TORONTO (miningweekly.com) – The world’s most prolific gold producer Barrick Gold on Thursday announced that it had appointed Sergio Fuentes  executive project director for the stalled Pascua-Lama copper/gold project straddling the Chile/Argentina border.

Fuentes would focus on optimising detailed engineering, improving the project’s economics and developing a robust execution plan for remaining construction activities at Pascua-Lama.

In the short term, he would lead completing the final engineering for the water management system in Chile and would work to reduce ongoing care-and-maintenance expenditures at the project.

Fuentes was most recently the VP for projects for Chilian copper miner Codelco and had nearly 30 years of mining industry experience, with a proven record in engineering, optimising and constructing complex mining projects, including high-altitude operations in the Andes.

Fuentes would work closely with Barrick's executive director for Chile, Eduardo Flores, and executive director for Argentina, Guillermo Calo, to ensure that all project activities aligned on both sides of the border and would support the development of enduring partnerships with governments, communities and other stakeholders in both countries.

Barrick stopped the project in 2013 after investing $5-billion in it. As well as permitting issues, cost overruns and a sharp drop in bullion prices, it faced the strong and organised opposition of the local indigenous communities.

Pascua-Lama was originally expected to cost no more than $3-billion when construction was approved in 2009. The cost of the project has since escalated to $8.5-billion.

Despite construction of the project having been stopped, Barrick was committed to completing a water management system and was also sitting down with the local communities who had opposed the project to try and work out an agreement.

A technical report was expected in December or January.

The project is the first binational mining project in the world. The deposit is located on the border between Chile and Argentina, with 75% of the orebody lying in Chile and 25% in Argentina.

It is a world-class resource of almost 18-million ounces of proven and probable gold reserves and 676-million ounces of silver contained within the gold reserves, with a mine life of 25 years. If completed, it is expected to produce between 800 000 oz and 850 000 oz of gold and 35-million ounces of silver in its first five years of production.

Barrick noted that a decision to restart the Pascua-Lama project would depend on resolving the permitting and legal matters in Chile and improving project economics. The company would only proceed with construction if the project met minimum return-on-investment thresholds.