Special report on Pascua-Lama from Beyond Borders, a Barrick Gold report on responsible mining

A BARRICK GOLD REPORT ON RESPONSIBLE MINING | B E YO N D B O R D E R S

September 20096 September 2009

B E YO N D B O R D E R S | A BARRICK GOLD REPORT ON RESPONSIBLE MINING

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At the site of the project and in Barrick’s offi ces on both sides of the border below, years of planning and preparation have translated into intense activity. A major hiring campaign is underway and initial construction has begun.

Anticipation is high among job-seekers living in the rural valleys closest to the project area and in towns over a hundred kilometers away in San Juan province, Argentina and Chile’s Atacama Region. During the project’s three-year construction phase, more than 5,500 direct jobs will be created. Priority will be given to hiring local people, a welcome feature of the project given current high levels of unemployment. Once in production, Pascua-Lama will employ approximately 1,600 people. For each direct job created, an estimated 2.5 to three indirect jobs are expected to be generated.

Scarlett Jara is Pascua-Lama’s Recruitment and Training manager and she leads a team responsible for staffi ng up the project. She spends most of her days in back-to-back interviews. To date, the company has received 145,000 job applications and more continue to fl ood in daily. Th at is roughly equivalent to the populations of Greenland and Bermuda combined.

A special computerized data management system was installed to sort and categorize the huge volume of interested candidates. “Th ere is an enormous sense of momentum now that the hiring process is well underway,” reports Jara. “Given the urgent need for employment in the region, it is a real pleasure to be able to off er people quality jobs with such a great company.”

A Special Reporton Pascua-Lama

A Special ReportA Special Reporton Pascua-Lamaon Pascua-Lama

High in the barren Andes mountains lies a body of ore spanning the border between Chile and Argentina. Known as Pascua-Lama, it is believed to be the world’s fi rst bi-national gold mining project.

by Nancy J. Whiteby Nancy J. White

Front Cover Photo: Traditional gauchos from Chile and Argentina ride through the foothills of the Andes

mountains in Iglesia, Argentina. Barrick provided funding to the Fiesta del Lazo, a popular festival, as part of

the company’s programs to support local culture within Pascua-Lama’s area of infl uence.

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A S P E C I A L R E P O R T O N P A S C U A - L A M A

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Budding entrepreneurs hoping to sell their goods and services are also gearing up to support the project. Recent company information sessions have attracted more than 800 potential suppliers and many are being evaluated by the company. Th is is in addition to the hundreds of contractors who have helped to move the project forward over the years.

Evidence that Pascua-Lama will have a powerful, far-reaching economic stimulus eff ect can be found only 10 kilometers away at neighboring Veladero mine in Argentina. Now four years into operation, Veladero has become a catalyst for economic development and an important source of investment to the San Juan provincial economy. Pascua-Lama is among Barrick’s next generation of larger, lower cost mines that include the Cortez Hills project in Nevada and the Pueblo Viejo* project in the Dominican Republic. Pre-production construction costs for Pascua-Lama are estimated at between $2.8 to $3 billion, and signifi cant tax revenues and royalties will be generated during the expected 25-year mine life. Th e large capital investment up front will build one of the lowest cost gold producing mines in the world, with anticipated total cash costs at $20-$50 per ounce.

Such a signifi cant investment, combined with the company’s community programs, will help regions struggling to modernize and achieve socio-economic development. Argentina and Chile are middle-income countries and off er a highly attractive investment climate for companies like Barrick. Yet like so many countries, the ability to identify pathways out of poverty for disadvantaged citizens has proven challenging.

On the Chilean side of the project, the Atacama Region is home to many remote agrarian communities. It is also an area

rich in untapped resources, with vast tracts of dry, inhospitable land that cannot support farming. Pockets of poverty exist, where hundreds of families struggle to subsist and meet their basic daily needs. Nationally, the Atacama Region has one of the highest proportions of families living in substandard housing, known as “campamentos.” Th e latest regional fi gures put unemployment at 11.6 per cent. In the more densely populated city of Vallenar, the jobless rate is 14 per cent. Many people with deep ties to the area have had to leave to fi nd employment. In this region, the mining sector has been an important job creator. Currently, it is one of the area’s largest employers, providing jobs for nearly 16,000 people in 2008.

