Placer Dome OKs Pueblo Viejo Mine in DR.

FireGuy said:

Placer Dome Inc. has given the green light to a $1-billion (U.S.) mine -- the most expensive in its history...

Read more at:

www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050928/RPLACER28/TPBusiness/TopStories

The project will include a $350-million (U.S.) power plant to supply electricity to the mine.

Gregg

Click to expand...

It is very striking that nowhere in the report is it mentioned that the mining operation will be an open pit mining operation with a conventional carbon-in-leach cyanide leach circuit to recover the gold, which is the most environmentally destructive mining technology in existence. Goodby Cotui and surrounding region.

Es pa 'tr?s que vamos!

Mirador said:

It is very striking that nowhere in the report is it mentioned that the mining operation will be an open pit mining operation with a conventional carbon-in-leach cyanide leach circuit to recover the gold, which is the most environmentally destructive mining technology in existence. Goodby Cotui and surrounding region.

Es pa 'tr?s que vamos!

Click to expand...

The decision by Placer to go ahead with the $US one billion development of the Pueblo Viejo gold deposit should be welcomed, not spurned. The project will last at least 20 years, producing some 12 million ounces of gold. There will be significant economic spinoff, including extensive interest in exploration for gold elsewhere in the country. Of course there will be local environmental concerns which RD Government agencies must oversee, but "Goodby Cotui and surrounding region" is an inappropriate comment to a huge boost to the economy of the whole island. Canadian Bob.

http://www.cyanidecode.org/library/cn_facts_use.html

like anyother posion used, if the company using it takes the proper precautions/safeguards use will not adverserly affect the surrounding area. It is up to the Dominican Government to enforce strict environmental regulations. Mirador, crying wolf isn't the way to do that.

canadian bob said:

The decision by Placer to go ahead with the $US one billion development of the Pueblo Viejo gold deposit should be welcomed, not spurned. The project will last at least 20 years, producing some 12 million ounces of gold. There will be significant economic spinoff, including extensive interest in exploration for gold elsewhere in the country. Of course there will be local environmental concerns which RD Government agencies must oversee, but "Goodby Cotui and surrounding region" is an inappropriate comment to a huge boost to the economy of the whole island. Canadian Bob.

Click to expand...

bob saunders said:

http://www.cyanidecode.org/library/cn_facts_use.html

like anyother posion used, if the company using it takes the proper precautions/safeguards use will not adverserly affect the surrounding area. It is up to the Dominican Government to enforce strict environmental regulations. Mirador, crying wolf isn't the way to do that.

Click to expand...

That's a very naive thing to say. No company will ever take "proper precautions/safeguards" unless it is demanded and enforced by law and authorities. You know very well that the Dominican Government is useless in "enforcing strict environmental regulations", plus it's easy to bribe. Reports abound on serious contamination and environmental damage caused by strip mining in Cotui by the former Rosario Dominicana. All surrounding aquifiers are contaminated with mercury and heavy metals, oysters and mussels from Samana bay are contaminated...

Unfortunately Mirador is correct. The track record of the Dominican government -- regardless of party in charge -- in enforcing environmental safeguards on mining ops is very, very poor.

Everton Inc. wantng a peace of the Domiinican Golden pie...

http://www.ccnmatthews.com/news/releasesfr/show.jsp?action=showRelease&actionFor=556888

Mirador said:

That's a very naive thing to say. No company will ever take "proper precautions/safeguards" unless it is demanded and enforced by law and authorities. You know very well that the Dominican Government is useless in "enforcing strict environmental regulations", plus it's easy to bribe. Reports abound on serious contamination and environmental damage caused by strip mining in Cotui by the former Rosario Dominicana. All surrounding aquifiers are contaminated with mercury and heavy metals, oysters and mussels from Samana bay are contaminated...

Click to expand...

No, it's naive to think that the company is going to do it without being forced to. What I said, is the truth, It is the Dominican Governments job to ensure compliance to strict enviromental rules. I DIDN'T STATE whether they had a good record or bad record in regards to the environment.

It may be an understatement to say that it is the Dominican government's responsibility to regulate environmental impact. In the past, mining companies have actually negotiated the responsibility to REMEDIATE their own polution back to the government in exchange for larger concession fees. In this way, the government gets a bigger piece of the pie to send to Miami and Switzerland and/or use to buy reelection. Naturally, the remediation, which is years away, either never gets done or becomes part of some World Bank project that is riddled with its own similar type corruption.

