Barrick Gold has reduced its gold production forecast for 2015 following a mechanical issue at the Pueblo Viejo mine in the Dominican Republic.
The company expects to produce six million to 6.15 million ounces of gold during the year at $830-$870 per ounce. It previously estimated it would produce between 6.1 million and 6.3 million ounces of gold.
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Barrick Gold said that production at the Pueblo Viejo mine may be reduced until mid-January 2016 due to a mechanical issue at the mine’s oxygen plant.
The Pueblo Viejo mine is a joint venture between Goldcorp, which owns 40% interest, and Barrick Gold that operates it with a 60% interest.
Two of three electric motors at the mine’s oxygen plant experienced an unexpected failure and have been shipped to a US facility for repair. The third motor is continuing operations as usual.
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The plant provides the oxygen required for the autoclave processing facility that treats the refractory ore at Pueblo Viejo mine. The facility will operate at a reduced capacity until the damaged motors are put in operation after completing repairs, the Barrick Gold said.
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By GlobalDataBarrick Gold is in the process of investigating the cause of the motor failure.
Repairs are expected to be complete to have units back in-service by mid-January 2016, based on current estimates.
The Pueblo Viejo mine achieved first gold production in 2012 and completed its ramp-up in 2014.
Barrick’s share of gold production in 2014 stood at 665,000oz at all-in sustaining costs of $588 per ounce. As of 31 December 2014, the mine had proven and probable gold reserves of 9.3 million ounces.
