Barrick Gold Corp. won’t contest a $16.4-million (U.S.) fine levied by Chile’s environment agency over water protection measures near its Pascua-Lama mine.In a decision issued Friday, the Chilean environmental regulator known as SMA handed down the largest possible fine and ordered construction at the giant $8.5-billion (U.S.) mine to remain on hold.
Construction had been halted in early April after a judge granted a preliminary court injunction in a separate case, filed on behalf of indigenous communities who live nearby.
The agency cited “very serious” violations of its environmental permit as well as a failure by Barrick to accurately describe what it had done wrong, though the company had reported some failures.
“We found that the acts described weren’t correct, truthful or provable. And there were other failures of Pascua Lama’s environmental permit as well,” said agency superintendent Juan Carlos Monckeberg.
Barrick spokesman Andy Lloyd said the company is assessing the resolution, but Barrick won’t contest the fine.
“It is a fairly lengthy resolution. We need to go through in detail to fully understand all of the implications,” Lloyd told the Star.
Under the rules, the fine could be reduced by 25 per cent if paid within five days, though Lloyd did not know whether it could be paid that quickly.
“The fine that we received today is not for any environmental pollution or contamination,” he said. “It is related to deviations from requirements of the permit … how we constructed certain things were maybe different than how it was in the permit.”
As well, Barrick did not fully comply with certain reporting requirements and hadn’t yet completed aspects of the water management system, Lloyd said.
The company has made no decision yet on whether to suspend the project, which has faced delays and significant cost overruns.
At Barrick’s annual meeting in late April, CEO Jamie Sokalsky hinted the project could possibly be suspended if Barrick doesn’t get the regulatory and legal certainty it needs.
The giant mine, high in the Andes on the border of Chile and Argentina, was originally budgeted at $4.7 billion to $5 billion. It is now estimated at $8 billion to $8.5 billion. Production is not expected until the second half of 2014.
For the indigenous communities who live near the mine site, the ruling was seen as a victory.
“This is what we have always been hoping for,” said Maglene Camillay, a Diaguita Indian leader whose community downstream from the mine alleges its river has been contaminated by the construction.
“This makes us very content. Finally the state is showing its power,” Camillay said. “They never investigated this and now they’re doing their job. Our valley is fragile but we’re strong. The strength we get from the earth, the water and the mountains.’
Original Article
Source: thestar.com
Author: Vanessa Lu
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