Well-planned, well-run mines can improve quality of life in the communities around them. Pascua-Lama is a case in point. To maximize its potential benefi ts for communities in the region and in San Juan province, from 2005 to 2008, Barrick implemented a vast, bi-national training program in preparation for project go-ahead. Th e aim was to build the capacity and increase the local skills base to create employment and other opportunities.

Close to 10,000 people have benefi ted from these wide-ranging training programs, which have included a supplier development program, technical, industrial and farming skills, and teacher training. Barrick has long recognized the relationship between education levels and development. Some 700 local students have received scholarships to pursue a higher education in fi elds that included but were not limited to mining. Similar sustainable development projects are underway or being planned for San Juan province.

* Barrick holds a 60 per cent interest in the $2.7 billion Pueblo Viejo joint venture; Goldcorp Inc. owns the remaining 40 per cent.

Pascua-Lama

• Located in Chile’s Atacama Region and Argentina’s San Juan

Province, 150 km southeast of Vallenar, Chile and 380 km

northwest of the city of San Juan in Argentina

• 75% of ore body located in Chile, 25% in Argentina

• Estimated 17.8 M ounces of proven and probable gold

reserves, containing 718 M ounces of silver

• Pre-production construction estimate is $2.8-$3.0 billion

with expected average annual production of about 750,000-

800,000 ounces of gold and 35 million ounces of silver in

the fi rst full fi ve years.

SCARLETT JARA,

RECRUITMENT &

TRAINING MANAGER

INFRASTRUCTURE PROJECTS INCLUDE THE CONSTRUCTION

OF A PEDESTRIAN WALKWAY AND SCHOOL CROSSING

ALONG A RURAL HIGHWAY IN SAN FÉLIX, CHILE.

TOP: BARRICK SPONSORS NUMEROUS RURAL AND

CULTURAL ACTIVITIES IN THE ATACAMA REGION.

INSET: THE CHILEAN CITY OF VALLENAR IN THE ATACAMA

REGION.


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THE ATACAMA COMMITMENTIn December of 2008, Barrick announced it had formed a partnership with three Chilean NGOs and the United Nations Global Compact (UNGC) to provide real help to people living in poverty in the Atacama Region. Th e Atacama Commitment is an unprecedented anti-poverty alliance that includes programs to improve housing, education, access to technology, and health services for the disabled. A three-way educational partnership involving the Cisneros Foundation, Intel Corp. and Barrick, called Class 21, is also part of this unique eff ort. Its goal is to help to reduce disparities in education between students with access to modern 21st century technology and those without. Recently under the program, 400 children in two remote schools gained access to the internet and new, child-friendly laptops.

Th e journey to developmentTh e journey to Pascua-Lama fi rst began back in 1994, when Barrick acquired Lac Minerals Limited, a Toronto-based gold producer whose assets included the Pascua-Lama exploration property and 40 per cent ownership of the nearby Veladero

property. Both properties are located in the highly prospective Frontera gold district.

Barrick’s 2001 acquisition of Homestake Mining Company consolidated the company’s ownership of Veladero, gaining the remaining 60 per cent of the project. Veladero would advance to be the fi rst to commence operations, with fi rst gold pour in 2005.

As Barrick invested in exploration and developed feasibility studies, Pascua-Lama was deferred in the late 1990s and into 2000 due to low gold and silver prices. Over time, however, gold reserves steadily increased from original estimates of 2.3 million to the current 17.8 million ounces.

In 2000, the national governments of Argentina and Chile ratifi ed a historic Mining Integration Treaty. Th e landmark treaty provides a cooperative framework for the development of cross-border bi-national mining projects, starting with Pascua-Lama. Th e company continued its work on optimizing the project and embarked on the complex permitting process.

