This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Barrick To Slow Construction Of Mountain Gold Mine


TORONTO (AP) â¿¿ The world's largest gold mining company said Friday it is slowing construction of its massive Pascua-Lama project in the Andes Mountains and will likely take a writedown of between $4.5 billion and $5.5 billion in the second quarter on the project.

Barrick Gold Corp. said it now will target first production by mid-2016 compared to the previous schedule of the second half of 2014. Falling gold prices, rising costs and a sagging stock price weighed down by its Pascua-Lama project have plagued the Canadian company. Since late 2011, the gold price has fallen by $600 â¿¿ over 30 percent.

Last month, Chile's environmental regulator stopped construction and imposed sanctions on the $8.5 billion Pascua Lama mine, citing "serious violations" of its environmental permit. An indigenous community has complained the project threatens their water supply and pollutes the glaciers.

Barrick has already spent about $5 billion on the project, which straddles the Chile-Argentine border at 16,400 feet (5,000 meters) above sea level.

Barrick said it has submitted a plan, subject to approval by regulators in Chile, to construct a water management system in compliance with permit conditions.

Argentine authorities have insisted that Lama, their side of the bi-national project, will proceed with or without Chile, taking advantage of the infrastructure already in place for its Veladero mine, which is already producing ore just downhill. But most of Pascua-Lama's 18 million ounces of gold and 676 million ounces of silver are in Chile, where Barrick warned shareholders earlier this year that it might abandon the project if production can't begin in 2013.

"In light of the challenging business environment we are facing today, and taking into consideration existing construction delays, the company is advancing the project in a prudent manner by extending the construction schedule over a longer period," Barrick President and Chief Executive Jamie Sokalsky said in a statement.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs