Pascua-Lama

Project Overview

The Pascua-Lama Project is located on the border of Chile and Argentina, approximately 10 kilometres from Barrick’s Veladero mine. The deposit is at an elevation of approximately 4,300 to 5,250 metres above sea level. The Pascua-Lama Project is entitled to the benefits of cross-border mining operations that are granted by a mining treaty between Chile and Argentina. The Pascua-Lama Project is currently designed as a large-scale open pit operation with processing facilities having an initial designed throughput capacity of 45,000 tonnes per day.

Construction on the Pascua-Lama Project began in October 2009. During the fourth quarter of 2013, Barrick announced the temporary suspension of construction. Barrick had previously suspended construction activities on the Chilean side of the project as a result of the issuance of a preliminary injunction. The ramp-down was completed in mid-2014. In late 2015, a suspension plan for Pascua-Lama was approved by the mining authorities in Chile and Argentina.

Barrick will continue to evaluate opportunities to de-risk the Project while maintaining Pascua-Lama as an option for development in the future if economics improve, and related risks can be mitigated. On September 28, 2020, Barrick announced that it accepted the Antofagasta Environmental Court’s decision to uphold the closure order and sanctions from Chile’s environmental regulator, the Superintendencia del Medio Ambiente, imposed on Compañía Minera Nevada (“CMN”), Barrick's Chilean subsidiary that holds the Chilean portion of the Pascua-Lama Project. Barrick further noted that the ruling drew a line under a legal process that started in 2013 and CMN would not appeal it. Barrick clarified that Pascua-Lama would now be transitioned from care and maintenance to closure in accordance with the Environmental Court’s decision. Additionally, geological and metallurgical work is progressing at the Penelope deposit of Lama in Argentina to assess the amenability of the ore to heap leaching at the Veladero operation.

Stream Details

Date of Contract	08-Sep-09
Term	Life of Mine
Stream	25% of silver
Upfront Consideration	$252M*
Per Unit Production Payment	$3.90 (annual 1% inflation adjustment starting in 4th year after achieving commercial production)

* The upfront payment is net of the $373 million cash flows received relative to silver deliveries from the Lagunas Norte, Veladero, and Pierina mines.

For more information on the Pascua-Lama Project, please visit: www.barrick.com (opens in new tab)