Always remember, there is never anything fair, equitable or good about business between wealthy and poor countries when governments or multilateral institutions are involved. I know many Canadians think they're above it (only evil Americans do it, right?), but look at the track record of Placer Dome in other developing countries where they can legally walk away from their environmental disasters.

At the end of the day, money talks and your morally superior BS walks.

Mirador said:

That's a very naive thing to say. No company will ever take "proper precautions/safeguards" unless it is demanded and enforced by law and authorities. You know very well that the Dominican Government is useless in "enforcing strict environmental regulations", plus it's easy to bribe. Reports abound on serious contamination and environmental damage caused by strip mining in Cotui by the former Rosario Dominicana. All surrounding aquifiers are contaminated with mercury and heavy metals, oysters and mussels from Samana bay are contaminated...

Click to expand...

This is a very big surprise since they have NO LEACH FIELDS and the water is all crap! This country needs a Government for Christs sake. Dominicans that vote should have made sure of this years ago.

Escott

It is amazing how being blessed with having one of the largest gold deposits in the world has turned out to be a curse more than anything for my beloved town of Cotui.

You guys should see the little streams that run close to the mine to get an idea of what has been done in the past in terms of environment protection. I don't think I've seen anything more contaminated anywhere else...

All the people that used to live around there either left or were forced to leave. They were supposed to get something like 3,000 USD per household as restitution for being forced out...but in the end most of them never got anything.

So we're left with all the contamination for us cotuisanos to live with for the rest of our lives and hardly any benefits from all this gold. At a minimum, they shoud invest a little bit in the local economy, but event the Canadians who will come to "live" there will not live in Cotui as the gold mine has it's own town up in the mountains for its high levels employees to live in. Most people in Cotui don't even know this little town exists. It looks like a replica of a town from Florida or California...

I just hope the runoff is not so bad tht it contaminates the Hatillo Lake or the Yuna river.

Porfio_Rubirosa said:

It may be an understatement to say that it is the Dominican government's responsibility to regulate environmental impact. In the past, mining companies have actually negotiated the responsibility to REMEDIATE their own polution back to the government in exchange for larger concession fees. In this way, the government gets a bigger piece of the pie to send to Miami and Switzerland and/or use to buy reelection. Naturally, the remediation, which is years away, either never gets done or becomes part of some World Bank project that is riddled with its own similar type corruption.

Always remember, there is never anything fair, equitable or good about business between wealthy and poor countries when governments or multilateral institutions are involved. I know many Canadians think they're above it (only evil Americans do it, right?), but look at the track record of Placer Dome in other developing countries where they can legally walk away from their environmental disasters.

At the end of the day, money talks and your morally superior BS walks.

Click to expand...

You may be interested to know (if you don't already) that in Canada, "prospective mines" now have to post a huge financial bond which is to cover mine closure and land restoration before production starts. Perhaps the DR might consider such an arrangement (unfortunately which may kill the goose that hopes to lay a golden egg). Canadian Bob.

Canadian miners go home!

canadian bob said:

You may be interested to know (if you don't already) that in Canada, "prospective mines" now have to post a huge financial bond which is to cover mine closure and land restoration before production starts. Perhaps the DR might consider such an arrangement (unfortunately which may kill the goose that hopes to lay a golden egg). Canadian Bob.

Click to expand...

The last thing the DR needs now is Canadian miners.

canadian bob said:

You may be interested to know (if you don't already) that in Canada, "prospective mines" now have to post a huge financial bond which is to cover mine closure and land restoration before production starts. Perhaps the DR might consider such an arrangement (unfortunately which may kill the goose that hopes to lay a golden egg). Canadian Bob.

Click to expand...

A similar concept is already popping up around Latin America. See for example:

http://www.temasactuales.com/whats_new/news_page.php?news_id=452

http://www.temasactuales.com/whats_new/news_page.php?news_id=527

Regards,
Keith

canadian bob said:

You may be interested to know (if you don't already) that in Canada, "prospective mines" now have to post a huge financial bond which is to cover mine closure and land restoration before production starts. Perhaps the DR might consider such an arrangement (unfortunately which may kill the goose that hopes to lay a golden egg). Canadian Bob.

Click to expand...

