Pascua-Lama
Questions & Answers

Construction is underway at Pascua-Lama. The project will generate enduring and substantial benefits for all concerned, through a combination of attractive economics, significant production at low cash costs, support by the governments of Chile and Argentina and robust environmental and community programs.

The following questions will help you understand the facts surrounding the Pascua-Lama Project.

 Employment and community development

• I’ve heard that local communities won’t benefit from this mine at all. Is that true?

Environment

• Was the project reviewed thoroughly before it was approved by Chilean and Argentinean authorities?
• Who developed the Pascua-Lama Environmental Impact Assessment?
• What suggestions from the approval review process have been incorporated into the project design?
• Will icefields/glaciers in the vicinity of Pascua-Lama be affected by mining operations?
• I’ve heard that the orebody is under glaciers. Is this true?
• Where is Pascua-Lama situated and what is the terrain/vegetation like?

Water

• Will Pascua-Lama have any significant impact on water quality or quantity in the Huasco Valley and other nearby communities?
• On what basis can you say water quality will be protected and what measures are you taking to ensure this is going to be the case?
• Do the farmers/water users and local communities support Pascua-Lama?

Community consultations

• Have local residents been consulted extensively on Pascua-Lama?
• How did Barrick address the concerns of citizens, stakeholder groups and the permitting authorities?

Barrick’s strategy includes continually improving our CSR practices. An environmentally responsible project, Pascua-Lama is bringing employment opportunities, economic and social development for the people of Atacama, Chile and Suan Juan province, Argentina.

The project is strongly supported at the community level and by their political representatives.

The Pascua-Lama project was the subject of extensive review as it proceeded through the approval process in Chile and Argentina over the last number of years. In 2006, inaccurate information surfaced on the Internet and prompted people to ask Barrick for further information. The following is intended to provide you with facts about Pascua-Lama. Many people are concerned about the project’s impact on the environment. Importantly, and contrary to the assertion that icefields/glaciers will be affected, the Chilean authorities’ approval states:

“...the company shall only access the ore in a manner that does not remove, relocate, destroy or physically intervene the Toro 1, Toro 2, and Esperanza glaciers.” 

Employment and community development

I’ve heard that local communities won’t benefit from this mine at all. Is that true?

No. The economic benefits will be substantial. Pascua-Lama will create 5,500 jobs directly during its construction stage and 1,660 jobs annually over its estimated 25 years of operations. With unemployment rates hovering around 18 per cent in Vallendar — the capital of Huasco province — this project will significantly improve the local economy and provide much-needed jobs. In addition, it’s estimated that there will be at least 2.5 indirect jobs created for each permanent job during construction and operation, along with many other spin-off economic benefits.

Barrick has successfully implemented a policy of hiring and training local and regional employees. At Barrick’s Veladero mine in Argentina, 94 per cent of the employees are Argentinian. At the Pierina mine in Peru, 97 per cent of employees are Peruvian.

For Pascua-Lama, Barrick is already making a significant investment in a professionally-managed recruiting, selection and training program to achieve its objective of maximizing local employment.

Additionally, Barrick is actively contributing to development around the mine site:

• 40 community programs are underway including initiatives to improve education, training, health, small business development, irrigation infrastructure and restoration of cultural and heritage programs.
  
• 2,000 children have benefited from an oral health program; another 700 have been vaccinated against hepatitis A.
  
• More than 100 Diaguita farmers participate in a Farming Assistance Program.
  
• More than 100 Diaguita have participated in cultural programs funded by Barrick.
  
• 45 Diaguita students received high school Barrick scholarships in 2008.
  
• The company funded the publication of a book and video on Diaguita history and culture. The book is used in more than 200 schools in the region.

Sustainable development projects have been and will continue to be a priority.  Millions of dollars fund improvements in  education, health, infrastructure, small business capacity and local production capabilities, including manufacturing and agro-industrial projects.

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Environment

Was the project reviewed thoroughly before it was approved by Chilean and Argentinean authorities?

Yes. Pascua-Lama has been subjected to one of the most rigorous approval processes in Chile’s history. The Environmental Impact Assessment (EIA) in Chile was approved in February 2006. Following a similar process, the EIA in Argentina was later approved in December 2006. It was a comprehensive and transparent review involving environmental authorities, government agencies, independent experts and community stakeholders.

