Friday, January 30, 2009

Chile, Argentina nearing Pascua Lama tax deal




According to a recent Reuters story Jan 29 (Reuters) "Chile, Argentina nearing Pascua Lama tax deal"authorities in Chile and Argentina are very close to reaching a tax agreement that would allow miner Barrick Gold (ABX.TO) to start work on one of the world's largest gold projects, the Pascua Lama Project , a government minister told Reuters on Thursday.

The Pascua Lama Project located in northern border of Chile and Argentina was the world's largest mega-gold find , after the Cerro Caslle project in the Copiapo area. It is located about 5,000 meters in altitude is currently the largest never open gold mine with a treasure of some 18 million ounces of gold .

The project, owned by Canada's Barrick Gold Corp (ABX.TO), overcame years of environmental challenges after Barrick agreed to leave nearby glaciers untouched. The project previously has been mired in years of delays due to low gold prices in 2000-2003 after the first SEIA study, a 2nd environmental study in 2004 that were suppose to relocate 3 glaciers (ice deposits) , as well as Supreme Court with a disgruntled miner Rodolfo Villar who’s case to this day also stalled the project .

The latest delay has been because of ongoing tax dispute between the host countries and discussing how to tax what they call transborder services, or services rendered by individual companies on either side of the border. As 80% of the gold is located on the Chilean side and 20% of the mineral on the Argentina side.

Mine construction in the Andes mountains of Chile do have a narrow window of opportunity , according to Henry Martinez of Barrick Gold, “the mining season to travel to Pascua Lama is between September 15 through end of March in some very warm years you can go there as late as did April". Construction is already years behind schedule since being approved in Chile and Argentina in 2006.

Sergio Gonzalez Minister of Mining said Barrick has not given Chile and Argentina a deadline to reach a deal. Even after over two years since the project was approved by the governments by both countries.

However in Sept of 2007 during a presentation at Icare when the project was said to begin construction that Fall ,the Canadian multinational Barrick Gold, could begin to be built only in Chile, following the lack of agreement with Argentina on the tax structure would the site., " Pascua Lama has all environmental permits approved , therefore, from that standpoint, in Chile in a position to start the project if they so wish, and so agree as a company," said Gonzalez said to reporters.


However this is also not true as all permits in Chile are not 100% ready according to Placdio Avilia Comana in the 3rd Region of Chile. A letter from Lucio Cuenca of OLCA was sent to him regarding as many as 14 permits in Chile that are not ready. “
If they were do this project in Chile only they would have to enter the Environmental Impact Study again. says Placido Avila.






Another major issue as to why they can not do this project in Chile only as the minister has said according to Fernando Gray, “The water , Barrick doesn’t have enough water to do this project in Chile only. They would need about 600l/s for the water treatment plant for its use in Chile, the 40- 50 l/s that Conama and company has always said they will use , however according to Gray that is only for the part of Extration: the Pascua camp , for the roads . That it was why they move the treatment plant to Argentina because they have the water”. Fernando Gray is the former President of La Junta de Viglencia of the Hausco Valley during 1992-2004 who was part of the 8 direcotrs who signed the initial $60 million protocol with Barrick and is very familiar with the history of the Barrick Gold Company in the Hausco valley.

Another small aspect that has not been discussed in the media is that Environmental agreements in Argentina eventually expire if the project has not begun or started construction unlike Chile ‘s Environmental agreement . The agreement signed by Barrick and the Argentina government authorities on Feb 15, 2006 has expired after Dec 31, 2008 so this would also require another SEIA study in Argentina further delaying the project according to Luis Faura former concillor of Alto Del Carmen.


However in a letter from Lucio Cuenca of OLCA was sent to Placdio Avilia of Comana of the 3rd Region of Chile regarding as many as 11 sectorial permits in Chile that are not not ready and the project for this reason can also not begin . “ A majority of the 11 permits are completed or advanced”. One such example is the bypass in the area of Alto del Carmen needs to be constructed before the construction of the project.