I'm sure they do a fine job of maintaining enviromental balance in their own country, but who believes that will be the case in The DR? Is anyone in The DR going to ask them to put up a bond? If they did that could easily be "resolved" by giving away a few gifts. Even they did put up a bond is this money going to be used for real cleanup?

We all know what's cooking here and who's going to be left with the mess afterwards.

I was looking at the mine by using Google Earth and it's pretty scary how close it is to the Hatillo Lake. I have no confidence at all that this very important water reservoir will not be contaminated...

I thought they lost that contract because they lacked the sophisticated technology of handling the trailings in an environmentally safe manner.

----------

Daily News - 30 April 2004

Mining news
Both the government-intervened Listin Diario and the El Caribe report that the Dominican government has signed a contract with an Australian company, Lagunas Limited, to exploit the Pueblo Viejo gold mine in Cotui. The contract guarantees the government benefits of US$50 million dollars over an eleven year, six month period. According to the Listin Diario, five percent of the profits will go to the Sanchez Ramirez province. The contract was signed by Sonia Guzman de Hernandez, the Minister of Industry and Commerce, and Brian Johnson, president of Lagunas Limited. The Australian company will exploit the trailings dam of Lagunas, which is part of the sulfides mined by Rosario Dominicana. The yearly working of one million tons of trailings will produce 94,740 ounces of gold and 943,810 ounces of silver, as well as 4,371 tons of zinc. The Australian company will use the Albion Process patented by Mount Isa Mining of Australia. This process will serve to lower the environmental problems associated with the production of so much sulfuric acid.
According to Pedro Vasquez Chavez, the Director of Mining, the handling of the trailings will be environmentally sound and permit the restoration of the bio-systems of the area. While Placer Dome had originally won the contract, they lacked the sophisticated technology of handling the trailings in an environmentally safe manner.

Robert: From what I understand (anyone correct me if I'm wrong) Placer Dome lost the contract for Las Lagunas area, which is part of the Pueblo Viejo gold mine but is not the BIG one. They now "won" the contract to explore the rest of the mine where most of the gold resides. Not sure how come they apparently have the technology to exploit this area, but not the other one.

suarezn said:

Robert: From what I understand (anyone correct me if I'm wrong) Placer Dome lost the contract for Las Lagunas area, which is part of the Pueblo Viejo gold mine but is not the BIG one. They now "won" the contract to explore the rest of the mine where most of the gold resides. Not sure how come they apparently have the technology to exploit this area, but not the other one.

Click to expand...

My understanding is the same. Placer will be mining the hard-rock deposit, while Las Lagunas will be re-working the gold-bearing tailings from the original hard-rock mining of the oxide (near surface) zone which contained "free"gold. It is likely that the re-grinding of the old tailings will be the major cost in such an operation.
The Placer work in the deeper zone has apparently been made viable because of their technology which will (hopefully) solve the very fine grind (and other problems) required to release sufficient gold and permit profitable gold production.
It is a "given" that Placer (and other mining companies) will establish detailed exploration elsewhere on the island (including Haiti) in a search for other gold deposits. Canadian Bob.

Here's the scenario...

Local community groups, environmental organization, and opposition political associations will all jump in the bandwagon condemning the Canadian mining operation. There will be acts of civil unrest and disobedience, strikes, road blockages including burning tires and debris. The police will try to quell the violence with tear gas, rubber bullets, and even real bullets. There will be one, two, maybe more deaths, many injured, and scores of arrest. At the national level, the opposition political parties will use the situation to attack the government. Opinion polls begin to show that the government party is losing favor among the electorate over the mining issue. The opposition parties promise the electorate to rescind the concession if they?re elected. Fearing defeat in the upcoming elections, the government starts to backtrack, but the concession contract can?t be broken outright, so the government starts to create difficulties, new demands, delays, etc., blocking the start of the operation. The difficulties make international news, and financial circles echo back home in Canada: Placer Dome is having trouble in the DR. Placer Dome stock takes a tumble?

Barrick buys Placer Dome
Canadian mining company Barrick, a world leader in the gold industry, took control of Pueblo Viejo Corporation (formerly Rosario Dominicana) when it purchased multinational Placer Dome, also a Canadian firm. The transaction began last year and is in its final phase, according to Diario Libre. Barrick has 27 mines in operation and projects in five continents. This is the third large Canadian company to change ownership in the country. The other two are Verizon Dominicana and Falconbridge.