El Salvador president proposes bill to overturn metals mining ban
In 2017, El Salvador became the first country in the world to ban forms of metals mining.
Canada’s Barrick Gold (ASX, NYSE:ABX), the world’s No.1 gold miner, is selling research and development company AuTec and laying off executives hired to lead what the Toronto-based company had called its “digital reinvention.”
Barrick is in the midst of merging with Africa’s Randgold Resources (LON:RSS) and incoming CEO Mark Bristow has announced his intention to offload non-core assets, reduce costs and cut head office management in an attempt to delegate more authority to regional mining operations.
AuTec is a full-service metallurgical testing lab and piloting facility, serving the mining industry.
One of the first assets to go, according to the WSJ, is AuTec Innovative Extractive Solutions Ltd, a full-service metallurgical testing lab and piloting facility, serving the mining industry.
In recent months, Barrick has dissolved or reduced technology-based teams at its head office in Toronto and at its mining operations in Nevada, the report said.
In September, it decided to eliminate the executive role of Chief Innovation Officer, held by Michelle Ash, who will be in the position until the end of the year.
At the time, the company said it would not make changes to the position of Chief Digital Officer, created last August and held by former GE executive Sham Chotai. The executive was supposed to lead Barrick’s digital transformation, but he’s said to have already left the company.
Other non-core assets that are rumoured to go on the chopping block soon are the Lumwana copper mine in Zambia, which could fetch as much as $1.3 billion as well as Barrick’s 50% stake in Chile’s Zaldivar mine.
The merged mining company may also sell Randgold’s Tongon, Massawa and Morila assets, BMO Capital Markets analyst Andrew Kaip wrote in a report to investors in October.
2 Comments
Stockolio
Finally… Reducing almost useless cost and ramping up productions in key areas, getting rid of lagging projects. This merger with Randgold is not only about becoming the world’s biggest gold producer, it also seems about Mark and John bringing this company to being highly profitable once again. Last obstacle is Tanzania/Acacia, but it seems Shandong will take it over considering China’s clout in Tanzania
George Nowak
Finally Stockolio? “Useless” is buying copper assets for 7.4 billion and writing 80% off. It’s half-building a project in Argentina and Chile for 5 billion and it’s stranded, sunk capital and inoperable. “Useless” cost is buying and doing feasibilities for 4 billion on other assets, gold, PGM and Nickel projects, none of which will be built. Buying a 100 million fleet of executive jets to avoid the pain of commercial flights for the C-suite. Add these to the cost of hundreds of millions to lay off thousands of their best scientists and engineers and yes, even some of the best execs. Total that up and you have a number bigger than the total ABX market cap. These layoffs and R&D due for disposal were key to unlocking earnings of many billions for difficult double refractory gold deposits in Nevada, DR and some day in Alaska. Some cuts are needed but many are dubious. I think you’ve been drinking too much of the Kool-Aid served at investor days. Your “highly profitable” expectations may be illusory, solely dependent on a rampant gold price.