MercoPress. South Atlantic News Agency

Chile conditions 1.5 billion US dollars mining project

Chile's environmental authorities approved the controversial 1.5 billion US dollars mining project proposed by Canada's mining giant Barrick Gold on Wednesday but with several conditions placed on the development of the mine.

The decision comes despite concerns that the project could contaminate down stream water supplies and destroy ancient glaciers.

The Environmental Commission (COREMA) of Chile's III Region spent almost two days deliberating over the verdict.

Barrick will not be allowed to move three Andean glaciers to access the mine's reserves. Other conditions involved strict regulations aimed at protecting the water supply to the Huasco Valley.

Environmental and citizens groups opposed to the project were furious with the result. They claim Pascua Lama will destroy the Huasco Valley.

"This decision has long been predictable. From the outset, the government has shown its approval of the project and has turned a deaf ear to the opposition coming from the inhabitants of the Huasco Valley," said Antonia Fortt, an environmental engineer for the Oceana organization.

Fortt said the mine will inevitably cause contamination of the Huasco River as well as the underground water systems. Chemicals such as cyanide will likely find their way into the valley and mercury emitted from the mine could also cause severe air pollution in the valley, she added.

Oceana's director, Marcel Claude, accused the government of being "negligent," and putting the livelihoods of the Huasco Valley's residents at serious risk.

In November, Barrick Gold signed a protocol agreement with the Huasco Valley's "Junta de Vigilancia" ? a group representing 2,000 farmers in the area ? promising to give the farmers a 60 million US dollars compensation package, to be paid over 20 years. The package is meant to supplement whatever the farmers lose in the event of water contamination. However, the package was approved with support from only six of the group's members ? the six represent 93% of the community's agricultural interests.

The Pascua Lama mine will straddle the Chile-Argentina border in the heart of the Andes. It is calculated that the area has reserves of 17.6 million ounces of gold and substantial silver deposits.

Barrick will create 4,500 jobs during the mine's construction, and 1,500 for the mine's operations over the next 20 years.

COREMA originally approved the Pascua Lama project in 2001. But Barrick submitted a revised and expanded version of the project which involved moving the glaciers. That report prompted questions from COREMA. The environmental authority then asked Barrick to submit a revised draft.

With this week's ruling, the company will have to access the reserves through underground tunnels. Barrick argued last month that it is technically and financially unfeasible to extract the mineral deposits through underground methods.

Greenpeace Chile says Barrick should have to submit another environmental report taking into account the new COREMA conditions. Rodrigo Rojas, the governor of the Atacama Region and president of the local COREMA, defended the government body's decision. "This reflects our environmental institution's correct way of operating. The decision is well-founded and was taken using the appropriate procedure; a unanimous vote, resulting from a transparent and informed process," he said.

Government spokesperson Osvaldo Puccio added that COREMA's decision shows that the government is following through on its promise to make the environment and the well-being of Chile's citizens, a priority. He said the country wins with this decision.

The decision also respects President-elect Michelle Bachelet's position. In January, Bachelet said she would not support the project if it involved moving glaciers.

COREMA's decision was made a week earlier than expected. The company and citizens' groups have a right to appeal the decision. (Santiago Times).-