Th e development of Pascua-Lama parallels a period of rising global awareness about environmental issues, from energy conservation in daily life to standards for industrial performance. Growing public expectations of companies have been evident in Argentina and Chile for many years. Within this context, Pascua-Lama was subject to one of the most thorough and exhaustive reviews by authorities in the history of both countries.

In 2004, the company’s Pascua-Lama team submitted two separate but complementary Environmental Impact Assessments, one to Chilean authorities and a second to regulators in Argentina. Each document was thousands of pages in length. Barrick’s teams had sought out and engaged local and international experts in such fi elds as hydrology, engineering, geochemistry, environmental management and glaciology,

drawn from numerous private sector fi rms and over a dozen universities and scientifi c institutions.

Government regulators in both countries had mandated a broad public consultation process. Th e company went even further than regulations required, setting up community offi ces in local towns and villages and systematically consulting with stakeholders within the project’s area of infl uence and beyond. An extensive door-to-door information campaign was organized, with staff visiting residents and providing information. Th ey held nearly 1,000 meetings and dozens of open houses in Chile’s Atacama Region and in Argentina’s Iglesia and Jáchal districts. Members of the Pascua-Lama team talked, they listened and answered questions, engaging with government offi cials and regulators, academics, scientists, environmentalists, industry associations, media and the public. Formal consultations took place over 15 months in Chile and 20 months in Argentina.

During this time, Pascua-Lama’s location near the ice bodies in the Andes became the subject of genuine interest and consid-erable distortion. Ron Kettles, project director for Pascua-Lama, recalls how early on inaccurate claims and misinformation circulated on the internet about the project. Drawing on extensive input from some of the world’s leading glaciology experts and academic institutions, Kettles and the Pascua-Lama permitting team mapped out the diff erent ice bodies in the vicinity of the project and explained in detail how they would be protected and monitored using scientifi c best practices and pro-tocols. Pit limits were revised to ensure mining would not impact on ice fi elds (Toro 1, Toro 2 and Esperanza). Further engineering advances and design improvements were made to address com-munity concerns and meet all environmental requirements and approval conditions on both sides of the border.

In 2006, EIA approval was received from CONAMA, Chile’s national environmental agency and COREMA, the country’s regional environmental authority. Later that same year, the Independent Mining Environmental Evaluation Commission gave approval in Argentina. Over 420 conditions were set out in the Chilean EIA and more than 500 conditions in Argentina.

With little prompting, Kettles will explain in painstaking detail any one of the hundreds of environmental measures required by permit. He believes the Pascua-Lama project that has taken shape over the years will be among the most environmentally responsible mining projects in the entire industry.

As Kettles points out, “Pascua-Lama has been designed to be operated and managed under extremely strict and detailed environmental standards. Th is includes provisions to ensure that mining does not impact the glaciers or water quality and quantity for downstream communities in Chile and Argentina.”

COMMUNITIES SEE OPPORTUNITYRecognizing the opportunities for development that Pascua-Lama would bring, in 2007 community leaders from Chile found their voice, issuing an impassioned letter of public support for the project. Th e joint letter was signed by the presidents from seven community associations representing some 6,600 families in Vallenar, Huasco Valley and Alto del Carmen, as well as organizations representing local mothers and seniors.

Th e letter read…“For many years, we have seen how our families, friends and neighbors have been forced to leave their homes in search of jobs… We have seen how our young people are frustrated when they can no longer pursue their dreams…”

Th e elected leaders from these communities expressed confi dence in the company’s plans for environmental

Key Conditions of Approval: Protecting nearby ice bodies

Chilean approval of Pascua-Lama states that “the company

shall only access the ore in a manner that does not remove,

relocate, destroy or physically intervene (with) the Toro 1,

Toro 2, and Esperanza glaciers.”

Protecting water

• Stringent regulatory conditions to ensure water quality

and quantity is not affected for downstream communities

in Argentina and Chile.

