Chile approves Zaldivar expansion - Barrick

Authorities in the country have approved the environmental impact study for an 20% expansion of copper extraction at Zaldivar

SANTIAGO (Reuters) - 

Barrick Gold (ABX.TO) said Tuesday that Chilean authorities had approved an environmental impact study that clears the way to expand extraction at its northern Zaldivar copper deposit by nearly 20 percent.

Stocks  |  Global Markets

Barrick, the world's top gold miner, said the environmental commission of the northern, mine-rich region of Antofagasta had approved a study that gives it the green light to raise mineral extraction to 260,000 tonnes per day from 220,000 tonnes a day.

"The project, which implies an investment of $38 million, is aimed at optimizing and increasing the production capacity of the Zaldivar deposit via modifications to the process lines, as well as the addition of logistics units," Barrick said in a statement.

The Zaldivar mine, which the company last year forecast would produce between 305 million and 320 million lbs (139,000 and 145,000 tonnes) of copper in 2009, sits next to the massive Escondida mine, which is owned by BHP Billiton (BHP.AX) and Rio Tinto (RIO.L).

Another regional commission in January began a probe into the construction of Barrick's massive Pascua-Lama project, which could lead to fines or even a revoked concession.

Pascua-Lama, one of the world's last known mega-gold finds, which straddles Chile and Argentina, holds some 18 million ounces of gold and should produce on average 750,000 to 800,000 ounces of gold annually over its first five years.

The play is also one of the world's top silver deposits, with initial annual production of 35 million ounces. (Reporting by Fabian Cambero. Writing by Simon Gardner; Editing by John Picinich)

SUBSCRIBE to Mineweb.com's free daily newsletter now.

SHARE THIS ARTICLE

Disclaimer

MINEWEB is an interactive publication, with rolling deadlines through each day, commencing in the Sydney morning,  and concluding, 24 hours later,  in the Vancouver evening.  If you believe your side of an issue deserves inclusion, but has failed to meet one of our deadlines, you are invited to notify the Editor in Chief in Johannesburg, and we will include you in our editing and expanding on our stories. Email him at alechogg@gmail.com

Print story      Email story      Subscribe to free newsletter

Back