Mining project in Andes glaciers zone

This is despite concerns over the movement and proposed conservation of portions of three glaciers.

Barrick officials have been giving evidence this week to congressional environmental and mining commissions in Santiago on the viability and potential impact of moving a portion of three glaciers that overlay the proposed Pascua-Lama open pit. Farmers in northern Chile have raised concerns that the operation will contaminate and reduce water supplies and ecologists have questioned the impact that moving the glaciers will have on the ecosystem.

"Today, the reality of permitting projects, wherever you are, is that you have non-governmental organizations and interest groups that participate in the process, and that's normal and healthy" said Mr. Borg.

Barrick's plan involves moving a portion of ice from glaciers Toro I, Toro II and Esperanza, which represents less than 1% of the total glacial ice that feeds the same water basin and supposedly would not impact water supplies. The area concerned measures 333 by 333 metres and 10 metres deep, the equivalent to 10 hectares, explained Barrick's spokesperson.

The idea is to remove the ice with hydraulic shovels and transport it by truck two kilometres south to the Guanaco glacier, which supplies the same water basin, where the ice will attach itself as it freezes. The operation would take an estimated 4-6 months, according to Mr. Borg who added that glaciers have been successfully transferred elsewhere in the world, such as Canada and Russia, to make way for mining.

A glacial viability plan was presented on April 20 to the Chilean Congress and a more detailed glacial operational management plan will be filed within a month, "an estimated six months earlier than required". The Chilean consultation period has already closed and the Argentine consultation period will close on April 26. The documents will now be studied in detail by the relevant authorities.

The Pascua-Lama project with a 20 year mine life is estimated to produce 750,000-775,000oz of gold and 32-34Moz of silver annually for the first ten years of operations at total cash costs of US$130-140/oz. If the neighbouring countries support the project, construction will begin next year and production three years later. Barrick Canada is one of the world's five main gold miners.