Barrick Gold reveals exorbitant cost overruns on ECA rejected Pascua Lama mine (PDF)

  Barrick Gold reveals exorbitant cost overruns on ECA rejected Pascua Lama mine (PDF)(Halifax Initiative, Ottawa, 3 August 2012) On July 26, Barrick Gold presented its second quarter results, announcing a further, year-long delay and exorbitant cost overruns of between 50 and 60% of recent estimates for its Pascua Lama mine on the Chile/Argentina border. Project costs will increase by as much as US$3 billion, bringing the total expense to an astounding US$8 billion, a marked contrast from initial estimates in 2001 of US$950 million. In 2010, Barrick applied for loans for the project from public financial agencies in Canada (Export Development Canada) and the United States (Export-Import Bank). Affected communities then provided the agencies with information about Barrick’s operations in their territories and this year, Barrick withdrew its requests, forfeiting both the loans and the accompanying political endorsement. It seems clear that both public agencies were poised to reject the company’s request, which would have sent a negative signal to shareholders.