National Post

Overhaul ordered at Barrick mine

Argentine officials set terms for operations

- Caroline Stauffer Susan Taylor and

• Argentina mining officials have told Barrick Gold Corp it must overhaul environmen­tal and operating processes at its Veladero mine, following last week’s cyanide solution spill, while the country’s environmen­t ministry has asked for a total suspension of operations.

National and provincial officials told Barrick executives at a Thursday meeting that the Toronto-based company’s ongoing business in the country hinges on a new working plan for the open pit mine, the country’s energy minister said.

A pipe carrying cyanide solution ruptured at the open pit mine on March 28, the third incident at the mine in 18 months involving cyanidebea­ring solution. A Barrick spokesman said the meetings were constructi­ve.

“We have told the company to change their standards and invest, modify the project’s engineerin­g to ensure these incidents never happen again,” Energy and Mining Minister Juan Jose Aranguren told Reuters in an interview on Friday.

He said the company’s concession to operate the mine would have been at risk if it had not agreed to an external audit on Thursday.

The Thursday meeting, which also included Barrick president Kelvin Dushnisky and the governor of San Juan province, came as Barrick confirmed a Reuters story on a deal with China’s Shandong Gold Mining Co, which bought a 50 per cent stake in Veladero for US$960 million.

Barrick, the world’s largest gold miner, has been tempor- arily restricted from adding cyanide to the mine’s gold processing facility. The Toronto-based company, which counts Veladero as one of its five core mines, said no material impact was expected on the mine’s projected 2017 production.

Barrick’s work plan should include “the complete re-engineerin­g of the operationa­l and environmen­tal processes and standards of the Veladero enterprise,” a statement from the San Juan government said.

“We have held constructi­ve meetings with government representa­tives in recent days and have agreed on a path forward that addresses their concerns,” said Barrick spokesman Andy Lloyd.

Aranguren said the province would make any decision on an eventual fine for Barrick.

Argentina’s environmen­tal ministry has asked a federal court to halt all activities at Veladero, “until there is a guarantee that there will be no environmen­tal damages.”

Operations at the highaltitu­de mine were temporaril­y suspended last September, after falling ice damaged a pipe and spilled some ore saturated with cyanide solution over a raised bank.

 ??  ?? Kelvin Dushnisky
Kelvin Dushnisky

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