Barrick Gold Corporation
) is relieved after the Supreme Court of Chile issued a ruling
which uphold the environmental approval for the Pascua-Lama
project in Chile.
The ruling says that Barrick will have to complete the project's
water management system according to its environmental permit to
the satisfaction of Chile's Superintendence of the Environment
(SMA), as previously decided by the Copiapo Court of Appeals.
Barrick can resume the construction work in Chile once the SMA
permissions are met.
The decision given by the Supreme Court brings an end to the
constitutional challenge filed by four indigenous communities
against the Pascua-Lama project in September 2012.
Barrick plans to complete the new system by the end of 2014 to
satisfy Chilean regulatory authorities. However, completion of
these works depends on the regulatory approval of specific permit
Barrick halted construction work at the Pascua-Lama mine in Chile
after a Chilean court issued a preliminary injunction on Apr 10,
2013 citing environmental concerns. The injunction was issued
after the four indigenous communities complained that the project
is threatening their water supply and polluting glaciers. The
mine was charged with 'environmental irregularities' while
constructing the world's highest-altitude gold and silver mine.
The Pascua-Lama mine is located at the Chile-Argentina border. It
is one of the world's largest gold and silver resources with
nearly 18 million ounces of proven and probable gold reserves,
676 million ounces of silver contained within the gold reserves,
and an anticipated mine life of 25 years.
Pascua-Lama's expected annual gold and silver production in the
first five years is 800,000 to 850,000 ounces and 35 million
ounces, respectively. Construction activities in Argentina, where
the majority of Pascua-Lama's critical infrastructure is located,
were not affected by the suspension of the Pascua-Lama project in
Barrick, which currently retains a Zacks Rank #3 (Hold), will
release its third-quarter 2013 results on Oct 31 before the
Other mining companies with favorable Zacks Rank are
Alamos Gold Inc.
Gold Fields Ltd.
). All of them hold a Zacks Rank #2 (Buy).
BARRICK GOLD CP (ABX): Free Stock Analysis
ALAMOS GOLD INC (AGI): Free Stock Analysis
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