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Barrick Gold's (ABX +0.8%) Pascua-Lama gold mine in the Andes is set to receive yet another a...

Barrick Gold's (ABX +0.8%) Pascua-Lama gold mine in the Andes is set to receive yet another a blow, with a Chilean court expected to unanimously order the continued suspension of work on the $8.5B project. The court, which is due to rule today, froze construction at the site in April to consider claims by indigenous communities that the work has damaged glaciers and water supplies. Barrick will probably appeal a negative ruling, which could also affect Silver Wheaton (SLW) and Royal Gold (RGLD).
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Comments (11)
  • Agbug
    , contributor
    Comments (1161) | Send Message
     
    More bad news on this colossal money pit. Say it aint so. Will buy ABX if it breaks $10.
    15 Jul 2013, 09:41 AM Reply Like
  • brianngaibh
    , contributor
    Comments (129) | Send Message
     
    suggest to give some benefits to Chilean gov to ease the head on situation, or to become friendship matter.
    15 Jul 2013, 09:52 AM Reply Like
  • sinedo
    , contributor
    Comments (419) | Send Message
     
    If someone who reads Spanish very well would read articles in Santiago's newspaper, maybe we could find out if this Country has gone Progressive-wacky. This could be a genuflection to the Environmentalists or it could be an economically bad, anti-worker move. Big spending work projects are not that numerous in either Chile or Argentina. Santiago probably has an English language regular paper, but I'm not confident their financial news would be.
    Regards,
    15 Jul 2013, 11:15 AM Reply Like
  • Mark0f0
    , contributor
    Comments (868) | Send Message
     
    Sheesh, how much can a few well-placed bribes cost? Certainly cheaper than even more delays on this project.
    15 Jul 2013, 11:54 AM Reply Like
  • Vitali Tchalov
    , contributor
    Comments (21) | Send Message
     
    I'm really afraid it's too late. The timing and the way those all of a sudden environmentally conscious "statesmen" act makes me think that they have already received their payments from somebody else. As crazy as it sounds, I'm really afraid that someone who isn't shy in business practices, no need to name that country here, came up with a plan to get the project at a few cents on the dollar. Barrick will be forced to sell it at a huge loss and then no one will ever again hear about any environmental issues.
    15 Jul 2013, 08:25 PM Reply Like
  • alan460
    , contributor
    Comments (48) | Send Message
     
    Doesn't sound like news. Has ABX has done anything to change the situation? I doubt it - the solution has yet to be found.
    15 Jul 2013, 03:00 PM Reply Like
  • John7511
    , contributor
    Comments (8) | Send Message
     
    Barrick has a long standing title problem at Pascua Lama, this is the sole reason why Barrick has not been able to touch the Gold with this project. I talked with a Barrick shareholder who is suing in one of the class actions and they are suing because Barrick has failed to inform of the real issue for the past 2 decades at Pascua Lama with not having the legal rights to mine the deposit. A few months ago a miner named Jorge Lopehandia was given the legal rights over Pascua, then not to long after Barrick somehow has all these problems with containing water, as somehow a avalanche of water ended up going down the mountain. My bet is Barrick created another excuse, they seem to be pretty good at the excuses for postponing this project which was to start in 1996.
    15 Jul 2013, 04:44 PM Reply Like
  • sinedo
    , contributor
    Comments (419) | Send Message
     
    John7511 makes it sound like ABX Management are total dummies. I believe they feel they have legal rights sufficient to pump well over $1 Billion into development of the mine, and they certainly have Chilean lawyers that understand property rights. I can't think of a more advanced Country in Latin America, so I would say that it is more likely that they are also captured by the mad scientists of man-made global warming. The Indian tribes in that area of the Andes see the advantages of global warming too, and blame ABX for melting glaciers, maybe??
    Yesterday's ABX press release:
    "TORONTO, ONTARIO--(Marketwired - Jul 15, 2013) - Barrick Gold Corporation (ABX)(ABX.TO) (Barrick or the "company") reports that the Copiapo Court of Appeals has today ruled that the company must complete Pascua-Lama's water management system in compliance with the project's environmental permit to the satisfaction of Chile's Superintendence of the Environment (Superintendencia del Medio Ambiente or "SMA") before resuming construction activities in Chile..."
    16 Jul 2013, 09:43 AM Reply Like
  • John7511
    , contributor
    Comments (8) | Send Message
     
    ABX management has already admitted to being a bunch of dummies. They had to hire Flour to finish construction of a mine Barrick has no legal right to mine. The whole Pascua Lama Protocol is flawed as proven by the rightful owner Mr Lopehandia defeating the Government of Chile's defence with trying to protect BARRICKS INTEREST. Lawyer Bárbara Salinas has been successful in finally uncovering this long standing Barrick title problem and ending the ABX/Chile government relationship.

     

    Just check out the links I provided and do your own digging.

     

    http://bit.ly/15jbEXJ

     

    http://bit.ly/15jbC2b
    16 Jul 2013, 02:39 PM Reply Like
  • John7511
    , contributor
    Comments (8) | Send Message
     
    You may also want to check out the YouTube link I'm providing which shows Barrick created the environmental problems by releasing water down the Pascua Lama Mountain rivers. Some have wondered how this could have even happened concidering Barrick was already required through the environmental permitting in 2009 to contain the water.

     

    Did Barrick intentionally flood the rivers with a water avalanche to again delay and exit Pascua Lama for something other than the title problems. You bet they did, just like the numerous excuses with this project since 1996.

     

    http://bit.ly/13rr2y4
    16 Jul 2013, 02:48 PM Reply Like
  • sinedo
    , contributor
    Comments (419) | Send Message
     
    Thanks for trying, but my Spanglish is insufficient to understand those videos, so I will have to take your word about the mining rights. I do not love ABX; I confess I am using it to make money. Nothing at all surprises me about miners, since I have the scars and bruises to prove I've been there, done that, in the past..
    It seems that the market has mutilated most of these stocks, the good and the bad, so the worst news seems to be in all of them. I've learned to be a "contrarian" who buys when nobody loves them, and I sell when everybody wants them. Most of my ABX came from mergers and acquisitions, and I just last week bought more to round-up my position. So far, it's up 15%. I feel there is not a lot of down-side left in these precious metal miners, and if they pay a dividend, all the better. They all could cut their dividends, I acknowledge, but things would have to look very bleak for the big ones to do it, and I don't think there's a lot of danger.
    17 Jul 2013, 02:58 PM Reply Like
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