LIMA, 17 may (Reuters) - Barrick Gold Corp , the world’s largest gold miner, said on Tuesday that any new projects it undertakes will have to be profitable with gold at $1,200 per ounce, even if prices climb higher.
Kelvin Dushnisky , the company’s president, said a new internal committee tasked with boosting the company’s reserves known as “Growth Group” was on the lookout for new opportunities.
A feasibility study on whether to extend the life of Barrick’s Lagunas Nortes mine in Peru was still underway, he added.
“Twelve-hundred dollars is the price where we evaluate our projects,” Dushnisky said. “They go through a rigorous process,” he said, speaking on the sidelines of a mining conference in Lima.
“We’re obviously happy to see a rise in the gold price ... but we’re going to maintain that discipline in terms of making decisions,” Dushnisky said.
Lagunas Norte, which started operations in 2005 and has produced 9 million ounces of gold, could produce another 240,000 ounces per year if the company decides to extend its life by nine years, Dushnisky said.
Reporting by Mitra Taj; Editing by Tom Brown