Chile's environmental regulator has blocked
Canada-based Barrick Gold Corporation's multi-billion dollar mining project and
imposed its maximum fine, citing "serious" environmental violations.
After a four-month investigation, Chile's
Environmental Superintendent said that all construction work on the Pascua-Lama
mine must stop until Barrick builds the systems it promised to put in place for
containing contaminated water.
Chile's government also imposed a fine of eight
billion pesos ($16.36m), the highest possible under Chilean law.
The violations include: Failing to build structures
to contain contaminated water before mine construction began, failing to keep
the agency informed about problems and changes, and failing to provide data
sought by inspectors.
The regulator noted that while Barrick itself
reported the failures, a separate and intensive investigation by the agency's
own inspectors found that the company wasn't telling the full truth.
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