US$8,000 million mining projects temporarily put in hold-back condition
10-Jul-2012 Diario Financiero – News
Two different projects
US$8,000 million mining projects temporarily put in hold-back condition
Environmental evaluation of El Morro withheld and Minera Teck withdrew Environmental and Social Impact Survey for Quebrada Blanca
These two mining projects, amounting to more than US$8,000 million, recently experienced a backtrack and were put in stand-by condition. First project is the emblematic El Morro project – 70% controlled by Goldcorp and 30% by Newgold- being withheld because the Environmental Evaluation Committee of Atacama decided to backtrack the environmental evaluation process of the project. The project involved US$2,500 million investment approximately. On the other side the Canadian Teck has temporarily recalled the Environmental and Social Impact Survey of Quebrada Blanca Phase 2 requiring a US$5,590 million investment.
As published in the Official Ledger Newspaper, a Consolidated Report on El Morro must be issued containing “clarifications, rectifications, and extensions in order deficiencies detected may be solved” as required by the Antofagasta Court of Appeals decision that was further confirmed by Supreme Court regarding the consultation made by native population affected by the project.
Per the company’s request the Environmental Evaluation Committee of Atacama decided to defer the evaluation procedure until March 22, 2013.
However, the company has informed in advance that “they continue working with Chilean authorities and local communities to correct those deficiencies”.
A new Environmental and Social Impact Survey
After withdrawing the Environmental and Social Impact Survey for the Second Phase of Quebrada Blanca, Teck informed that they are in the process of revising the comments the authorities made. Afterwards, the company will submit the enhanced project again.
The company had resubmitted the project at the end of last April increasing original investment in approximately US$1,390 million as costs resulted higher than foreseen.
The project, which useful life is estimated in 39 years, considers execution of copper mining works to be deeper than current operations (hypogene mineral deposit). Explorations have identified approximately 2,700 million tons of feasible- to-be-mined mineral containing copper and molybdenum.
