barrick gold (TSX: ABX; NYSE: GOLD), through its subsidiary Compañía Minera Nevada, has filed a $136 million settlement with Chilean regulators for the final closure of the failed Pascua Lama gold and silver project, which straddles the Chilean border. An environmental impact assessment (EIA) was submitted. Argentina.
“This project will complete the closure phase of Pascua Llama. [restoration of] “Restore surface water and groundwater flows in the upper reaches of the Del Estrecho River to the same natural state as before the partial implementation of the project,” the document states.
The project’s original mine plan, which was closed in 2020 after years of legal proceedings, considered an open-pit operation that would impact three small glaciers on the Chilean side of the Andes. It also included large-scale construction in the area, large-scale waste dumps, and more than $8 billion in investments.
In 2016, Barrick began “fundamental revisions” to the project and agreed to pay $140 million to settle a class action lawsuit in the United States accusing it of distorting facts related to the controversial project. Agreed.
Shortly after, the company announced that it was abandoning the idea of conducting an open-pit mine at the site and instead planned to mine underground.
part of lamaism
In April 2017, Barrick sold a 50% stake in Argentina’s Veladero mine to Shandong Gold in a deal valued at $960 million. As part of its deal, which made the two companies strategic partners, the Shandong province-based gold miner committed to supporting Barrick moving forward with Pascua Lama.
Later that year, the company agreed to pay a Chilean entity an additional $20 million to settle an arbitration case filed in 2016 after the gold producer stopped paying the settlement in 2005.
Barrick CEO Mark Bristow had hoped that the issues surrounding the project would be resolved, but since 2017, the Argentine Lama project, which has been 50% invested by China’s Shandong Gold, I decided to focus on it.
Pascua Llama would have produced 800,000 to 850,000 ounces. Gold and 35 million ounces will be the amount of silver per year in the first five years of his 25-year life.
The world’s second-largest gold mine by reserves is expected to announce its final investment decision in Lamas this year.
This article was originally posted on Mining.com