"Imagine walking away from a major gold mine at this time," he said. "They have neither postponed nor put a deadline on this project." Barrick Gold Chairman told Reuters at the World Economic Forum meeting in Davos he expected prices for the metal to hit new record highs, spurred by serious concern about the U.S. currency and doubt about the state of the world economy.


"There will most likely be a deal very soon," Mine Minister Santiago Gonzalez said in an interview. "Progress is being made and there could be a happy ending very soon."s

What is clear with all these and many more issues not mentioned the project is still many years away from if ever begin construction.

Conversation with Micheal Hesing

(response to Santiago Times article)

Study: Chile losing its glaciers


http://www.patagoniatimes.cl/index.php/20090122728/News/Environment/STUDY-CHILE-IS-LOSING-ITS-GLACIERS.html



IN ENGLISH


What leaves me in this article is true, or more or less true. This is a fairly early stage of fighting for Pascua Lama in 2005.

When I visited the project, I took some pictures of "glaciers" El Toro 1 and 2 and Hope. In these photos can be seen that the "ice" Hope has an obvious impact of dust and there are also tracks for heavy machinery over this mass of ice. In fact, I handed these photos to the press and came across Chile and in part by the world. (I attached photos).

Having recorded this with my camera, I began to investigate, asking questions really "dumb" to the people of Barrick, but the field staff. Well, finally gets to know that the work done Barrick operating in ice, means that drilled in the ice mass of Hope. In addition I found a table in the casino of Barrick, the Barriales camp, where there was just the drill at the Hope. Well much to ask, this table disappeared quickly from the wall of the casino and then publicly denied that Barrick has gotten boring in Hope. The effects of ice on the surface were evident, as you can see from the photos attached.

However it is not, as the article says that Barrick "solid material deposited on top of the glacier," but noted that the dust was the result of activities related to exploration work.

In the famous meeting with the commission of the environment, the chamber of deputies, the debate was put together on the issue whether or not Barrick was involved ice, which the representatives of the company flatly refused. Finally I asked the legislators to me if I consist of an intervention by the ice Barrick. Obviously he knew of the involvement of ice, because the photos that sparked the fight in Chile were all mine. Therefore my collection of photos relating to the issue to the committee, which triggered a strong displeasure at Barrick. (Of course, that at this point is simply not told the truth).

I think about my article is appointed clarifying some details:

1 .- As I said, I did not say that Barrick "solid material deposited on top of the Hope, that is simply not the case.

2 .- Following these developments, glaciologists, both on the side of Barrick (Canada) and the side of the Supervisory Board of the Rio Huasco (two Frenchmen and an Argentinian) unanimously determined that in the case of Toro 1 , Toro 2 and Esperanza is relictual ice that formed in ancient times only a glacier, but today it no longer meets the minimum requirements to be called "glaciers." Especially for the loss of mass and not enough ice plasticity that allows the movement that characterizes the true glaciers. Together with this lost their accumulation and ablation zones. Accordingly to the above, the glaciologists determined that the contribution of the mass of ice water in andalusia negligible. It should be clarified in this context that while the impact of dust and ice drilling above may adversely affect the albedo and the conservation of ice, is clearly not the fault of Barrick, which today These three mass of ice and glaciers are not. This process is too slow to link it with Barrick.

3 .- The above is not contradictory with the fact that nearby Pascua Lama project has two glaciers outside of the direct influence of the project, or the Straits and the Yellow Guanaco. Both have movement, accumulation and ablation areas well defined and significant troop flows, as you can see from the photos attached.

4 .- The Barrick is impacting the waters of the farmers is stupid, because the project is not working and not even started construction. Therefore there are no tanks or rajos sterile, which can generate acid drainage. Strong generation of acid drainage in the mineralized zone of the emerging River Strait is absolutely natural (so far!) And there ever since. Sanitas as water, crystal and so on. etc. from glaciers, evoking environmentalists, are a myth. At least there is this water that was installed before the first farmer in the valley, as it is in process of geological time. I think it gives you when you were in Chile, to all the information you can check everything yourself.

