According to Reuters,
Barrick Gold Corporation
) is laying off around 1,500 workers on the Argentine side of its
suspended Pascua-Lama gold mine project. Currently, it employs
roughly 5,000 workers there.
As such, the Argentine side of Pascua-Lama will be operating with
3,500 workers in 2014. Rescheduling of all the operations in
Argentina has been done as the company is prioritizing works on
the Chilean side.
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 estimated mine life of 25 years.
In Oct 2013, Barrick temporarily suspended construction
activities at the Pascua-Lama mine, barring the requisite
activities for environmental protection and regulatory
compliance. Barrick also stopped construction activities
temporarily to conserve cash outlays after gold prices slumped.
Moreover, the company lowered its capital cost guidance for 2014
and expects it to be up to $1 billion.
Barrick halted work in such a manner so as to allow efficient
and effective re-start when conditions permit. The decision to
re-start will depend on certain factors like improved project
economics, outlook for metal prices, and reduced uncertainty
regarding legal and other regulatory requirements.
Earlier this year, Chile's environmental regulator prevented
construction on the Chilean side of the project. In addition, the
regulator imposed preliminary injunction citing "serious
violations" of its environmental permit in April 2013.
The injunction was issued after the four indigenous
communities complained that the project is threatening their
water supply and polluting glaciers. The project was charged with
'environmental irregularities' during the construction of the
world's highest-altitude gold and silver mine.
Currently, Barrick carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the gold mining industry include
Golden Star Resources, Ltd.
Pretium Resources Inc.
AngloGold Ashanti Ltd.
). While Golden Star Resources has a Zacks Rank #1 (Strong Buy),
both Pretium Resources and AngloGold Ashanti hold a Zacks Rank #2
BARRICK GOLD CP (ABX): Free Stock Analysis
ANGLOGOLD LTD (AU): Free Stock Analysis
GOLDEN STAR RES (GSS): Free Stock Analysis
PRETIUM RES INC (PVG): Free Stock Analysis
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