Barrick Gold Seeks New Mines in Indonesia, Papua New Guinea

By Tan Hwee Ann

Feb. 14 (Bloomberg) -- Barrick Gold Corp., the world's largest gold miner, is seeking new mines in Indonesia, Papua New Guinea and Australia as it looks to add to its Asian production.

Countries in the so-called `Ring of Fire' region, including Indonesia and Papua New Guinea are ``very prospective,'' Joc O'Rourke, president of Barrick Australia Pacific, said today in an interview in Perth.

Barrick last March bought Placer Dome Inc. to become the largest gold miner. The Toronto-based company been seeking to add to its mines in Australia, South Africa, Tanzania and Nevada as prices of bullion more than doubled in the past five years

``There are some fantastic minerals resources in Papua New Guinea and Indonesia, and the Philippines has some,'' said O'Rourke. There's a also a ``big opportunity,'' in South Australia where some early discoveries suggest similar geology to the BHP Billiton Ltd.'s Olympic Dam mine, he said.

The Olympic Dam mine in South Australia has the world's sixth-largest copper and tenth-largest gold deposits, according to BHP Billiton, the world's largest mining company.

Barrick last November signed an agreement with Integra Mining Ltd., allowing it to take an 80 percent stake in the Oodnadatta gold and copper project in South Australia for A$3 million ($2 million).

Labor cost increases in Australia have slowed, said O'Rourke. The rate of turnover at Barrick ``peaked early last year, and is slightly down now,'' he said. Labor costs have surged in Australia as miners compete with each other to expand projects.

To contact the reporter on this story: Tan Hwee Ann in Perth at hatan@bloomberg.net