Trouble for Barrick: Argentina High Court Lifts Glacier Law Suspension

July 5, 2012 By 6 Comments

Regular SD readers will remember SD contributor SRSrocco’s recent article highlighting Barrick’s 200 million ounce silver problem with it’s Pascua-Lama mine.
Barrick’s problems at Pascua-Lama took a sharp turn for the worse Tuesday, as Argentina’s Supreme Court reversed a lower court ruling suspending an Argentinian glacier protection law.
Silver Wheaton is waiting for their phyzz, and it doesn’t look like a single ounce is coming out of Pascua-Lama anytime soon.

 

Argentina’s Supreme Court has reversed a lower court ruling that suspended a glacier protection law in mining-friendly San Juan Province, threatening to derail several multi-billion-dollar mining projects.

The ruling means that projects such as Barrick Gold Corp.’s (ABX, ABX.T) Pascua-Lama mine will have to conduct an inventory of nearby glacial ice before proceeding with construction, according to the ruling issued Tuesday. Pascua-Lama, whose development could cost up to $5 billion, is scheduled to start production in the first half of 2013.

In November, a federal judge in San Juan suspended key provisions of the glacier law at the behest of the provincial government, labor unions, mining trade groups and Barrick until the Supreme Court rules on its constitutionality. The court still hasn’t addressed the constitutional challenge to the law, which is now fully in effect following Tuesday’s ruling.

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Comments

  1. Avatar of sam520 sam520 says:
    July 5, 2012 at 10:50 AM

    this government is no different than all the others – they just need a little more grease to make things slide right along

  2. Avatar of 4 oz 4 oz says:
    July 5, 2012 at 10:56 AM

     
    Nothing is going to come of this.
    I’d just like to see a picture of him playing hoops in  high school
     
    lol oh  wait,  this isn’t about the Prez…

  3. Avatar of UglyDog UglyDog says:
    July 5, 2012 at 11:43 AM

    When the best option is to mine under a glacier in Argentina, you know all the low hanging fruit has been picked.

  4. Avatar of Justin Case Justin Case says:
    July 5, 2012 at 11:58 AM

    Barrick’s Vice President for Corporate Affairs in South America Rodrigo Jimenez told Reuters, “We are in the process of evaluating the text of the decision. However, it is important to point out that our activities do not take place on glaciers.’

    “We believe that we are legally entitled to continue our current activities on the basis of existing approvals,” he stressed. “The federal legislation also draws a distinction between new projects and those underway. Our Veladero mine has been in operation since 2005 and construction at Pascua Lama has been underway since 2009.”

    The company plans to push ahead with the construction of Pascua Lama and continue to operate the Veladero mine, Jimenez said in an e-mail to Dow Jones Newswires.

  5. Avatar of AGXIIK AGXIIK says:
    July 5, 2012 at 12:37 PM

    10-4 Ugly Dog   And maybe there is a silver lining in this.  From my reading the glacier provides the bulk of water to farmers down stream in Argentina.  No one will ever accuse me of being a spear carrier for Greenpeace but the mining industry is filled with stories of entire regions destroyed by mining activities   Gold extraction with heap leaching and mercury used to pull gold from the mix has to go somewhere and frequently it flows downstream to the water supplies  that feed us.

  6. Avatar of silver psycho silver psycho says:
    July 5, 2012 at 1:14 PM

    Doc, above all else my eyes are totally focused on this Barrick mining Fiasco,  I once again thank you for following this closely and bringing the latest news to the Silver Doctors readers.  I cannot agree with you more that this Barrick problem is massive for Silver as we know it, and Barrick holds the Pin of the Grenade that could Annihilate the paper shorts, and bring physical silver back to its true value and beyond.  Barrick cant possibly deliver 200 Million ounces.  Its just not going to happen.  The Argentinian government are turning into a parasite sucking the lifeblood out of any foriegn mining corporation, just like they did to the Spanish Oil company a few weeks back.  Barrick has no hope in this environment.  What to do?  Buy silver of course, the metal,  Docs rates are the best online, support your team and keep stackin the Phyzz.

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