Well, that about the old days. Currently Barrick submitted a Limestone Mining Project, located near Pascua Lama. The end of the project is to produce calcium Pascua Lama inputs required in the plant leaching of gold (cyanidation), since the process requires an alkaline environment. Moreover they could also be used to plant HDS, which neutralizes the acid water tank sterile. (In the background that raises the pH to precipitate metals).


The Barrick was sufficiently "side stick" to enter the Project Evaluation System as a declaration and not a study. That there is not even participation. The worst thing is that it seems that the services they want to tolerate this state of Barrick.

Furthermore I believe it is legally questionable whether they can super-boot with a DIA and no more.

One detail that Barrick is also not ruled out the use of hazardous waste, pet coke as fuel in lime kilns. Besides threatening wetland flora and fauna conservation problems and so on. etc ....

And what you think, where environmentalists are our friends? Just do not appear. Well, it seems Pascua Lama became fashionable. I took, of course, the "nuisance" to observe the project for a group of irrigators.


Currently, this presented another Mega Mining Project "El Morro" in the Huasco Valley. I was hired back as an adviser to the Supervisory Board Huasco River. This project is in full time and still do not know that we will "make clean".


IN SPANISH


Lo que sale de mi en este articulo es cierto, o mas o menos cierto. Este hecho corresponde a una fase bastante temprana de las peleas por Pascua Lama en el año 2005.

Cuando visité el proyecto, tomé algunas fotos de los “glaciares” El Toro 1 y 2 y Esperanza. En estas fotos se puede apreciar, que el “glaciar” Esperanza tiene un evidente impacto de polvos y además existen huellas para maquinaria pesada encima de esta masa de hielo. De hecho, yo entregue estas fotos a la prensa y así salieron por todo Chile y en parte por el mundo. (Te adjunto las fotos).

Después de haber registrado esto con mi cámara, empecé a investigar, en realidad haciendo preguntas “tontas” a la misma gente de la Barrick, pero al personal de terreno. Bueno, finalmente llegue a saber que la Barrick realizaba trabajos de explotación en estos hielos, quiere decir, que perforó en la masa de hielo del Esperanza. Además encontré un cuadro en el casino de la Barrick, en el campamento Barriales, donde se apreciaba justamente las perforadoras en el Esperanza. Bueno de tanto preguntar, desapareció rápidamente este cuadro de la pared del casino y posteriormente la Barrick negó públicamente que ha metido perforadoras en el Esperanza. Los efectos en la superficie del hielo eran evidentes, como tú puedes apreciar en las fotos adjuntas.

De todas maneras no es así, como dice el artículo, que la Barrick “depositó material sólido encima del glaciar”, si no el polvo que se observa era consecuencia de las actividades relacionadas a trabajos de exploración.

En la famosa reunión con la comisión del medio ambiente, de la cámara de diputados, se armó el debate sobre el tema si la Barrick ha intervenido o no hielos, hecho que los representantes de la empresa negaron rotundamente. Finalmente me preguntaron los legisladores a mi si me constará una intervención de hielos por parte de la Barrick. Lógicamente sabía de la intervención de los hielos, dado que las fotos que encendieron esta pelea en todo Chile eran mías. En consecuencia presenté mi colección completa de fotos relacionadas al tema a la comisión, lo que desató un fuerte disgusto en la Barrick. (Claro, por que en este momento simplemente no dijeron la verdad).

Creo que al respecto del artículo que me nombra hay que aclara algunos detalles:

1.- Como ya he expresado, no dije que la Barrick “depositó material sólido encima del Esperanza, por que simplemente no es así.

