Delays in projects and partner search threatens Pascua Lama recovery
The second phase, which corresponds to the permanent system of water management is in engineering stage. Knowing the process say that two of the works that would have to be built, would require going through the SEIA.
At least until mid-2015 would be postponed the time when Barrick would be able to overcome environmental breaches and receive the OK from the authority in order to revive the binational Pascua-Lama mining project.
This only from an environmental point of view, since it is estimated that no less than twelve months could complete the works committed to the Superintendence of the Environment (SMA), as part of the healing process initiated by the agency in 2013.
Although the company last October ran transitional measures to prevent further incidents committed associated with the absence of the water management system, still needs to build the second phase, which corresponds to the final infrastructure. This group of works would still be in engineering stage, so as close to the company, there is no clarity on what and how the system will run.
However, knowing of the process explained that at this point in what they do have some clarity is that at least two of the 20 works referred to in phases I and II, would require going through the System of Environmental Impact Assessment (SEIA), income could take place between July and August.
In an optimistic scenario, sources say, this procedure would add six months to the initial plan that considered complete water management system in late 2014.
At the time of the stoppage, in May 2013, it was estimated that at the Pascua Lama’s construction detracted about 18 months, while at the Argentina side, Lama, between 12 and 14 months.
The new partner
However, the decision to continue the project also depends on other factors.
One of them is to contain the costs of the project, before the arrest had climbed to U.S. $ 8,500 billion, although industry comment that when Barrick fully suspended the construction in late October, internally talked about
$ 10,000 million.-
In this scenario, when the Canadian mining company also bypasses a good financial times, the figure of a partner to help defray the investment would be essential, especially when the same environmental situation could make it difficult to obtain resources via debt.
Close to the company explain that after several months of almost parallel negotiations with two Chinese investors, Barrick failed to close a deal with any.
The other fronts
In parallel, the company has advanced on other fronts. The workers’ union president, Alexis Spencer, highlights for example the quiet and effective work of the administration of Pascua-Lama is doing with indigenous communities in the area.
Obviously there is concern that the revival of the project would have no effect on employment. According to official estimates, of the thousand direct employees was on the Chilean side, are just over 200.
After the mountains still have hired 3,000 people, of which 1,200 would continue to rise at the mine site, but by September this number would fall to 500, according to the negotiation of the company with local authorities.
Finally, from the Atacama environmental authority reported that the review of the environmental permit that authority is performing since early this year would be halfway.
Source: Diario Financiero