• Extensive water monitoring: 87 water monitoring points,

26 of which are telemetric points for real time reporting.A BARRICK EMPLOYEE DISCUSSES PASCUA-LAMA WITH A

LOCAL RESIDENT DURING A DOOR-TO-DOOR PUBLIC

INFORMATION CAMPAIGN.

AN ECONOMICALLY DEPRESSED NEIGHBORHOOD IN CHILE

THAT WILL BENEFIT FROM THE ATACAMA COMMITMENT.

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United States and Europe. But long droughts have underscored the challenges they face.

Local farmers, area residents and government offi cials have expressed concern about the sustainability of the valley’s agricultural industry. Much of the valley’s water infrastructure and irrigation channels are in need of repair or upgrades.

On the Argentinean side, virtually no one lives in the quiet foothills immediately below Pascua-Lama. Th e nearest community is some 150 kilometers southeast in the small farming village of Tudcum. Here, and in the more densely populated villages in the districts of Jáchal and Iglesia in San Juan province, the irrigation and water distribution system would also benefi t from improvements.

When Barrick announced plans to develop Pascua-Lama, local farmers wanted assurances from the company that mining activity would not impact their water supply. It was one of multitude of complex environmental issues that Kettles would contend with over the next fi ve years aft er taking the helm of the project in 2004.

With 40 years of professional mining experience, Kettles remembers a time before joining Barrick, when it was not uncommon for some mining companies to virtually ignore farming communities nearby when designing a project. “Today all that has completely changed,” said Kettles, who is on a fi rst name basis with many local farmers. “Th ey are Pascua-Lama’s closest neighbors. Our social licence to operate begins with them and we have an obligation to protect their livelihood.”

“The development of this bi-national project shall

undoubtedly constitute tangible proof of the effectiveness

and concrete application of the Mining Integration

Treaty as a result of the cooperation and joint efforts

of both countries.”

The President of the Republic of Argentina, Her Excellency Cristina Fernández de Kirchner

“When this project begins, it will generate over 5,000 jobs

and can make a signifi cant contribution to the job crisis in

the region.”

The President of the Republic of Chile, Her Excellency Michelle Bachelet

Th e air is thin and cool in the Andes mountains at Pascua-Lama. At altitudes of over 5,000 meters above sea level, there is little plant life and animal sightings are rare. Few people would have had reason to venture to the place where one of the world’s largest gold deposits lay undetected for millennia.

Below is Chile’s Huasco Valley, a sunny, semi-arid valley that features pockets of green. Boxed in by the Atacama Desert to the north, the valley has oft en provided a sustainable business for farmers, who export products like grapes and strawberries to the

Miners and farmers fi nd common ground

Agreements with water users to improve supply

CHILEIn 2005, Barrick signed an agreement with the Huasco Valley Water Users Cooperative in Chile, aimed at increasing the area’s water supply and protecting water quality. With nearly 2,000 members, the Water Users Cooperative represents a majority of the valley’s farmers and other water users who hold title to water rights in the Huasco Valley.

Under the agreement, Barrick set up a long-term fund to repair and build new water infrastructure in cooperation with farmers in the valley. Already irrigation, construction and improvement projects have been completed, marking the beginning of a 20-year improvement program. Th e fund focuses on agricultural irrigation and water quality control. Th ese projects will improve sustainable agricultural yields in the valley and allow for a much more effi cient use of water.

Th e fund is administered by a committee comprising local water users and representatives from the regional government and Barrick. Funding from the company will be supplemented by contributions from other public and private sector sources.

“Th is agreement provides for investment in irrigation, including irrigation channel lining, and other water projects,”

management and their right to determine their own future… “there are many who fi ght against our people’s progress, to keep them living in inadequate conditions, with no aspirations. But it is time for us to raise our voices demanding the same opportunities that others have had. Our people deserve prosperity.”

