Situation
Barrick Gold, the second biggest mining company based in Toronto, Canada, operates the Veladero mine, situated in the highly promising Frontera District in San Juan Province, Argentina. The operation, a 50/50 joint venture with Shandong Gold, is positioned at an elevation of 4,000 to 4,850 meters above sea level and approximately 374 kilometres northwest of San Juan city. For the ongoing responsible and sustainable operation of the mine, Barrick Gold aimed to broaden its horizons and strengthen its internal capabilities.
Solution
To aid Barrick Gold, Servita deployed an organisational design team to Argentina to work in collaboration with key stakeholders and improve internal competencies. Servita helped the company analyse existing practices, devise an optimal operating model, design crucial operational processes, and create a strategic blueprint for a business transformation. This blueprint aimed to establish a centre of excellence encompassing key aspects such as ESG risk assurance for investors and mining companies, comprehensive risk reviews, risk strategy planning and design, geopolitical risk assessment for asset acquisition, security and stakeholder engagement risk reviews to safeguard the License to Operate (LTO), and crisis management for lost LTO.
Results
With Servita’s assistance, Barrick Gold obtained a comprehensive roadmap to augment their operations, enabling them to persist with responsible and sustainable mining practices at the San Juan Province mine. This strategy benefits the mining operation and supports the local community and infrastructure, reflecting the essential nature of strategic partnerships and forward-thinking in addressing industry challenges and achieving exceptional results with sustainability at the heart of the strategy.