VANCOUVER – Goldcorp. Inc. (TSX:G) says development will continue as planned on the $ 3.9-billion El Morro copper and gold project unless Chile’s supreme court upholds a decision that rescinds its environmental permit.
The Vancouver-based company has said previously that construction at El Morro would begin in September and reiterated that position Monday in response to recent news reports about a lower court’s decision.
The validity of the environmental permit has been challenged by a petition from the Agricultural Community of the Huascoaltinos.
The petition was upheld in a Feb. 16 decision by the Appellate Court of Antofagasta, but Goldcorp insisted Monday that the ruling won’t have any effect unless confirmed by the Supreme Court of Chile.
Goldcorp says both the Chilean Environmental Evaluation Commission and Minera El Morro, the joint venture company that owns the property, have appealed the appellate court’s ruling.
In the meantime, Goldcorp said it is standing by a previously announced plan to begin construction in September. The Feb. 15 statement said construction was expected to last five years at a capital cost of $ 3.9 billion.
Goldcorp, Canada’s second-largest gold company, owns 70 per cent of El Morro and the remainder is owned by Vancouver-based New Gold Inc. (TSX:NGD), an intermediate mining company.
Ownership of the property is disputed in separate court proceedings in Canada.
Barrick Gold Corp. of Toronto (TSX:ABX), the world’s largest gold producer, has claimed in an Ontario court that it had a deal in October 2009 to acquire a majority stake in the project from European miner Xtrata PLC.
However, Xstrata’s minority partner, New Gold, claimed a right of first refusal, acquired the majority stake and sold it to Goldcorp, which provided the funding to facility the transaction. New Gold retained its original 30 per cent and received $ 50 million in cash for assisting Goldcorp.
Goldcorp shares were down 65 cents or 1.39 per cent at $ 46.25 Monday on the Toronto Stock Exchange.
Local news from metronews.ca/vancouver
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