Th en, this past May, Barrick’s President and CEO Aaron Regent made the go-ahead announcement for Pascua-Lama. Th e company had fi nalized the project’s economic parameters, received key construction permits, and resolved key outstanding fi scal matters with the governments of Chile and Argentina. At the time, Chile’s President, Michelle Bachelet, and Cristina Fernández de Kirchner, President of Argentina, expressed their satisfaction that the important milestone had been achieved.

Th e project is now proceeding through the construction stages, with commissioning expected in late 2012 and the fi rst gold pour in 2013. Discussions with project fi nanciers are underway, targeting $1 billion in project fi nancing.

Igor Gonzales, president of Barrick South America, is proud of the many employees who worked on the project over the years. He feels they have played a pioneering role, engaging in a constructive dialogue about environmental and social responsibility within the mining sector, while advancing a project that will create opportunity in places where options today are limited.

Gonzales is also confi dent that when the hundreds of newly-trained local employees start to build Pascua-Lama shortly, the result will be a better designed and managed project.

“Th e Pascua-Lama project we have today sets the bar high,” said Gonzales. “It takes advantage of the latest science, engineering and environmental advances in modern mining,

while bringing important benefi ts to communities. Th at is what responsible mining is all about.”

IGOR GONZALES,

PRESIDENT OF BARRICK

SOUTH AMERICA

ABOVE: THE HUASCO VALLEY. BELOW: CONSTRUCTION OF POTABLE WATER

NETWORKS IN IGLESIA, ARGENTINA.

FROM LEFT, BARRICK’S CEO AARON REGENT AND PASCUA-LAMA PROJECT

DIRECTOR RON KETTLES OVERLOOK THE PROJECT SITE.

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understanding of how to make farming in the region more sustainable.”

Magaly Varas, Governor of Huasco province, is the government representative serving on the committee that reviews project proposals and administers the fund. Varas believes the new funds will level the playing fi eld for farmers with smaller land holdings. “Before this fund existed, many small-scale farmers could not apply for public funds to improve water infrastructure,” acknowledged Varas. “It wasn’t easy for them to raise the minimum 20 to 25 per cent of total project fi nancing required to be eligible for this funding.” In addition to providing technical support to water monitoring authorities, members of the Cooperative will work to strengthen local water associations to ensure the fund benefi ts the entire valley.

Currently, the committee is evaluating projects to construct a head reservoir in the sub-basin of the El Carmen River. Two other mountain lagoons are also slated to undergo improvements, along with major renovations to the seven largest water canals near the city of Vallenar. Th ese and dozens of other smaller waterworks projects mark the beginning of the two-decade improvement program that will benefi t water users in the valley.

“Th is valley can accommodate not only agriculture, but also industrial and mining activities,” said Alday. “Barrick will accomplish its mission and we will be able to gain the development we need.”

says Omar Campillay, a local farmer and member of the Diaguita indigenous community, who exports grapes, avocado and papaya. “It is important to remember that in the Huasco Valley, 80 per cent of our water channels are currently unpaved. As a result, we lose about 40 per cent of the water carried by the channels.”

Carlos Gonzales is the outgoing president of the Water Users Cooperative, following the election last month of Efrain Alday, a local farmer and board member.

Both Gonzales and Alday, like many other farmers, are confi dent that agriculture and mining can co-exist with mutually benefi cial results. Gonzales estimates that by improving the lining of all water channels in the area, water loss could be reduced to fi ve per cent. “We may become the best irrigated valley in Chile, registering the lowest loss relative to water conduction. Nowhere in the country has 95 per cent effi ciency rate for (water) transport been achieved.”

In a recent public statement, Gonzales expressed the benefi ts of the agreement to date and how the unprecedented investment “demonstrates the possibility of transforming our valley and its distribution of irrigation water into the most modern and effi cient in the country.”

Alday believes the agreement with Barrick will improve scarce local water resources in the valley. “Barrick understands that the valley needs to be cared for and protected,” he said. “Th rough discussions with the mining company, we gained a better

COMMUNITY MEMBERS PARTICIPATE IN WATER MONITORING ACTIVITIES.

