Barrick Gold

Barrick Gold dominates the gold field. Since opening their gold mining operations in 1983 the company has risen to become the largest producer of gold in the world with mines in all four of the world's major gold sectors. The three producing mines in South America made up 24% of 2006 production with the most productive being the Veladero site in Argentina, 8km southeast of Pascua Lama. We intend to visit this mine in January.

Pascua Lama, though not set to produce gold until 2010, already plays a major role in the net asset value of Barrick (roughly 20%). Because the value of and investment interest in publicly traded corporations like Barrick hinges in large part on future expectations, a massive gold deposit on Barrick land high in the Chilean Andes makes Barrick stock a favorable buy. Such a value, however, isn't determined solely by the knowledge of gold's presence under the glaciers, "icefields," and other high-alpine features; it also requires the ability to affordably obtain it. Barrick has the equipment necessary to develop and extract from the site but, just as importantly, they have the glad-handing public relations skills to surpass the social, political, and environmental obstacles of the Chilean and Argentine governments and the local communities most affected by the mines.

In this diplomatic sense, Barrick operate smoothly and efficiently, and they utilize big-time global players to muscle their way into the most advantageous positions for the cultural challenges faced by developing mines. While Barrick has been recognized as a conscientious global citizen, they're not exactly playing in the most responsible league of corporations. The mining world, like all resource extraction industries, must alternate hats between biggest, baddest bully on the block and suave, concerned, diplomat looking after the little guy. It's a tight-rope and success relies on the best manipulation as much as it does on the heaviest equipment or geologic knowledge.