The EIA in Chile was submitted in December 2004 and was under formal review for 14 months. The amount of information and supporting documentation was extensive: the 2004 EIA and three Addenda comprised 5,336 pages in 13 volumes. The cost of this work amounted to approximately US$15 million in Chile alone and involved some 200,000 man hours by various professional and technical personnel from 10 major internationally recognized engineering and environmental consultancies as well as four local ones and five universities who worked on the preparation and submissions of the EIA.

In Argentina, a separate EIA was evaluated over a period of 25 months and reviewed by a special Interdisciplinary Environmental Evaluation Commission (CIEAM), a group of independent professionals who were assembled to review and issue a technical evaluation of the project

Before and during this entire process, Barrick conducted extensive public consultations with local community members, farmers and water users. The company’s efforts to include and encourage local stakeholder involvement in the process exceeded all of the legal requirements in this area. As a result, the company modified its original plan to incorporate suggestions from these stakeholders to further improve the project.

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Who developed the Pascua-Lama Environmental Impact Assessment?

More than 100 professionals from Argentina, Chile, Australia, France, South Africa, Canada and the United States established a multi-disciplinary team for the development of Pascua-Lama's environmental impact report. This team includes geologists, civil engineers, mining engineers, sound engineers, geographers, hydrogeologists, landscapers, glaciologists, lawyers, sociologists, chemical engineers, biologists, anthropologists, archeologists and cartographers.

Eight international consulting firms, two Chilean universities and two Canadian universities were also involved.

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What suggestions from the approval review process have been incorporated into the project design?

Additions and enhancements to the project based on consultation and feedback include:

• Revised pit limits to not impact icefields (Toro1, Toro 2 and Esperanza)
• Ice field monitoring will include:
  • Photographic surveys
  • Melt water and reflectivity monitoring
  • Statistical comparison to baseline data
  • A pre-established action plan activation in case of measured impacts, including mandatory notification of government agencies and downstream water users and elimination of impact cause.
• Enclosed primary crusher dump pockets and underground crushed ore transfer facility.
• Enclosed overland transport conveyor belt and coarse oar stockpile.
• Impervious tailings and waste rock drainage impoundments with multiple passive, active and contingent barriers.
  • Thickened liner, underground filtration and overdrain consolidation of tailings.
• Closed circuits with secondary containment for all systems handling hazardous materials.
• Comprehensive surface and groundwater capture, containment, treatment and recycling of water used in operations.
• Increased water management program including 87 water monitoring points, 26 of which are telemetric points for real-time reporting.
  • Barrick is required to maintain water quality at the baseline set prior to commencement of the project
  • Monitoring in Chile: 49 monitoring points (43 surface, 6 wells; 26 automated/telemetric, providing real-time reporting)
  • Monitoring in Argentina: 38 monitoring points (24 surface; 14 wells)
  • Baselines determined 45 kilometres upstream of the nearest community
• Significant enhancements to the quality, quantity and availability of water to downstream users.
• Incorporation of closure plan measures to the maximum extent practicable in the initial design and construction.
• Progressive participative technical and social monitoring of the project by the local communities in the area.

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Will icefields/glaciers in the vicinity of Pascua-Lama be affected by mining operations?

No. Following the thorough review process, the Chilean approval of Pascua-Lama stated that “the company shall only access the ore in a manner that does not remove, relocate, destroy or physically intervene the Toro 1, Toro 2, and Esperanza glaciers.” The condition relating to the protection of icefields/glaciers was among more than 400 conditions that were included in the approval of the project (Resolution RCA 024/February 2006).

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I’ve heard that the orebody is under glaciers. Is this true?

Absolutely not. The orebody that Barrick has been authorized to mine is NOT under any icefields or glaciers.

Enhancements have been made to the project to meet the requirements of the Chilean EIA. These include:

• Revised pit limits to not impact ice fields (Toronto 1, Toro 2 and Esperanza).
• Ice field monitoring including:
  • Photographic surveys
  • Melt water and reflectivity monitoring
  • Statistical comparison to baseline data
  • A pre-established action plan activation in case of measured impacts, including mandatory notification of government agencies and downstream water users and the elimination of the impact’s cause

Contrary to the inaccurate information on the Internet, you can judge for yourself by reviewing the following images.

Above: In this satellite view of the project area, the Pascua-Lama open pit is outlined in red. To the south of the pit, you’ll see icefields that are known as Toro 1, Toro 2 and Esperanza, which are outside of the pit limit.

