Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Toronto Stock Exchange  >  Barrick Gold Corp    ABX   CA0679011084

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Argentina Province Clears Barrick Mines in Review of Impact on Glaciers

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/30/2013 | 07:50pm CEST

--Provincial survey finds no impact on glaciers from Barrick's operations

--2010 glacier law bars development that may damage glacial ice

--Mining companies suspend projects on rising costs, regulatory uncertainty

By Shane Romig

BUENOS AIRES--Argentina's mineral-rich San Juan Province has cleared two mines owned by Barrick Gold Corp. (ABX, ABX.T) of posing a threat to Andean glaciers in a move likely to be contested by environmentalists trying to use a glacier protection law to stop several mines.

Argentina has enjoyed a mining boom in recent years thanks to high mineral prices. But grass-roots opposition to mining, soaring costs, regulatory and tax changes, and the controversial glacier law could jeopardize investment in the sector.

San Juan's findings come as good news for Barrick and other mining companies operating in the province, which have asked the Supreme Court to strike down the glacier law.

The San Juan government said the study it plans to submit to the Supreme Court didn't find "potential or actual environmental impact on glaciers or peri-glaciers in the areas" surrounding Barrick's Pascua Lama and Veladero mines.

The Veladero gold mine started operations in 2005, while the $8.5 billion Pascua Lama project, which straddles the border between Argentina and Chile, is under construction.

A Barrick spokesman declined to comment.

San Juan has joined Barrick in challenging the glacier law, saying that environmental matters fall under provincial jurisdiction.

"We are going to continue complying with the law, but always defending our rights," said San Juan Gov. Jose Luis Gioja in a statement.

The provincial government said it will next conduct a glacier survey for Canada-based McEwen Mining Inc.'s (MUX, MUX.T) $2.9 billion Los Azules copper project and the Paso Agua Negra tunnel.

The glacier law, which President Cristina Kirchner signed in 2010, limits economic activity in the areas surrounding glaciers and requires the provinces to conduct surveys of glacial ice that may be affected by economic activities like mining and oil exploration.

Farmers and environmentalists fear that mining will accelerate the melting of the Andean glaciers, which feed the rivers and streams that provide irrigation water at lower elevations.

Environmental groups--armed with images from Google Earth that they say show glacial ice at mine sites--have targeted Barrick and other big-ticket projects in San Juan Province such as Xstrata PLC's (>> Xstrata AG) multibillion-dollar El Pachon copper project.

Though dwarfed by Argentina's vast agriculture exports, mining is still an important source of foreign currency.

The volume of Argentina's mineral exports rose 10% on the year in 2012, but slipped 2% in value to $5.3 billion due to lower prices, according to research firm IES. Gold and silver accounted for half of those exports, and mineral shipments made up almost 7% of the country's total exports.

Mining companies face an increasingly difficult operating environment in Argentina, whose vast mineral wealth has hardly been touched.

Currency controls make it almost impossible for foreign mining companies to send profits home, while import restrictions lead to delays in getting equipment into the country.

Mining companies also face soaring material and labor costs due to annual inflation that most private-sector economists say is running about 25%.

Faced with those difficulties, some companies have delayed projects in Argentina, which has led to friction with provincial governments.

In December, Pan American Silver Corp. (PAAS, PAA.T) shelved work on its Navidad silver project in Chubut Province because inflation and proposed tax increases on the mining sector would make the project inviable.

That same month, Brazilian mining company Vale SA (>> Vale SA) halted construction of its Rio Colorado potash mine in Mendoza Province to evaluate "changes in the economics of the project."

Vale had previously said that Rio Colorado would start operating in the second half of 2014, and eventually produce as much as 4.3 million metric tons of potash a year. Potash is a fertilizer whose importance has grown thanks to large-scale soybean farming in Brazil and Argentina.

Mendoza Province has threatened to revoke Vale's concession for Rio Colorado if it doesn't resume work on the $6 billion mine.

Mendoza Gov. Francisco Perez gave the company until Feb. 4 to submit a new time frame for construction.

If not, the project will be considered "abandoned" and the "concession will expire" due to Vale's noncompliance with its commitments, the governor's office said in a statement this week.

Write to Shane Romig at [email protected]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

Stocks mentioned in the article : Xstrata AG, Vale SA
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BARRICK GOLD CORP
04/24 BARRICK GOLD : sees profits rise in quarter but misses analyst expectations
04/24 BARRICK GOLD : misses 1Q profit forecasts
04/24 BARRICK GOLD : Reports First Quarter 2017 Results
04/24 CISCO : Barrick, Cisco, Great Basin College Announce Partnership Providing Free ..
04/24 BARRICK GOLD : College to benefit from technology partnerships
04/21 BARRICK GOLD : Cisco, Great Basin College Announce Partnership Providing Free Di..
04/20 TSX ends higher as CP Rail, mining shares gain
04/19 TSX falls as oil slide hits energy stocks
04/13 TSX hits two-week low as financials track bond yields lower
04/13 Sunvest Expands Hemlo Camp Land Holdings and Welcomes Durham to Advisory Boar..
More news
Sector news : Gold Mining
04/24 Banks boost FTSE as French election ignites risk-on rally
04/24 European shares rally as Italian, French banks soar after Macron win
04/19 FTSE gives up 2017 gains as sterling weighs, Burberry drops
04/19 SHANDONG GOLD MINING : China's Shandong Tyan says talks over on bid for Barrick'..
04/18DJNo Major Damage Detected to Newcrest's Cadia Mine After Seismic Event
More sector news : Gold Mining
News from SeekingAlpha
04/24 After Hours Gainers / Losers
04/24 Barrick Gold misses by $0.06, misses on revenue
04/23 Notable earnings after Monday?s close
04/21 Argentina to review Barrick safety plan after latest cyanide spill
04/21 Which Gold Miner Is The Smartest Choice To Buy In April 2017?
Advertisement
Financials ($)
Sales 2017 8 718 M
EBIT 2017 2 674 M
Net income 2017 903 M
Debt 2017 4 958 M
Yield 2017 0,59%
P/E ratio 2017 21,45
P/E ratio 2018 25,78
EV / Sales 2017 3,14x
EV / Sales 2018 3,20x
Capitalization 22 436 M
More Financials
Chart BARRICK GOLD CORP
Duration : Period :
Barrick Gold Corp Technical Analysis Chart | ABX | CA0679011084 | 4-Traders
Full-screen chart
Technical analysis trends BARRICK GOLD CORP
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 25
Average target price 21,6 $
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Kelvin Dushnisky President & Non-Independent Director
John Lawson Thornton Non-Independent Executive Chairman
Richard J. Williams Chief Operating Officer
Catherine Phillipa Raw Chief Financial Officer & Executive Vice President
Matthew D. Gili Chief Technical Officer
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BARRICK GOLD CORP20.50%22 436
NEWMONT MINING CORP0.18%18 140
NEWCREST MINING LIMITE..16.44%13 602
SAUDI ARABIAN MINING C..--.--%12 527
AGNICO EAGLE MINES LTD10.30%10 628
SHANDONG GOLD MINING C..-1.07%9 744
More Results