Mining News

The recently inaugurated gold mine, Gualcamayo (Province of San Juan), has paid AR$ 3 million in mining royalties to the Province of San Juan, since production begun on January 2009, according to the information provided by the company Minas Argentinas, subsidiary of Yamana Gold, owner of said project.

The giant Potasio Río Colorado (Province of Mendoza), property of the Brazilian company Vale, is eagerly awaited by the mining cluster of San Juan. This was recognized by the president of the Argentine Chamber of Mining Services ("CASEMI"), Fabrizio Benedetti. However, service providers are advised not to grow to excess at the construction stage of the project since later, in the production stage needs may decrease considerably. Potasio Río Colorado foresees a 2.4 million ton annual production of potassium chloride, an agricultural fertilizer. During the building of said project, 1,600 jobs are expected to be created, while in the production stage 600 direct jobs and over 2,000 indirect jobs are expected to be created.

The brine of Llullaillaco Salt flat (Province of Salta) is being studied by the mining company Solitario Argentina S.A., a subsidiary of TNR Gold Corporation, to evaluate the existing lithium potential of the project located in the Puna salteña. The company has performed superficial exploration works and will execute several boreholes to determine the brine volume and its lithium, potassium and magnesium content, for future commercial use.

Australian company Troy Resources announced the formal kick off of the construction works for the opening of gold mine "Casposo", in the department of Calingasta, Province of San Juan. Casposo will be the third gold mine in the Province of San Juan after Veladero, managed by Barrick, and Gualcamayo, managed by Yamana. The construction of the mine will last 9 months and operations are estimated to start in the third trimester of 2010.

The price of gold, in a rising trend, impacts directly in the Province of San Juan, where the gold mines of Veladero (Barrick) and Gualcamayo (Yamana) operate. The price of one ounce of gold increased in a groundbreaking manner on the international markets, raising royalties and the mining activity.

The Argentine and Indian Governments signed a memorandum of understanding to promote the cooperation and the technical assistance regarding mining geological development and the investments of the sector within the frame of the visit of President Cristina Fernández to the Asian nation. The agreement was signed by the Federal Planning Minister, Julio De Vido, together with the Mining Secretary, Jorge Mayoral, with the corresponding mining authorities of India. Said agreement between the Argentine Geological Mining Service ("Segemar"), dependent on the Secretary of Mines, and the Geological Service from the Ministry of Energy and Mines of the Indian Republic seeks for investments in exploration and project development, mineral commerce and technical and scientific cooperation in mining and geology.

Barrick South America presented a new report which summarizes all the actions regarding the Social Responsibility in Business of the company in Argentina, Chile and Peru during 2008, following the guidelines of the Global Reporting Initiative (GRI). One of the current environmental challenges of Veladero (Province of San Juan) was the installment of a wind generator, which was located at an altitude of 4,000 meters and became the tallest generator worldwide. Responsible Mining is the slogan embraced by the company which received special coverage by the August Harvard Business Review, where certain actions of the company related to the community were detailed.

The Canadian company Pan American Silver came to an agreement to acquire the Canadian company Aquiline Resources. The operation will be closed at over US$ 600 millions and includes the transfer of Navidad Project, one of the biggest silver reservoirs worldwide, located in the Meseta Central of the Province of Chubut, among other assets. "Navidad Project is one of the largest undeveloped silver deposits and we are going to contribute to its development with the technology and the experience gained during the expansion and construction of five new mines in the last six years", explained Geoff Burns, CEO of Pan American.

A huge boiler, with supplementary equipment which exceeds 1,600 tons, will be a part of the main structure of the Mega Thermoelectric Factory building in Río Turbio (Province of Santa Cruz). Said boiler comes from the Republic of China and was acquired by the business group Isolux Corsan, the company carrying out the work in the coalfield.

By means of an initiative seeking for legislative support, the Executive Branch of the Province of Chubut sent to the Provincial Deputies Chamber the bill 126/09, which intends to modify one of the annex of the law creating the Government-owned company Petrominera Chubut. Said bill promoted by the Executive Branch transfers to Petrominera Chubut the mineral reserves, the areas and deposits, exploration permits and mining concessions, transport concessions, previously transferred by the National Executive Branch to the Province. Likewise, the corporation' purpose is to perform by its own means, by third parties or associated with third parties; the exploration, exploitation, transport, industrialization and commercialization of mineral substances and its by-products. Furthermore, it regulates the exploration, exploitation, transport, industrialization and commercialization of liquid, solid and gaseous oil and its by-products. The management of the corporation will be held by a Board of Directors formed by one to three directors, designated by the Executive Branch.

For further information regarding this news, please see: "A half sanction for the new Glaciers Law".

For further information regarding this news, please see: "A half sanction for the new Glaciers Law".

A year after the controversy with the projects prohibiting mining in the Province of Río Negro began, the ruling party, with support and resistance from the opposition, filed said projects. Now, however, the ruling party has taken the first step required to ratify the activity and establish controls to the industrial process.