PICTURED: SMALL-SCALE AGRICULTURE, CATTLE-FARMING AND GOAT-RAISING IN

THE CHILEAN AND ARGENTINEAN VALLEYS NEAR THE PROJECT.

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ARGENTINAIn Argentina, the company has signed an agreement with the San Juan provincial government to establish a fund that will improve basic infrastructure and support community development projects. Th e fund will be used for projects and initiatives that meet the needs and priorities of residents living within Pascua-Lama’s area of infl uence.

Under an agreement with the province, similar water projects to those underway in Chile will benefi t local water users. Th is agreement has been sanctioned by irrigators in Jáchal, a district where agriculture and wine production are the mainstays of the local economy. Detailed engineering studies commissioned by the company are supporting the expansion, repair and upgrade of irrigation systems used by farmers and other water users. Th ese eff orts are expected to prevent current losses of large volumes of water, estimated at more than 1,000 liters per second.

Supporting these eff orts, Barrick has put in place programs to help develop Jáchal’s agricultural sector. In recent years, the

company’s agricultural experts have been working closely with the local Jáchal farming association to enable its 400 members to diversify their crops, improve productivity and sell their meat and produce at competitive prices to international markets. So while Jáchal is considered the onion capital of Argentina, the district is now becoming known for it fresh and dried tomatoes, honey, garlic and other less water-intensive products.

Neighboring Iglesia is one of Argentina’s most picturesque but least affl uent areas, with more limited agricultural production. Farmers in Iglesia will also benefi t from upgrades to existing irrigation systems. However, in a move to stimulate economic diversifi cation, last year the company invested in a multi-media campaign to promote Iglesia as a tourism destination in collaboration with local offi cials. Barrick is also working with the provincial government to upgrade the potable water network in Iglesia - a key benefi t since many area businesses and residents lack access to potable water.

Benefi ting Pascua-Lama communitiesSince 2005, Barrick has sponsored more than 40 community

projects in Chile and Argentina. These initiatives target Pascua-

Lama’s area of infl uence and seek to improve education, training,

health, local water supply, cultural restoration and small business

development in these regions.

• 2,000 Argentine children have benefi ted from an annual oral

health program; another 700 vaccinated against hepatitis A.

• 1,000 Argentinean women living in remote regions have

undergone examinations for early detection of breast and

uterine cancer.

• Nearly 800 teachers have received training to improve education

and use new technologies in the classroom.

• Over 172,000 hours in training initiatives in Chile and Argentina.

• 100 Diaguita farmers have participated in agricultural training

and a further 120 in Diaguita artisanal crafts, as part of

programs to reinforce cultural identity.

Helping the Neediest Families: The Atacama CommitmentLocated in northern Chile, the Atacama Region is home to some of

the country’s poorest and most isolated communities. The Atacama

Commitment is a unique alliance between Barrick, three Chilean

NGOs and the United Nations Global Compact that will improve

housing, technology, education and health services in the region.

A series of targeted programs will address some of the most

diffi cult conditions encountered by people living in poverty,

helping an estimated 4,000 people.

Highlights: • New homes for families: 700 new homes will be built to replace

substandard housing.

• Services for children with disabilities: A new health center, to

be located in Copiapó City, will provide children with disabilities

access to integrated medical, therapeutic and psychosocial

services. Barrick will fund the management of key center

programs for a fi ve-year period.

• Bridging the digital divide: Class 21, an educational partnership

involving the Cisneros Foundation, Intel Corp. and Barrick, is

bringing modern computer technology and wireless internet

access to isolated schools in the region.

• Sustainable development: Professionals will provide their

expertise to develop sustainable development programs tailored

to the region.

TO HELP JÁCHAL FARMERS IN ARGENTINA DEVELOP A SUSTAINABLE LIVELIHOOD AND EXPAND THEIR PRODUCTION AND MARKETS, BARRICK HELPED TO LAUNCH A

DRIED TOMATO EXPORTING PROGRAM.