2.- Posteriormente a estos hechos, los glaciólogos, tanto del lado de la Barrick (canadienses) como del lado de la Junta de Vigilancia del Río Huasco (un argentino y dos franceses) determinaron en forma unánime, que en el caso del Toro 1, Toro 2 y Esperanza se trata de hielos relictos, que formaron en tiempos remotos un solo glaciar, pero hoy en día ya no reúnen las condiciones mínimas para poder ser denominados “glaciares”. En especial por su pérdida de masa ya no alcanzan la plasticidad del hielo que permite el movimiento que caracteriza a los verdaderos glaciares. Junto a esto perdieron sus zonas de acumulación y ablación. En consecuencia a lo expresado anteriormente, los glaciólogos determinaron que el aporte de estas masa de hielo al recurso hídrico en insignificante. Se debe aclarar en este contexto, que si bien un impacto de polvo y otro de perforaciones encima de los hielos pueden influir negativamente en el albedo y en la conservación de las masas de hielo, claramente no es culpa de la Barrick, que hoy en día estas tres masa de hielo ya no son glaciares. Este proceso es demasiado lento para vincularlo con la Barrick.

3.- Lo expuesto anteriormente no es contradictorio con el hecho que en cercanía del Proyecto Pascua Lama existen dos glaciares, fuera del área de influencia directa del Proyecto, el Estrecho o Amarillo y el Guanaco. Ambos tienen movimiento, zonas de acumulación y ablación bien definidas y además aportan caudales significantes, como puedes apreciar en las fotos que adjunté.

4.- Que la Barrick esta impactando las aguas de los agricultores es una estupidez, dado que el Proyecto no esta operando y ni siquiera comenzó su construcción. En consecuencia no existen rajos o depósitos de estériles, que pueden generar drenaje ácido. La fuerte generación de drenaje ácido en la zona mineralizada de la naciente del Río Estrecho es absolutamente natural (hasta ahora!) y existe desde siempre. Las aguas tan sanitas, cristalinas etc. etc. provenientes de los glaciares, que evocan los ambientalistas, son un mito. Por lo menos esta agua no existe desde antes que se instaló el primer agricultor en el valle, dado que se trata de proceso en tiempos geológicos. Creo que te facilité, cuando estabas en Chile, toda la información para que tu puedes comprobar todo tu mismo.

Bueno, esto sobre los viejos tiempos. Actualmente la Barrick presentó un Proyecto Minero de Caliza, ubicado muy cerca de Pascua Lama. El fin del Proyecto es producir insumos cálcicos para Pascua Lama, requeridos, en la en la planta de lixiviación de oro (cianuración), dado que el proceso requiere un ambiente alcalino. Además les podría servir también para la Planta HDS, que neutraliza las aguas ácidas del depósito de estériles. (En el fondo se sube el pH hasta que precipitan los metales).

La Barrick era suficientemente “cara de palo” para ingresar este Proyecto al Sistema de Evaluación como declaración y no como Estudio. Con esto no existe ni siquiera participación ciudadana. Lo peor es que parece que los servicios estatales quieren tolerar esto a la Barrick.

Además a mi juicio es legalmente súper cuestionable si pueden arrancar con una D.I.A. así no mas.

Un detalle es también que la Barrick no descarta el uso del residuo peligroso, pet coke, como combustible en los hornos de cal. A parte amenazan humedales con flora y fauna con problemas de conservación etc. etc….

¿Y que crees tú, donde están nuestros amigos ambientalistas? Simplemente no aparecen. Bueno, parece Pascua Lama pasó de moda. Me tomé, por supuesto, la “molestia “, de observar el Proyecto para un grupo de regantes.

Actualmente esta presentado otro Mega Proyecto Minero “El Morro” en el Valle de Huasco. Me contrataron nuevamente como asesora del La Junta de Vigilancia del Río Huasco. Este Proyecto esta en el momento en pleno desarrollo y todavía no se sabe que vamos a “sacar en limpio”.


