Pascua-Lama is an open pit mining project of gold, silver, and copper in the Andes mountains, south of Atacama, straddling the border between Chile and Argentina at an altitude of over 4,500 metres.

Toronto-based Barrick Gold, the world's largest gold mining company, is developing the project. Pascua-Lama has caused controversy and public protest in Chile, including demonstrations and petitions presented to the Chilean government. However, Chile and Argentina have both approved the project, following thorough environmental reviews in both countries.

Pascua-Lama contains deposits of 17 million ounces of gold and 635 million ounces of silver, with 75 percent of the deposits in Chile and 25 percent in Argentina. Barrick now intends to commence construction on the mine in late 2007.

Controversy over the project...

Those protesting the project contend that it will involve the removal of 20 hectares of ice, a volume of 300,000 to 800,000 cubic metres, and that this will cause serious environmental harm. (However, the EIA and IIA approvals in both Chile and Argentina specifically preclude this from happening) and Barrick has confirmed it has no plans to move any ice or glaciers. To do so would be a violation of the permits granted by the relevant authorities

Opponents also contend that the project will affect the water supply of the 70,000 farmers in the Huasco valley, releasing cyanide and mercury into the valley's rivers, that the company has bought the support of the farmers with "social assistance" and promises of US$60 million for infrastructure work, and that the Mining Integration and Complementation Treaty was adopted under pressure from Barrick.

Barrick Gold contends that the project is environmentally friendly in terms of water treatment, and that the project will create 5,500 direct jobs during the mine's construction phase. It states that its US$1.5 billion investment "would be directly invested in the Huasco province in Chile and San Juan province in Argentina".