Cross-Border Tax Dispute Holds Up Gold and Silver Project in South America

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Barrick Gold Corporation (NYSE:ABX) (Toronto, Ontario), will not start construction of its Pascua Lama gold, silver and copper project in 2008, as previously expected by the company. For further details, see March 11, 2008, article - Chile-Argentina Polymetallic Project Could Start Construction in Late 2008.

The project spans the borders of Argentina and Chile. Nearly three years after obtaining environmental approval from the Chilean and Argentine governments, a cross-border tax dispute between both countries is holding up the project, which could now require an investment of about $3 billion. Given the remote location of the site and the harsh weather conditions in the Andes Mountains, construction must take place during the summer season, from September to February. Failing to reach an agreement soon, the company would be forced to wait until the following September.

Pascua Lama has proven reserves of 17 million ounces of gold, 689 million ounces of silver and 565 million tons of copper. Once operational, annual production is expected to reach approximately 775,000 ounces of gold, 25 million ounces of silver, and 4,800 tons of copper. Pascua Lama is the world's first bi-national mining project. About 80% of the deposit is in the northern Chilean region of Atacama about 120 kilometers south of the city of Vallenar, and the remainder is in the northwestern Argentine province of San Juan about 280 kilometers north of the province's capital, San Juan. A large part of the open pit will be in Chilean territory, as well as the mine equipment maintenance complex and other facilities. A smaller portion of the open pit will be in Argentine territory, as well as a processing plant, a tailings pond, a construction camp for about 4,000 people and an operation camp for 1,000 people.

Barrick Gold is developing the project through its subsidiaries Compania Minera Nevada (Santiago, Chile) and Barrick Exploraciones Argentinas S.A. (San Juan, Argentina). Construction will be carried out by Fluor Chile S.A. (Santiago), a subsidiary of Fluor Corporation (NYSE:FLR) (Irving, Texas) and is expected to last about three years.

Barrick Gold has 27 operating mines in North America, South America, Australia-Pacific and Africa. Barrick's South American region hosts 38 million ounces, or 31%, of the company's overall proven and probable reserves.

View Project Reports - 70000044

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.