January 20, 2018

Chile’s environmental authority — SMA — has ordered the definitive closure of Barrick Gold’s…already halted Pascua-Lama project, but lowered the fine for violations to 7 billion pesos ($11.5 million) from the previous $16 million it had charged the company…"Given the nature and the size of the breaches that the company committed, there is the conviction that total and definitive closure, plus an economic fine, is the most proportional sanction in this case," SMA head Cristian Franz said in a statement (in Spanish)…The environmental authority analyzed 33 charges and issued total closure sanctions for five of them, which include Barrick’s incomplete monitoring of glaciers and discharge of 'acidic fluids' into a river…The world’s No.1 gold producer was quick to clarify in a statement that the SMA did not revoke Pascua-Lama’s environmental permit (RCA). Instead, it ordered the closure of existing surface facilities on the Chilean side of the project, in addition to certain monitoring activities…Barrick added that such order was consistent with its plan to advance a study for an underground mining operation at Pascua-Lama, which it says would reduce the overall environmental impact…In 2016, Barrick began a “drastic revision” of the project and agreed to pay $140 million to resolve a US class-action lawsuit that accused it of distorting facts related to the controversial project…Shortly after, Barrick abandoned the idea of an open pit at the site, saying it plans to mine underground instead. [Refers to Shandong Gold Group]