BELOW: RECENT GRADUATES OF BARRICK-SPONSORED PROGRAMS IN DIAGUITA

ARTISANAL CRAFTS. ARTISANAL AND COMMERCIAL TRAINING IS ENABLING

MEMBERS OF CHILE’S DIAGUITA COMMUNITY TO PRESERVE THEIR INDIGENOUS

HERITAGE AND SELL THEIR WORK TO NEW MARKETS.

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Communities monitoring waterCommunity participation in water monitoring has already begun

at Pascua-Lama. This program, implemented successfully at the

company’s other mines in South America, invites community

members to take water samples and select an independent

laboratory to conduct tests on water quality. The goal is to

provide greater transparency and build trust within the community.

In Argentina, the activity is underway at the Veladero mine and is

being expanded to encompass Pascua-Lama. In Chile, the program

will be administered by an environmental oversight committee

comprised of government and community representatives,

supported by independent experts.

The El Indio Closure PrecedentWhen Barrick closed the El Indio mine in Chile in 2003, it was

determined to do it right.

To date, the company has spent $70 million on closure

activities, an unprecedented amount in that country. Barrick

worked with stakeholders and environmental authorities to

develop a closure plan, even though it was not required, since

the mine predates closure laws. The land was cleared and the

stark contours of the natural topography restored. Today, the

closure of El Indio is seen as a standard-setter for mine closure

in Chile.

lower quality water for its operations, diverting it from the mixing zone, and thereby improving overall water quality further downstream.

Water used in the processing of ore will be captured, recycled, and re-used to minimize withdrawl of fresh water from the Estrecho and Las Taguas river systems. Th e entire operation will draw only about 0.5 per cent of the water in the Huasco River, which fl ows into the Huasco Valley’s Santa Juana Reservoir. Th at works out to about 42 liters per second, whereas river fl ow is 3,800 to 4,580 liters per second. On the Argentinean side, where the mine’s processing plant will be located and more water is required, the operation has been permitted to draw about six per cent of water from Las Taguas. Contact of other surface and groundwater with operations will be minimized. As there are no planned discharges to the environment, any water that comes into contact with facilities will be captured, pumped to treatment plants and re-used.

STRINGENT WATER MONITORINGUnder approved water monitoring plans, monitoring starts on the property on both sides of the border and continues 45 kilometers downstream in Chile and more than 100 kilometers downstream in Argentina.

An extensive system of water monitoring will encompass both surface and underground water levels to ensure water avail-ability and quality remains the same or improves. In total, 87 water monitoring points have been identifi ed to safeguard water quality, 26 automated to provide real time reporting, with most results instantly accessible to regulators and communities via the web. In Chile, audits will be conducted by state authorities and independent auditors to ensure compliance with stringent water quality standards and laws. In Argentina, a participative moni-toring program will involve authorities and the community.

“One of the most signifi cant and innovative structures is a cut-off wall that will be located at the headwater of the Estrecho

Pascua-Lama will operate based on industry-leading environ-mental systems and safeguards. Environmental approval for the project includes controls for the protection of the three ice bodies in the vicinity of the project as well as water resources.

Th ese safeguards, particularly the project’s multiple-barrier water management system, were designed in consultation with downstream water users. A dedicated team of environmental and engineering professionals will manage the project, with active involvement and monitoring by independent auditors, government regulators and communities.

“Th e water coming out of the mountains in the project area is not crystal clear,” said Bruce Mack, Pascua-Lama’s environmental manager. “It is naturally acidic. Yet as it travels further downstream into the river systems, it becomes diluted

and acceptable for irrigation treatment.” Mack points out that Pascua-Lama will use untreated,

An insider’s guide to environmental management at Pascua-Lama

River in Chile,” said Mack. “Th e wall will off er an added level of protection by acting as a barrier to prevent water which may come into contact with the operation from entering the river system.”