Below: This illustrates why these bodies of ice have been classified by glaciologists as “glacierets” or “ice reservoirs” rather than traditional glaciers, and consequently their contribution to the water resource of the Huasco Valley is considered to be insignificant.

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Where is Pascua-Lama situated and what is the terrain/vegetation like? 

The mine site is on the border of Chile and Argentina and is 45 kilometers from the closest settlement/agricultural areas in Chile and 156 kilometers from the closest settlement in Argentina. It is between 4,200 and 5,200 meters above sea level in the Andes at 290 20’S Latitude. The Pascua-Lama site is mountainous terrain that cannot be used for farming – there is minimal vegetation above 4,200 meters and minimal wildlife even in summer months. Only six per cent of the project site area has any vegetation – of which 0.1 per cent (or 0.8 hectares) will be affected. There is no vegetation in the pit area.

Barrick has been monitoring flora and fauna around the site for several years. The Company is also working with the University of La Serena, Chile, and the University of Waterloo, Canada, on programs to propagate native species and those challenged by the climactic conditions in Chile. The company is already conserving natural vegetation in the area around its nearby Veladero mine in Argentina. A project to rehabilitate vegas (vegetation found in alpine valleys) is already achieving excellent results, with over 20 square kilometers successfully cultivated (see photo below).

The Huasco Province in Region III of Chile has a population of 66,000 people. There are four municipalities including Vallenar (48,000), Huasco (6,000), Frierina (7,000), and Alto del Carmen (5,000). Vallenar has the highest unemployment rate (18 per cent) in all of Chile.

Farmers represent about one per cent of the population in the Huasco province. This is not surprising as only 0.4 per cent (or 7,000 hectares) of the land in the Huasco valley is arable or suitable for agricultural purposes.

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Water

Will Pascua-Lama have any significant impact on water quality or quantity in the Huasco Valley and other nearby communities?

No. There will not be any significant impact on the water or its users in the area, including the Huasco Valley.

As far as water quantity is concerned, the mining operations will only draw about 0.3 per cent of the water in the Huasco River flowing into the Huasco Valley's Santa Juana Reservoir.

Concerning water quality, under the requirements set out with the governmental approval of the project, Barrick is obligated to maintain the baseline quality of water – as determined prior to the commencement of the project - at a point approximately 45 kilometers upstream of the nearest community. Furthermore, the quality of water leaving Barrick property, at point NE8 some 30 kilometers downstream from the project and 15 kilometers upstream from the nearest community will be monitored and maintained in accordance with regulated Chilean potable water standards.

Other water management considerations in the project  include:

• Comprehensive surface and groundwater capture, containment, treatment and recycling of water used in operations.
  
• Increased water management program including 87 water monitoring points, 26 of which are telemetric points for real time reporting:
  • Barrick is required to maintain water quality at the baseline set prior to commencement of the project
  • Monitoring in Chile: 49 monitoring points (43 surface, 6 wells, 26 automated/telemetric) providing real-time reporting
  • Monitoring in Argentina: 38 monitoring points (24 surface, 14 wells)

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On what basis can you say water quality will be protected and what measures are you taking to ensure this is going to be the case?

Barrick has more than five years of data measuring water quality and quantity in the water courses surrounding the project, in addition to regional government information. This data has been reviewed by multiple independent internationally recognized hydrology, hydrogeology, geochemical, biology, limnology, archeology, anthrology, and sociology experts from private consultancies, universities, and scientific institutions, including representatives of the Huasco Water Users Cooperative (Junta de Vigilancia del Rio Huasco).

Below: Monitoring point ME-8, located on the Chollay River, Estrecho basin, in Chile’s Huasco Valley. Barrick will set up 349 water monitoring stations in the Huasco Valley, 26 of which will transmit data in real time to environmental authorities and the public.

Considering the recommendations of these professionals, the Company has designed a multiple barrier “fail-safe” system for water protection, including:

• The diversion of surface water to minimize runoff water coming in contact with mining operations.
  
• Multiple barriers of passive and active protection in the collection, storage, and treatment of any surface or ground water that does come in contact with mining operations and subsequently complete reuse of that water in the mine operations.
  
• No operational discharges to the environment. There is sufficient capacity in the system to provide protection downstream even in extreme runoff events during the life of the mine and after closure.
  
• Building the anticipated closure requirements into the project at the beginning of construction.

The project will include a comprehensive plan to monitor water quality and a water management program. All of the testing points will be regularly inspected, controlled and independently audited to comply with stringent water quality standards consistent with the EIA and its approval resolutions.

