Shelved mining project in Chile puts geothermal project in doubt
The decision by Barrick Gold to shelve its large mining Pascua-Lama project on the border of Chile and Argentina, sheds cloud on a geothermal project that was supposed to provide power to the mining operation of this and another mine near by.
According to news this morning, Barrick Gold Corp. a large gold mining company, has announced it will shelve its rather large Pascua-Lama mining development on the border of Chile and Argentina.
The reasons seem to be mostly related to a planned reduction in the debt position of the company, but other reasons likely include political opposition, permitting issues, labor unrest and the issue of cost of a mining development in such a remote area.
In conjunction with its mining plans, the company had planned to develop a geothermal project that was to supply geothermal power to its Veladero mine, but also to the Pascua-Lama project. It is unclear how the recent decision will affect the geothermal project and we are trying to follow up on this.
In the spring of this year, the company had announced the investment of $2 million for the initial exploration phase together with its partners EPSE and Geotermia Andina for a geothermal power project in the region, but in Argentina. ThinkGeoEnergy reported on this in March 2013.