Barrick Gold to take $429M charge on stalled Pascua-Lama project

|About: Barrick Gold Corporation (GOLD)|By:, SA News Editor

Barrick Gold (NYSE:ABX) says it expects to record a $429M pre-tax charge in Q4 as it reclassifies gold reserves at the stalled Pascua-Lama project in South America.

Chilean environmental regulators last month ordered ABX to close existing infrastructure on the Chilean side of the project, where the company had planned to develop an open pit mine; as a result, ABX is reclassifying Pascua-Lama’s 14M oz. of gold, which were based on an open pit mine plan, to measured and indicated resources - a mineral category with less certainty of being mined economically.

ABX says it has formed a working group with China's Shandong Gold to study a potential partnership at Pascua-Lama, building on an existing joint venture at the nearby Veladero mine.

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