Through a number of cooperative projects, water quality and supply in the Huasco Valley will actually benefit from Barrick’s presence, as the company is providing significant funding for projects to improve, expand, and develop new water management facilities in the Huasco Valley. These are efforts that will improve the general availability, quantity, and quality of water to all users, including farmers. These projects will be determined and prioritized by the needs of the users/farmers and include facilities for water treatment, irrigation, storage, and regulation.

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Do the farmers/water users and local communities support Pascua-Lama?

Yes, there is broad support for Pascua-Lama within the surrounding communities and among farmers/water users. In an open letter to the Government of Huasco Province in Chile, elected community leaders and citizen groups representing 6,600 families in the province have expressed their support for the Pascua-Lama project. Click here to view the letter signed by the presidents of the community associations of Vallenar (North, Rural and Urban), Huasco Valley and Alto del Carmen, the Community Association of Mothers’ Centres of Vallenar and the Community Association of Senior Citizens.

In the Huasco Valley, members of the Water Users Cooperative voted 94 per cent in favor of the project at a Special Meeting of the organization. This Cooperative represents the 2,000 water users in the area, including the Huasco Valley’s approximately 700 farmers.

Mayors from all four municipalities surrounding Pascua-Lama and most of the community leaders in the Huasco Valley have also strongly expressed their support for the project. The Mayor of Vallenar, Juan Santana said, “We value the investment that is made in the valley either by mining activity or by agricultural and other services…” and the Mayor of Huasco, Juan Sabando said, “Pascua-Lama should proceed and must create the development the community expects from it. This company has proven to be serious and responsible in terms of environmental matters.”

To illustrate the interest among people in the region in employment opportunities at Pascua-Lama, Barrick has received more than 70,000 applications for jobs as of June, 2010.

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Community consultations

Have local residents been consulted extensively on Pascua-Lama?

In addition to the formal component of citizen participation as set out under Chilean legislation, Barrick voluntarily undertook extensive consultative measures to involve communities in the project review. These included almost 1,000 meetings with community leaders, more than 100 presentations to community groups, participation in 30 public events, and a door-to-door visit program that reached 40 per cent of homes in the Huasco province. Every month, 15,000 copies of a newsletter with information on the project and community activities are distributed.

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How did Barrick address the concerns of citizens, stakeholder groups and the permitting authorities?

Barrick has continually reached out, consulted with, and involved residents of the Huasco Valley since the project was first considered and approved by CONAMA, Chile’s environmental authority, in 2001. Although it was not legally required to do so, Barrick elected to submit the modifications for environmental approval pursuant to an EIA in November 2004 – a process that included formal public consultations. As a consequence, the entire project was opened up to a complete review. (The modifications included the addition of a camp for 750 mine workers rather than daily transport, the relocation of the water treatment plant, and the increase in the rate of production in the project design.)

During the ensuing 14 month review process, there were three distinct sets of questions and or comments and recommendations (ICSARAs) issued by CONAMA requesting clarifications, additional information, or changes, to which Barrick responded in each case with an Addendum containing extensive detail and documentation, which were also subject to public review and comment.

Addendum No.1 included one volume of 378 pages in response to 124 questions.

Addendum No. 2 included responses to more than 184 questions and comments contained in 10 Volumes, comprising more than 4,000 pages. This Addendum included the independent review, analysis, and recommendations of technical experts of the Huasco Water Users Cooperative (Junta de Vigilancia del Rio Huasco) regarding all aspects of the project. This Addendum incorporated all of the significant changes to the project design to address the concerns raised by the authorities and the public in ICSARAs 1 and 2. Although not legally required to do so, Barrick also performed three studies of alternate mining methods and included the results in this Addendum. The entire Addendum was submitted with the full support of the Water Users Cooperative. Addendum No.3 included one volume of 504 pages in response to 158 questions, predominantly providing more detail clarifying the responses in Addendum 2.

Addendum 3 was similarly supported by the Water Users Cooperative.

The project includes the independent review, analysis, and recommendations of technical experts of the Huasco Water Users Cooperative regarding all aspects of the project. Specifically this encompasses mining, glaciology, hydrology, hydrogeology, biology, limnology, archeology, anthropology, and sociology. The final Addendum incorporated all of the significant changes to the project design to address the prevention, mitigation, and compensation concerns raised by the authorities and the stakeholders in ICSARAs 1 and 2.

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