero, de Barrick, en la provincia de San Juan, en Argentina, por $960 millones. Como segundo paso, Barrick y Shandong formarán un grupo de trabajo para explorar el desarrollo conjunto del depósito Pascua – Lama. Como tercer paso, ambas compañías evaluarán las oportunidades adicionales de inversión en el altamente prometedor Cinturón de Oro El Indio, en el límite entre Argentina y Chile, el mismo que alberga un conglomerado de minas y proyectos de clase mundial entre los que se incluyen Veladero, Pascua-Lama, y Alturas.

“Nuestro anhelo es hacer de Barrick una empresa líder del siglo 21 en cualquier industria y jurisdicción lo cual, por definición, significa crear una distintiva y duradera relación basada en la verdad con China y las mejores compañías de China. Este acuerdo nos sumerge en ese camino. Shandong es un socio ideal para ayudarnos a desbloquear la riqueza mineral inexplorada del Cinturón El Indio a largo plazo, mientras que hoy trabaja con nosotros para generar más valor de la mina Veladero”, mencionó John L. Thornton, Presidente Ejecutivo del Directorio. “Esperamos trabajar en sociedad con Shandong, compartir la experiencia en desarrollo y minería, el talento y el capital en formas que creen valor agregado a nuestros respectivos propietarios, a nuestro gobierno y a nuestros socios en las comunidades de la provincia de San Juan.”

“Nuestra meta es construir una relación a largo plazo con Barrick, y este acuerdo encapsula exactamente lo que queríamos alcanzar”, dijo Chen Yumin, Presidente de Shandong. “En esta economía global, es más importante que nunca poder encontrar socios internacionales con una visión común para desarrollar minas y generar prosperidad de una forma medioambiental y socialmente responsable. Estamos contentos por ingresar a la dinámica industria minera de Argentina en sociedad con Barrick en Veladero, al tiempo que exploramos otras oportunidades en uno de los más prometedores distritos del mundo”.

Hasta la finalización de la operación, la mina Veladero será supervisada por un Directorio Conjunto (Joint Venture Board) conformado por tres candidatos designados por cada empresa. Para asegurar la continuidad de las operaciones, ambas compañías pretenden conservar el equipo de gerencia que actualmente lleva adelante Veladero tras el cierre de la operación.

Los productos de la operación se utilizarán para reducir la deuda y para inversiones en nuestro negocio a fin de que el flujo de efectivo disponible por acción crezca.

Se espera que la operación se cierre al final del segundo trimestre de 2017, y está sujeta a aprobaciones reguladoras y demás, incluyendo la aprobación de los accionistas de Shandong Gold Mining Co., Ltd, y otras condiciones de cierre habituales.

Shandong Gold Group Co. Ltd., el accionista directo e indirecto del 56 por ciento de las destacadas acciones de Shandong Gold, ha accedido irrevocablemente a votar a favor de la operación propuesta.

La operación ha recibido aprobaciones de la Comisión de Desarrollo y Reforma Nacional (NDRC en inglés) y de la Comisión de Administración y Supervisión de Activos Estatales (SASAC en inglés) de la provincia de Shandong. Las solicitudes de aprobación por otras autoridades reguladoras chinas incluyendo MOFCOM (Ministerio de Comercio) y SAFE (Administración Estatal de Comercio Exterior) en marcha.

Shadong tiene compromisos financieros establecidos para cubrir el valor completo de la transacción.

Detalles del Acuerdo de Cooperación Estratégica

El Acuerdo de Cooperación Estratégica con Shandong es consistente con la estrategia de Barrick por desarrollar sociedades firmes con el potencial de crear valores a largo plazo tanto con los propietarios de la Compañía, como con nuestras comunidades y gobiernos socios.

Barrick y Shandong iniciaron el desarrollo de esta sociedad en Abril de 2016 con una reunión entre los Presidentes de ambas empresas. En el año transcurrido hasta hoy, se involucraron intensamente para comprender los valores respectivos de cada compañía, las prioridades estratégicas, y las capacidades operativas. Los equipos de gerencia superiores y los equipos interdisciplinarios han participado en múltiples visitas conjuntas en las operaciones de Barrick y Shandong en Argentina, Canadá, y China. Dado el compromiso de ambas compañías con la innovación en la minería, hemos formado un canal para compartir ideas sobre la utilización de la tecnología y la digitalización para lograr cambios sustanciales en eficiencia, seguridad, y gestión medioambiental. El equipo de Barrick está liderado por su Ejecutiva Corporativa de Innovación, Michelle Ash. Por su parte, el equipo de Shandong es liderado por su Gerente General Adjunto para la Tecnología, Cui Lun.

Bajo este Acuerdo, Barrick y Shandong impulsarán sus respectivas fortalezas para optimizar y mejorar el valor de Veladero, in línea con el paso uno de la sociedad. En el paso dos, Shandong trabajará con Barrick para explorar el potencial de invertir y desarrollar en forma conjunta el depósito Pascua-Lama. Para progresar en esto, Shandong incorporará un equipo de ingenieros en minería subterránea y especialistas en desarrollo de proyectos con el equipo de proyectos de Barrick para Pascua-Lama.

Como paso tres, las compañías han accedido también a trabajar juntas para explorar oportunidades adicionales de inversión y desarrollo en el Cinturón El Indio, incluyendo el proyecto Alturas, adicionalmente a otras oportunidades de índole global.

