Barrick, Shandong Gold Plan $400 Million Investment in Argentine Mine

Barrick Gold Corporation and Shandong Gold are planning a $400 million investment in an Argentine mine. The investment is aimed at increasing the mine's production capacity and improving its efficiency. Barrick Gold is a Canadian gold and copper producer with operations in several countries, including Argentina, Canada, and Tanzania. Shandong Gold is a Chinese gold mining company with a significant presence in the global gold market. The partnership is expected to create a major gold mining operation in Argentina, boosting the country's gold production.

Barrick Gold Corporation and Shandong Gold have announced plans for a significant $400 million investment in the Veladero gold mine located in San Juan province, Argentina. This investment aims to enhance the mine's production capacity and operational efficiency, extending its productive life and boosting Argentina's mining sector.

The investment is part of a broader $500 million expansion package, which includes an existing $100 million Phase 8 expansion already underway. The new $400 million investment, under Argentina's RIGI (Régimen de Incentivo a las Grandes Inversiones) framework, will focus on upgrading the mine's processing facilities, particularly improving leaching processes. This technological upgrade is expected to enable the extraction of an additional 1.6 million ounces of gold over the extended life of the mine [1].

The Veladero expansion project comprises multiple development phases (8A, 8B, and 8C) and aims to extend the mine's operational life by approximately ten years, securing its position as a cornerstone of Argentina's mining industry well into the 2030s. The expansion is scheduled to be fully operational by late 2028 or early 2029 [1].

The economic impact of the Veladero expansion is substantial. The expanded operation is expected to generate approximately $3.8 billion in additional export revenue for Argentina over the extended operational period. This significant foreign exchange influx will strengthen the country's trade balance and boost its reserves [1]. Additionally, San Juan province is projected to benefit from mining royalties of approximately $200 million, which can support local infrastructure development, education, healthcare, and other public services [1].

The Veladero expansion highlights the importance of Argentina's RIGI framework in attracting major mining investment. The RIGI program offers various incentives to qualifying projects, including tax stability, preferential exchange rates for dividend repatriation, and streamlined regulatory processes. These incentives are particularly valuable in Argentina's sometimes volatile economic environment [1].

The Veladero mine operates under a 50-50 joint venture between Barrick Mining Corporation and Shandong Gold Group. This partnership allows both companies to contribute their respective expertise while sharing both risks and rewards from the operation. Barrick's recent rebranding from Barrick Gold to Barrick Mining Corporation reflects a strategic pivot toward becoming a diversified mining company with significant interests in both gold and copper. Shandong Gold, China's leading underground mining company, brings significant technical expertise to the partnership [1].

The Veladero mine holds a special place in Argentina's mining sector due to its scale, longevity, and economic importance. The mine has been in continuous operation for nearly 20 years, demonstrating remarkable operational resilience and consistent production. The expansion project aims to extend Veladero's operational life by approximately ten years, ensuring continued production well into the 2030s [1].

The Veladero expansion reflects several important industry evolution trends in the global mining industry, particularly regarding strategic positioning and international partnerships. Diversification beyond gold is a key trend, driven by copper's critical role in electrification and renewable energy technologies. Major mining companies are adapting their strategies to changing metal demand profiles and seeking to maintain relevance in a rapidly evolving global economy [1].

References:
[1] https://discoveryalert.com.au/news/veladero-mine-expansion-investment-argentina-2025/