Name and Location
Pascua-Lama project, Chile and Argentina.

Client
Barrick Gold.

Project Description
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 proved and probable gold reserves and 676-million ounces of silver contained within the gold reserves, with a mine life of 25 years. 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.

Value
Barrick raised the capital expenditure allocation from $7.5-billion to $8-billion in the June quarter to between $8-billion and $8.5-billion in the September quarter.

Duration
Production has been delayed to the second half of 2014, owing to delays in earthworks and underground works for the process plant.

Latest Developments
In the latest of several recent blows to Chile’s mining and power industries, a Chilean court has suspended the construction of Barick’s Pascua-Lama project after indigenous communities said the project was destroying glaciers and harming water supply.

The local communities claim that water polluted by construction processes has flowed into the Estrecho river, which indigenous and other communities in the valley use for agriculture and personal use.    

The complaint, lodged with the appeals court in the northern town of Copiapo, states that high concentrations of arsenic, aluminium, copper and sulphate have been found in underground water supplies.    

The northern appeals court of Copiapo will analyse the communities' complaints of "environmental irregularities" against Barrick's project, which is already plagued by soaring costs and stiff opposition from environmental groups.
Barrick, however, has denied that it has polluted the river.   

The appeal could take several months and the dispute is likely to be decided in the Chilean Supreme Court.

Further, if Barrick fails to deal with dust, drainage and water issues at Pascua-Lama project its environmental permit could be revoked.

It remains unclear what kind of legal action Barrick could take if the permit is cancelled or placed under review.    

Key Contracts and Suppliers
Fluor (project management).

On Budget and on Time?
First production has been delayed to mid-2014.

Contact Details for Project Information
Barrick Gold media relations manager Andy Lloyd, tel +1 416 307 7414, or email alloyd@barrick.com.
Fluor, tel +1 469 398 7000 or fax +1 469 398 7255.