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Barrick Gold of Toronto has announced plans to modernize and refocus its efforts at the Hemlo gold mine 350 km east of Thunder Bay. The goal is to upgrade the operation to a Barrick Tier 2 asset and extend its life.

Barrick has introduced several programs to boost performance, and the next phase will be to mothball the open pit mine. Mining will be done underground by a contractor.

COO for North America Catherine Raw said that Hemlo will become a smaller – and more profitable – business. A longer life for the mine  will create longer term employment and benefit sharing.

Some job losses are inevitable.

“Because of the move to contract mining and the introduction of new technology, we are inviting the majority of employees working underground to participate in a voluntary separation program,” Raw added.

(This article first appeared in the Canadian Mining Journal)