Para complementar la experiencia operativa y el conocimiento de Barrick en la región, Shandong brindará acceso a una considerable experiencia en ingeniería interna, construcción y minería, con enfoque particular en minería subterránea, así como acceso a capital y equipos.

CIBC World Markets Inc. es el asesor financiero de Barrick. Davis Ward Phillips & Vineberg LLP son los asesores jurídicos de Barrick.

Sobre la mina Veladero

La mina Veladero está ubicada en la provincia de San Juan, en el altamente prometedor Cinturón El Indio, aproximadamente a 10 kilómetros del proyecto Pascua-Lama, de Barrick. Veladero está ubicada a una altura de 4.000 a 4.850 metros sobre el nivel del mal, aproximadamente a 375 kilómetros al noroeste de la ciudad de San Juan. Al 31 de diciembre del 2016, la mina había demostrado reservas probables de oro de 6,7 millones de onzas, y había medido e indicado reservas de oro de 3.3 millones de onzas. Se espera que la mina produzca 770.000-830.000 onzas de oro en 2017, a costos de ventas de $750-$800 por onza, con costos todo incluido (all-in sustaining costs) de $840-$940 por onza.

Sobre Shandong Gold

Con base en Jinan, provincia de Shandong, China, Shandong Gold Group fue fundada en 1996 y hoy cuenta con 23.000 empleados. Shandong Gold Mining Co., Ltd. Ingresó a la Bolsa de Acciones de Shanghái en 2003, y tiene una capitalización actual de mercado de aproximadamente $9.600 millones. Shandong Gold Group produjo aproximadamente 1,2 millones de onzas de oro en 2016, y es la única compañía minera de China en ser nombrada “Compañía Nacional Amigable con el Medioambiente” por el gobierno chino.

Daniel Oh

Vicepresidente Senior
Compromiso y Gestión de Inversores
Teléfono: +1 416 307-7474

Andy Lloyd

Vicepresidente Senior
Teléfono: +1 416 307-7414




多伦多, 新闻稿—2017年4月6日 — 巴里克黄金公司(NYSE:ABX)( TSX:ABX)(“巴里克”或“公司”)今日宣布已与山东黄金集团有限公司(“山东黄金”)达成战略合作关系。山东黄金是中国国内领先的地下矿产集团,总部设在山东省济南市。

作为合作的第一步,山东黄金集团将通过旗下上市子公司山东黄金矿业股份有限公司斥资9.60亿美元收购巴里克位于阿根廷圣胡安省境内的维拉德罗矿50%的权益。随后,巴里克将与山东黄金共同成立工作组,探讨联合开发帕斯卡拉玛项目。第三步,双方将评估极具潜力的埃尔印第奥(El Indio)矿带的其他投资机会。埃尔印第奥矿带坐落于阿根廷和智利交界处,蕴含多个世界级的金矿和项目,例如维拉德罗、帕斯卡拉玛和阿尔图拉斯(Alturas)金矿。

“我们致力于将巴里克发展成为二十一世纪的全球性领先企业,这就意味着我们必须与中国和中国的龙头企业建立独具特色、建立在相互信任基础上的合作关系。此次与山东黄金达成战略协议使我们朝着这一目标又迈进了一步。山东黄金可谓理想的合作伙伴,一方面我们将共同合作,从运营中的维拉德罗矿发掘更多的价值;另一方面山东黄金能够在未来很长一段时期与我们共同开发埃尔印第奥矿带的丰富矿产资源。” 巴里克董事长约翰·桑顿先生表示,“我们期待与山东黄金开展合作,分享双方在金矿开采开发方面的经验,以及人才和资本资源,从而为各自股东、两国政府和圣胡安省内的社区合作伙伴创造更大价值。”










巴里克和山东黄金从2016年4月开始接触,由双方董事长亲自出面。此后的一年时间里,双方开展广泛互动,以理解对方的价值理念、战略重点和运营能力。巴里克和山东黄金的公司高层及跨部门团队先后多次前往对方的矿山现场互访,足迹走遍阿根廷、加拿大和中国的多处设施。鉴于双方都致力于开采创新,因此还建立了专门的沟通渠道,分享如何利用技术和数字化实现效益、安全和环境保护三大方面的重大进步。巴里克的团队由首席创新官Michelle Ash领导。山东黄金团队由科技副总经理崔伦领导。





在此次交易中,CIBC World Markets Inc. 为巴里克的财务顾问,Davies Ward Phillips & Vineberg LLP为巴里克的法律顾问。


维拉德罗矿在阿根廷圣胡安省境内,位于极具潜力的埃尔印第奥矿带上,距离巴里克的帕斯卡拉玛项目约10公里。维拉德罗位于海拔4,000-4,850米之间,距离圣胡安市西北部约375公里。截至2016年12月31日,该矿的探明可能黄金储量为670万盎司、测定及推定黄金储量为330万盎司 。2017年,该矿预计可生产770,000-830,000盎司黄金,每盎司销售成本为750-800美元,每盎司总维持成本 为840-940美元。



Daniel Oh
电话:+1 416 307-7474

Andy Lloyd
电话:+1 416 307-7414

电话:+86 (10) 5960 8600

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