Pascua-Lama and Veladero Not Affected by Argentina Supreme Court Ruling

July 06, 2012

July 6, 2012 — On July 3, 2012, the Supreme Court of Argentina overturned temporary injunctions granted by the federal court in the province of San Juan which had been in effect since November 2010, suspending the application of the national law for the protection of glaciers in that province while a constitutional challenge of the law is pending.

In response to the ruling, Barrick has the following statements:

  • Construction at Pascua-Lama and mining activities at Veladero are not affected by the July 3 Supreme Court decision. We believe we are legally entitled to continue our current activities on the basis of existing approvals.

  • Our activities at Pascua-Lama and Veladero do not take place on glaciers. Barrick supports the protection of glaciers and the company remains in full compliance with existing environmental approvals, including provincial glacier protection legislation.

  • Any potential impact on glaciers has already been studied and evaluated as part of the extensive environmental assessments (EIAs) for Pascua-Lama and Veladero, which are updated every two years in Argentina. The most recent update, conducted in 2011, confirms the company is in full compliance with all requirements with respect to glaciers.

  • The EIA for Pascua-Lama in Argentina, which was approved by the provincial government of San Juan with the participation of IANIGLA, Argentina’s national glacier agency, determined that the project would not have any adverse impacts on glaciers. Pascua-Lama is one of the most thoroughly evaluated mining projects in the world and has been designed to ensure the environment will be protected.

  • The Supreme Court must still rule on the constitutionality of the federal law, which has also been challenged by the province of San Juan, labor unions and local construction and mining chambers.

The federal government of Argentina recently expressed its support for the mining industry in a June 29, 2012 declaration signed at the Mercosur (Southern Common Market) summit in Mendoza province, which was highlighted in a recent article (see translation below) in the Tiempo de San Juan (San Juan Times).


Certain information contained in this statement, including any information as to our strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: legislative, judicial, political or economic developments in the jurisdictions in which the company carries on business; operating or technical difficulties in connection with mining or development activities; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; acts of war, terrorism, sabotage and civil disturbances; employee relations; availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with our projects; inflation; level of indebtedness and liquidity; contests over title to properties, particularly title to undeveloped properties; the risks involved in the exploration, development and mining business. Certain of these factors are discussed in greater detail in the company’s most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Presidents ratify mining as a key factor in regional development

A declaration signed by the presidents of Argentina, Brazil, Chile, Bolivia, Uruguay and Ecuador emphasizes the importance of mining activity for the region's economic and social development.

Friday, June 29, 2012

The presidents of the MERCOSUR member nations, meeting in the Argentine province of Mendoza, today signed the summit declaration in which, among other issues, they emphasize mining as a key factor for the region's economic and social development.

Argentina's President Cristina Fernández de Kirchner, Brazil's President Dilma Rousseff, Chile's President Sebastián Piñera, Bolivia's President, Evo Morales, Uruguay's President José Mujica and Ecuador's President Rafael Correa issued the Declaration of the 40th MERCOSUR Summit. One of the points addressed in the declaration is mining.

The text:
"Mining, minerals and metals are important for the economic and social development of our countries, as was made evident by the 2002 World Summit on Sustainable Development and the Rio+20 World Summit held recently. Full development of the mining sector in the bloc we represent will strengthen investment, promote new project development, and generate jobs and opportunities for entrepreneurship related to services provision, creating opportunities for social inclusion and economic and technological progress."

The document refers to the 2002 World Summit on Sustainable Development held in Johannesburg, which recognized that "mining, minerals and metals are important for the economic and social development of many countries," according to the declaration issued during that event.

It also coincides with the document issued at the recent Rio+20 World Summit, which includes two paragraphs on mining. The first of these acknowledges that "minerals and metals make a significant contribution to the world economy and modern societies. We note that mining industries are important to all countries with mineral resources, in particular developing countries. We also note that mining offers the opportunity to catalyze broad-based economic development ... when managed effectively and properly. We acknowledge that countries have the sovereign right to develop their mineral resources according to their national priorities."

The document states, "We recognize the importance of strong and effective legal and regulatory frameworks, policies and practices for the mining sector that deliver economic and social benefits and include effective safeguards that reduce social and environmental impacts, as well as conserve biodiversity and ecosystems, including during post-mining closure. We call on governments and businesses to promote the continuous improvement of accountability and transparency, as well as the effectiveness of the relevant existing mechanisms to prevent the illicit financial flows from mining activities."

This way, the leaders of the MERCOSUR nations once again ratified the importance to the region's economic and social development of mining activities, including production and processing of industrial minerals, rock for applications, metalliferous minerals, manufacturing of brick, lime and cement, precious stones and thermal springs for tourism, therapeutic and medicinal purposes.

It should be noted that in our country this sector already generates jobs for more than 500,000 Argentines. Moreover, 15 international mining projects are expected to begin operating in the short term, with a total investment of more than 150 billion pesos. These projects will create an additional 100,000 jobs and position Argentina among the principal mining producers in the world.

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