Barrick Gold suffers setback after Argentina glacier ruling
By Debora Rey ,APBUENOS AIRES, Argentina -- The Canadian mining giant Barrick Gold suffered a legal reversal Tuesday as Argentina's Supreme Court reversed preliminary injunctions that have blocked key parts of a glacier protection law.
July 5, 2012, 12:36 am TWN
The law requires a thorough national inventory of Argentina's remaining glaciers as well as “periglacial” areas where the ice has recently retreated but water remains below the surface. Together, the areas provide much of the country's fresh water.
The law also gives the national government a powerful tool to regulate the mining industry, which until now has been handled by provincial governments whose priorities sometimes clash with people living downstream from the mines.
Barrick maintains that it does not mine on glaciers and that it has already persuaded the provinces it will contain any environmental damage from gold mining, which requires lots of fresh water and a mix of toxic chemicals.
But until now, Barrick's lawsuits have pre-emptively blocked requirements to provide environmental impact statements to the national government.
Tuesday's ruling could have a major impact on Pascua Lama, the world's highest-altitude gold mine being developed on both sides of the Chile-Argentine border. Barrick said the US$5 billion project already has found nearly 18 million ounces of proven gold reserves, more than the company's Veladero mine, another open-pit mine nearby that is already in production.
Groups including Greenpeace Argentina and the Foundation for Environmental and Natural Resources cheered the ruling as a key step. The high court has yet to decide the constitutionality of the overall law, or rule on the environmentalists' requests for an immediate halt to Barrick's high-altitude mining.
Barrick did not immediately comment on Tuesday's decision, but in asking for an injunction against several aspects of the law it said enforcing the measures would unfairly “create a state of uneasiness and uncertainty” surrounding its operations.