Globe says Barrick CEO okay with increased risk

2009-01-19 07:38 ET - In the News

The Globe and Mail reports in its Saturday edition the new chief executive officer of Barrick Gold says he will not shy away from base-metal exposure or politically risky mining assets. The Globe's Andy Hoffman writes that on his first day at Barrick, Aaron Regent indicated there would be no bold shift in strategy.

However, the 43-year-old accountant said Barrick is big enough to take on the increased risks that come with operating major mining deposits in politically challenging locations. "The risk profile of Barrick is significantly lower than a lot of our peers," Mr. Regent said. Barrick already has exposure to difficult operating locations including assets in Papua New Guinea as well as Tanzania, where the company has been hit with soaring costs, bitter labour disputes and violent clashes with locals.

Mr. Regent admits that his No. 1 challenge is finding ways to expand Barrick, which produces about eight million ounces of gold a year. The company is constructing three new mines: Buzwagi in Tanzania, the Cortez Hills project in Nevada and Pueblo Viejo in the Dominican Republic.

Barrick has at least seven other projects in various stages of development, but few of those are pure gold deposits.