Michaela

Friday, January 2, 2009

Bi-National Trato-Minero backstory


Barrick Lawyer Jose Antonio Urrutia


Director Extend Pilar Velasco



Sergio Harpa


Ex Senador (DC) Jorge Lavendero

The lobby of the Barrick Gold to exploit Pascua-Lama

The its is the lobbying by the Barrick Gold corporation for the adoption of the Treaty, that would allow the exploitation of gold in the border area of the site known as Pascua Lama. The Mining Integration Treaty between the Republics of Chile and Argentina that is Pascua on the Chilean Side and Lama referring to the Argentina side.
The lawyer for the Mining Company is Jose Antonio Urrutia who was the first lawyer to study environmental law in the US and who also drafted the first environmental laws in Chile.

Senator Jorge Lavendero who headed up the opposition against the transnational issue of companies who do not pay taxes for mining in Chile took up this issue of a Bi National Treaty.

A meeting was set up by then the Communications Company Extend and senior partner Marcelo TRivelli Oyaryun, former mayor of Santiago, invited Jorge Lavendero.

Jorge finally met under the precondition that he attend with his advisors. The meeting was finally held at the restaurant “ La Maison de France “ in Santiago. Attending the meeting were Barrick Lawyer Jose Antonio Urrutia, Lobbyist Marcelo Trivelli and Pilar Velasco of Extend and Sergio Harpa who is now head of Codelco Norte.
During the dinner attorney for Barrick Jose Antonio argument was their knowledge of the Mining Treaty came from the fact that during the nineties, Barrick had found the existence of fundamental legal instruments that enable in optimum conditions to exploit a cross border gold deposit, located in Chile 8o% and 20% in Argentina, which was described as one of the biggest in the word at the time.

Therefore, in the hope of preserving their company not only had maintained for several years, a dialogue (read: lobbying) with the highest administrative and policy of Chile and Argentina to carry out their project, they also had Mining drafted Treaty national. As commented upon leaving and his reunion, the surprising of all this was not just assembling the declaration, the governments of Chile and Argentina, had to sign a treaty that had been conceived and drafted by the transnational, but also this was done to eyes of Congress and domestic public opinion.

In the meantime, Senator Lavandero led the opposition to the treaty in Congress and in the country, toured the country from one extreme to another, alerted workers, their unions, in effect, sought support from the public, in front a state that happily resigned to their sovereignty.

However, the triumph of Barrick and its lobbyists Chileans was short lived as in 2000, the Constitutional Court declared that the Chilean courts have no jurisdiction to grant easements to mineral deposits in Argentina.
What had happened?
13 Senators -Jorge Lavandero Illanes, Fernando Cordero Rusque, Julio Canessa R., Jorge Martínez Busch, Enrique Zurita C., Antonio Horvath K., Rodolfo Stange O., Beltrán Urenda, Jovino Novoa V., Marco Cariola B., Mario Ríos S. Thirteen senators - Jorge Lavandero Illanes, Fernando Cordero Rusque, Julio R. Canessa, Jorge Martinez Busch, Enrique C. Zurita, Antonio Horvath K. Strange Rodolfo O., Beltran Urenda, V. Jovino Novoa, Marco Cariola B., Mario Rios S. y la senadora Evely Matthei F-
Signed an order for unconstitutionally Mining Treaty ,sponsored by the lawyer in July Stuardo Gonzalez. With this opinion pipelines to transport copper Argentina Chilean Ports to the Pacific were viable, the alternative for the Argentina side, towards the Atlantic, meant journey of over 1000 km with which Argentina mining projects were no longer profitable.

This chapter in the history of mining in Chile shows the complex web of influences and corruption that has surrounded the penetration of transnational companies in Chile.
Personeros the same time that a recovery was declared by Chile for copper, used in the Mining Law Constitutional Law 18,097 or mining concessions (January 21 January 1982) issued by the dictatorship to maintain a privileged status to transnational mining: unique! 18,985 law enacted in June 1990, the first of the Tax Reform Coalition, which increased the VAT, but that in practice free of income tax to foreign mining.

The same Act gives the Coalition 19 137, which allows alienate transnational CODELCO deposits that were not in operation, in open contradiction to the DL. 1167 of the military junta which banned the sale of mining concessions CODELCO. . That violated the Coalition against the dictatorship protectionist it had approved the year 1976.