Mining Minister ensures that Barrick will try to solve Pascua Lama’s problems
Representatives from the Canadian mining company recently met with the Minister Williams to discuss about the paralyzed judicial initiative.
The mining giant Barrick wants to solve the problems that affect its controversial Pascua Lama gold project, which gives a signal of its intention to proceed with the initiative, said the Minister of Mining, Aurora Williams.
Representatives of the Canadian mining company recently met with the official to discuss the stalled judicial initiative that has already cost more than $ 5,000 million.
“They have expressed interest in solving problems and to effectively perform community work (…). What I understand is that there is an interest to actually continue the project, “Williams said.
The Barrick’s draft is being held by orders from the justice and environmental regulator until it complies with the construction of a system for water management that was considered in its environmental permit.
The company has put the project on hold due also to a cost analysis. According to the minister, the project is currently “not feasible” while not attend all the technical requirements, in addition to extensive work with communities.
“Having breached, by Pascua Lama, besides being repetitive and also not having applied the corrections at the corresponding times indeed left an inappropriate precedent,” She said.-
The minister said that 30% of mining investments planned for U.S. $ 112,000 million have been hampered by problems of prosecution, primarily because of differences with the communities, so “is no longer enough” to fulfill the terms of the legislation but also must be done previous work in the areas of project impact.
“Those projects that are actually conflicted, for us it is not feasible to collaborate unlock them (…) because they are based in a different power, such as the judiciary”, she said.
The Pascua Lama project had an expected production of 850,000 ounces of gold annually in the first five years of operation.
Codelco
Williams also referred to Andina 244 project belonging to Codelco, the world’s largest copper producer, who just in the process of its environmental permit has received strong opposition from social groups, who report their effect on neighboring glaciers and water availability.
“We recognize that structural projects are critical to the development of Codelco and within structural projects, Andina 244 so is,” said the official, but stressed that the initiative must comply with regulations.
The expansion would increase by 150,000 tons per day processing capacity of the site, located in the central region, which would increase production to 600,000 tons per year, making it the largest mine production company. “We are concerned that the project develops, but we also want to be harmonious”, she said.
Andina 244 is part of an ambitious investment plan of the state company to counter the natural decline of its sites. The Government is currently considering a capitalization formula for the company to meet the challenge.
Codelco gives all its profits to the state, which defines how much will be reinvested in the mining company. The period to determine the amount that the firm will receive this year runs until the end of the first half.
The company has said its investment plan envisages an average annual expenditure around U.S. $ 5,000 million, although Williams said that the figure requested by the company is lower.
“The value is much lower because there are several issues to review, some have to do with the capabilities of debt the company has”, she said.
“What we are going to determine is actually the optimal point which relates to optimal amount and date of development of each project (…). What should be covered is the real need of funding”, she said.
Williams also made reference to the exploration and development of lithium in the country and said they will wait the results of the proposal from a committee of experts from the end of this year and beginning of 2015, to determine what will be the government policy on this matter.
Source: La Tercera
