Argentina and Chile are finally moving forward on the Barrick (ABX) Pascua Lama gold mine project. As Bloomie reports in English, Chilena newspaper "La Tercera" writes that the relevant authorities from both countries will meet later this month to try to hammer out fiscal matters on the mine that straddles the two countries way up high in the Andes.
Even by LatAm standards, this project has been severely delayed. Just google the name and you can find plenty of "it'll be operational by 2002" and then "one year later" and then "by 2005" and then "by 2008" comments from Barrick talking heads. The environmental angle is strong, too, with well organized protests on both sides of the border due to the way the mine will have to "relocate a glacier" to get at the orebody. For sure the EIA conditions will be very stringent, but that shoudn't be a project-killing problem in the 21st century and I'd wager right now that the project gets green lighted before the end of the year (but I would't wager too much money). As for beneficiaries, ABX will certainly like to move the mine forward, but maybe the better play would be International Royalties (IRC.to) (ROY) that has bought a tasty chunk of Pascua Lama royalties on a sliding scale (see the company website linked here for details) DYODD, dude.
Even by LatAm standards, this project has been severely delayed. Just google the name and you can find plenty of "it'll be operational by 2002" and then "one year later" and then "by 2005" and then "by 2008" comments from Barrick talking heads. The environmental angle is strong, too, with well organized protests on both sides of the border due to the way the mine will have to "relocate a glacier" to get at the orebody. For sure the EIA conditions will be very stringent, but that shoudn't be a project-killing problem in the 21st century and I'd wager right now that the project gets green lighted before the end of the year (but I would't wager too much money). As for beneficiaries, ABX will certainly like to move the mine forward, but maybe the better play would be International Royalties (IRC.to) (ROY) that has bought a tasty chunk of Pascua Lama royalties on a sliding scale (see the company website linked here for details) DYODD, dude.