OTHER ENVIRONMENTAL FEATURESIn Argentina, the tailings ponds have been designed with an impervious system of multiple barriers of protection to prevent pond water from contacting groundwater. Th e operation’s primary crusher will feed into underground ore passes and then onto a conveyor belt tunnel, transporting ore downhill over a distance of 4.7 kilometers to the process plant on the Argentinean side of the operation. Th e short overland section of the conveyor belt will also be enclosed. Th is minimizes dust and particulate emissions into the atmosphere, and generates clean electrical energy for operational use. Other dust control measures include road watering and the choice of transportation routes away from the ice bodies. All hazardous materials will be managed in closed circuit systems featuring secondary containment.

Harnessing wind powerBarrick has invested $70 million to build the Punta Colorada

wind farm project near Pascua-Lama, in the Coquimbo Region of

Chile. The renewable power project will feature 18 wind turbines

and inject 36 megawatts of energy into Chile’s power grid. The

large wind farm supports the Chilean government’s objective

of enhancing the generation of clean energy, while addressing

the country’s energy defi cit. Pascua-Lama will draw all of its

electrical energy from suppliers to the grid. Barrick is currently

installing 20 megawatts in the fi rst phase of the project.

STRINGENT WATER PROTECTION PROGRAMS ARE A VITAL COMPONENT OF

BARRICK’S ENVIRONMENTAL MANAGEMENT SYSTEM AT PASCUA-LAMA.


ABOVE: WIND TURBINE BLADES IN TRANSIT TO THE PUNTA COLORADA WIND

FARM. RIGHT: THE RECLAIMED SITE OF THE FORMER EL INDIO MINE IN CHILE.

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What are the types of ice bodies that exist near Pascua-Lama?

Glaciologists classify smaller bodies of ice as “glaciarettes” or ice reservoirs rather than traditional glaciers, which are much larger and demonstrate movement. Th ese smaller ice bodies are formed as the result of wind-blown snow accumulated behind shallow hills.

Pascua-Lama is located to the north of three of these ice bodies, Toro 1, Toro 2 and Esperanza. Th ey are about 10 hectares in size and consequently their contribution to water resources in the Huasco Valley is considered to be insignifi cant. In all, the Huasco Valley features some 112 ice bodies, 70 per cent of which are like the three bodies near Pascua-Lama.

How will the company monitor the ice bodies near Pascua-Lama?

We are putting in place what is very likely the most detailed, localized glacier measurement program in the world. Th e government-approved program has been developed to monitor the physical conditions of these specifi c ice bodies and their

Mark Rookes is senior project engineer at Pascua-Lama. For the past eight years he has

worked with world leading glaciologists and academic institutions to integrate their scientifi c

research and expertise into the project design. He discusses how the company is protecting ice

bodies at Pascua-Lama with Beyond Borders’ editor Nancy White.

In Conversation:

ESPERANZA TORO 1TORO 2

hydric role. It will involve continuous measurements over the life of the mine, using sensors and remote cameras to detect changes or variations on the ice surface, while comparing to reference glaciers and ice bodies in the area. Scientifi c best practice and protocols will guide us and we will be in continuous communications with regulators.

Are Barrick’s exploration activities at Pascua-Lama responsible for the retreat of glaciers or ice bodies in the region?

Glaciers in the central Andes have been reducing in size since the 1950s. Th is is borne out in documented studies from third-party experts. Smaller ice bodies have been retreating at a more accelerated rate in terms of the percentage of area loss. Satellite imagery documents this decline, which scientists attribute primarily to climate change.

In fact, exploration associated with Pascua-Lama didn’t begin until the 1990s. In 2005, CONAMA, Chile’s national environ-mental authority, concluded that the company had operated in accordance with all environmental permits and that it was not possible to attribute glacier reduction to exploration activities.

MARK ROOKES, SENIOR PROJECT ENGINEER AT PASCUA-LAMA.


Documents

Special report on Pascua-Lama from Beyond Borders, a Barrick Gold report on responsible mining