By Helen Reid
CAPE TOWN (Reuters) – Barrick Gold Corp has nearly doubled its inventory of some key supplies at mines to weather the disruptions caused by Russia’s invasion of Ukraine, Chief Executive Mark Bristow told Reuters on Wednesday.
The world’s second biggest gold miner used to hold a month’s worth of supplies at mines but tripled that when the COVID-19 pandemic hit in early 2020.
This year, when it became clear Russia would invade Ukraine, Barrick ramped inventories up to five months’ worth for key supplies like cyanide, explosives, and steel balls used for milling, Bristow said.
“We’ve taken some of the inventory up to five months, because of the Russian issue,” he said in an interview on the sidelines of the Mining Indaba conference in Cape Town.
Russia’s invasion of Ukraine in February has caused supply chain disruptions worldwide and sent gas and metal prices soaring, turbo-charging inflation.
Bristow also said he is concerned about fuel shortages.
“Our concern is that we are going to see stock-outs right across the world, and the impact of that is significant,” he said. “This is not a nice situation.”
Rising inflation is impacting consumers and companies alike. Gold Fields Ltd, for example, on Monday said inflation is eating into its contingency cost buffer for its biggest project, Salares Norte in Chile.
China’s COVID-19 lockdowns have dampened demand, the Barrick CEO said, but if the situation there gets back to normal it will put even more stress on global supply chains.
“We are really investing and making sure we can protect ourselves as much as possible,” he said.
(Reporting by Helen Reid in Cape Town; Editing by Marguerita Choy)
