Barrick Gold Faces Sanctions for Cyanide Spills in Argentina

In Argentina, Barrick Gold (ABX) failed to complete improvements to the Veladero mine that could have prevented the third spill of cyanide solution in 18 months, leading to eventual sanctions for the world's biggest gold miner, a judge told Reuters.

Shares of Barrick are slightly lower in early morning trading on Monday.

Barrick appears to have missed deadlines on three orders from local authorities, including replacing pipes, before the March 28 spill, said Pablo Oritja, the judge overseeing cases related to Veladero in the nearby town of Jachal, where "Barrick out" graffiti lines the streets, Reuters reports.

"If they had changed pipes as ordered, the decoupling (of pipes) would not have occurred," Oritja told Reuters, after meeting the head of the mining police in western Argentina's San Juan province, where Veladero and Jachal are located.

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