Market analysts Trefis reports, “Barrick Gold Corporation might have another problem on its hands as far as the Pascua-Lama project (a controversial open pit gold and silver mine that straddles the border between Chile and Argentina) is concerned. The Chilean Supreme Court struck down the planned 2,100-megawatt, $5 billion Castilla thermoelectric power plant project this week, citing environmental concerns. …The Castilla project was planned for Chile’s copper-rich Atacama region, with the goal of providing energy to the booming mining area. Cerro Casale owned by Barrick Gold and Kinross, Lumina Copper’s Caserones mine and Barrick’s Pascua Lama mine were preparing to operate in the surrounding area and were expected to be supplied with power from the Castilla project. We think that mining companies would probably look to Peru and Bolivia as alternative sources of power supply; but, even in those countries, citizens are increasingly turning against mining projects. …Barrick has already had to escalate capital expenditure costs at Pascua-Lama by 50-60% which translates to an increase of nearly $2.5 billion. The project has also been pushed back by a year to mid-2014. We believe that power headaches will only result in additional delays and costs.” The full article is at http://www.trefis.com/stock/abx/articles/141147/chile-court-ruling-has-potential-implications-for-barrick-golds-mines/2012-08-31. Council of Canadians opposition to Pascua Lama – and news about recent allegations about Prime Minister Stephen Harper’s chief of staff lobbying on behalf of Barrick Gold – can be read at http://canadians.org/blog/?p=16333.
